Choosing the right business bank account is a decision that will impact your company on a daily basis for years to come. Whether you’re a start-up opening an account for the first time or an established SME switching for a more competitive deal, I’ll help you compare the best options.
My comprehensive guide will compare the best business bank accounts for the listed categories.
Some of the categories we will cover will range from the best in class overall, the top bank account for international transactions; best for start-ups, freelancers, poor credit; best if you are looking for an overdraft; the top crypto-friendly bank, best for savings accounts, non-profits and the best business account for cashback.
In addition, I will highlight the best in class for some of the high-street banks to provide a full range of context across the challenger and high-street banks.
- The Best Business Bank Accounts at a Glance
- Best Overall
- Runner Up
- Best if you’re operating in the EEA
- Best for Freelancers
- Best for Poor Credit or to Build Credit
- Best Crypto-Friendly
- Best Business Savings Account
- Best for startups
- Best for rewards or cashback
- Best for non-profits
- Best Business Bank Account with an Overdraft: Starling – Business Current Account
- FAQs
The Best Business Bank Accounts at a Glance
If you don’t want to read the whole article, here’s a quick synopsis of the different categories I have reviewed, the best in class for each of those categories, and the websites where you can access each account:
| Category | Best Business Bank Account | Bank Website |
|---|---|---|
| Overall | Tide: Free account | Visit Tide |
| Runner-up | Monzo: Lite account | Visit Monzo |
| International transactions Monthly allowance of free international transactions: Grow – 10. Scale – 50. | Revolut: Grow & Scale accounts (depending on volume of transactions) | Visit Revolut |
| Freelancers | ANNA: Pay as You Go account | Visit ANNA |
| Poor credit/credit builder | Cashplus: Business Extra account | Visit Cashplus |
| Crypto-friendly | Revolut: Grow, Scale, or Enterprise accounts | Visit Revolut |
| Start-ups | Tide: Free account | Visit Tide |
| Non-profits | Metro Bank: Charity & Community accounts | Visit Metro |
| Rewards & cashback | Tide: Cashback account | Visit Tide |
| Overdraft | Starling: Business current account | Visit Starling |
| Savings account | Shawbrook Bank: Easy Access Business account | Visit Shawbrook |
Best Overall Business Bank Account: Tide – Free account
Tide offers four very well-designed and effective business bank accounts with all of the core features you’d expect (save an overdraft) and a great mobile APP.
Their free accounts come with no monthly or annual fees, and they also offer Plus, Pro and Cashback accounts as paid accounts with increased functionality.
You can get fee-free spending abroad, integrate with all major accounting software, and send invoices straight from the APP.
Tide accounts are protected by a number of security features, including two-factor authentication, encryption, and fraud monitoring. This helps to keep your business’s money safe.
They have over 16,000 reviews on Trustpilot, with 72% judging them as excellent and an overall rating of 4.4 out of 5 stars. Reviewers often speak of the ease of setting up and using the account, the lack of monthly fees, and the good customer service.
The common complaints by Tide account reviewers are concerns about the lack of overdraft protection, slow payment processing times, and the inability to contact customer service by phone.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £0 | No monthly fee for the Tide Free Account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | £0.20 | 20p per transfer. |
| ATM cash withdrawals | £1 | £1 per ATM withdrawal. |
| Cash deposits | 0.5% (minimum £2.50) | 0.5% of the deposit amount (minimum £2.50) at Post Offices. |
| PayPoint cash deposits | 3% | 3% of the deposit amount at PayPoint locations. |
» MORE Read our in-depth Tide Review
- Free account with no monthly fees
- Tide's App is amongst the best for user-experience
- Invoice Straight from the app
- Connects with almost every accounting software
- Excellent reviews and customer service
- £1 for ATM withdrawals
- £1 to deposit money at the Post Office
- 3% charge for cash deposits at Paypoints
- One of the best Apps in the sector
- No Monthly or Annual Fees
- Easy Invoice Creation Functionality
- Post Office Deposits Cost £1
- 20p charge for transfers between accounts
- 3% charge for cash deposits at Paypoints
Eligibility Criteria
You must be 18 years or over, a UK resident, and have a valid UK phone number.
