Santander business banking review
Santander UK is a major high-street and online bank, offering personal, business, and corporate banking solutions. It is part of the global Santander Group, providing a strong network for international banking and financial services.
Key features of Santander
1. Personal and business current accounts
- Personal current accounts: Includes standard, premium, and student options.
- Business banking accounts: Tailored for SMEs and large businesses.
- FSCS protection up to £85,000: Ensures deposit security.
- 123 Current Account: Offers cashback on household bills.
- Overdraft and credit facilities: Subject to approval.
2. Business lending and commercial finance
- Small business loans: Borrow from £1,000 to £25 million.
- Commercial mortgages: Funding for property purchase and refinancing.
- Invoice finance: Unlocks cash flow from outstanding invoices.
- Asset finance: Helps businesses acquire essential equipment.
3. Savings and investment products
- Instant access savings: Flexible withdrawal options.
- Fixed-term savings: Competitive interest rates for long-term deposits.
- Cash ISAs: Tax-free savings for individuals.
- Business savings accounts: Secure funds management for companies.
4. Digital and mobile banking
- Santander mobile app: Secure banking with real-time transaction updates.
- Online banking: Full functionality for personal and business accounts.
- Integration with accounting software: Works with Xero, QuickBooks, and Sage.
- Fraud detection and security tools: Biometric login, encryption, and instant alerts.
5. International banking services
- Foreign currency accounts: Hold and transact in multiple currencies.
- International payments: Supports SWIFT, SEPA, and FX services.
- Trade finance: Solutions for global businesses.
Santander fees and pricing
1. Personal and business current account fees
| Account Type | Monthly Fee | Overdraft Charges | Additional Benefits |
|---|---|---|---|
| Everyday Current Account | £0 | Variable | Standard banking features |
| 123 Current Account | £4 | Variable | Cashback on bills |
| Business Account | £0 – £12.50 | Variable | Free banking for startups (18 months) |
2. Transaction fees
- UK bank transfers: Free for most accounts.
- International transfers: Fees apply based on currency and destination.
- ATM withdrawals: Free in the UK; fees apply abroad.
3. Lending fees
- Loan arrangement fees: Typically a percentage of the loan amount.
- Early repayment fees: Apply to fixed-term business loans.
- Invoice finance fees: Charged as a percentage of invoice value.
Pros and cons of Santander
Pros
- Comprehensive range of personal and business banking services.
- Strong digital banking features with a user-friendly app.
- FSCS protection up to £85,000.
- Competitive cashback rewards on some accounts.
- International banking and trade finance solutions.
Cons
- Monthly fees on premium accounts.
- Business account fees apply after the free period.
- Higher international transaction fees compared to fintech banks.
- Strict lending criteria for some business loans.
How Santander compares to competitors
| Feature | Santander | Barclays | HSBC | NatWest |
|---|---|---|---|---|
| Personal current accounts | Yes | Yes | Yes | Yes |
| Business banking | Yes | Yes | Yes | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) | Yes (£85,000) |
| Digital banking | Yes | Yes | Yes | Yes |
| International banking | Yes | Yes | Yes | Yes |
| Cashback rewards | Yes | No | No | No |
| Ideal for | Individuals, SMEs, corporates | Startups, SMEs | Global businesses | UK-based businesses |
Who should use Santander?
- Individuals looking for cashback rewards and competitive current accounts.
- Startups and SMEs needing flexible business banking.
- Businesses engaged in international trade and transactions.
- Customers preferring a high-street bank with strong digital banking features.
Our verdict
Santander is a leading UK bank offering a wide range of personal and business banking services, with strong international banking capabilities and competitive savings products. Its cashback rewards, strong digital banking features, and comprehensive business finance solutions make it an excellent choice for individuals and businesses alike.
However, monthly fees on some accounts, international transaction charges, and business banking costs after the free period may deter some users. For those seeking a well-rounded, full-service banking experience with global reach, Santander provides a solid, trusted financial solution.