Our Picks of The Best Business Bank Accounts in 2024

You may have noticed from the table above that the majority of the accounts we selected for our best business accounts shortlist are challenger banks and e-money institutions. There is good reason for this.

Aside from our own research methodology and proprietary rating system to help guide our decisions we have also taken wider market trends into consideration.

Recent research shows a strong upwards trend in the UK towards the use of Neobanks (digital-only institutions offering banking services exclusively online), with a 659% growth rate (from 2.9mil – 19.1mil) for total users between 2018 – 2023. ^[2]

Tide’s Free Business Account stands out as a compelling choice for UK-based SMEs, startups, freelancers, and entrepreneurs.

The account offers cost-effective business banking with no monthly fees, facilitating easy financial management through its suite of tools.

It provides essential features like easy invoicing, expense management, and rapid loan application responses within the app.

Additionally, with FSCS protection via ClearBank Ltd, users enjoy both the digital-first flexibility of an e-money institution and the security of a licensed bank.

The account’s robust mobile and online access coupled with 24/7 customer support positions Tide as a practical and reliable banking partner for growing businesses.

⏩ Read our in-depth Tide business account review

Revolut Business provides a dynamic free current account that excels in facilitating multi-currency transactions without a monthly fee, ideal for global business operations.

With the ability to hold and exchange over 30 currencies at competitive rates, and free local transactions within certain allowances, this account caters well to businesses involved in international trade.

Additionally, Revolut is crypto-friendly and integrates seamlessly with leading accounting software, enhancing its appeal to tech-savvy entrepreneurs.

While Revolut does not offer FSCS protection, it ensures the safety of customer funds through a robust safeguarding process where funds are kept in separate accounts or low-risk assets, guaranteeing their security in the event of financial difficulties.

The account setup can be completed the same day, offering rapid access to its features, which includes comprehensive 24/7 customer support via its mobile app and online platforms.

Revolut’s Trustpilot rating of 4.2/5 from over 150,000 reviews underscores its reliability and customer satisfaction, despite the absence of traditional banking facilities like overdrafts, credit cards, and cash or cheque deposits.

⏩Read our in-depth Revolut business account review

Pros:

• No monthly fee makes it highly affordable for various business sizes.
• Supports multi-currency transactions and offers competitive exchange rates, perfect for international business operations.
• Integrates with a wide range of accounting software, aiding financial management and reporting.
• Provides strong digital security measures including safeguarding and two-factor authentication.
• High Trustpilot rating reflects strong customer satisfaction and reliability.

Cons:

• Lack of FSCS protection might concern some users, although funds are safeguarded.
• Charges for international payments outside the free allowance may add up.
• Absence of traditional banking services like overdrafts, credit cards, and the inability to deposit cash or cheques might limit some businesses.
• The digital-only approach requires users to be comfortable with managing their finances online or via mobile apps, potentially excluding less tech-savvy customers.

ANNA Money offers a straightforward, ‘no-nonsense’ banking solution tailored for small businesses, startups, freelancers, and sole traders.

The service reduces the administrative load significantly through an intuitive app that integrates banking, invoicing, and expense management.

ANNA’s various account options, including a free Pay As You Go tier, are designed to meet diverse business needs, backed by exceptional customer support which is reflected in some of the best industry reviews.

While not regulated by the FSCS, ANNA ensures customer funds are secure through comprehensive safeguarding measures and active engagement with fraud prevention organisations.

⏩ Read our in-depth Anna business account review

Pros:

• No monthly fee for the Pay As You Go account enhances affordability.
• Quick and easy account setup process, potentially completed in just three minutes.
• Robust app-only access suits tech-savvy users and simplifies banking processes.
• Excellent customer support available 24/7 via live chat.
• High Trustpilot rating indicates strong customer approval and service quality.

Cons:

• Lack of FSCS protection may concern some customers, despite the safeguarding measures in place.
• Transaction fees apply after free allowances are exceeded, including ATM withdrawals.
• Limited credit options with no availability of overdrafts or credit cards.
• Cash deposit fees and limitations might be inconvenient for businesses handling physical cash.
• Absence of cheque deposit functionality could limit some traditional business transactions.

