Clydesdale Bank business banking review
Clydesdale Bank is a UK-based retail and commercial bank, offering a range of business and personal banking services. It is part of the Virgin Money UK Group, providing banking solutions to individuals, SMEs, and corporate customers.
Key features of Clydesdale Bank
1. Business and personal current accounts
- Multiple account options: Tailored for individuals, SMEs, and corporate clients.
- Fee-free periods for startups: Offers up to 25 months of free business banking.
- Overdraft facilities: Customised borrowing solutions for eligible businesses.
- FSCS protection up to £85,000 per eligible depositor.
2. Business lending and finance
- Business loans: Fixed and variable rate loans available.
- Asset finance: Funding for purchasing business equipment and vehicles.
- Invoice finance: Unlocks cash flow from unpaid invoices.
- Commercial mortgages: Loans for purchasing or refinancing business premises.
3. Savings and investment products
- Instant access savings: Flexible accounts for personal and business customers.
- Fixed-term deposits: Higher interest rates for long-term savings.
- Cash ISAs: Tax-free savings for eligible individuals.
4. Digital banking services
- Online and mobile banking: Manage accounts, payments, and transfers.
- Integration with accounting software: Compatible with Xero and QuickBooks.
- Secure banking features: Two-factor authentication and fraud prevention tools.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- International payments: Competitive FX rates for global transactions.
- Trade finance solutions: Letters of credit and structured trade solutions for businesses.
Clydesdale Bank fees and pricing
1. Business current account fees
- Startup fee-free period: Up to 25 months for eligible new businesses.
- Monthly account fees: Ranges from £6.50 to £12.50, depending on the account type.
- Transaction fees: Apply to cash deposits, withdrawals, and cheque processing.
- Overdraft fees: Interest and arrangement fees vary based on borrowing amount.
2. Savings account fees
- No maintenance fees.
- Interest rates vary based on account type and term.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: May apply to fixed-rate business loans.
- Invoice finance fees: Charged as a percentage of the invoice value.
Pros and cons of Clydesdale Bank
Pros
- Comprehensive business banking solutions, including lending and savings.
- Strong digital banking platform with security features.
- Extended fee-free periods for startups and new businesses.
- FSCS protection up to £85,000 per eligible depositor.
- International banking services with foreign currency accounts.
Cons
- Monthly fees on business accounts after the introductory period.
- Transaction fees apply, depending on the account type.
- Branch network is limited, as banking moves toward digital services.
- Overdraft and lending fees depend on business risk assessment.
How Clydesdale Bank compares to competitors
| Feature | Clydesdale Bank | Barclays Business | HSBC Business | Virgin Money |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Monthly fees | £6.50 – £12.50 | £8 – £12.50 | £6.50 – £12.50 | £6.50 – £12.50 |
| Startup fee-free period | Up to 25 months | 12 months | 18 months | 25 months |
| Business lending | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | No |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | SMEs, corporate clients | SMEs, startups | SMEs, corporates | SMEs, startups |
Who should use Clydesdale Bank?
- Startups and SMEs: Ideal for businesses needing a long fee-free banking period.
- Companies with international operations: Offers foreign currency accounts and trade finance.
- Businesses seeking lending options: Provides commercial loans, invoice finance, and asset finance.
- Entrepreneurs preferring a mix of digital and branch banking: Offers both online banking and physical branch access.
Our verdict
Clydesdale Bank is a well-established business bank offering current accounts, lending solutions, savings, and international banking services. While it has monthly fees after the introductory period, its strong digital banking platform, extended startup fee-free period, and business lending options make it a strong choice for SMEs and corporate clients.
For businesses looking for long-term financial support and international banking solutions, Clydesdale Bank provides a trusted and comprehensive banking experience.