Redwood Bank – business banking analysis and reviews

Last updated on 10 August 2023

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.

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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.

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.

Video: Getting started with business bank accounts

Redwood Bank business banking services

Pros and cons of Redwood Bank for business services

Pros of Redwood BankCons 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
Redwood Bank business banking pros and cons
Redwood Bank online banking login

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.

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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

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 number0330 053 6067
App downloadsN/A
Websitewww.redwoodbank.co.uk
Number of branchesN/A, just head office and regional office for mortgage applications
FSCS protected?Yes
Founded2017
Key information

Redwood Bank business loans and finance

Video: Business loans and finance explained

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 platformScoreNumber of votes
TrustPilot2.5/59
FeefoNot reviewedN/A
Reviews.co.ukNot reviewedN/A
Smart Money PeopleNot reviewedN/A
Which?Not reviewedN/A
Average score2.5/59
Redwood Bank reviews and ratings

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

Is Redwood Bank a proper bank?

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.

How to open a Redwood Bank business account?

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.

What fees does Redwood Bank charge for business accounts?

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.

What services does Redwood Bank offer for businesses?

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.

What types of payments does Redwood Bank accept?

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.

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