Choosing the right bank account is an important decision for any business owner. The right account can significantly impact the financial health and management of your business.
Whether you run a limited company that needs a business bank account or you’re a sole trader wanting to separate your business and personal finances, this page will help you find the ideal account for your needs.
We have analysed dozens of bank accounts and carefully selected those that our editors consider the best for various business needs. So, let’s get to it…
- Do I need a business bank account?
- Can I use My personal bank account?
- Any benefits if it’s not mandatory?
- The 10 best accounts
- What are business bank accounts?
- How do they work?
- Choosing the right account
- Pros and cons
- Best accounts at a glance
- High-street banking options
- Business account types
- Eligibility
- Opening an account
- Account volume limits
- Alternatives
- Best of the bunch
- Frequently Asked Questions (FAQs)
Featured Partners
Do I even need a business bank account?
You need a business bank account if:
- Your business is a limited company registered at Companies House.
You might not need a business bank account if:
- You are a sole trader or working as a freelancer or contractor and not operating through a limited company.
Can I use My personal bank account for business use?
If you are a sole trader, you can use your personal bank account for business transactions. However, if your business is a limited company, you must open a separate business bank account.
Is it beneficial to use a business bank account if it’s not mandatory?
A business bank account may be beneficial if:
- You prefer to keep personal and business finances separate.
- You wish to give your business a more professional public image.
- Your business has significant turnover and business expenses.
Even without a legal requirement, a business bank account can simplify invoicing, make invoices look more professional, help with payment tracking, expense recording, and tax filing. It also helps in building a credit profile for future financial needs like loans or credit cards.
More information on this can be found here: Do I need a business bank account?
The 10 best business bank accounts:
We have provided a selection of the 10 best business bank accounts below. Take a closer look to see which best aligns with your business needs.
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Tide Free Business Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
YesOur Rating: 4.5/5★
Best for: Startups and overall business use.
Tide is a UK-based financial technology company focused on small and medium-sized enterprises (SMEs).
Their mission is to provide accessible, straightforward banking solutions tailored to the needs of business owners.
Accessibility
Access your Tide account via the web or the mobile app.
Read our in-depth Tide business account review
- No monthly fees.
- 20p per bank transfer.
- Comprehensive mobile and online platforms.
- 24/7 customer support via the app.
- Easy invoicing, expense management, and rapid loan application processes within the app.
- Compatible with major accounting software like Xero, QuickBooks, and Sage.
- FSCS protection through ClearBank Ltd.
- Two-factor authentication, encryption, and continuous monitoring.
- Accounts can be set up the same day.
- No overdrafts, or credit cards available currently.
- Loans are available to eligible businesses from £1,000 to £20mil through Funding Options by Tide.
- Depositing cash at the Post Office costs £2.50 for up to £500 and 0.5% for amounts over £500.
- PayPoint transactions incur a 3% fee.
- Cheques can now be deposited digitally via the Tide app; deposits at banks or post offices are not accepted.
– You must be at least 18 years old.
– You must have a valid UK phone number.
– You must have a device that can access the UK Apple App Store or Google Play Store.
– You must be either the director of an active company registered with UK Companies House or a sole trader/freelancer registered with HMRC.
– Charities/trusts and other high-risk industries are not eligible.
– Businesses operating from outside the UK are excluded.
Independent Survey
In the category of Overall Service Quality, 74% of customers recommended Tide. The recommendation rate for Online and Mobile Banking increases slightly to 77%. However, the Relationship/Account Management category sees a lower recommendation rate, with only 66% of customers willing to recommend Tide in this area.[1]
Starling Bank Business Current Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
Yes
FSCS Protection
Yes
Our Rating: 4.5/5★
Best for: SMEs needing safe digital banking and good customer support.
Starling Bank is a UK-based digital bank focused on providing personal and business banking services.
Known for its innovation and customer-centric approach, Starling Bank aims to simplify banking for SMEs and entrepreneurs.
Accessibility
Access your Starling Bank account via the web or mobile app.
⏩ For a more in-depth look, read our Starling Bank business current account review
- No monthly fee.
- Free bank transfers.
- Charges may apply for cash deposits.
- Access via the app, online, and phone.
- Integrates with Xero, FreeAgent, and QuickBooks.
- FSCS protection up to £85,000.
- Two-factor authentication and account monitoring for security.
- 24/7 support via phone and app.
- Account setup within one day.
- Offers overdrafts and business loans from £25,001 to £250,000 (subject to approval).
- Cash deposits are available at the Post Office.
- Cheque deposits up to £1,000 via the app.
