OakNorth business banking review
OakNorth is a UK-based digital bank specialising in business lending, commercial mortgages, and savings accounts. It is known for its flexible SME financing solutions and competitive fixed-term savings rates.
Key features of OakNorth
1. Business lending and commercial finance
- SME business loans: Flexible loans for growing businesses.
- Commercial property finance: Loans for property acquisition and development.
- Working capital solutions: Helps businesses manage cash flow.
- Structured finance: Custom lending solutions for larger enterprises.
2. Savings accounts
- Fixed-term savings accounts: Competitive interest rates for deposits from 6 months to 5 years.
- Easy access savings: Limited options available for individual customers.
- Business savings accounts: High-yield savings solutions for companies.
- FSCS protection up to £85,000 per eligible depositor.
3. Digital banking and customer support
- Online account management: Fully digital banking experience.
- Dedicated relationship managers: Personalised service for business clients.
- No branch network: Operates as a fully digital bank.
- Customer support via phone and online chat.
OakNorth fees and pricing
1. Business lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Interest rates: Custom rates based on business risk assessment.
- Early repayment charges: May apply on certain loan products.
2. Savings account fees
- No maintenance fees.
- Early withdrawal penalties: Apply to fixed-term savings accounts.
Pros and cons of OakNorth
Pros
- Competitive fixed-term savings rates.
- Specialist business lending tailored for SMEs.
- Fully digital banking platform.
- FSCS protection for savings deposits.
- Dedicated relationship managers for business clients.
Cons
- No personal current accounts.
- Limited savings products for everyday customers.
- No branch network.
- Early withdrawal penalties on fixed-term savings.
How OakNorth compares to competitors
| Feature | OakNorth | Shawbrook Bank | Aldermore Bank | Hampshire Trust Bank |
|---|---|---|---|---|
| Business lending | Yes | Yes | Yes | Yes |
| Fixed-term savings | Yes | Yes | Yes | Yes |
| Easy access savings | Limited | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital-only banking | Yes | No | No | No |
| Ideal for | SMEs, property investors | SMEs, savers | SMEs, landlords | Business borrowers |
Who should use OakNorth?
- SMEs looking for flexible business loans.
- Property developers needing commercial mortgages.
- Individuals and businesses seeking high-interest fixed-term savings.
- Companies that prefer digital banking with dedicated support.
Our verdict
OakNorth is a leading digital bank specialising in SME lending and high-yield savings. Its flexible business finance solutions and competitive fixed-term deposits make it a great choice for entrepreneurs, property investors, and savers looking for strong returns.
However, the lack of personal current accounts and limited everyday savings options may not suit those seeking a full-service retail bank. For businesses needing custom lending solutions and high-yield savings, OakNorth provides a strong, digital-first banking alternative.