To qualify for Tide’s Black Friday Deal and get £100 cashback, all you need to do is spend £500 or more via your new account with them within the first 90 days of opening. This deal is valid from 20/11/2023 – 30/11/2023.
Best Business Bank Account (Runner-Up): Monzo – Lite
It’s easy to see why Monzo is our runner-up as it’s designed to help the average business manage their finances effectively. It offers no monthly fees for starting a business account, highlighting its affordability and accessibility for businesses of various sizes
Monzo offers two main business account types: Pro and Lite. The Pro account has a monthly price of £5, while the Lite account is available for free
Some of its standard business banking features include free, instant UK bank transfers, notifications for payments, monthly budgets and transaction categories to help break-down your spending, and separate pots for organising finances.
They also offer an overdraft up to £2,000 for sole traders only. If you have a limited company and you’re looking to get an overdraft then Monzo sadly isn’t for you. They don’t yet offer this facility to limited companies, but this may change in future.
Monzo’s business accounts have FSCS protection up to £85,000, 24/7 support and advanced security measures like payment approval, card freezing, and biometric protections such as fingerprint, face, and PIN protection. This puts it right up there at the top of the market for security measures that they have in place.
At the time of writing this, Monzo has 29,543 reviews on Trustpilot with an overall rating of 4.1 out of 5, which shows a very positive reception from its users.
Customers are praising Monzo for its easy-to-use app, helpful customer service, and fee-free spending abroad, which are frequently mentioned as strong points in their positive reviews.
Some of the more critical reviews cite aspects such as Monzo being only available to UK residents, inability to receive international payments due to the lack of an IBAN number, and a fee for cash deposits at Paypoints.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £0 | No monthly fee for the Lite account |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad |
| Transfers in and out of accounts | Free | Free instant UK bank transfers |
| ATM cash withdrawals | Free | Free ATM cash withdrawals |
| Cash deposits | £1 | £1 fee for cash deposits at PayPoints |
| Cash withdrawals outside EEA | £200 free every 30 days, then 3% | £200 free cash withdrawal every 30 days outside EEA, then 3% charge |
» MORE Read our in-depth Monzo Business review
- Accessible and affordable for businesses of all sizes
- Offers both Pro (at £5/month) and free Lite accounts
- Includes instant bank transfers, budgeting tools, and financial organisation pots
- Advanced security measures and 24/7 customer support
- High ratings on Trustpilot and top ranks in independent SME surveys
- Restricted to UK residents, limiting global accessibility
- Inability to receive international payments due to no IBAN
- Charges for cash deposits at Paypoints
- Key features like invoicing available only in Pro account
- Lacks branch services due to being an online-only bank
- Top-rated 24/7 support
- Budget and transaction categories to help manage spending habits
- Digital receipts for creating and storing important business information
- Basic version, fewer features than Pro
- No automatic allocation of funds to a “tax pot”
- No integration with accounting software like Quickbooks, Xero, or FreeAgent on Lite account
Eligibility Criteria
You must be a sole trader or the director of a registered limited company by shares (Ltd), based in the UK.
If you’re a limited company, your company must have an active status on Companies House, an active company director, at least one person of significant control listed on Companies House, less than 25% of persons of significant control or directors being corporate entities, make money mostly from selling goods and/or providing services (not mostly from interest or investment income), and be a tax resident in the UK only.
Best Business Bank Account for International Transactions: Revolut – Grow
The Revolut business account is designed to facilitate seamless cross-border transactions and financial management.
Revolut’s business account provides multi-currency capabilities, low-cost international transfers, and the ability to hold and exchange over 30 currencies, all within a single platform. It’s a great account if you’re operating internationally, especially within the EEA.
This versatility greatly simplifies the complexities of dealing with foreign exchange rates and fees, making it an ideal choice for businesses engaging in international trade. Revolut also offers integration with leading accounting software, dedicated 24/7 customer support, and advanced expense management tools.
Revolut uses a variety of security features to protect your money, including two-factor authentication, encryption, and fraud monitoring.