– All directors with access to the account must be at least 16 years old and UK residents.
– All Persons of Significant Control must be UK residents and natural persons.
– You must be either a sole trader or the director of a limited company or LLP registered with Companies House.
– The business must not be a holding company, dissolved, or in liquidation.
– Businesses operating from outside the UK are excluded.
– Charities/trusts and high-risk businesses are not eligible.
Independent Survey
For Starling Bank, 83% of customers recommended their Overall Service Quality. The recommendation rate for Online and Mobile Banking is higher at 86%. In the category of Relationship/Account Management, 71% of customers would recommend the service.[1]
Revolut Business Basic Account
Monthly Fee
£0Bank Transfers
20p
Card Purchases
£0Overdraft
NoFSCS Protection
NoOur Rating: 4.1/5★
Best for: Tech-savvy people, international trade and multi-currency needs.
Revolut is a global financial technology company offering banking services aimed at businesses and individuals.
The company focuses on providing innovative, digital-first financial solutions.
Accessibility
Access your Revolut account via the web or mobile app.
⏩Read our in-depth Revolut business account review
- No monthly fee.
- Free local payments within 5 per month allowance.
- Affordable fees for additional services.
- Full account access via a user-friendly mobile app and online platforms.
- Supports multi-currency transactions.
- Extensive compatibility with Xero, QuickBooks, and Sage.
- Uses a safeguarding process for security.
- Includes two-factor authentication and fraud alerts.
- Available 24/7 through the mobile app.
- Accounts typically opened on the same day.
- No overdrafts, credit cards, or business loans currently.
- No cash or cheque deposits are currently available.
– You must be at least 18 years old.
– Your business must have a physical presence in the UK, EEA or Switzerland.
– You must be a private limited company, public limited company, Limited Liability partnership or partnership.
– Charities/trusts and other high-risk organisations are not eligible.
– Businesses operating from outside the supported countries are excluded.
ANNA Money Pay as You Go Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
No
Our Rating: 4/5★
Best for: Freelancers and micro businesses.
ANNA Money is a UK-based fintech company offering business banking and financial management services aimed at freelancers and small businesses.
ANNA stands for “Absolutely No Nonsense Admin,” reflecting its focus on simplifying business banking and administration.
Accessibility
Access your ANNA Money account via the web or the mobile app.
⏩ Read our in-depth Anna business account review
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- No monthly fee for the Pay As You Go account.
-
- 20p per bank transfer.
-
- £1 per ATM withdrawal.
-
- App-only access for a streamlined, tech-savvy experience.
-
- Integrates with Xero, QuickBooks, and Sage.
-
- Comprehensive safeguarding measures and collaboration with fraud prevention organisations.
-
- Available 24/7 via live chat.
-
- Account setup can be completed in as little as three minutes.
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- No overdrafts, credit cards, or business loans currently available.
-
- Cash deposits incur a 1% fee per transaction at PayPoint locations.
-
- No cheque deposit service currently.
– You must be at least 18 years old.
– You must be a sole trader, a director of a limited company (and listed on Companies House) or a partner in a Limited Liability Partnership (LLP).
– You must have a UK residential address.
– Charities/trusts and other high-risk businesses are not eligible.
– Businesses not based in the UK are excluded.
HSBC Business Kinetic Account
Monthly Fee
£6.50
Bank Transfers
£0Card Purchases
£0Overdraft
YesFSCS Protection
No
Our Rating: 4/5★
Best for: Sole traders and single directors wanting a more traditional banking experience.
HSBC is one of the world’s largest banking and financial services organisations.
The Business Kinetic account is designed for small businesses and startups, offering a digital-first approach with comprehensive banking solutions.
Accessibility
Access your HSBC account via the web, mobile app, telephone or physical branch.
⏩ Read our comprehensive HSBC Business Bank Account review.
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- £6.50 monthly fee waived for the first 12 months.
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- 0.60% fee on ATM withdrawals.
-
- Account management via online, app, in-branch, email, and phone.
-
- Integrates with Xero, QuickBooks, and Sage.
-
- FSCS protection for deposits; advanced security features.
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- Available Monday to Friday, 8 am to 8 pm, and Saturday from 8 am to 2 pm.
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- Accounts typically opened within 48 hours.
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- Offers overdrafts up to £30,000, loans between £1,000 and £10,000, and a credit card with a 15.9% APR.
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- Cash and cheque deposits accepted at any HSBC branch and Post Office branches.
– You must be at least 18 years of age and reside within the UK.
– You must be a sole trader or the sole director of a limited company operating within the UK.
