Co-Operative Small Business Account Review 

Quick Glance Comparison Table 

Feature	Details
Monthly Fee	Free
Transaction Fees	Free for standard automated transactions; £1.50 per £100 for cash paid in at a branch; £1.50 per cheque paid in at a branch.
Accounting Integration	Free integration with accountancy software, such as Xero and QuickBooks
Overdraft Options	Optional arranged overdrafts are available and can be applied for when signing up. These are subject to status.
Mobile App Rating	App Store: 4.8/5 (78,000+ ratings) Google Play: 4.5/5 (49,900+ ratings)

Introduction 

Why This Account Matters 

Established self-employed individuals and small business owners in the UK understand that choosing the right bank account is about more than holding money – it’s about maintaining separation between personal and business finances, managing payments easily, and integrating with useful accounting tools.

The Co-operative’s Small Business Account is designed for startups and small businesses that prefer digital-first banking. With no monthly service fees to worry about and a pay-as-you-use model, it’s one of the most appealing accounts for businesses looking to keep overheads to a minimum. 

Best For 

• Freelancers running a sole-trader business.
• Side hustlers just starting on their journey.
• Full-time self-employed professionals.
• Smaller businesses that mainly deal with digital transactions, rather than cash.

Standout Features 

• A transparent base account with no monthly fees.
• Free accounting software integration to streamline bookkeeping.
• Easy invoices and a payment request tool through Go Get Paid.
• Free automated debits, credits, debit card purchases, cash withdrawals, and manual credits.
• Discounts on Clover payment terminals for businesses that take in-person card payments. 

Account Overview

Account Name and Type 

The Co-operative Bank now offers a Small Business Account that’s aimed at startups and small businesses that are digital-first.  

Unique Selling Points 

• No Monthly Fees: Users don’t pay for simply holding a Small Business Account.

• Flexible Fees: The account runs on a flexible pay-as-you-go system, meaning you only pay for transactions when using certain manual services, such as depositing cheques or cashing in notes.

• Software Integration: The account comes with free access to Go Get Paid, and accountancy software integration further helps reduce administrative duties. 

• Optional Overdraft: Users can gain flexibility through credit options when cash flow is tight. These overdrafts can be applied for during account registration.

Eligibility Criteria 

To be eligible for the Small Business Account, you must meet the following criteria:

• Be 18 years of age or older.
• Be a UK resident with a business address in the UK.
• Be free from county court judgements, bankruptcy, and individual voluntary agreements over the previous six years.
• Have not missed payments on any personal credit obligations in the previous six months. 
• You or your organisation must be a sole trader, partnership, limited liability partnership, or limited company. 

If your organisation is a limited company, you’ll also need to meet the following criteria:

• The director has never been disqualified.
• The business has never been subject to insolvency or an intention to dissolve.
• The business has not had a negative net worth in the last set of financial accounts.

Opening an Account 

Step-by-Step Guide 

1. Go to the Co-operative Bank’s website and select Business Bank Account from the Business Accounts dropdown.
2. Ensure you meet the required criteria to open the account.
3. Click ‘I’m ready to apply’ to start the application.
4. You’ll need a valid passport or driving license and a smartphone or tablet to apply.
5. Ensure you have all required documents, including personal details, address history, tax status, business details, expected turnover, cash flow, cash injections, banking needs, and tax information.
6. Submit the requested details and documents for verification.

Approval Time and Common Roadblocks 

The Co-operative Bank suggests that approval should be confirmed within 5 business days. However, some common roadblocks include needing to provide further information and issues with submitted documents. 

One user ran into issues with customer support during the process, noting:

“I have waited and waited with no update for 15 days. I called them today, and the agent had no clue what was going on with the application. She tried to check with another department, which also couldn’t help. So now I’m waiting for a call back tomorrow, hopefully with some info. It’s hard to believe how bad this is when other banks complete the process and send you a confirmation within hours”.

Hidden Frustrations 

Many users report a smooth application process. However, some examples of hidden frustrations include verification taking longer than expected, a cumbersome onboarding process with lots of security questions, and problems activating online banking. 

Features and Benefits 

Mobile and Online Banking Experience 

The Co-operative Bank app is highly rated by iOS and Android users:

• App Store: 4.8/5 (78,000+ ratings)
• Google Play: 4.5/5 (49,900+ ratings)

Accounting Software Integration 

The Co-operative Small Business Account supports integration with major third-party software, such as Xero and QuickBooks.

This is a game-changer for many people because it allows the banking app and accounting software to automatically interact with each other. Some of the benefits of this include importing transactions, automating payment categorisations, and making tax returns much easier.  

Invoicing and Payment Handling 

Users are well covered when it comes to invoicing and payment handling. The Small Business Account includes free access to Go Get Paid, which is a payment request and invoicing tool. Furthermore, Co-operative Bank is partnered with Clover, which offers discounted payment terminals for in-person card payments. 

Overdraft and Credit Options 

The Small Business Account comes with an optional overdraft, which users need to apply for when opening the account. These credit facilities are evaluated on a case-by-case basis, but the Business Bank Account Plus benefits from having no arrangement fees for overdrafts up to £25,000. 

International Payments 

The Co-operative Bank has several options when making international payments, including SEPA for non-urgent Euro transactions, SWIFT for worldwide transactions, Real-Time Euro Payment for urgent Eurozone transactions, and structured USD payments to send US dollars.

