Atom Bank business banking review
Atom Bank is a UK-based digital-only bank specialising in business loans, savings accounts, and mortgages. As one of the first app-based banks, Atom Bank provides competitive interest rates and an entirely mobile-first experience for both personal and business customers.
Key features of Atom Bank
1. Business loans
- Secured business loans: Available from £250,000 to £5 million.
- Competitive fixed interest rates: Tailored based on loan amount and risk profile.
- Flexible repayment terms: Ranging from 2 to 30 years.
- Lending for SMEs and property investors: Focus on supporting UK businesses.
2. Business and personal savings accounts
- Fixed-term savings accounts: Competitive rates for 6-month to 5-year terms.
- No monthly fees: Transparent pricing with no hidden costs.
- FSCS protection up to £85,000: Safeguarding customer deposits.
- Fully app-based savings management: Allows easy deposit and tracking of funds.
3. Mortgages
- Residential and buy-to-let mortgages: Designed for homeowners and landlords.
- Competitive rates: Fixed and variable mortgage options.
- Digital application process: No branch visits required.
- Broker-led mortgage model: Available through intermediaries rather than direct applications.
4. Digital banking experience
- Mobile-only banking: No physical branches; everything is managed via the app.
- Biometric security: Facial and voice recognition for secure login.
- Real-time notifications: Keep track of transactions and loan repayments.
- Customer support via in-app chat: Human advisors available when needed.
Atom Bank fees and pricing
1. Business loan fees
- Interest rates: Customised based on risk assessment.
- Arrangement fees: Typically 1-2% of the loan amount.
- Early repayment fees: Vary depending on loan terms.
2. Savings account fees
- No setup or maintenance fees.
- Fixed-term deposits only: No access to funds until the term ends.
3. Mortgage fees
- Application and valuation fees: May apply depending on the property type.
- Early repayment charges: Based on loan terms and agreement.
Pros and cons of Atom Bank
Pros
- Competitive interest rates on savings and business loans.
- Fully digital experience with an easy-to-use mobile app.
- No monthly fees on savings accounts.
- Strong FSCS protection for customer deposits.
- Flexible loan terms suited for SMEs and property investors.
Cons
- No current accounts, limiting transactional banking options.
- No branch network, as everything is online.
- Limited product range, focusing only on loans, savings, and mortgages.
- Broker-only mortgages, requiring third-party intermediaries.
How Atom Bank compares to competitors
| Feature | Atom Bank | Starling Bank | Monzo Business | Revolut Business |
|---|---|---|---|---|
| Business loans | Yes | No | No | No |
| Savings accounts | Yes | Yes | No | Yes |
| Current accounts | No | Yes | Yes | Yes |
| Mobile-only banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | No |
| Ideal for | SMEs, property investors | SMEs, freelancers | Startups, SMEs | Freelancers, SMEs |
Who should use Atom Bank?
- SMEs needing secured business loans: Ideal for businesses requiring long-term funding.
- Property investors and landlords: Offers tailored buy-to-let mortgage solutions.
- Savers looking for high interest rates: Fixed-term deposits with competitive returns.
- Users comfortable with digital-only banking: Best suited for those who prefer app-based financial management.
Our verdict
Atom Bank is a fully digital bank focused on business loans, savings, and mortgages, making it a strong choice for SMEs, property investors, and savers seeking high interest rates. While it lacks current accounts and branch services, its competitive rates and mobile-first approach make it a viable alternative for businesses looking for long-term financial solutions.
For businesses and individuals comfortable with app-only banking and looking for business loans or savings accounts, Atom Bank presents a cost-effective and convenient option.