– You must have an annual income of no more than £6.5m.
– Businesses operating from outside of the UK, within the Isle of Mann or the Channel Islands, are not eligible.
No annual fee
Zempler Bank Business Go Account
Monthly Fee
£0Bank Transfers
30p
Card Purchases
£0Overdraft
YesFSCS Protection
NoAccessibility
Access your Zempler Bank account via the web or the mobile app
- No monthly fee makes it an economical choice for businesses.
- Rapid account setup, usually completed on the same day.
- Strong security features, including FSCS protection and 3D Secure.
- Positive customer feedback on digital platforms like Trustpilot, rated 3.6/5, indicates a reliable user experience.
- Broad accounting software integration facilitates seamless financial management.
- Debit cards aren’t included and incur an additional fee
- Charges for ATM use and additional transaction fees beyond free limits could increase operating costs.
- Limited customer service hours may not cover all business operational hours, particularly weekends.
- The absence of direct application for business loans or credit cards could complicate access to additional funds.
- Digital-only account management may not suit those who prefer in-person services.
- There is no monthly fee for the Business Go account.
- 3 free bank transfers a month, then 30p per transfer.
- Comprehensive account access via app and online platforms.
- Integrates with QuickBooks, Xero, and Sage.
- FSCS protection for up to £85,000; employs 3D Secure, two-factor authentication, encryption, and 24/7 fraud monitoring.
- UK-based support is available 8 am to 8 pm Monday to Friday and 8 am to 4 pm on Saturdays.
- Cash deposits at any UK Post Office branch.
- Overdrafts available for qualifying businesses; offers Business Cash Advance.
– You must be at least 18 years old and have a UK residential address.
– You must be a sole trader, director of a limited company, a charity or a partnership based in the UK.
– Sole traders cannot be registered at UK Companies House. Limited companies must have no more than 4 PSCs registered with Companies House.
– High-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.
More Information: Cashplus Bank’s Business Go Account
Our Rating: 4/5★
Best for: Immediate access to account information at application, giving startups a valuable head start.
Zempler Bank (formerly known as Cashplus) is a UK-based digital bank that focuses on providing quick and easy banking solutions for small businesses and entrepreneurs.
They offer a range of financial products designed to meet the needs of modern businesses.
⏩ Read our in-depth Cashplus business account review
Monzo Business Lite Account
Monthly Fee
£0Bank Transfers
£0
Card Purchases
£0Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Monzo account via the web or mobile app
- No monthly fee keeps costs down.
- Quick and free UK bank transfers enhance transaction convenience.
- FSCS protection and advanced security features, including two-factor authentication.
- High customer satisfaction, supported by 24/7 customer support.
- Seamless integration with popular accounting software.
- A full range of features is available only with the paid Pro account.
- Cash deposit fees and limits may be restrictive for some businesses.
- No business credit cards, potentially limiting financing options.
- The high threshold for cheque deposits might inconvenience businesses handling smaller amounts.
- No monthly fee for the Business Lite account.
- £1 per cash deposit at PayPoint.
- Comprehensive account access via mobile app, online, phone, and email.
- Integrates with Xero, FreeAgent, and QuickBooks.
- FSCS protection for up to £85,000.
- Employs two-factor authentication for enhanced security.
- Available 24/7, contributing to high customer satisfaction.
- Quick and easy account setup.
- Overdrafts up to £2,000 for eligible businesses; business loans available through the app.
- Cash deposits at PayPoint with specific limits; cheque deposits over £500 accepted.
– You must be at least 16 years of age.
– You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
– You must be a tax resident in the UK only.
– LLPs, PLCs, charities and high-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.
More Information: Monzo’s Business Lite Account
Our Rating: 3.9/5★
Best for: Digital-first, fully regulated alternative to Starling Bank.
Monzo is a UK-based digital bank known for its transparent, customer-centric approach to banking.
The Business Lite account is designed for small businesses and sole traders, offering a straightforward and cost-effective banking solution.
⏩ Read our in-depth Monzo business bank account review
Independent Survey
For Monzo, 84% of customers recommended their Overall Service Quality. The recommendation rate for Online and Mobile Banking is higher at 88%. In the category of Relationship/Account Management, the recommendation stood at 78%.[1]
Mettle Business Bank Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Mettle account via the web or mobile app
- Completely free to join and use, ideal for startups and small businesses.
- Quick and easy setup process.
- Robust integration with accounting software aids in efficient financial management.
- FSCS protection provides security for customers’ funds.
- High customer satisfaction with a Trustpilot rating of 4.6/5 from 3,683 reviews.
