Redwood Bank is a specialist in small business finance, offering savings accounts designed to help a business grow its money, alongside mortgages designed for commercial use or professional portfolio management.
This is something of an upstart on the market, only launching in 2017, and that shows at times – Redwood Bank has no app, for example, and with no branch support, you’ll need to manage your savings over desktop internet banking.
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The interest rates provided are pretty good though, making Redwood Bank a provider to consider in the here and now as well as to watch for future expansion.
Redwood Bank business banking services
- Pros and cons
- Business current accounts
- Business overdrafts
- Business savings accounts
- Redwood Bank at a glance
- Redwood Bank business loans and finance
- Redwood Bank reviews
- Redwood Bank business eligibility criteria
- Redwood Bank business finance alternatives
- Redwood Bank additional considerations
- FAQ
Pros and cons of Redwood Bank for business services
| Pros of Redwood Bank | Cons of Redwood Bank |
|---|---|
| ✓ Competitive interest rates on savings | ✗ No current accounts |
| ✓ Fast decisions on business mortgages | ✗ Not been in business long |
| ✓ FSCS protected | ✗ Limited customer service |
| ✗ Minimum savings of £10,000 |
Business current accounts
✗ Redwood Bank does not offer current accounts, just savings options and commercial mortgages.
Business overdrafts
✗ Not available through Redwood Bank. See best business overdrafts.
Business savings accounts
Redwood Bank offers four types of business savings account, open to any UK-based SME owner or sole trader:
- 35 Day Business Savings Account
- 95 Day Business Savings Account
- 1 Year Business Savings Bond
- 2 Year Business Savings Bond
35 Day Business Savings Account
Deposit between £10,000 and £1,000,000 and access your funds at any time with 35 days’ notice. Interest is calculated daily and can be applied to your account monthly (AER 1.69%) or annually (AER 1.70%.)
95 Day Business Savings Account
Deposit between £10,000 and £1,000,000 and access your funds at any time with 95 days’ notice. Interest is calculated daily and can be applied to your account monthly (AER 2.23%) or annually (AER 2.25%.)
1 Year Business Savings Bond
Deposit between £10,000 and £1,000,000 and accumulate interest at a rate of 3.0% upon maturation of the bond.
2 Year Business Savings Bond
Deposit between £10,000 and £1,000,000 and accumulate interest at a rate of 3.5% upon maturation of the bond.
Redwood Bank at a glance
| Phone number | 0330 053 6067 |
| App downloads | N/A |
| Website | www.redwoodbank.co.uk |
| Number of branches | N/A, just head office and regional office for mortgage applications |
| FSCS protected? | Yes |
| Founded | 2017 |
Redwood Bank business loans and finance
Beyond business savings, Redwood Bank also provides mortgage offers for businesses.
Mortgages for business owners
Borrow between £125,000 and £6,250,000, repayable for up to 25 years, to purchase a property for your business affairs.
Mortgages for professional landlords
If you have at least two years of experience as a landlord, and can provide evidence of rental yield that amasses at least 130% of your monthly repayment, you can apply for a mortgage between £125,000 and £8,500,000, repayable for up to 25 years.
Redwood Bank reviews
What are other business banking customers saying about Redwood Bank?
| Review platform | Score | Number of votes |
|---|---|---|
| TrustPilot | 2.5/5 | 9 |
| Feefo | Not reviewed | N/A |
| Reviews.co.uk | Not reviewed | N/A |
| Smart Money People | Not reviewed | N/A |
| Which? | Not reviewed | N/A |
| Average score | 2.5/5 | 9 |
Redwood Bank business eligibility criteria
Any UK-based sole trader or SME owner that can verify their identity and address will be welcome to save with Redwood Bank. Naturally, mortgages are considerably more stringent and applications are assessed on an individual basis.
Redwood Bank business finance alternatives
If you are looking for business savings and wish to avoid the high street, consider Aldermore, Allica Bank, or United Trust Bank.
Lenders that specialise in property are a little harder to come by, but the aforementioned United Trust Bank and any local or national building society will be a good place to start.
Redwood Bank additional considerations
Redwood Bank arranges and hosts an annual awards ceremony for financial brokers, suggesting that this bank understands what makes an effective partner when it comes to business finance.
However, this bank also scoops awards of its own, most recently Best Business Variable Rate Deposit Account Provider at the 2022 Business MoneyFacts Awards and Best Business Notice Account Provider at the 2022 Savings Champion Awards.
FAQ
Yes, Redwood Bank is a fully authorised and regulated UK bank. Redwood Bank is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. The bank offers customers a range of retail banking services including both current accounts and savings accounts. It also provides business banking services such as business current accounts and business savings accounts.
Opening a business account with Redwood Bank is simple and straightforward. You can open an account online in minutes, or contact the bank directly to discuss your requirements. Once you have registered your details, the bank will then check them against the financial data of Companies House to ensure that you are a genuine business before approving your application.
To get started, you will be required to provide information about your business, such as its type, registered address and trading history. You may also need to provide identification documents for yourself and other directors of the company in order to pass anti-money laundering checks. Once approved, you’ll be able to start using your account immediately.
Redwood Bank does not charge any setup fees or monthly fees for its business accounts. However, it does charge a range of other fees, such as transaction fees and overdraft fees.
Redwood Bank offers a range of services for businesses, including business current accounts and savings accounts. The bank also offers invoice finance services which allow businesses to access working capital without having to wait for customers to pay invoices. Additionally, the bank provides a range of digital banking services such as mobile banking and online account management.
The bank also offers business loans with competitive rates and flexible repayment terms. It has partnered with UK lenders to provide access to funding for businesses, ranging from start-ups to established SMEs.
Redwood Bank accepts payments via Direct Debit, BACS, CHAPS and Faster Payments. It also offers a range of payment cards including debit cards and credit cards. Additionally, the bank supports mobile payments such as Apple Pay, Google Pay and Samsung Pay.