Aldermore business banking review
Aldermore is a UK-based bank that specialises in business banking, savings accounts, and commercial lending. Unlike traditional high-street banks, Aldermore operates primarily online, offering competitive savings and lending solutions for SMEs, landlords, and individuals.
Key features of Aldermore
1. Business savings accounts
- Easy Access Account: Allows businesses to deposit and withdraw funds flexibly.
- Fixed Rate Accounts: Offers higher interest rates for businesses willing to lock in funds for a set period.
- Notice Accounts: Requires a notice period before withdrawals but provides better rates than easy access.
- FSCS protection: Deposits are protected up to £85,000 per business under the Financial Services Compensation Scheme.
2. Business finance and lending
- Asset finance: Enables businesses to acquire equipment and vehicles without large upfront costs.
- Invoice finance: Helps businesses improve cash flow by unlocking funds tied up in unpaid invoices.
- Commercial mortgages: Provides funding for businesses looking to purchase or refinance commercial properties.
- Buy-to-let mortgages: Designed for professional landlords and property investors.
3. Personal savings accounts
- Easy Access Savings: No restrictions on withdrawals.
- Fixed Rate Bonds: Higher interest rates for savers willing to lock in their funds.
- Cash ISAs: Tax-efficient savings options.
4. Digital banking experience
- Online and mobile banking: Provides an intuitive digital experience for managing accounts.
- No branch network: Entirely online-based, meaning no physical banking locations.
- Dedicated customer support: Offers phone and online support for business and personal banking customers.
Aldermore fees and pricing structure
1. Business savings accounts
- No monthly fees for savings accounts.
- Competitive interest rates based on market conditions.
2. Business finance and lending fees
- Asset finance: Custom pricing based on business needs.
- Invoice finance: Fees typically based on a percentage of the invoice value.
- Commercial mortgages: Interest rates vary based on loan size, term, and risk profile.
3. Additional costs
- Early withdrawal penalties on fixed-term savings products.
- Arrangement fees for lending and finance solutions.
Pros and cons of Aldermore
Pros
- Competitive savings rates for businesses and individuals.
- Flexible business lending options including asset and invoice finance.
- Online and mobile banking with a user-friendly interface.
- FSCS protection up to £85,000 per business.
Cons
- No current accounts, limiting day-to-day business banking.
- No branch network, which may be a drawback for businesses preferring in-person banking.
- Early withdrawal penalties on fixed-term savings products.
How Aldermore compares to competitors
| Feature | Aldermore | Starling Bank | Metro Bank | HSBC Business |
|---|---|---|---|---|
| Business savings | Yes | No | Yes | Yes |
| Business lending | Yes | Limited | Yes | Yes |
| Current accounts | No | Yes | Yes | Yes |
| Online-only banking | Yes | Yes | No | No |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | SMEs, landlords, savers | SMEs, freelancers | SMEs, high-street banking | Large businesses, SMEs |
Who should use Aldermore?
- Businesses looking for high-yield savings: Offers competitive rates with FSCS protection.
- SMEs needing asset and invoice finance: Provides tailored lending solutions to support business growth.
- Property investors and landlords: Offers specialist buy-to-let mortgages and commercial property financing.
- Online banking users: Ideal for those comfortable managing finances digitally.
Our verdict
Aldermore is a strong choice for businesses, landlords, and savers looking for competitive savings accounts and lending solutions. While it lacks current accounts and branch locations, its high-interest savings and business finance options make it an attractive alternative to traditional banks.
For businesses that don’t require day-to-day banking but need competitive savings or access to lending, Aldermore provides a specialist, digitally-driven solution.