Revolut maintains excellent Trustpilot reviews with a 4.3 out of 5-star rating, based on over 134,000 reviews. Positive reviews praise the account for its competitive exchange rates, easy-to-use mobile app, and 24/7 customer support.
Some negative reviews complain about the lack of physical branches, high fees for international ATM withdrawals, and occasional technical issues.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £25 | Monthly fee for the Revolut Grow account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | £0 | Free transfers in and out of accounts. |
| ATM cash withdrawals | Free up to 100 per month | Free ATM withdrawals up to 100 per month. |
| ATM cash withdrawals (over 100 per month) | £0.2 per additional transfer | £0.2 per additional ATM withdrawal over 100 per month. |
| Guaranteed SWIFT (OUR) Transfers | £10 | A flat fee applies whenever you use our Guaranteed SWIFT (OUR) Transfer feature. This fee depends on your base currency. It can change from time to time, but you will always see the current fee in the app before you agree to the transfer. |
| Free FX allowance | £10k | You can exchange up to £10k per month without paying a fee. |
| Plastic card | 1 per team member | Free plastic card for each team member. |
| Metal card | 1 per business | £9.99 per month for a metal card for your business. |
» MORE Read our in-depth Revolut review
- Very competitive FX rates
- Set fixed future Forex rates online
- 24/7 customer support
- Invoicing and expense tracking
- You can’t deposit cash
- £3,000 daily withdrawal limit
- No FCSC protection since it’s not a bank yet
- Ecommerce – Easy integration with Ecommerce via Apps and Plugins
- International payments – Send and receive money from 200 countries
- Block cards or set accounting limits with a tap
- Available for Limited Companies Only
- Accounts do not support cash or cheque deposit
Best Business Bank Account for Freelancers: ANNA – Pay as You Go
Anna Money has made a name for itself as the best business bank account specifically designed for freelancers and digital nomads. Recognising the unique needs of this target audience, Anna has developed an intuitive platform that combines banking, invoicing, and expense management into a very simple user experience.
With a dedicated mobile app, Anna allows freelancers to effortlessly create, send, and track invoices, while also providing instant notifications when invoices are paid. The platform further simplifies tax management with its automatic expense categorisation and real-time insight into your financial position.
Anna Money offers a range of pricing plans, allowing freelancers to choose the one that best fits their business size and transaction volume. Additionally, Anna’s friendly customer support, available through chat, ensures swift assistance when needed.
ANNA Money uses a variety of security features, including two-factor authentication, encryption, and fraud monitoring, to protect your money. However, it is not FSCS protected.
ANNA Money has an excellent average review score of 4.6 out of 5 stars on Trustpilot, based on over 2,300 reviews. The reviews are mostly positive, with users praising the account for its ease of use, good customer service, and competitive exchange rates.
Some reviewers do mention finding bugs in the app, as well as mentioning the high fees for international ATM use.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £0 | No monthly fee for the ANNA – Pay as You Go account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | £0.20 | 20p per transfer. |
| ATM cash withdrawals | £1 | £1 per ATM withdrawal. |
| International payments | £5 | £5 per SWIFT payment. |
| Currency conversion fee for transfers | 1% | 1% currency conversion fee for transfers. |
| Personal payment link for accepting payments | 1% commission | 1% commission on payments made through your personal payment link. |
| Additional debit cards | £3 | £3 per additional debit card. |
| Pay cash in | 1% commission | 1% commission on cash deposits. |
| Pots | £1 | £1 per pot per month. |
| Cashback on purchases | 1% on select categories | 1% cashback on purchases in select categories. |
» MORE Read our in-depth Anna Review
- Multiple account options including free
- Very fast customer service response times
- In-app invoicing
- Free payroll service for directors
- Good rates for spending abroad via partnership with Currency Cloud
- No physical branches
- Not protected by the UK’s FSCS scheme
- Receiving money in foreign currency is limited to Euros or Dollars and requires a Payoneer account
- ANNA Money charges a 1% foreign transaction fee for international ATM withdrawals, plus a fixed fee outside the Eurozone
- Instant Invoice Generation
- Good customer service via Live Chat
- Xero Integration
- Easy VAT submission to HMRC via App
- To open a business account, you’ll need a photo of your full driving licence or a photo of your valid passport.
