Allica Bank might only have launched in 2020, but it has made a big impression. Specially designed for small and medium-sized businesses, the Allica Bank Business Saving Account offers award-winning products with competitive interest rates.
In this Allica Bank Business Savings Account review, we’ll examine the pros and cons of their product range and answer your most frequently asked questions.
Allica Bank Business Savings Account Review: My Verdict
Allica Bank’s Business Savings Accounts stand out for their strong interest rates and ease of online management.
The variety of accounts on offer—from easy access to fixed-rate and notice accounts—gives businesses the flexibility to tailor their savings strategy based on cash flow requirements. Interest rates, especially for notice and fixed-rate accounts, are highly competitive, with the 180-day notice account offering an attractive 5.01% AER.
However, the high minimum deposit requirement of £20,000 may deter smaller businesses or individuals with less available capital. Similarly, while convenient for some, Allica Bank’s entirely digital approach might not appeal to those who prefer physical branches or in-person service.
Pros & Cons of Allica Bank Savings
Pros
- High Interest Rates: Competitive interest rates across different account types (up to 5.01% AER) depending on the notice period or term selected.
- Flexible Options: A range of savings accounts is available, including easy access, notice, and fixed-rate options, allowing you to choose based on your cash flow needs.
- FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- No Fees: All accounts come with no maintenance or management fees.
- Online Account Management: Accounts can be fully managed online through the Internet Banking Service, with balance viewing available on the mobile app.
- Large Deposit Limits: Suitable for larger businesses, with deposit balances ranging from £20,000 to £2 million.
- Helpful Customer Service: Their UK-based customer support is quick to help you if you need assistance.
- Fast Sign-up: Opening a business savings account is quick and straightforward.
Cons
- High Minimum Deposit: A £20,000 minimum deposit may be restrictive for smaller businesses or individuals with lower savings.
- Limited Deposit Methods: Cash, cheques, and banker’s drafts are not accepted, which might inconvenience businesses that handle these frequently.
- No Physical Branches: There are no physical branches, but Allica Bank does have Relationship Managers who travel across England, Scotland and Wales to assist Business Rewards Account customers.
- Limited Support Hours: Customer service isn’t available 24/7, which could be an issue during emergencies.
- Not as Familiar: Allica Bank is not as well-known as some larger banks, so some businesses may prefer the familiarity of a more established institution.
- Fewer Extras: Allica Bank offers fewer perks or additional services than larger banks.
Types of Allica Savings Accounts
Allica offers a range of dedicated savings accounts, including easy access, notice and fixed rate.
The table below shows the different savings options in detail.
| Easy Access Savings Account | 95-Day Notice Savings Account | 180-Day Notice Savings Account | 6-Month Fixed Rate Savings Account | 12-Month Fixed Rate Savings Account | |
| Interest Rate (AER) | 4.01% (variable) | 4.75% (variable) | 5.01% (variable) | 4.60% (fixed) | 4.75% (fixed) |
| Term Length | Unlimited | Unlimited | Unlimited | 6 months | 12 months |
| Balance Range | £20,000 to £2,000,000 | £20,000 to £2,000,000 | £20,000 to £2,000,000 | £20,000 to £2,000,000 | £20,000 to £2,000,000 |
| Interest Payment | Calculated daily. Paid annually. | Calculated daily. Paid annually. | Calculated daily. Paid annually. | Calculated daily. Paid at maturity. | Calculated daily. Paid at maturity. |
| Withdrawal Terms | Withdraw any time without limits | Must give 95 days’ notice before withdrawal | Must provide 180 days’ notice before withdrawal | No withdrawals until maturity. | No withdrawals until maturity. |
| FSCS Protection | ✅ | ✅ | ✅ | ✅ | ✅ |
| Learn More | Easy Access Account | 95-Day Notice Account | 180-Day Notice Account | 6-Month Fixed Rate Account | 12-Month Fixed Rate Account |
Easy Access Business Savings Account
Key Features
- Interest Rate: 4.01% AER (variable)
- Interest Calculation: Calculated daily and paid annually on the anniversary of account opening.
- Term: No set period.
- Deposit Requirements: Minimum balance of £20,000 and maximum balance of £2 million. Unlimited deposits can be made up to the maximum balance. Cash, banker’s drafts, and cheques cannot be deposited into the account.
- Withdrawals: Easy access with no withdrawal limits. Withdrawals must be requested through online banking (unavailable via the mobile app).
- Account Closure: Any time by withdrawing the full balance.
- Account Management: Through online banking, viewing access via the mobile app.
- FSCS Protection: Eligible deposits up to £85,000 are covered.
Notice Business Savings Accounts
95-Day Notice Savings Account
Key Features
- Interest Rate: 4.75% AER (variable)
- Interest Calculation: Calculated daily and paid annually on the anniversary of account opening.
