Allica Bank business account review

Allica Bank’s Business Rewards Account is built for established businesses, not start-ups. It pays card cashback and interest on savings, but you need to have traded for at least 12 months and deposit £50,000 or borrow from Allica to open one. A £25 monthly fee applies if your average balance drops below £10,000. All figures below were checked on Allica’s own pages on 6 November 2026.

What is Allica Bank?

Allica is a UK bank for established small and medium-sized businesses. It received its banking licence in 2019, is authorised by the Prudential Regulation Authority and regulated by the FCA and the PRA, with firm reference number 821851. Its about page says it has over 25,000 business customers and has lent over £4 billion.

Allica describes its target customers as businesses with roughly 5 to 250 employees. Its registered office is at 15 Worship Street, London EC2A 2DT.

How much does the Allica account cost?

The account has no monthly fee unless your average balance is low. Allica’s fees and limits page lists these charges.

Allica’s main product page says CHAPS payments carry no fee, while the fees page lists £20. Check the current Key Product Information document before you rely on either.

How the £25 low balance fee works

The February 2026 FAQs explain the fee, which started on 1 February 2026. You pay £25 on the first day of the month only if all of these apply:

• your average daily balance (current account plus linked Savings Pot) was below £10,000 last month
• you have no active loan or overdraft with Allica
• you are not part of a connected group (25% or more common ownership) averaging over £10,000 per account

New accounts get at least one full calendar month before the fee can apply. If unpaid fees reach £75, outgoing payments are blocked until you pay.

What rewards does Allica pay?

Allica pays cashback on card spending and interest on a linked savings pot.

• Cashback. 1% on settled card transactions, and 1.5% on spend after your monthly card total passes £10,000. Cash withdrawals, refunded purchases and bank transfers do not count.
• Savings Pot. Allica advertised up to 4.33% AER variable on 6 November 2026, including boosts for making 15 or more transfers out a month, switching through the Current Account Switch Service, or depositing £50,000 within 14 days.

The page showed two different standard rates for the Savings Pot (3.08% and 1.83% AER), so confirm the rate with Allica before moving money.

Who can open an Allica account?

Allica only accepts established businesses. To apply you must:

1. Be a UK resident aged 18 or over.
2. Have a business that has traded for at least 12 months.
3. Deposit £50,000 or more from the business, or hold a loan product with Allica.
4. Apply online (about ten minutes) or by the assisted route, where Allica calls you within one working day.

Allica says accounts are typically open within a few working days. Its business overdraft has stricter tests: a limited company or LLP trading for 24 months or more, turnover above £500,000, profitable, and needing more than £25,000.

Is my money safe with Allica?

Yes, within the FSCS limit. Allica holds a full UK banking licence, so eligible deposits are protected by the Financial Services Compensation Scheme up to £120,000 per depositor. That limit covers all your Allica accounts combined, not each account. Our guide to FSCS protection for business accounts explains how the limit applies to companies and partnerships.

Features at a glance

The account covers the day-to-day tools most established businesses need.

• Visa debit card with Apple Pay and Google Pay
• Expense cards and up to 20 virtual cards per employee
• Multi-user access, two-person authorisation and payment approvals
• A named relationship manager and UK-based phone support
• Sync with Xero, QuickBooks, Sage and FreeAgent (see bank feeds and accounting software)

Which applies to you?

Use this to decide whether Allica fits your business.

• If you are a start-up or have traded under 12 months, you cannot open an account yet. See business bank accounts for start-ups.
• If you usually hold under £10,000 and have no Allica loan, expect to pay £25 a month (£300 a year).
• If you hold over £10,000 and spend heavily on cards, the cashback can outweigh costs elsewhere.
• If you make more than 150 Faster Payments a month, budget 12p for each extra payment.
• If you deposit large sums, remember FSCS cover stops at £120,000 per bank.

Compare Allica with other providers in business bank accounts for limited companies and our business bank account fees guide.

Frequently asked questions

Does Allica Bank charge a monthly fee?

Not usually. Since 1 February 2026 a £25 monthly fee applies if your average balance last month was below £10,000 and you have no loan or overdraft with Allica.

Can a new business open an Allica account?

No. Allica requires the business to have traded for at least 12 months and to deposit £50,000 or hold an Allica loan product.

How much cashback does Allica pay?

Allica pays 1% on settled card spend and 1.5% on spend above £10,000 in a month. Cash withdrawals and bank transfers earn nothing.

Is Allica Bank FSCS protected?

Yes. Allica is a PRA-authorised bank, so eligible deposits are protected up to £120,000 per depositor across all Allica accounts.

Does Allica work with Xero?

Yes. Allica syncs transactions with Xero, QuickBooks, Sage and FreeAgent.