Allica Bank
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Allica Bank is a UK-regulated bank licensed by the Financial Conduct Authority and Prudential Regulation Authority, holding a full banking licence and offering FSCS protection on deposits up to £120,000. Founded to serve the small business market, Allica positions itself explicitly as a business bank for established companies rather than startups or sole traders. The platform has gained significant user traction in the SME sector, with Trustpilot reviewers recognizing Allica's business banking offering in both CityAM's 2025 awards and RFI Global's 2026 rankings. The bank combines the regulatory credentials and stability of a full UK bank with specialist business banking features, avoiding the corporate bureaucracy of traditional high street players while offering relationship management that digital-only accounts don't provide.
The core product is the Business Rewards Account, a current account designed for companies that have been trading for at least 12 months and typically maintain balances of £50,000 or more. Eligibility is more selective than some business accounts: the bank requires a minimum 12 months of operating history, a demonstrated balance capability of at least £50,000 (or alternatively an active loan product with Allica), UK incorporation or registration at Companies House, and proprietors must be UK resident and at least 18 years old. This gatekeeping isn't arbitrary. By targeting established businesses rather than startups or micro-enterprises, Allica can make tailored decisions about each account. The bank works with businesses typically employing 5 to 250 people, serving firms past their initial survival phase but not yet large enough to negotiate bespoke terms with high street banks.
The Business Rewards Account charges no monthly fees for accounts maintaining an average balance above £10,000, making it free for any established business with working capital. The rewards structure is built around savings and card spending. The account includes a linked savings pot earning competitive interest: Allica currently offers up to 4.08 per cent AER (variable), with an additional 0.25 per cent bonus available to Federation of Small Businesses members. That savings rate is market-leading for a business current account; for a company keeping £50,000 or more parked in the linked savings pot, the annual interest becomes meaningful. Card spending earns up to 1.5 per cent cashback, meaning a business spending £30,000 per year on the card could earn around £450 back. The cashback is uncapped per transaction, so unlike some consumer cards it doesn't cap out at £5 or £10 per month, though practically speaking the limit is your spending volume. Larger businesses spending into six figures annually via card can accumulate substantial cashback.
Operationally, the account includes up to 150 free Faster Payments per month, which covers typical supplier payments and client refunds for most SMEs without incurring per-transaction fees. The account integrates with all major accounting platforms: Xero, Sage, QuickBooks, and FreeAgent. Multi-user access is included, with controls so you can set approval hierarchies, for instance requiring a director's sign-off on payments above a certain amount. The account also includes team expense cards (separate from the main account debit card), allowing you to issue cards to employees or contractors, set spending limits per card, and track spending in real time through the app.
The standout differentiator is the dedicated relationship manager. Every Business Rewards Account comes with a named UK-based relationship manager as standard, not as an add-on. This person knows your business, can discuss financing options (Allica offers commercial mortgages, asset finance, invoice finance, and business overdrafts for qualifying customers), and provides continuity if your business circumstances change. For companies that have experienced the frustration of calling a traditional bank's general support line only to be transferred and re-explained, this named contact cuts resolution time significantly. The relationship manager is also the route to other Allica lending products: if your business grows and needs a commercial mortgage, asset finance to buy equipment, or bridging finance for a property transaction, the conversation starts with someone who already understands your business.
Allica's target customer is a small company that's moved beyond startup phase and now has stable revenue and a team. A digital marketing agency with three employees, a legal partnership with five partners, a plumbing contractor with four apprentices, or a small manufacturing business with ten staff members. These are businesses that have been trading for over a year, maintain working capital in their account, and benefit from higher savings rates and a relationship manager. The eligibility bar excludes startups without a year of trading history and very small sole traders or one-person limited companies with minimal account balances, but serves the next tier up: the businesses that have scaled past the microenterprise phase but haven't yet warranted a personal banker at Lloyds or Barclays.
The account is delivered entirely through digital channels: app and web access for banking, integrations with accounting software for bookkeeping, and contact with your relationship manager via email, phone, or in-person meetings if your account qualifies. There's no local branch network, though you get Faster Payments and direct debit capabilities alongside the card. The bank doesn't offer cheque books, which reflects the modern business reality that most payments are electronic, though for any business still receiving cheques a separate account elsewhere would be needed. International payments aren't mentioned as a core feature, so unlike some international-facing business accounts, you'd need to arrange cross-border transfers separately if that's a frequent need.
Comparing Allica to other business current accounts reveals its particular focus. It's more expensive than free or very cheap accounts (though the fee-free model for qualifying balances makes it cost-neutral for established businesses), because you're paying for relationship management and competitive savings rates. It's lighter and more accessible than commercial lending-focused banks, which require larger loan applications and longer approval processes. It ships fewer novelties than the newer digital-only accounts, and that is intentional: Allica is a bank rather than a fintech, and a banking licence matters when you are holding working capital. For businesses actively seeking financing (mortgages, asset finance, overdrafts), Allica's in-house lending arm and relationship managers make the journey simpler than bouncing between separate loan providers.
Allica Bank suits established SMEs that have been trading for at least a year and want to consolidate their business banking with a relationship manager while earning competitive savings rates and cashback on spending. It's a particularly strong choice for companies planning growth through financing, because the relationship manager and in-house lending products mean conversations about expansion finance happen with someone who knows the business already. It's also well-matched for teams where you need to issue cards to staff and set spending controls, or for any business where the named relationship manager becomes a trusted advisor as circumstances evolve. If you're a solo founder or operate as a sole trader, the 12-month trading history and £50,000 minimum balance requirements rule you out, and simpler, cheaper accounts serve that stage better. For established businesses ready to move beyond basic banking, Allica delivers genuine rewards and continuity that justify the eligibility requirements.