- You can apply from outside the UK, but only if you’re a UK resident
- Anna carry out an identity check for new acccounts but not a credit check
Eligibility Criteria
You need a UK residential address to open an account. This account isn’t open to charities.
Best Business Bank Account for Poor Credit or to Build Credit: Cashplus Bank
Cashplus has distinguished itself as the best business bank account for entrepreneurs and small businesses with poor credit histories or looking to build their credit. Their business account requires no credit check during the application process.
In addition to its accessibility, Cashplus provides features designed to help businesses improve their credit score, such as the Creditbuilder tool. This innovative feature allows account holders to demonstrate responsible financial behaviour by making regular payments, gradually improving their credit rating over time.
Cashplus also offers essential banking services, including faster payments, direct debits, a contactless Mastercard, and dedicated customer support.
Cashplus uses a variety of security features to protect your money, including two-factor authentication, encryption, and fraud monitoring. Additionally, your money is protected by the FSCS up to £85,000.
Cashplus Bank has 8,834 reviews on Trustpilot, with an average rating of 3.8 out of 5 stars. The reviews are mostly positive, with users praising the account for its fast and easy application process, competitive exchange rates, and 24/7 customer support.
However, there are some limitations, such as the high fees for international ATM withdrawals, the lack of a physical branch network, and the difficulty of getting a hold of customer service.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £9 | Monthly fee for the Cashplus Bank – Business Extra account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | 10 free then £0.30 | 10 free transfers per month, then £0.30 per additional transfer. |
| ATM cash withdrawals | £1 (£3 Non-UK) per ATM | £1 per ATM withdrawal in the UK, £3 per ATM withdrawal outside of the UK. |
| Additional debit cards | £5.95 per card | £5.95 per additional debit card. |
» MORE Read our in-depth Cashplus Review
- No Credit Check Required
- UK based customer services
- Overdraft Possible for Qualifying Accounts
- Credit Builder Functionality
- Excellent Trustpilot Reviews
- £2 per ATM use
- No physical branches
- £9.95 application fee for a business MasterCard (this is waived if you apply via Business Expert)
- Business Credit Builder Add-On
- Overdrafts of up to 2k
- Pay in via any Post Office
- £9 monthly fee for Business Extra Account
- £2 ATM Use
Eligibility Criteria
Your business must based in the UK. You’ll need verified ID such as passport or driving licence, the registration number of your company at Companies House and proof of business address.
Best Crypto-Friendly Business Bank Account: Revolut – Grow or Scale Accounts
Revolut has emerged as the best crypto-friendly business bank account.
Their innovative platform allows businesses to hold, exchange, and transfer popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more within a user-friendly app. This functionality simplifies the process of managing digital assets, offering real-time exchange rates and instant transactions.
Revolut’s commitment to embracing emerging financial technologies and seamless integration of traditional banking services and cryptocurrency management makes them a standout choice. They are also a popular gateway account for many of the top crypto exchanges, with many people opening a Revolut account simply to transfer money easily.
- Ecommerce – Easy integration with Ecommerce via Apps and Plugins
- International payments – Send and receive money from 200 countries
- Block cards or set accounting limits with a tap
- Available for Limited Companies Only
- Accounts do not support cash or cheque deposit
Best Business Bank Account for Business Savings: Shawbrook Bank – Easy Access
Shawbrook Bank has established itself as the top choice for the best business savings account, offering attractive interest rates and flexible savings solutions tailored to a variety of business needs.
With a range of fixed-term and easy-access accounts, Shawbrook Bank enables businesses to maximise their savings while maintaining control over their funds. Their competitive interest rates allow businesses to earn a return on their savings, contributing to the financial growth and stability of the company.
Shawbrook Bank also prides itself on providing a dedicated customer support team, ensuring that businesses receive personalised assistance whenever needed.
Shawbrook Bank uses a variety of security features to protect your money, including two-factor authentication, encryption, and fraud monitoring. Your money is also protected by the FSCS up to £85,000.
In terms of reviews, Shawbrook Bank has a 4.4 out of 5-star rating based on over 7,800 reviews. Most positive reviews praise the bank for its excellent customer service, competitive interest rates, and wide range of products and services.