- The lack of physical bank branches may 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.
- No monthly fees.
- Free bank transfers and card purchases.
- Account access is through a mobile app, online and phone.
- Integrates with FreeAgent, Xero, and QuickBooks; includes instant invoicing and spending categorisation.
- FSCS protection for deposits, ensuring robust financial security.
- Available Monday to Friday, 8 am to 8 pm, and weekends from 9 am to 5 pm.
- Quick and easy application process.
- No overdrafts, credit cards, or business loans currently available.
- Cash deposits at Post Office branches via barcode generated in the app.
- No cheque deposits are currently available.
– You must be a UK resident and at least 18 years of age.
– You must be a sole trader or a limited company with a maximum of two owners.
– You must have a main account balance not exceeding £1m.
– You must have a UK phone number.
– You must have an iOS device running iOS 13 or later or an Android device running Android 7.0 or later.
– You must pay tax and only be a tax resident in the UK.
– Businesses operating from outside the UK are excluded.
– PLCs, charities and high-risk organisations are not eligible.
More Information: Mettle’s Business Bank Account
Our Rating: 3.9/5★
Best for: Fully-fee-free and mobile-based banking for micro businesses.
Mettle is a UK-based digital banking service provided by NatWest, designed specifically for small businesses, freelancers, and sole traders.
Mettle offers a simple and efficient way to manage business finances through a digital platform.
⏩ Read our in-depth Mettle business bank account review
Metro Bank Business Bank Account
Monthly Fee
£0Bank Transfers
30p
Card Purchases
30p
Overdraft
YesFSCS Protection
NoAccessibility
Access your Metro Bank account via the web or the mobile app
- No monthly fees for balances over £6,000 benefit businesses maintaining higher balances.
- Provides traditional bank services with in-branch management for a personalised service experience.
- Broad access options include in-branch, mobile, phone, and online.
- Various credit lines are available, including overdrafts, offering financial flexibility.
- It supports cash and cheque deposits at branches and post offices, enhancing convenience.
- A 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 standard hours.
- A relatively low Trustpilot rating of 1.9/5 suggests potential issues with customer satisfaction.
- Fee structure for transactions beyond the free allowance could become costly for businesses with high transaction volumes.
- No monthly fee for balances over £6,000; £6 monthly fee if the balance falls below this threshold.
- 30 free transactions per month, £0.30 per transaction thereafter.
- Available in-branch, via mobile app, phone, and online.
- Integrates with Xero and Clearbooks.
- FSCS protection; multi-factor authentication for enhanced security.
- Available 8 am to 8 pm, not 24/7.
- Account setup typically takes two days, with same-day setup available in-store.
- Offers overdrafts, credit cards, business loans, and asset finance.
- Supports cash and cheque deposits at branches and Post Offices.
– You must be over 18 years’ old.
– Your business must not exceed £2mil for this account.
– You must be one of the following: sole trader, limited company, limited guarantee, or limited liability partnership.
– Charities or trusts are not eligible.
– Businesses not based in the UK are excluded.
More Information: Metro Bank‘s Business Bank Account
Our Rating: 3.4/5★
Best for: Combined traditional and digital banking focuses with account balances over £6,000.
Metro Bank is a UK-based bank known for its high street presence and customer-centric approach.
The Business Bank Account is designed for small to medium-sized businesses, offering a range of banking services with a focus on convenience and support.
⏩ Read our in-depth Metro Bank business bank account review
Independent Survey
For Metro Bank, 65% of customers recommended their Overall Service Quality. The recommendation rate for Online and Mobile Banking is slightly higher at 67%. However, the recommendation rate for SME Overdraft and Loan Services was lower, with only 52% of customers recommending it. In the category of Relationship/Account Management, the recommendation rate was 65%.[1]
Cynergy Bank Business Current Account
Monthly Fee
£25
Bank Transfers
£0
Card Purchases
£0
Overdraft
YesFSCS Protection
NoAccessibility
Access your Cynergy account via the web
- 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 covering all standard transactions thereafter.
- A quick setup process enhances convenience.
- FSCS protection and strong security measures ensure the safety of funds.
- Available credit lines like overdrafts and loans provide financial flexibility.
- A monthly fee of £25 after the first year may be considered high by some businesses.
- Limitations on cash deposits by restricting transactions to HSBC branches only.
- Limited in-branch access and customer service hours might not accommodate all business schedules.
- Vague details from their website about certain services like accounting integration and cheque deposit processing can create uncertainty.
