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TSB started out in 1985. It was incorporated as Trustee Savings Bank plc and among its core products were saving accounts, current accounts, lending programs for small businesses, financing plans for charities, and debit and credit cards.
Today, there are more than 500 TSB locations throughout England, Scotland, and Wales providing services to an estimated 4.6 million customers. We review the service and see whether they are in the running with the best business bank accounts today in the UK.
What Services Are Offered By TSB Business Banking?
For more than 30 years, TSB has retained its core products for customers. Here are some of the services currently offered by TSB.
Savings Account
For business clients, TSB has the Easy Savings Account that pays out interest of 1% Gross/AER (variable) if your account balance maintains £5,000 or more.
However, if your account balance goes under £4,999, you will receive a lower rate of interest at -0.15% Gross/AER. For added convenience, you can open a savings account and manage its transactions online, on the phone, or physically at the branch.
Current Account
TSB offers two types of current accounts that cater to the needs of a small business and of a charity and non-profit organization. If your bank balance stays above £10,000, TSB will not levy any charges or fees.
If you’re switching from another bank, TSB will reward you for your decision by allowing you to avail of banking services without fees for 25 months. For £5 per month, you can manage your account online or with the bank’s 24/7 app.
Overdrafts
You can apply for an overdraft to cover some of your money needs but the amount of the draft will depend on what it will be used for. The standard charge for an overdraft is 11.36% EAR representative.
You will also be charged an arrangement fee that will range from £100 to £250 depending on the amount, length, and terms.
Business Finance And Loans
To finance your business’ needs, you can borrow an amount that ranges from £1,000 to £25,000 and payable over 1 to 10 years.
The standard interest rate is 9.94% APR representative (fixed). You’ll also be charged an arrangement fee of £100 to £250 depending on the amount, terms, and length of your lending agreement.
However, as of now, TSB is not accepting applications for business credit cards.
Reviews And Ratings For TSB
There is no such thing as a perfect organization. You can expect TSB to receive both positive and negative reviews. Here are a few of the groups that have reviewed and ranked TSB.
Trustpilot
Mostly unfavorable reviews; respondents point out TSB’s unreliable customer service due to technical issues when using online channels plus getting charged for fees that weren’t previously disclosed.
Reviews.co.uk
The website currently gives TSB two 5-star reviews.
Smart Money People
50-50 positive and negative reviews. Those that gave positive reviews love the friendly service but those with the opposite view blame the slow service for the negative reviews.
On Which?
Gave TSB a score of ⅗ for service in-branch, the application process, and level of communication and ⅖ for online/phone-in banking, customer service, ability to resolve complaints, and disclosure of charges.
Independent survey – TSB was ranked 14th out of 14 for overall service quality, current account providers, relationship management, online/phone-in banking services; 7th for service in-branch, and 12th for overdraft and lending programs. Here is a round-up of the ratings:
- Trustpilot – 1.⅘; 933 reviews
- Reviews.co.uk – 5/5; 2 reviews
- Smart Money People – 3.06/5; 17 reviews
- Which? – 58%
Summary of the Pros and Cons
Pros:
- Basic banking products that are applicable to the needs of different small businesses.
- A comparatively high rate of interest earned by savings accounts.
- The 25 months’ free banking service for those who switch to TSB.
Cons:
- Generally low scores on surveys and reviews.
- No TSB branch in Northern Ireland.
- Only one savings and current account to choose from as options.