Some negative reviews complain about high product and service fees and lack of a physical branch network.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £12 | Monthly fee for the Shawbrook Bank – Easy Access Business account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | Free | Free transfers in and out of accounts. |
| ATM cash withdrawals | Free up to £250 per month | Free ATM withdrawals up to £250 per month. |
| ATM cash withdrawals (over £250 per month) | £1.50 per ATM | £1.50 per ATM withdrawal over £250 per month. |
| Cash deposits | Free | Free cash deposits at Shawbrook ATMs. |
- Competitive interest rate of up to 4.15% AER
- 24/7 customer service
- Deposits protected by the FSCS
- No physical branches
- Only have one easy access account per business
Best Business Bank Account for Startups: Tide – Free Account
Tide gets our vote as the best business bank account for startups, offering a suite of features specifically designed to cater to the needs of new and growing businesses. Tide provides a fast and straightforward account opening process, a highly competitive fee structure, with no monthly fees and low-cost transactions, making it an affordable choice for businesses in their early stages.
Tide also offers useful tools tailored to startups, such as seamless integration with popular accounting software, easy invoicing, and expense management features. Their mobile app allows entrepreneurs to manage their finances on the go, while their responsive customer support ensures assistance is always available when needed.
- One of the best Apps in the sector
- No Monthly or Annual Fees
- Easy Invoice Creation Functionality
- Post Office Deposits Cost £1
- 20p charge for transfers between accounts
- 3% charge for cash deposits at Paypoints
Eligibility Criteria
You must be 18 years or over, a UK resident, and have a valid UK phone number.
To qualify for Tide’s Black Friday Deal and get £100 cashback, all you need to do is spend £500 or more via your new account with them within the first 90 days of opening. This deal is valid from 20/11/2023 – 30/11/2023.
Best Business Bank Account for Rewards or Cashback: Tide Cashback Account
Tide Cashback has solidified its position as the best business bank account for rewards or cashback, offering an enticing cashback program that allows businesses to earn money on their everyday expenses. Designed to provide additional value to customers, Tide Cashback offers a competitive cashback rate on card purchases made through their business account, giving businesses the opportunity to earn back a percentage of their spending.
This cashback feature is particularly attractive for businesses with significant monthly card expenditures, as the earned cashback can be reinvested into the company or used to offset other expenses.
Best Business Bank Account for Non-Profits: Metro Bank – Charity & Community accounts
Metro Bank gets our vote as the best business bank account for non-profit organisations, providing a specialised banking solution tailored to charities and not-for-profit entities’ unique needs. Recognising the distinct financial requirements and challenges faced by non-profits, Metro Bank offers a Community Current Account designed specifically for these organisations.
With its competitive fee structure, including no monthly account fees and free standard transactions, Metro Bank ensures that non-profits can efficiently manage their finances without incurring unnecessary costs. The bank also offers an accessible in-branch and online banking experience, enabling non-profit organisations to conduct their banking activities with ease and convenience.
In addition to these benefits, Metro Bank provides dedicated support for non-profit clients, ensuring that expert assistance is available when needed.
Metro Bank uses a variety of security features, including two-factor authentication, encryption, and fraud monitoring, to protect your money. Additionally, your money is protected by the FSCS up to £85,000.
In terms of reviews, Metro Bank has 4,261 reviews on Trustpilot, with an average rating of 4.3 out of 5 stars. The reviews are mostly positive, with users praising the account for its excellent customer service, convenient branch network, and competitive interest rates.
Some negative reviews mention the high fees for some products and services and the lack of ATMs outside of the UK.
Best Business Bank Account with an Overdraft: Starling – Business Current Account
Starling Bank stands out as the best business bank account for overdrafts, offering a valuable short-term safety net for businesses requiring extra support with their cash flow. With its simple and flexible approach to borrowing, Starling provides overdrafts ranging from £1,000 to £50,000 for limited companies and limited liability partnerships, ensuring that businesses have access to the funds they need when they need them.