- Free for the first 12 months; £25 monthly fee thereafter
- Free standard electronic transactions, fees apply for cash, CHAPS, SWIFT, and SEPA transactions
- Account access is available online and in-branch by appointment at four UK locations: London, Redhill, Birmingham, and Manchester
- Limited details on accounting integration
- FSCS protection for deposits; employs two-factor authentication for enhanced security
- Available Monday to Friday, 09:15 – 17:15
- Account setup can be completed in as little as 15 minutes
- Offers overdrafts, business loans, commercial mortgages, and asset finance
- Cash deposits at UK HSBC branches only; supports cheque deposits, though details are not made clear on their website
– The business must be based in the UK and registered with Companies House if required.
– Eligible entities include sole traders, partnerships, limited liability partnerships, and limited companies.
– Businesses may have up to 10 named individuals, including partners, directors, and shareholders. Shareholders who own 10% or more of the business must be included.
– Charities or trusts are not eligible.
– Businesses not based in the UK are excluded.
More Information: Cynergy Bank’s Business Current Account
Our Rating: 3.1/5★
Best for: Regulated digital banking that earns interest and also offers credit facilities.
Cynergy Bank is a UK-based bank offering a range of personal and business banking services.
Their Business Current Account is designed to meet the needs of SMEs, providing flexible and efficient banking solutions.
⏩ Read our in-depth Cynergy Bank business bank account review
What are business bank accounts?
A business bank account is a specific type of bank account designed to meet the needs of businesses, ranging from small enterprises to large corporations.
When talking about business bank accounts specifically, we typically refer to those offered by traditional banks or challenger banks. Both are regulated financial entities but operate under different models.
How do business bank accounts work?
These accounts facilitate daily operations, such as receiving client payments, paying suppliers, and managing payroll. They may also provide features like online and mobile banking, chequebooks, debit cards, and integration with accounting software to streamline financial reporting and tracking.
Business bank accounts can differ from personal accounts in several key aspects, including fee structures, transaction processing, and access to additional services like overdrafts and loans.
For example, accounts offered by banks such as Tide and Starling Bank might offer perks like zero monthly fees or low transaction costs to appeal to small businesses and startups.
Meanwhile, traditional banks may offer accounts with physical branch access and more comprehensive business services, catering to larger companies with more complex banking needs.
Overall, the functioning of business bank accounts centres on providing tailored banking solutions to support businesses’ diverse operational and financial needs, ensuring efficient financial management within the regulatory frameworks established by entities like the FCA and PRA.
How to choose the right business bank account
Here are some of the things you may want to consider when choosing a bank account for your business:
- Fees and charges: Consider whether you want accounts with no monthly fees, and remember that some accounts have transaction fees.
- Interest rates: Some banks offer interest but may increase fees over time; others do not provide interest.
- Overdraft facilities: Check the availability and conditions of overdraft facilities, if required.
- Online banking and mobile app: Consider if banks with user-friendly digital banking platforms are preferred or if a more traditional banking setup (with branches) is required.
- Customer service: Evaluate customer support availability, particularly 24/7 service options, if required, and the communication channels offered.
- Integration with accounting software: Where required, confirm compatibility with popular accounting software like Xero and QuickBooks.
- Deposit protection: If desired or required, verify if the provider offers FSCS protection up to £85,000. Note that not all account providers offer this.
Pros and cons of a business bank account
Pros:
- Separates personal and business transactions
- Builds a business credit rating
- Easier tax reporting to HMRC
- It makes the business look more professional
- Financial protection for yourself and your business
Cons:
- Business bank accounts generally come with higher fees than personal accounts
- Having a second account means more admin
- It may come with a minimum deposit requirement
The best business bank accounts at a glance
Here’s a quick reminder of our picks for the best business bank accounts (and e-money alternatives).