- Term: No set period
- Deposit Requirements: Minimum balance of £20,000 and maximum balance of £2 million. Unlimited deposits can be made up to the maximum balance. Cash, banker’s drafts, and cheques cannot be deposited.
- Withdrawals: 95 days’ notice must be given before making a withdrawal. Withdrawals only through online banking, paid into a linked nominated account. No weekend withdrawals or instructions via the mobile app.
- Account Closure: 14-day cooling off period, after which 95 days’ notice is required to close the account.
- Accounting Management: Managed via online banking; balance viewable in the mobile app.
- FSCS Protection: Eligible deposits up to £85,000 are covered.
180-Day Notice Savings Account
Key Features
- Interest Rate: 5.01% AER (variable)
- Interest Calculation: Calculated daily and paid annually on the anniversary of account opening.
- Term: No set period
- Deposit Requirements: Minimum balance of £20,000 and maximum balance of £2 million. Unlimited deposits can be made up to the maximum balance. Cash, banker’s drafts, and cheques cannot be deposited.
- Withdrawals: 180 days’ notice must be given before making a withdrawal. Withdrawals only through online banking, paid into a linked nominated account. No weekend withdrawals or instructions via the mobile app.
- Account Closure: 14-day cooling off period, after which 180 days’ notice is required to close the account.
- Accounting Management: Managed via online banking; balance viewable in the mobile app.
- FSCS Protection: Eligible deposits up to £85,000 are covered.
Fixed-Rate Business Savings Accounts
6-Month Fixed Rate Savings Account
Key Features
- Interest Rate: 4.60% AER (fixed)
- Interest Calculation: Calculated daily and paid at the end of the 6-month term.
- Term: 6 months
- Deposit Requirements: A minimum deposit of £20,000 and a maximum balance of £2 million are required. You have 14 days after account opening to deposit funds using Faster Payments or CHAPS.
- Withdrawals: No withdrawals are allowed before the end of the 6-month term. Instructions must be given through online banking. Funds are placed in an Easy Access holding account if no instructions are received.
- Account Closure: No cooling-off period.
- Accounting Management: Fully managed online
- FSCS Protection: Eligible deposits up to £85,000 are covered.
12-Month Fixed Rate Savings Account
Key Features
- Interest Rate: 4.75% AER (fixed)
- Interest Calculation: Calculated daily and paid at maturity (12 months)
- Term: 12 months
- Deposit Requirements: A minimum deposit of £20,000 and a maximum balance of £2 million are required. You have 14 days after account opening to deposit funds using Faster Payments or CHAPS.
- Withdrawals: No withdrawals are allowed before the end of the 12-month term. Instructions must be given through online banking. Funds are placed in an Easy Access holding account if no instructions are received.
- Account Closure: No cooling-off period.
- Accounting Management: Fully managed online
- FSCS Protection: Eligible deposits up to £85,000 are covered.
Business Rewards Account Instant Access Savings Pot
Whilst this article focuses on Allica’s dedicated savings account, it’s worth noting that Allica’s business current account also has savings features.
Existing Allica Bank Business customers are eligible for an Allica Business Rewards Account. Although this is a current account, not a dedicated business savings account, you can attach a savings pot. This savings pot acts similarly to an easy-access savings account where you can make unlimited deposits and withdrawals, giving you more financial flexibility.
If you’re not a current Allica Bank Business customer, you can join a waiting list to be notified when the Business Rewards Account becomes available.
Any money in your savings pot will earn up to 4.58% AER (variable) interest*, as well as up to 1.5% cashback on eligible card spending.
*Rate includes standard rate of 3.58% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS. Eligibility criteria and T&Cs apply.
Fees and Charges for Business Savings
There are no fees associated with holding an Allica Fixed-Term Business Savings Account.
Eligibility Criteria for Business Savings
To be eligible for an Allica Bank business savings account, you must:
- Be over 18 years old
- Be a UK resident
- Be a UK-based business registered with Companies House
- Be either director or company secretary with authority and consent.
- Have a UK business account
- Have a valid and current email address
Ineligible Industries
Certain businesses are unable to open an account at Allica Bank, including:
- Adult entertainment businesses
- Businesses that test animals
- Companies that make or sell weapons
- Businesses that make or sell nuclear technology or weapons
- Embassies and consulates
- Non-profit organisations
- Businesses that mine coal, lignite, oil, or natural gas
- Professional football clubs
- Casinos and gambling businesses, including online gambling
- Businesses that make or sell illegal drugs or “legal highs.”
- Marijuana businesses
- Dealers of precious metals and stones
- Charities that are not registered or regulated
- Companies that provide payment services or money transfer services
- Businesses that deal in cryptocurrencies
- Businesses that operate without licenses in industries that require licenses
Allica Bank Online Banking Experience
The Allica Bank Business Savings Account is managed entirely online, from opening an account to making payments.
When you set up your savings account, you will be asked to create a password and memorable data to keep your account secure.