A key advantage of Starling’s overdraft offering is that interest is only charged on the balance used, making it a cost-effective solution for businesses looking to manage their finances more efficiently. The bank’s expert lending team conducts a thorough credit assessment for all applications, ensuring responsible lending practices and tailored financial solutions.
As an award-winning, fully-digital challenger bank, Starling offers a competitive business bank account tailored to meet the needs of entrepreneurs, freelancers, and small-to-medium enterprises.
Their account has no monthly fees, seamless integration with popular accounting software, and a well-designed APP.
Furthermore, their 24/7 customer support, real-time transaction alerts, and robust security features make Starling Bank a standout choice.
Starling Bank is a fully regulated bank by the Financial Conduct Authority (FCA) and is protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. This means that your money is safe with Starling, even if the bank were to fail.
At the time of writing, Starling has a 4.4 out of 5-star rating on Trustpilot, based on over 35,000 reviews.
Reviewers comment that the mobile app is “easy to use” and comes with “no monthly fees.” Customers appreciate the “good customer service” and “fast payments,” ensuring a secure experience. However, some limitations include a “limited ATM network” and occasional bugs in the mobile app.
| Fee | Amount | Notes |
|---|---|---|
| Monthly account fee | £0 | No monthly fee for the Starling Business account. |
| Card payments (UK and abroad) | £0 | Free card payments in the UK and abroad. |
| Transfers in and out of accounts | £0 | Free transfers in and out of accounts. |
| ATM cash withdrawals | Free up to £300 per month | Free ATM withdrawals up to £300 per month. |
| ATM cash withdrawals (over £300 per month) | £2 | £2 per ATM withdrawal over £300 per month. |
| Cash deposits | £0 | Free cash deposits at Starling ATMs. |
| Available overdraft limit | NA | From £1,000 to £50,000 |
- No monthly fees
- Fully regulated and FSCS protected
- Integrations with Quickbooks, Xero & FreeAgent
- Free ATM use
- No interest
- No physical branches
- mobile app can be buggy
» MORE Read our in-depth Starling Review
What to Consider When Choosing the Best Bank Account for Your Business
If you’re new to this, it’s important you know what to look for. We’ve compiled a list of the core features offered by the top accounts, and throughout this article, you’ll find handy tables showing you who has what.
Make a list of the ones which matter most for your business situation, and ensure the account you opt for has them covered.
- Fees and charges: It’s essential to understand what fees and charges may be associated with your business bank account, such as monthly maintenance fees, transaction fees, and overdraft fees. Make sure you compare these fees across different bank accounts to find the best deal.
- Interest rates: If your business has surplus funds, consider a business bank account that pays interest. That said, the challenger banking market – which offers the best accounts at the moment largely doesn’t offer interest at all so you’ll need to plump for a high street account if this is important to you.
- Overdraft facilities: Again, business overdrafts are mainly something you’ll find with regulated high street bank accounts. To our knowledge, only Cashplus offers the functionality for a small overdraft amongst the challengers and then only for qualifying businesses.
- Online banking and mobile app functionality: Make sure the bank you choose has a user-friendly online banking platform and a mobile app to manage your account on the go.
- Customer service and support: Look for a bank with a strong customer service and support reputation. Consider the availability of phone and email support and the quality of customer reviews.
- Integration with accounting software: If you use accounting software for your business, consider a business bank account that integrates with your software. This will help you keep track of your finances more easily and accurately.
- Deposit Protection – Not all business accounts in the UK have deposit protection. The Financial Services Compensation Scheme (FSCS) protects up to £85,000 of deposits per eligible depositor per institution. Many digital-first accounts are actually e-money accounts rather than regulated banks, meaning they do not offer protection.