| Provider | Best For | Monthly Fee | Bank Transfers | Card Purchases | Our Rating | Check Eligibility |
|---|---|---|---|---|---|---|
| Tide | Startups and overall business use. | £0 | 20p | Free | 4.5/5★ | Visit site |
| Starling Bank | SMEs needing safe digital banking and good customer support. | £0 | Free | Free | 4.5/5★ | Visit site |
| Revolut Business | Tech-savvy people, international trade and multi-currency needs. | £0 | 5 Free pm (then 20p each) | Free | 4.1/5★ | Visit site |
| ANNA Money | Freelancers and micro businesses. | £0 | 20p | Free | 4/5★ | Visit site |
| HSBC | Sole traders and single directors wanting a more traditional banking experience. | £0 (For 12m, then £6.50pm) | Free | Free | 4/5★ | Visit site |
| Zempler Bank | Immediate access to account information at application, giving startups a valuable head start. | £0 | 3 Free pm (then 30p each) | Free | 4/5★ | Visit site |
| Monzo | Digital-first, fully regulated alternative to Starling Bank. | £0 | Free | Free | 3.9/5★ | Visit site |
| Mettle by NatWest | Fully-fee-free and mobile-based banking for micro businesses. | £0 | Free | Free | 3.9/5★ | Visit site |
| Metro Bank | Combined traditional and digital banking focuses with account balances over £6,000. | £0 (for >£6,000 balance) | 30 Free pm (then 30p each) | 30 Free pm (then £30p each) | 3.4/5★ | Visit site |
| Cynergy Bank | Regulated digital banking that earns interest and also offers credit facilities. | £0 (for 12m, then £25pm) | Free | Free | 3.1/5★ | Visit site |
The banking and e-money products included in the table above and on this page may be part of a range available from these providers. Other products are available. Always review the terms and conditions to ensure the product meets your needs before applying.
What guided Our best picks?
The table above primarily features challenger banks and e-money institutions in our best business accounts shortlist, reflecting a deliberate choice.
This decision is supported by our rigorous research methodology, proprietary rating system, and an awareness of broader market trends.
Notably, digital banks in the UK have seen a remarkable 659% increase in users, growing from 2.9 million to 19.1 million between 2018 and 2023, indicating a significant shift towards digital-only banking.[2]
Interested in the high-street banks?
If you prefer a traditional high-street bank over challenger banks or e-money alternatives, then this side-by-side comparison table is tailored for you.
| Feature | HSBC Kinetic Account | Lloyds Small Business Account | NatWest Business Account | Barclays Business Account |
|---|---|---|---|---|
| Monthly Fee | £6.50 (Free for 12m) | £8.50 (Free for 12m) | £0 (Free) | £8.50 (Free for 12m) |
| Bank Transfers | Free | £0.20 (100 outgoing transfers pm free) | £0.35 (Free for 24 months) | Free |
| Card Purchases | Free | Free | £0.35 (Free for 24 months) | Free |
| ATM Withdrawals | 0.60% | £0.85 | 3% (minimum £3 withdrawal) | Free (UK) |
| Account Access | Online, App, In-branch, Email, Phone | Online, Mobile App, in-Branch, Phone | Online, Mobile App, In-Branch, Phone | Online, Mobile App, In-branch, Phone |
| Setup Ease | Most accounts are opened within 48hrs | Average setup time of 7 days | Average of 8 days | Average setup time of 10 days |
| FSCS Protection | FSCS-protected | FSCS-protected | FSCS-protected | FSCS-protected |
| Credit Lines | Overdrafts up to £30,000. Loans between £1,000 – £10,000. Credit card with 22% (representative) APR. | Overdrafts up to £25,000+. Business Loans from £1,000 to £25,000. Credit Cards with 22.4% (representative) APR. | Overdrafts up to £50,000. Credit cards with 24.3% (representative) APR. Loans of £1,000 to £50,000. | Overdrafts up to £50,000. Credit cards with a representative APR from 27.5%. Loans from £1,000 to £100,000. |
| Customer Service | Mon to Fri, 8am to 8pm and Sat, 8am to 2pm | 24/7 customer support via App and Lloyds X account (formerly Twitter). Phone support is Mon – Fri 7am to 8pm and Sat 9am to 2pm. | 24/7 Human support over the phone and via X account (formerly Twitter) | Phone support is Mon to Fri, 8am to 8pm. |
| Trustpilot Reviews | 8,642 ratings with an average of 1.6/5 | 4,568 ratings with an average of 1.7/5 | 6,630 ratings with an average of 1.4/5 | 10,302 ratings with an average of 1.4/5 |
What are the different types of business accounts?
Business accounts available in the market typically fall into the following categories:
- Current accounts: Essential for daily operations like deposits, withdrawals, and making payments. They often include chequebooks, debit cards, and comprehensive online banking features.
- Savings accounts: Best for earning interest on surplus funds, offering higher interest rates than current accounts but with more limited access.
- Merchant accounts: Necessary for businesses accepting card payments, these accounts temporarily process and hold transaction funds.
- Foreign currency accounts: These are useful for businesses trading internationally, helping manage multi-currency transactions and reducing exchange rate risks.
- Fixed deposit accounts: Ideal for setting aside funds for a fixed period to earn better interest rates, though early withdrawals may incur penalties.
- Client accounts: Crucial for professions like solicitors or estate agents to handle client funds separately, ensuring regulatory compliance and client money protection.
