TSB vs HSBC for business banking

Updated on 7 August 2023

As a business owner, choosing a bank is a critical decision. A bank’s services can significantly impact your business operations, growth potential, and financial management. With the UK home to numerous reputable banks, it can be challenging to navigate your options. In this article, we will focus on two highly regarded banks, TSB vs HSBC, providing an in-depth comparison to assist you in making an informed decision.

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Video: Choosing a business bank account

TSB vs HSBC

FeaturesTSBHSBC
Business Current AccountAvailable with tailored options for different business sizesOffered with a wide range of customisable features
Business Savings AccountAvailable with competitive interest ratesAvailable with tiered interest rates for higher balances
Business Credit CardOffers cashback on purchasesOffers rewards points on purchases
Overdraft FacilityProvided with a predefined limitOffered with customisable limits based on credit history
Business LoansRange of options with competitive interest ratesExtensive loan options including trade and equipment financing
Online BankingUser-friendly platform with robust featuresComprehensive platform with advanced features
Mobile BankingFull-service mobile app availableFull-service mobile app with additional features
Invoice FinancingOffered with flexible repayment termsOffered with customizable terms
Business InsuranceRange of options tailored to business needsExtensive coverage options
International PaymentsAvailable with competitive exchange ratesAvailable with wide global reach
24/7 Customer SupportCustomer support during business hoursRound-the-clock customer support
Branch AccessibilityHigh accessibility in the UKHigh accessibility worldwide
Dedicated Business ManagerAvailable for businesses with higher transaction volumeAvailable for all business accounts
Deposit Machine AvailabilityAvailable at most branchesWide availability at branches and partner locations
Cashback OffersAvailable on business credit cardsAvailable on select accounts and services
Currency Exchange ServicesAvailable with competitive ratesComprehensive services with competitive rates
Trade FinancingNot offeredWide range of trade financing options
Asset FinanceAvailable with competitive ratesExtensive options with flexible terms
Business Training and Advisory ServicesNot offeredAvailable with industry-specific advice
Market Insight ReportsNot offeredRegularly published for all business customers
Green Financing OptionsAvailable for sustainable business practicesBroad range of options for green initiatives
TSB vs HSBC

Wallester Business
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✓ No Setup Fees
✓ No Monthly Fee
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Revolut Business
✓ Business Current Account
✓ Award-Winning Mobile App
✓ Quick & Easy Application Process
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Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
Pricing Trial period Contact

Card One Money
✓ No Credit Checks
✓ Simple Fees
✓ Up To 3.5% Cashback
Pricing Trial period Contact

ANNA Money
✓ Apply In 10 Minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App
Pricing Trial period Contact

HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
Pricing Trial period Contact

Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
Pricing Trial period Contact

Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
Pricing Trial period Contact

Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected
Pricing Trial period Contact

Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform
Pricing Trial period Contact

TSB

TSB is a popular banking choice for UK businesses, known for its customer-friendly approach and comprehensive business services. It has a substantial branch network and offers a range of products tailored to meet different business needs.

Pros and cons

Pros

  • TSB has an extensive range of financial products, covering most business needs.
  • They provide a high level of customer service, with dedicated business managers for business accounts.
  • TSB offers a robust online and mobile banking platform, which is intuitive and easy to use.
  • They offer attractive cashback offers to businesses on their purchases.
  • TSB’s green financing options allow businesses to invest in sustainable practices.

Cons

  1. TSB does not offer 24/7 customer support.
  2. Their deposit machine availability is lower compared to other banks.
  3. TSB does not provide trade financing, which could be a limiting factor for businesses involved in international trade.
  4. Lack of business training and advisory services and market insight reports.