Cashplus Bank delivers a fully regulated UK bank account designed to meet the needs of modern businesses with features such as faster payments, direct debits, and a contactless Mastercard.

Enhanced security measures like two-factor authentication, encryption, and fraud monitoring, along with FSCS protection for up to £85,000, ensure that your funds are secure.

Although Cashplus lacks physical branches, it compensates with a straightforward application process, 24/7 support, and no credit checks for account opening.

Businesses can also improve their credit scores with the Business Creditbuilder for those upgrading to the Extra account.

The bank’s digital tools are well-received, with strong ratings across Google Play and the App Store, and a solid reputation on Trustpilot.

⏩ Read our in-depth Cashplus business account review

Pros:

• No monthly fee on the Business Go account makes it an economical choice for businesses.
• Rapid account setup usually completed on the same day simplifies the onboarding process.
• Strong security features, including FSCS protection and 3D Secure, provide peace of mind.
• Positive customer feedback on digital platforms highlights a reliable user experience.
• Broad accounting software integration facilitates seamless financial management.

Cons:

• Charges for ATM use and additional transaction fees beyond free limits could increase operating costs.
• Limited customer service hours may not cover all operational hours of businesses, particularly on weekends.
• The absence of direct application for business loans or credit cards could complicate access to additional funds.
• Lack of clarity on cheque deposit availability may affect businesses that use cheques frequently.

Monzo caters to UK-based sole traders and limited company directors with its user-friendly banking solutions.

The Lite account is offered with no monthly fees and there is an option to upgrade to a Pro account which unlocks additional features.

Customers enjoy free instant UK bank transfers and the ability to earn up to 1.60% AER interest on savings via an Instant Access Savings Pot.

Monzo, a fully regulated bank, also assures up to £85,000 protection per person under the Financial Services Compensation Scheme (FSCS).

Its high level of customer satisfaction is evidenced by over 30,000 Trustpilot reviews, with 77% rated at 5 stars, reflecting its robust customer support and effective mobile-first banking approach.

⏩ Read our in-depth Monzo business bank account review

Pros:

• Offers a monthly fee-free account to keep costs down.
• Provides quick and free UK bank transfers, enhancing transaction convenience.
• FSCS protection and advanced security features such as two-factor authentication ensure safety.
• Seamless integration with popular accounting software aids in financial management.
• 24/7 customer support, underpinned by high customer satisfaction ratings.

Cons:

• Full range of features is only available with the paid Pro account.
• Cash deposit fees apply and are limited in amount and frequency, which may be restrictive for some businesses.
• Does not offer business credit cards, which may limit financing options for some users.
• High threshold for cheque deposits might inconvenience businesses that deal with smaller amounts.

The HSBC Kinetic Current Account is tailored for sole traders and sole directors of limited companies, catering to those with a maximum turnover of £6.5 million and who are UK tax residents.

It offers a competitive package with a monthly fee of £6.50, which is waived for the first 12 months.

This account enables free bank transfers and card purchases, although ATM withdrawals incur a fee of 0.60%.

With options for managing the account online, via app, in-branch, email, and phone, it suits various business operations.

The Kinetic account integrations allow seamless communication and data sharing between the accounting software Xero, QuickBooks, Sage.

You can have an account typically opened within 48 hours, providing a swift start for new businesses.

It also benefits from FSCS protection, ensuring the safety of deposits, and offers various credit options, including overdrafts, credit cards and small loans.

Customer service is available during weekdays and half-days on Saturdays, although the low Trustpilot score indicates some potential areas for improvement in customer satisfaction, so keep this in mind when considering the customer care side.

⏩ Read our comprehensive HSBC Business Bank Account review.

Pros:

• No fee for the first year and free transactions enhance the account’s affordability.
• Quick and easy setup process ensures businesses can quickly access banking services.
• Extensive access options cater to a range of preferences and needs.
• Accounting software integrations for Xero, QuickBooks, and Sage.
• Financial security is bolstered by FSCS protection.
• Credit options support business cash flow and expansion needs.