- E-money institution accounts: Provide digital-first banking options, which are not covered by the FSCS but are required to safeguard customer funds.
Who is eligible for a business bank account?
Eligibility for a business bank account varies by provider, but typically, applicants must meet certain basic criteria. Generally, the applicant must be at least 18 years old, have a UK residential address, and be the director of an active UK company registered at Companies House, or a sole trader/freelancer registered with HMRC.
Some banks may also have specific requirements related to the business’ operation within the UK, and they often exclude charities, trusts, and high-risk industries. Additionally, certain banks may require the business to not be a holding company, dissolved, or in liquidation. Each bank will have its own set of eligibility requirements which need to be met to open a business bank account.
Steps to open a UK business bank account
To open a UK business bank account, you will typically need to follow these steps:
- Choose a bank: Compare the features and fees to find the best fit for your business.
- Gather necessary documentation: You will need to provide information about your business, including your company registration number, proof of identity, and the nature of your business.
- Apply: Complete the application process, which may involve an in-person meeting or the submission of an online application.
- Wait for approval: Based on the average length of time it takes to get all of the accounts set up on this page, you can expect to wait anywhere between 15 minutes to 10 days before getting access to your new account.
- Fund your account: You will need to transfer funds into your new business bank account to start using it.
The documents required
Banks require specific documents to verify your business identity and legitimacy. Common documents include:
- Proof of identity: Driver’s license or passport.
- Proof of personal address: Recent utility bill or council tax statement.
- Proof of business address: Correspondence from HMRC or Companies House.
- Company registration: Companies House formation document.
- Estimated annual turnover: Projected income and expenses.
- Financial history: Some banks may ask for documents showing a clean credit history.
Is there a limit to how many business bank accounts I can open?
You can have multiple bank accounts for your business, with no official limit on the number of accounts. However, if you want to open several accounts with the same bank or account provider, be aware that they may impose a limit at their discretion.
Are there alternatives to business bank accounts?
Alternative business banking options, such as e-money accounts and payment service providers (PSPs) can offer benefits like lower fees, enhanced tech integration, and flexible transactions.
The following options may not offer the same level of protection provided by traditional bank accounts. However, they can be used as alternatives to traditional bank accounts depending on your business’ specific circumstances and requirements:
1. E-money accounts: Non-bank financial institutions offer e-money accounts for electronic funds handling, often without traditional banking services and credit lines like loans.
2. Payment service providers (PSPs): PSPs, such as PayPal, Stripe, and Square, handle online payment processing and temporarily hold funds.
Bottom line: So which accounts are the best of the bunch?
The best bank account for your business will be dictated by your needs and the needs of your business itself.
However, our top 3 choices that cover most requirements are:
- Tide’s Free account: Best for all needs and general business use.
- Starling Bank’s business bank account: Superb all-rounder with exceptional customer care.
- Revolut Business’ Basic account: Great for all digitally-minded individuals and also for international use.
All three of our top accounts lack branch access. If you require in-branch services, consider choosing one of the leading high-street banks in the table further up the page.
Our commitment to updating Our banking content
In the rapidly evolving world of business banking, staying updated is key.
Whilst we cannot always guarantee accuracy as the banking market is changing all the time, we do our utmost to make sure you get the very best business banking information on our platform.
This is why Business Expert is committed to regular reviews of our content and diligently sticking to our update schedules.
This helps to ensure that you always have access to the latest information on business bank accounts, fees, regulations, and technological advancements.
We value your input as it helps us serve you better. So please feel free join our community, either through our newsletter, or give us feedback via our contact page to share your experiences or suggestions.
Review methodology and the Business Expert rating system
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 specific reasons.
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:
- Monthly Fees: Lower fees score higher.
- Transaction Fees: Fewer and lower fees score higher.
- Accessibility: More access options (web, app, branch, phone) score higher.
- Features: More features score higher.
- Accounting and Invoicing Software Integrations: More integrations score higher.
- Customer Service: Better service (availability, quality) scores higher.
- Customer Reviews: Higher ratings score higher.
- 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.
Frequently Asked Questions (FAQs)
How Long Does It Take to Open a Business Bank Account in the UK?
While applying for a business bank account can take as little as 15 minutes, the compliance checks usually take longer. Many challenger banks can get you up and running within a day, while high street banks typically take a few days, to a couple of weeks to complete the paperwork.
⏩ Read our full article on the fastest business bank accounts to open
How Do I Switch My Business Bank Account?
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
Can I open a Business Account with a Bad Credit History?
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 Zempler Bank (formerly 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
Which Providers Offer Business Savings Accounts?
