Provider review
Lloyds Business
A conventional high-street account with one unusual feature: two different cash deposit prices, and the gap between them is wide enough to change your annual cost.
Who holds your money
Lloyds Bank plc, holder of a full UK banking licence, authorised by the PRA and regulated by the FCA and PRA. Bank of Scotland business accounts share much of the same structure.
Eligible deposits protected up to £120,000 per eligible depositor, shared across Lloyds Banking Group brands including Bank of Scotland and Halifax.
Verify the firm reference number on the FCA Financial Services Register before relying on this.
Scorecard
Seven criteria, each weighted. Every score below says what drove it.
Outside the published top five on every measure in the CMA survey.
Competent rather than distinguished. Business Finance Assistant is not a full accounting package.
FSCS to £120,000, shared with Bank of Scotland and Halifax.
Cheaper than most at a paying-in machine, close to double that over the counter.
0.50% AER with no plan fee to reach it, worth about £125 a year on £25,000.
Around £0.85 per £100 at a paying-in machine against roughly £1.50 at the counter — check your branch has a machine before relying on it.
Broad, with standard high-street exclusions.
Weighted total 3.5 / 5. Weightings published on how we rate.
Service quality evidence
| Overall service quality | Joint 10th, 60% |
| Online and mobile banking | Joint 6th, 73% |
| Relationship management | 14th, 57% |
Independent survey of around 1,200 SME customers a year per provider, conducted by BVA BDRC (now part of Ipsos) and published by the CMA in August 2026. All 17 surveyed providers are ranked; a provider shows as not ranked only where it does not offer the service or fewer than 100 of its customers gave an eligible score.
Interest on balances
Verified from provider site| Rate on the free tier | 0.50% |
| Best sustainable rate | 0.50% |
| Extra cost to reach it | None |
| Access | Instant access |
| Net on £25,000 | £125 |
The Instant Access Account pays 0.50% to 1.21% AER tiered by balance — the lowest instant rate of any provider we track. Notice accounts (32 or 95 day) pay 1.87% to 2.66% and fixed term 1.31% to 2.75%, but both require a £10,000 minimum deposit. Verified against lloydsbank.com, 5 August 2026.
Affiliate note
Where we hold a commercial arrangement with a provider, this box says so and every link on the page is marked. Commission never affects the score or the ranking.
Fees are checked against the provider’s published tariff. If a page has not been re-checked within 60 days, it says so at the top.
The verdict
Lloyds runs the standard high-street model: twelve months of free banking for new businesses, then a monthly fee, with transaction charges on top. Branch access, cheque handling, overdrafts and lending all come as part of the package, and Business Finance Assistant is included as accounting software.
What distinguishes Lloyds is the cash tariff. Deposits made at a paying-in machine cost meaningfully less per £100 than deposits made over the counter — roughly £0.85 versus £1.50. For a business banking £2,000 a week that difference compounds into hundreds of pounds a year for the identical transaction.
Almost nobody notices this when choosing an account, and it is one of the clearest examples of why the headline monthly fee is the least interesting number on a tariff sheet. If you can reliably use a machine, Lloyds becomes considerably more competitive against Barclays and NatWest. If your local branch has no machine, or your deposits need a counter for other reasons, it does not.
Electronic payments come with a generous free allowance before per-item charges begin, which covers most small businesses — though a payroll run plus a supplier batch in the same week can push you over faster than you would expect.
Who it suits
- Cash businesses near a branch with a deposit machine, where the cheaper tariff applies.
- Businesses wanting branch access and lending in one relationship.
- Sole traders and single-director companies under the turnover threshold, who can apply in-app.
Who should look elsewhere
- Businesses that must use a counter. The higher tariff erodes the advantage over rivals.
- Very high-volume payers. Check the free transaction allowance carefully.
- Digital-only businesses. Free digital accounts are simply cheaper.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| Business Current AccountBranch and app access, cheque handling, overdrafts and lending on application, Business Finance Assistant software. | 12 months free, then a monthly fee | Verify current tariff |
| Bank of Scotland BusinessSame group, similar structure, Scottish branding and branch network. | 12 months free, then a monthly fee | Verify current tariff |
Pricing must be verified against the provider's own site before publication. Providers reprice without notice.
The fees that are not in the headline
The monthly fee is what gets advertised. These are the charges that decide what you actually pay.
| Charge | Cost | Who it affects |
|---|---|---|
| Monthly account fee | Free for 12 months, then monthly | Everyone from year two. |
| Cash paid in at a machine | Around £0.85 per £100 | The cheaper of the two routes — use it where you can. |
| Cash paid in over the counter | Around £1.50 per £100 | Nearly double the machine rate for the same money. |
| Electronic payments out | Around 100 free per month, then per item | Most businesses stay under; payroll plus supplier batches can breach it. |
| Electronic payments in | Free, no monthly limit | Everyone. |
| Unarranged overdraft | Monthly fee plus interest above a threshold | Anyone running close to zero. |
Applying
Sole traders and companies with a sole director under a turnover threshold can apply in-app relatively quickly. Larger or more complex businesses go through a fuller process.
Expect the standard requirements: photo ID, proof of address, Companies House details, expected turnover and a description of the business.
Where applications fail
- Companies House mismatch — details must match exactly.
- Higher-risk sectors — group appetite rules apply.
- Overseas ownership — extends checks considerably.
- Inconsistent turnover projections — expect questions if the numbers do not fit the business type.
Alternatives worth costing
- Barclays Business — Larger branch network, single counter cash rate.
- NatWest Business — Free FreeAgent included, comparable tariff.
- Starling Business — Free permanently if you can live without a branch.
Lloyds questions
How much does Lloyds charge for cash deposits?
Roughly £0.85 per £100 at a paying-in machine and around £1.50 per £100 over the counter. For a business depositing £2,000 a week, that gap is worth hundreds of pounds a year. Verify current figures on the Lloyds site before applying.
How many free transfers does a Lloyds business account include?
Around 100 outgoing electronic payments a month are typically free, with a per-item charge above that. Incoming electronic payments are free with no monthly limit.
Is a Lloyds business account FSCS protected?
Yes, up to £120,000 per eligible depositor, shared across Lloyds Banking Group brands including Bank of Scotland and Halifax.
Is Bank of Scotland the same as Lloyds for business banking?
They are part of the same group and the business accounts share much of their structure, including the FSCS limit. The main differences are branding and branch network.