Cons:

• A monthly fee kicks in after the initial free year.
• ATM withdrawal fees may add up for businesses requiring frequent cash access.
• Limited weekend customer service hours may not accommodate all business owners.
• The low Trustpilot rating of 1.6/5 raises concerns about overall customer satisfaction.

Metro Bank’s Business Bank Account caters to small and large businesses alike, featuring a traditional high-street banking model combined with modern access options.

It offers FSCS protection and facilitates international payments and easy account switching.

This account integrates with accounting software such as Xero and Clearbooks and maintains a conventional approach with in-branch services, including overdrafts and asset finance options.

While there is no monthly fee for balances over £6,000, a £6 fee applies if the balance falls below this threshold.

The account setup can be completed in as little as one day in-store, though typically it takes two days.

While Metro Bank offers a mix of traditional banking and digital advantages, its limited customer service hours from 8 am to 8 pm and a low Trustpilot rating indicate some customer satisfaction challenges that they have said they are working on.

⏩ Read our in-depth Metro Bank business bank account review

Pros:

• No monthly fees for balances over £6,000 can be advantageous for businesses maintaining higher balances.
• Offers traditional bank services with in-branch management, providing a more personalised service experience.
• Broad access options including in-branch, mobile, phone, and online cater to various user preferences.
• A variety of credit lines are available, providing financial flexibility for businesses.
• Supports both cash and cheque deposits at branches and Post Offices, enhancing convenience.

Cons:

• Monthly fee applies if the account balance drops below £6,000, which may not suit all businesses.
• Limited customer service hours could be restrictive for businesses needing assistance outside of standard hours.
• Relatively low Trustpilot rating suggests potential issues with customer satisfaction.
• The fee structure for transactions beyond the free allowance could become costly for businesses with high transaction volumes.

Starling Bank offers a digital-first business account with no monthly fees, catering to modern business needs by seamlessly integrating with accounting software like Xero, FreeAgent, and QuickBooks.

This account features competitive overdraft rates and thorough credit assessments to ensure responsible lending.

With 24/7 support, real-time alerts, and FSCS protection up to £85,000, it maintains high customer satisfaction.

However, it lacks physical branches and does not offer the best interest rates on balances, with some limitations on ATM access and occasional app issues also noted.

⏩ Read our in-depth Starling Bank business bank account review

Pros:

• Offers a fee-free, digital-first banking solution suitable for modern businesses.
• Provides robust security measures, including FSCS protection and two-factor authentication.
• 24/7 customer support ensures assistance is always available.
• High customer satisfaction is reflected in a strong Trustpilot rating.
• Allows for convenient in-app cheque deposits and supports cash deposits via the Post Office.

Cons:

• Lacks physical branches, which might be a limitation for customers preferring in-person services.
• Does not offer the best interest rates on balances, which may deter savings-focused businesses.
• Some limitations in ATM access and occasional app issues could disrupt banking activities.

Mettle provides a genuinely free digital-first banking solution tailored for small businesses and sole traders.

Launched in 2019 as part of NatWest, but operating independently, Mettle offers a compelling alternative that excludes access to NatWest’s high-street branches.

The account supports a balance of up to £1mil, featuring swift UK bank transfers and impressive integration with popular accounting software such as FreeAgent, Xero, and QuickBooks.

While the account is praised for its rapid application process and effective financial management tools, it does not provide overdraft facilities, cheque deposits, or international payment options.

Nevertheless, Mettle’s accounts are secured under the Financial Services Compensation Scheme (FSCS), ensuring robust financial protection.

⏩ Read our in-depth Mettle business bank account review

Pros:

• Completely free to join and use, which is ideal for startups and small businesses.
• Quick and easy setup process allows businesses to get started without hassle.
• Robust accounting software integration aids in efficient financial management.
• FSCS protection provides security for customers’ funds.
• High customer satisfaction with a strong Trustpilot rating.

