Allica Bank partners with the Federation of Small Businesses

The Federation of Small Businesses (FSB) has signed a partnership with business bank Allica Bank to give FSB members exclusive access to a market-leading rate of return on their savings.

This new partnership will give FSB members a 0.25% boost to their savings in Allica Bank’s instant access Savings Pot, part of its business current account. With its current rate sitting at a market-leading 4.33% AER (variable), it would mean businesses could get a rate of 4.58% AER, making it the best on the market.

The link up is the latest in a series of milestones for Allica, which has carved a niche for itself as the only bank focused specifically on established businesses with between five and 250 employees. Allica was recently named as Britain’s fastest-growing private company in 2024’s The Sunday Times 100, while it also announced its first full year of profitability in 2023.

Andrew Ward, founder of Scorchsoft, a Birmingham-based mobile app, web app and online portal development company, is both a member of FSB and an Allica Bank customer. Talking of the partnership, he said, “The level of cover and support the FSB provides its members is invaluable. It’s great to see FSB and Allica Bank working together. Both have a strong, forward-thinking culture and focus on driving value to SMEs like Scorchsoft, which is refreshing to see!

“As Scorchsoft grew, we chose to retain more cash in the business as working capital, which risked sitting idle. By switching to Allica, we’ve been able to earn thousands of pounds in interest we wouldn’t have otherwise. It’s additional cash we can use to strengthen our books or reinvest back into the business.”

Richard Davies, CEO at Allica Bank, said “FSB does a vital job championing the needs and interests of SMEs across the UK. This new partnership unlocks even more benefits for small business owners looking to get a better return on their hard-earned savings.

“We’re delighted to be partnering with FSB to help give their members the banking they deserve.”

Caroline Lavelle, Chief Commercial Officer at the Federation of Small Businesses, said “We’re delighted to be working with Allica Bank to give FSB members access to a market-leading return on their savings. Many small businesses keep their money in accounts earning little to no interest, which is a huge, missed opportunity to generate cash.

“We’re looking forward to exploring how else FSB and Allica can work together to support the UK’s thriving small business community, alongside all the other member benefits we offer.”