Several banks offer business savings accounts with varying features and interest rates:
- Allica Bank provides a 12-Month Fixed-Term Savings Account with a fixed interest rate of 5.15% AER.
- Tide offers an Easy Access Business Savings Account with a variable interest rate of 3.81% AER capped on deposits up to £50,000.
- Monzo’s Business Instant Access Savings account has a variable interest rate of 1.6% AER.
- Wise offers an investment fund with variable interest rates ranging from 3.67% to 5.05% AER.
- Aldermore provides a 1-Year Fixed Rate Business Savings Account with a fixed interest rate of 4.51% AER.
- United Trust Bank’s Business 180-Day Notice Base Rate Tracker offers a variable interest rate of 5.25% AER.
- Virgin Money has a 1-Year Business Fixed Rate Savings Account with a fixed interest rate of 5.05% AER.
- NatWest’s 95-Day Liquidity Manager has a variable interest rate of 4.25% AER.
- HSBC’s Business Money Manager Easy Access account offers variable interest rates between 1.93% and 1.96% AER.
- Lloyds Bank provides a 95-Day Notice Account with a variable interest rate of 4.08% AER.
- Barclays offers a Business Premium Account with variable interest rates between 1.5% and 1.96% AER.
These accounts vary in terms of access and interest rates, so businesses can choose the one that best fits their financial needs.
Read more about these account options in our guide on the best business savings accounts.
What is the Financial Conduct Authority (FCA)?
The Financial Conduct Authority (FCA) is a regulatory body in the United Kingdom, established to oversee the financial services industry. Its role is to ensure that financial markets work well, with a specific focus on protecting consumers, enhancing the integrity of the UK’s financial system, and promoting competition for the benefit of consumers.
The FCA is responsible for the regulation of conduct in both retail and wholesale financial markets, the supervision of the trading infrastructure that supports those markets, and the oversight of firms not covered by the Prudential Regulation Authority (PRA). This includes the regulation of nearly 60,000 financial services firms and financial markets in the UK.
What is the Prudential Regulation Authority (PRA)?
The Prudential Regulation Authority (PRA) is a regulatory body within the Bank of England, responsible for overseeing the financial health of banks, insurers, and major financial firms in the UK.
Its main objective is to ensure these institutions are run safely and soundly, focusing on their financial resilience and operational integrity to maintain stability in the UK financial system.
The PRA operates alongside the Financial Conduct Authority (FCA), with the PRA concentrating on systemic stability and the financial soundness of the firms it regulates.
What is the Financial Services Compensation Scheme (FSCS)?
The Financial Services Compensation Scheme (FSCS) is the UK’s statutory deposit insurance and investors compensation scheme for customers of authorised financial services firms. It protects bank accounts, insurance policies, investment products, and home finance products by providing a safety net if a financial services firm fails.
The FSCS can compensate customers up to certain limits; for example, it covers up to £85,000 per eligible person, per bank, for lost deposits. This scheme plays a critical role in maintaining public confidence in the financial system by safeguarding consumers’ funds and helping to ensure financial stability.
What is Two-Factor Authentication (2FA)?
Two-factor authentication (2FA) is a security method that requires two different forms of identification before granting access to an account or service. It typically combines a password with a second factor, like a code sent to a mobile device, enhancing security by making unauthorised access more difficult.
Do all business current account providers offer 24/7 customer support?
No. Not all business current account providers offer 24/7 customer support. The availability of around-the-clock support varies among financial institutions, with some offering extensive access to help services via phone, app, or online platforms, while others may have more limited hours.
For instance, some digital-first providers like Tide, Starling Bank and Monzo do offer 24/7 customer support, which is particularly appealing for businesses that operate beyond traditional hours.
However, some traditional banks may offer customer service during regular business hours with limited after-hours support. Therefore, when choosing a bank, businesses should consider their specific needs for support availability.
References
[1] Overview of the Business Banking Service Quality Survey in Great Britain
In February 2024, a survey report summarising a year-long independent study on the service quality of 15 major business current account providers in Great Britain was released.
Conducted by BVA BDRC from January to December 2023 and required by regulatory standards, the survey aimed to compare service quality for small and medium-sized enterprises (SMEs) across providers like Bank of Scotland, Barclays, and HSBC UK, among others.
Approximately 1,200 customers from various SMEs annually evaluate services such as online banking and account management.
The findings, based on the likelihood of recommending their provider, are updated every six months and involve around 18,000 participants. This helps SMEs make informed decisions about their banking services.
[2] UK Neobank User and Trend Statistics
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.
