Redwood Bank business banking review
Redwood Bank is a UK-based challenger bank focused on providing business savings accounts and commercial mortgages. Launched in 2017, it is designed to support SMEs and property investors with competitive lending and deposit solutions.
Key features of Redwood Bank
1. Business savings accounts
- Competitive interest rates: Offers fixed-term and notice savings accounts.
- FSCS protection up to £85,000: Ensures deposit security.
- Minimum deposit of £10,000: Designed for business savings rather than everyday banking.
- Flexible withdrawal options: Notice accounts allow access with advance notice periods.
2. Commercial lending and business loans
- Commercial mortgages: Funding for business property purchases and refinancing.
- Property investment loans: Tailored for landlords and property developers.
- Secured business loans: Available for SMEs with property collateral.
- Loan terms from 3 to 25 years: Flexible repayment structures.
3. Digital banking and customer service
- Online account management: Fully digital banking platform.
- Dedicated relationship managers: Personalised support for business customers.
- No personal banking services: Focused entirely on business finance solutions.
- Strong customer service reputation: UK-based support team.
Redwood Bank fees and pricing
1. Business savings account fees
- No monthly maintenance fees.
- Early withdrawal penalties apply on fixed-term deposits.
- Minimum deposit requirement of £10,000.
2. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Interest rates: Customised based on business assessment.
- Early repayment charges: May apply to certain loans.
Pros and cons of Redwood Bank
Pros
- Competitive savings interest rates for businesses.
- Specialist commercial mortgage and lending solutions.
- FSCS protection for deposits up to £85,000.
- Dedicated relationship management for business clients.
- Fully digital banking for convenience.
Cons
- ❌ No personal banking or current accounts.
- ❌ High minimum deposit requirement for savings accounts.
- ❌ Limited product range compared to high-street banks.
- ❌ No branch network, digital-only banking model.
How Redwood Bank compares to competitors
| Feature | Redwood Bank | Shawbrook Bank | Aldermore Bank | OakNorth Bank |
|---|---|---|---|---|
| Business savings | Yes | Yes | Yes | Yes |
| Commercial mortgages | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital-only banking | Yes | No | No | Yes |
| Ideal for | SMEs, property investors | SMEs, landlords | SMEs, landlords | Business borrowers |
Who should use Redwood Bank?
- Businesses looking for high-yield savings accounts.
- Property investors needing flexible commercial mortgage solutions.
- SMEs requiring secured business loans.
- Companies comfortable with digital banking and no branch access.
Our verdict
Redwood Bank is a specialist challenger bank offering business savings accounts and commercial lending solutions. Its competitive interest rates and tailored mortgage options make it a strong choice for SMEs and property investors.
However, the lack of personal banking, high minimum deposit requirements, and digital-only model may not suit all businesses. For those seeking secure business savings and flexible commercial finance, Redwood Bank provides a trusted and competitive alternative to mainstream banks.