Co-Operative Bank business banking review
The Co-Operative Bank is a UK-based ethical banking provider offering business and personal banking services. It is known for its ethical banking policies and commitment to social and environmental responsibility.
Key features of Co-Operative Bank
1. Business and personal current accounts
- Ethical banking approach: Ensures funds are not invested in harmful industries.
- FSCS protection up to £85,000 per eligible depositor.
- Overdraft facilities: Subject to eligibility and financial assessment.
- 24/7 digital banking: Manage accounts through online and mobile banking.
2. Business lending and finance
- Business loans: Secured and unsecured loans available.
- Commercial mortgages: Financing options for property acquisition.
- Invoice finance: Helps businesses manage cash flow by unlocking invoice payments.
- Asset finance: Enables businesses to fund equipment and vehicle purchases.
3. Savings and investment products
- Instant access savings: Flexible withdrawals while earning interest.
- Fixed-term deposits: Higher interest rates for long-term savings.
- ISAs: Tax-free savings accounts for individuals.
- Charity and community accounts: Specialised savings solutions for ethical organisations.
4. Digital banking services
- Secure online banking: Encrypted transactions with fraud detection features.
- Mobile app: Allows access to accounts and transactions from anywhere.
- Integration with accounting software: Compatible with Xero and QuickBooks.
5. Ethical banking policies
- Exclusion of harmful industries: No investments in fossil fuels, arms, or unethical businesses.
- Support for sustainability initiatives: Focuses on renewable energy and fair trade projects.
- Commitment to community investment: Provides funding and support for charitable organisations.
Co-Operative Bank fees and pricing
1. Business current account fees
- Monthly account fees: From £7.00 per month, depending on the account type.
- Transaction fees: Charges may apply for cash deposits, withdrawals, and cheque processing.
- Overdraft fees: Varies based on borrowing amount and financial assessment.
2. Savings account fees
- No maintenance fees.
- Competitive interest rates based on deposit type and term length.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: May apply on fixed-rate business loans.
- Invoice finance fees: Charged as a percentage of the invoice value.
Pros and cons of Co-Operative Bank
Pros
- Strong ethical banking policies that exclude harmful investments.
- Comprehensive business banking solutions, including lending and savings.
- Secure digital banking with strong fraud prevention tools.
- Dedicated support for community and charity accounts.
- FSCS protection up to £85,000 per eligible depositor.
Cons
- Monthly fees apply to most business accounts.
- Limited branch network, making in-person banking less accessible.
- Fewer investment options compared to larger banks.
- Overdraft and lending fees vary, requiring financial assessment.
How Co-Operative Bank compares to competitors
| Feature | Co-Operative Bank | Barclays Business | HSBC Business | Starling Business |
|---|---|---|---|---|
| Business current accounts | Yes | Yes | Yes | Yes |
| Monthly fees | £7.00+ | £8-£12.50 | £6.50-£12.50 | Free |
| Ethical banking policies | Yes | No | No | No |
| Business lending | Yes | Yes | Yes | No |
| Digital banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Ideal for | Ethical businesses, charities, SMEs | SMEs, startups | SMEs, corporates | Startups, freelancers |
Who should use Co-Operative Bank?
- Ethically conscious businesses and individuals: Ideal for those prioritising sustainability and responsible banking.
- Charities and community organisations: Specialised accounts and support available.
- SMEs needing business loans: Offers competitive lending solutions.
- Customers comfortable with digital banking: Provides strong online and mobile banking services.
Our verdict
Co-Operative Bank is a leading ethical banking provider offering current accounts, savings, and lending solutions with a strong commitment to social and environmental responsibility. While monthly fees and a limited branch network may deter some customers, its ethical approach and strong digital banking services make it a top choice for businesses, charities, and individuals looking for responsible banking solutions.
For businesses and individuals seeking financial services that align with ethical values, Co-Operative Bank provides a trustworthy and socially responsible alternative to mainstream banks.