Table of fees and charges

ServiceDetails
Current Accounts£5 per month, waived if balance stays above £10,000. 25 months’ free banking for switchers if they stay within the terms of their account.
Savings AccountEasy Access Savings Account with interest rates of 0.30% Gross/AER (variable) on balances of £5,000 plus. If balance falls below £4,999, interest rates drop to 0.05% Gross/AER.
OverdraftsCharged at 10.65% EAR for overdrafts above £7,000. Arrangement fee of £100-250, depending on the terms, amount, and length.
Business Finance and LoansBorrow between £1,000 and £100,000, repay over 1-25 years or up to £25,000 as an unsecured loan. Interest rates are 9.94% APR (fixed). Arrangement fee of £100-250, depending on the terms, amount, and length of the loan.
TSB fees and charges

TSB’s fees and charges are dependent on the specific account type and service and can be found on their website or by contacting TSB directly.

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Unique and standout features

TSB’s approach to business banking is centered around the customer.

Their range of business accounts allows businesses to choose an account that closely matches their needs.

The bank’s mobile and online banking platforms stand out for their user-friendly design, helping businesses manage their finances efficiently.

Additionally, their green financing options make them an excellent choice for businesses looking to invest in sustainable initiatives.

HSBC

HSBC is a global banking giant with a solid reputation for its comprehensive suite of business banking services. With its extensive network and innovative banking solutions, it has become a preferred choice for businesses of all sizes.

Pros and cons

Pros

  • HSBC offers a full suite of business services, including unique ones such as trade financing and market insight reports.
  • They provide 24/7 customer support, ensuring businesses can get help when needed.
  • Their international presence and services make HSBC an excellent choice for businesses with global operations.
  • HSBC’s business training and advisory services are beneficial for businesses seeking growth and expansion.
  • The bank’s deposit machine availability is high, making cash handling easier for businesses.

Cons

  • HSBC’s business banking services can be more complex due to their extensive product range.
  • Some customers report slower customer service responses compared to other banks.
  • Some of their services, like trade financing, may not be necessary for smaller businesses, making them a costlier option.

Table of fees and charges

ServiceDetails
Current Accounts£6.50 per month. Extra charges for transfers and withdrawals. Account reviewed every 12 months.
Kinetic AccountNo monthly account fee for the first 12 months. Designed for sole traders or single director shareholder business.
OverdraftsArranged for 1-12 months and reviewed every year. Interest calculated daily and only charged on the amount used. Arrangement fee will be agreed when the overdraft is approved.
Business Finance and LoansBorrow £1,000-25,000 with fixed interest rates. Can also borrow £25k + over 12 months to 20 years, with either fixed or flexible interest rates. Other finance products available, including commercial mortgages, asset finance, an international business overdraft, and the Business Growth Fund.
HSBC fees and charges

HSBC’s fees and charges are dependent on the specific account type and service and can be found on their website or by contacting HSBC directly.

Unique and standout features

HSBC is known for its global reach and extensive services.

Its trade financing and business advisory services set it apart from many other banks.

Furthermore, HSBC’s focus on providing market insights and reports can be incredibly valuable for businesses looking to stay ahead in their industry.

Conclusion – TSB vs HSBC

Choosing between TSB and HSBC for business banking is a decision dependent on your business’s unique needs.

Both banks offer comprehensive services but have distinct strengths.

TSB is known for its customer-centric approach, user-friendly platforms, and green financing options.

On the other hand, HSBC stands out with its 24/7 customer support, global reach, and unique services like trade financing and business advisory services.

FAQ

  1. Which bank is better for small businesses, TSB or HSBC? Both banks offer solid options for small businesses. Your choice should depend on your specific needs, like whether you require international services or prefer a more localised, customer-centric approach.
  2. Do TSB and HSBC offer accounts for start-ups? Yes, both banks offer tailored accounts for start-ups with specific benefits, including initial fee-free periods. Check their websites for more details.
  3. Do these banks offer digital banking solutions? Yes, both TSB and HSBC have robust online and mobile banking platforms for businesses to manage their accounts remotely and efficiently.
  4. Are there green financing options available? Yes, both TSB and HSBC offer green financing options, encouraging businesses to invest in sustainable practices.
  5. What customer support options do TSB and HSBC offer? Both banks provide phone and online customer support, with HSBC offering a 24/7 service, unlike TSB.
  6. What training or advisory services are available? HSBC offers business training and advisory services, including seminars and market insight reports. TSB currently does not provide such services.

Reviewed by , Managing Director

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