Cons:

• Lack of physical bank branches might be a drawback for those who prefer in-person services.
• No options for overdrafts or other credit facilities limit financial flexibility.
• The absence of international payment capabilities could hinder businesses that operate globally.
• Does not support cheque deposits, which may inconvenience some users.

Cynergy Bank presents a business current account that initially offers a free, interest-earning option for the first 12 months, making it an attractive choice for UK businesses transitioning to digital banking solutions.

During this period, accounts benefit from a 2.50% AER on balances up to £25,000. After the first year, a £25 monthly fee applies, which covers all standard transactions.

The account primarily facilitates digital management and savings, with no provision for cash transactions, overdrafts, cheque deposits, or international payments. Instead, it integrates seamlessly with accounting software platforms.

Limited in-branch services are available by appointment in a few UK locations, focusing on a streamlined, digital-first approach.

⏩ Read our in-depth Cynergy Bank business bank account review

Pros:

• Offers a competitive 2.50% AER on balances up to £25,000 during the first year.
• Free for the first 12 months with a comprehensive fee structure thereafter covering all standard transactions.
• Quick setup process enhances convenience.
• FSCS protection and strong security measures ensure safety of funds.
• Available credit lines like overdrafts and loans provide financial flexibility.

Cons:

• Monthly fee of £25 after the first year may be considered high by some businesses.
• Excludes cash transactions, overdrafts, cheque deposits, and international payments, limiting its usability for businesses with diverse banking needs.
• Limited in-branch access and customer service hours might not accommodate all business schedules.
• Vague details on certain services like accounting integration and the process for cheque deposits can create uncertainty.

Our analysis of 40+ UK business bank accounts brought us to 10 key accounts that we believe to be great choices for business owners in the UK for multiple reasons. We employed a focused, evidence-based approach, comparing a range of key aspects:

1. Selection: We included a diverse array of accounts from both traditional and digital banks, and e-money institutions, to cater to various business demographics’ needs.
2. Criteria for Comparison:
   • Price: Monthly fees, transaction charges, and any hidden costs.
   • Accessibility: The available routes to be able to manage the accounts.
   • Features: Account functionalities, interest rates, overdraft facilities, etc.
   • Customer Reviews: Analysis of feedback on platforms like Trustpilot, Google Play and the App Store to gauge satisfaction.
   • Customer Service: Responsiveness and support quality.
   • Mobile App UX: Ease of use and functionality of the bank’s mobile application.
   • Software integrations: Available accounting and invoicing software integrations.
   • Ease of setup: The time and resources required to set up an account.
3. Data Collection: We compiled data from official bank sources, customer reviews, financial analysis reports, and direct user feedback.
4. Continuous Updating: Our review reflects the most current information available at the time of analysis. However, product details may have changed since our last update. We aim to review as many products as possible, but not all market products may be included.

Business Expert’s Proprietary Rating System

Once we had our final 10, we put them all through our own 8-point rating system. Our bespoke rating system is comprised of the following. These metrics are led primarily by what business owners consistently mention as being most important to them when looking for a business bank account:

1. Monthly Fees: Lower fees score higher.
2. Transaction Fees: Fewer and lower fees score higher.
3. Accessibility: More access options (web, app, branch, phone) score higher.
4. Features: More features score higher.
5. Accounting and Invoicing Software Integrations: More integrations score higher.
6. Customer Service: Better service (availability, quality) scores higher.
7. Customer Reviews: Higher ratings score higher.
8. Ease of Setup: Quicker and simpler setup scores higher.

Disclaimer: This review represents our opinion and is provided for informational purposes. It does not constitute financial advice, a recommendation, or an endorsement of suitability for your specific financial circumstances. The information held within this article also does not take your personal circumstances into consideration. Please consult with a qualified financial advisor if in any doubt on what to do for your business.

That depends on the size of your business and whether it’s a separate legal entity. 

A business bank account separates corporate finances from personal funds, simplifying tax compliance and enhancing professional credibility. So keep this in mind when making your decision.

You DO need a business bank account if:

• You run a limited company registered at Companies House

It may POSSIBLY be a good idea to get a business bank account if:

• Your business brings in significant turnover and you offset business expenses (it’s not a legal requirement but having a separate business account will make life easier) 
• You simply wish to keep your personal and business finances separate.

