TSB business banking review
TSB Bank is a UK-based retail and business bank, offering a range of personal, business, and savings accounts. It focuses on providing accessible, customer-friendly banking with competitive digital services.
Key features of TSB
1. Personal and business current accounts
- Personal current accounts: Standard, student, and premium account options.
- Business banking accounts: Tailored for SMEs and sole traders.
- FSCS protection up to £85,000: Ensures deposit security.
- Classic Plus Account: Offers 3.00% interest on balances up to £1,500.
- Overdraft and credit facilities: Subject to approval and eligibility.
2. Business lending and commercial finance
- Business loans: Borrow from £1,000 to £100,000.
- Commercial mortgages: Funding for property purchases and refinancing.
- Asset finance: Helps businesses acquire essential equipment.
- Invoice finance: Unlocks cash flow from unpaid invoices.
3. Savings and investment products
- Instant access savings: Flexible withdrawal options.
- Fixed-term savings: Higher interest rates for long-term deposits.
- Cash ISAs: Tax-free savings for individuals.
- Business savings accounts: Secure fund management for corporate clients.
4. Digital and mobile banking
- TSB mobile banking app: Secure banking with real-time transaction updates.
- Online banking: Full banking functionality available online.
- Integration with accounting software: Works with Xero, QuickBooks, and Sage.
- Fraud detection and security tools: Biometric login, encryption, and instant alerts.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- International payments: Supports SWIFT, SEPA, and foreign exchange services.
- Trade finance: Solutions for import/export businesses.
TSB fees and pricing
1. Personal and business current account fees
| Account Type | Monthly Fee | Overdraft Charges | Additional Benefits |
|---|---|---|---|
| Classic Plus | £0 | Variable | 3.00% interest on balances up to £1,500 |
| Spend & Save Account | £0 | Variable | Cashback rewards |
| Business Plus | £5 | Variable | Free banking for 6 months for startups |
2. Transaction fees
- UK bank transfers: Free for most accounts.
- International transfers: Fees apply based on currency and destination.
- ATM withdrawals: Free in the UK; fees apply abroad.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: Apply to fixed-term business loans.
- Invoice finance fees: Charged as a percentage of the invoice value.
Pros and cons of TSB
Pros
- FSCS protection up to £85,000.
- Competitive personal and business savings rates.
- No monthly fees on basic current accounts.
- Strong digital banking features with biometric security.
- International banking and trade finance support.
Cons
- Limited physical branch network.
- Business banking fees after the free period.
- Higher international transfer fees compared to fintech banks.
- Strict eligibility criteria for lending products.
How TSB compares to competitors
| Feature | TSB | Barclays | HSBC | Lloyds |
|---|---|---|---|---|
| Personal current accounts | Yes | Yes | Yes | Yes |
| Business banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital banking | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | Yes |
| Cashback rewards | Yes | No | No | No |
| Ideal for | SMEs, personal banking, corporate clients | Startups, SMEs | Global businesses | UK-based businesses |
Who should use TSB?
- Individuals looking for interest-earning current accounts and cashback rewards.
- Startups and SMEs needing affordable business banking solutions.
- Businesses engaged in international trade requiring multi-currency accounts.
- Customers preferring a mix of digital and in-branch banking support.
Our verdict
TSB is a reliable UK bank offering a mix of personal, business, and savings accounts with a strong digital banking platform. Its interest-earning current accounts, business finance solutions, and FSCS protection make it a strong choice for individuals and SMEs.
However, limited branch access, business banking fees after the initial free period, and international transaction charges may deter some users. For those seeking a well-rounded banking experience with a strong digital focus, TSB remains a competitive option in the UK banking market.