You can use online banking via the Allica website or download the Allica Bank app from the Apple Store or Google Play Store.
Through the app, you can update your details, monitor spending in your Business Rewards Account and track interest in your business savings account.
You may need to download the app to confirm your identity, taking advantage of its biometric security features.
I found the app to be easy to use and intuitive. However, as there is no in-app withdrawal feature, you’ll still have to use online banking, making it less convenient.
Customer Service at Allica Bank
Although Allica Bank doesn’t have physical branches in the UK, it has several ways you can access support, including:
- Dedicated relationship managers who travel across England, Scotland and Wales to provide convenient support for Business Rewards account holders
- A UK-based support team to help with any issues or answer queries between 9 am – 5 pm, Monday to Friday.
- Live chat and website messaging
Customer Reviews and Ratings
As of October 2024, the bank has gained 978 reviews on Trustpilot, achieving an impressive average rating of 4.5 out of 5, 78% of which gave Allica a perfect score.
Customers of Allica Bank have expressed high satisfaction on Trustpilot, describing their experiences as “outstanding” in terms of the ease of application process and “straightforward” for account opening. Additionally, savings schemes are praised for being “easy to understand” and offering “good” interest rates.
Allica Bank’s savings accounts boast a high TrustScore of 4.82 from 1,312 reviews on Smart Money People, with 85% of customers giving a 5-star rating, highlighting ease of use, competitive interest rates, and efficient online setup.
Similarly, the app experience has gained 878 reviews on the Apple Store, achieving an average rating of 4.7 out of 5 and 170 reviews on the Google Play Store, with an average rating of 4.7 out of 5.
Users praise the app’s smooth sign-up process and quick access to account details. However, there are a few suggestions for improvement, such as the absence of a withdrawal option in the app and issues with functionality after a recent update. Most users find the app reliable, intuitive, and well-designed, making their banking experience with Allica positive.
How to Open an Account
- Application: Apply for a savings account online through the Allica Bank website. A director or company secretary must make the application with permission and authority to open an account on the business’s behalf.
- Identity Checks: Allica Bank will verify the identity and address of 2 directors, shareholders and persons of significant control in your business. Anti-money laundering, fraud, and credit checks will be conducted, and additional screening checks may be undertaken using external agencies or documentary evidence.
- Approval: Once approved, you must deposit at least £20,000 into your account within 14 days from another UK bank account. This account must be held in the same business name as your savings account and should be where you wish to withdraw your savings at the end of the fixed-term period. All payments must be made in Pounds Sterling through Faster Payments or a transfer from another Allica account. CHAPS payments will not be accepted.
Alternatives to Allica Bank
| Bank | Max Interest Rate | Max Interest Rate | Max Interest Rate | FSCS Covered |
|---|---|---|---|---|
| Allica Bank Fixed-Rate Savings Accounts | 4.75% AER | 6, 12 or 24 months | £20,000 | ✅ |
| Aldermore Fixed-Rate Savings Accounts | 4.00% AER | 6 or 12 months | £1,000 | ✅ |
| Redwood Fixed-Rate Savings Accounts | 5.05% AER | 12 months | £1,000 | ✅ |
| Cambridge & Counties Fixed-Rate Savings Accounts | 5.20% AER | 12, 24 or 60 months | £10,000 | ✅ |
| Metro Fixed-Rate Savings Accounts | 5.52% AER | 3, 6, 12 or 24 months | £5,000 | ✅ |
Allica Bank FAQs
Is Allica Bank Regulated?
Yes, Allica Bank obtained its full banking licence in September 2019 before launching in March 2020.
They’re regulated by the Financial Conduct Authority and the Prudential Regulation Authority, with deposits of up to £85,000 covered by the FSCS.
Can I Withdraw Money From My Allica Bank Business Savings Account?
Whether you can withdraw money from your Allica Bank Business Savings Account depends on the type of account you hold. You can make unlimited withdrawals from the Instant Access Savings Pot and Easy Access Savings Account without penalty or fee. If you hold a Notice Business Savings Account, you’ll need to give either 95 or 180 days’ notice before making your withdrawal. For Fixed-Rate Business Savings Accounts, you can only withdraw money after the specified period expires.
How Often is Interest Credited to Allica Business Savings Accounts?
You’ll earn interest on your money from the day it is received in your business savings account. For all savings accounts, interest is calculated daily. Interest on the Instant Access Savings Pot, and Easy Access and Notice Accounts are paid annually, whilst the Fixed-Rate Accounts are credited at maturity.
What Happens When My Allica Bank Fixed-Rate Business Saving Account Mature?
Allica Bank will contact you approximately 30 days before your account is due to reach maturity to obtain instructions for the account balance.
You can change your maturity instructions online until 5 pm on the business day before the date your account matures.
If you don’t provide the instructions, your balance will be put into a Holding Account, which earns a variable interest rate of 0.2% AER.