The full list of available currencies includes:

• Australian Dollar (AUD)
• Canadian Dollar (CAD)
• Swiss Franc (CHF)
• Danish Krone (DKK)
• Euro (EUR)
• Hong Kong Dollar (HKD)
• Japanese Yen (JPY)
• Norwegian Krone (NOK)
• New Zealand Dollar (NZD)
• Polish Zloty (PLN)
• Swedish Krona (SEK)
• Singapore Dollar (SGD)
• U.S. Dollar (USD)
• South African Rand (ZAR)

Customer Support and Community Feedback 

The Co-operative Bank currently has a rating of 4.6/5 on Trustpilot based on over 15,000 reviews. 

There are plenty of positive reviews from customers relating to customer service received, with some users noting:

“After going round in frustrating circles online within the verification service, the telephone helpline couldn’t have been more helpful in opening a fixed-rate saver. Calm and carefully explained at every step”. 

“Both Customer Service people were very helpful and efficient on the telephone and gave clear information, in what was a detailed ISA transaction – lots of ‘rules and regulations’”. 

“The advisor whom I spoke to seems to have a broad understanding of the product I was requesting. They also recommended to me other products that might be useful to manage my spending and ensure me some safety on using a debit card. They suggested that I could check the bank’s website to source more information about opting for a credit card to help me manage my finances effectively. In general, an advisor had brilliant interpersonal skills and was easy to talk to on the phone”.

However, some reviews did outline negative experiences, including:

“Two complaints have now gone unanswered, and whilst my last negative review got a response from “Emma”, I provided the requested phone number for the promised call back, but guess what? No one has been in touch”

“Pathetic customer service, being kept in a queue for ages, only to be played around, manipulated and barefaced lied to – I need a bank that is efficient, quick and precise, not this outfit”.

Fees and Charges 

Full Breakdown of Costs 

• Monthly Fee: Free
• Automated Credits: Free
• Automated Debits: Free
• Debit Card Purchases: Free
• Cash Machine Withdrawals: Free
• Manual Credits: Free
• Cash Paid In: £1.50 per £100
• Cash Withdrawals: £1.50 per £100
• Cheques Paid In: £1.50 each
• Cheques Issued: £1.50 each
• Cash Exchanged: £1.60 per £100
• Card Payment in Foreign Currency: 2.75%

Comparison with Similar Banks 

Bank	Account Name	Monthly Fee	Purchase Fees	Transfer Fees
Co-operative	Small Business Account	Free	Free	Free
Tide	Business Bank Account	Free	Free	Free
Virgin	M Account for Business	Free	Free	From Free
Monzo	Lite Business Account	Free	Free	Free
Natwest	Start-Up Business Account	Free	Free for 24 Months	Free for 24 Months

What Happens After the ‘Free Banking’ Period? 

Unlike many accounts, the Co-operative Small Business Account remains permanently free, with zero monthly, purchase, or transfer fees to deal with. Any related fees are clearly stated and remain consistent. 

Security and Fraud Protection 

Account Security Features 

• One-time passcodes
• Payment check messages
• Push notifications
• Secure sessions
• Time logouts
• Encryption

Fraud Protection 

The Co-operative Bank will never contact you and ask for sensitive information. If you’re ever in doubt, it’s important to contact the bank directly.

Customers who happen to fall victim to fraudulent activity are also guaranteed to receive a refund as long as they:

• Haven’t acted fraudulently.
• Have taken reasonable steps to keep details safe.
• Have taken sufficient care to check that the person or company being dealt with is genuine. 

What They Don’t Tell You

How Easy Is It to Switch If You Don’t Like It? 

The Co-operative Bank is part of the Current Account Switch Service, which means you can easily switch to and from the service automatically.

How Do Fees Change Over Time? 

Although some fees may change over time, customers will be informed well in advance of any such occurrences. However, the Small Business Account will remain a free service, with optional extras available through the Plus and DirectPlus versions of the account.

Hidden Frustrations 

Many of the hidden frustrations relate to customer service issues, with some users reporting inadequate support. However, it’s important to note that Trustpilot reviews concerning customer support are mostly positive. 

SelfEmployed360 Score 

Criteria	Score (Out of 10)
Fee Transparency	9/10
Ease of Setup	6/10
Features & Integrations	7/10
Customer Support	8/10
Security & Fraud Protection	7/10
Overall Score	7.4/10

Alternatives 

If the Co-operative’s Small Business Account doesn’t meet your requirements, there are several other options to consider:

• Simple Digital Banking: If you’re looking for a digital-first service, you might prefer a Monzo or Starling account.

• Regular Cash Deposits: Individuals making lots of cash deposits would save money through a Monzo account, thanks to the £1 per transaction fee. 

• International Payment: Monzo or Starling accounts are likely to be cost-effective for those who want to make regular international payments.

Conclusion

The Co-operative Bank’s Small Business Account is a decent choice for lots of self-employed individuals and small businesses that mainly operate digitally. Its zero monthly fee, free standard transactions, and compatibility with software integration make it an attractive option for those working with smaller budgets. 

However, it is unlikely to be a perfect fit for everyone. If your business deals with lots of cash or cheques, the transaction costs could quickly add up. In that case, you’d be better off looking elsewhere, despite the positive aspects of the Small Business Account. 

FAQs