As most business bank accounts charge a fee, you probably DON’T need a business bank account if:

• You’re a freelancer, sole trader or contractor (not through a limited company)
• You work in the gig economy for Uber, Deliveroo, Upwork, etc.
• You run a side hustle that brings in a small amount of additional income

Even if you’re not legally required to have one, there are benefits associated with opening a business bank account if your primary source of income comes from self-employment. It can make it easier to send invoices, keep track of payments, record your expenses and file and pay your self-assessment tax. You also start building a credit rating for your business, which is useful if you want to apply for a business loan or credit card in the future. 

⏩ Read more: Do I need a business bank account?

While applying for a business bank account can take as little as ten minutes, the compliance checks usually take longer. Many challenger banks can get you and running within a day, while high street banks typically take one to four weeks to complete the paperwork.

⏩ Read our full article on the fastest business bank accounts to open

If you have ever switched your personal bank account the process is very similar for many business account providers.

It’s easy enough to switch bank accounts in the UK, especially if you sign up with a provider that’s signed the ‘Switch Service’, which automates the process. The Current Account Switch Service was set up to stop banks from deliberately making it difficult for people to change their accounts to another provider.

The following banks are signed up to the free Current Account Switch Service: Tide, Bank of Ireland, Bank of Scotland, Barclays, CardOneMoney, Co-operative Bank, Handlesbanken, HSBC, Lloyds, Monzo, Natwest, Royal Bank of Scotland, Santander, and Virgin Money.

⏩ Read our full article on Switching Your Business Bank Account

You will likely find opening certain business bank accounts with bad credit slightly more challenging, but it’s certainly possible. Some banks, such as Tide and Cashplus, offer specialist ‘no credit check’ accounts, allowing individuals with poor credit histories to open them. These accounts will have slightly less favourable terms than a regular account to cover the bank’s heightened risk but otherwise work precisely the same.

⏩ Read our full article on the best business bank accounts for bad credit

In February 2024, a survey report was published detailing the findings from an independent study examining the service quality of the 15 largest business current account providers in Great Britain. This survey, conducted from January to December 2023 by BVA BDRC, was mandated by regulatory requirements and initiated at the behest of the participating providers and the Competition and Markets Authority. The aim of this survey was to facilitate comparisons of service quality among providers for small and medium-sized enterprises (SMEs).

Customers, representing various SMEs—including businesses, clubs, charities, and societies with an annual turnover of up to £25 million—were asked to evaluate their likelihood of recommending their provider’s services. These services included online and mobile banking, branch and business centre services, overdraft and loan services, and relationship or account management. The survey’s results reflect the percentage of customers who were ‘extremely likely’ or ‘very likely’ to recommend these services.

Providers included in this survey were Bank of Scotland, Barclays, Handelsbanken, HSBC UK, Lloyds Bank, Metro Bank, Monzo, NatWest, Royal Bank of Scotland, Santander, Starling Bank, The Co-operative Bank, Tide, TSB, and Virgin Money. Across these providers, approximately 1,200 customers are surveyed yearly in Great Britain, with results being considered valid for publication only when at least 100 customers have provided a score for the service in the survey period. In total, 18,000 people participated, with the results being updated biannually, in August and February. This survey allows SMEs to make informed decisions by providing a comparative insight into the service quality offered by different business current account providers.

A research report that was carried-out on behalf of New Zealand exporters to get an understanding of the current state of the UK banking sector uncovered the following statistics about neobank users and trends:

Between 2018 – 2023 the amount of users of neobanks in the UK grew from 2.9mil – 19.1mil, respectively, and this trend is translating into the business sectors here in the UK.

^{_{Source: Statista, Digital Market Insights: NeobankingUK, 2023.}}

As of 2023, the distribution of market share for the banking sector in the UK between the minor and major players was in favour of the minor players by 57%, leaving 43% of the market for the major players.

_{^{Source: IbisWorld, Banks in the United Kingdom, 2023.}}