Understanding Business Bank Account Fees & Charges
Here are some of the fees associated with business bank accounts, including monthly fees, transaction fees, and overdraft fees.
| Bank Account Fee Type | Description |
|---|---|
| Monthly/Annual Account Fee | Flat fee for having and using the business account, charged monthly or annually |
| Direct Debit/Standing Order Fee | Fee for setting up and using direct debits and standing orders |
| FasterPayments Fee | Fee for making FasterPayments bank transfers |
| Cash Deposit/Withdrawal Fee | Fee for depositing or withdrawing cash at a bank branch or Post Office |
| Cheque Deposit/Issuance Fee | Fee for depositing or issuing cheques to others |
| Automated Payment Fees (in/out) | Fees for automated transactions such as FasterPayments, bill payments, direct debits, standing orders, online/mobile/telephone banking, and ATM withdrawals |
| Cash Payment Fees (in/out) | Fees for cash transactions such as deposits and withdrawals at a bank branch and transactions at a Post Office counter |
| Manual Payment Fees (in/out) | Fees for manual transactions such as cheques written and deposited, deposits made by paying in slip or debit card, and other non-automated credits |
| CHAPS Fee | Fee for high-value same-day payments made through CHAPS |
| Banker’s Cheque Fee | Fee for issuing a banker’s cheque |
| Non-Sterling Transaction Fee | Fee for non-sterling card transactions made abroad |
| SEPA Payment Fee | Fee for cross-border Euro bank transfers made through SEPA |
| SWIFT Payment Fee | Fee for international payments made through SWIFT |
| Overdraft Charges | Fee charged for the use of an authorised or unauthorised overdraft |
What are the 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.
Who Offers Bank Accounts to Businesses in the UK?
Most of the high street banks offer a business account. These include Bank of Scotland, Bank of Ireland, Barclays, Clydesdale Bank, HSBC, Lloyds Bank, Metro Bank, NatWest, Royal Bank of Scotland, Santander, the Co-operative Bank, TSB and Yorkshire Bank.
Many specialist challenger banks, often operating purely online, offer highly competitive business bank accounts, too. These include Anna, Atom, Monese, Monzo, Revolut, Starling, and Tide. Some of these qualify as e-money accounts rather than full bank accounts, although they are often labelled as such.
Who Needs a Business Bank Account and Why?
You’ll need to set up a business bank account if you’ve set up a limited company, partnership, or charity registered at Companies House.
You should be an officer of the company to do this, usually a director or company secretary.
You can use your personal bank account for business purposes if you are a sole trader, as HMRC treats personal and business income as one.
However, most banks state in their terms and conditions that personal accounts are for personal use only, not for business. The level of concern the bank may have about using a personal account for business purposes can vary depending on the type of business and the amount of business-related transactions.
- Sole Traders – Sole Traders do not legally require a business account, as there is no legal separation between their business and personal finances.
- Freelancers – Freelancers should get a business account if they operate as a limited company.
- Limited Companies (LTD) – Limited Companies have a legal requirement to operate from a business current account rather than the directors’ personal bank account. This is because the business and the business owners are separate legal entities.
- Limited Liability Partnership (LLP) – A limited company must separate personal and business finances; an LLP must open a business bank account as it is a separate entity from the business owners and directors.
How to Open a UK Business Bank Account: A Step-by-Step Guide
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: The bank will review your application and may request additional information or documentation.
- Fund your account: You will need to transfer funds into your new business bank account to start using it.
Essential Documents Required to Open a UK Business Bank Account
You’ll need the following documents to open a business account in the UK:
- Official ID such as a driver’s license or passport
- Proof of your personal address: i.e. council tax statement or bank statement
- Proof of your legally registered business address: i.e. correspondence from HMRC or Companies House, a utility bill, a bank statement, or rental agreement.
- Estimated annual turnover of the business
- Copy of your Companies House formation document, including your limited company number
- Number of Employees
- Tax Status: i.e. vat registered
- Some banks may ask for details of your financial situation, including documents demonstrating a clean credit and banking history.
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 ten minutes, the compliance check usually takes at least one to four weeks to complete.
Some challenger banks or e-money accounts can improve on this significantly because they don’t take a hard credit check but merely verify the account holder’s identity.
Can You Open a Business Bank Account with Poor Credit History?
You will likely find opening certain business bank accounts with bad credit more difficult. However, certain banks 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.
Understanding FCSC Protection for Business Bank Accounts
The Financial Services Compensation Scheme (FSCS) protects some business bank accounts in the UK. The FSCS compensates depositors if a bank cannot meet its obligations up to a limit of £85,000 per depositor per institution.
You can see if your bank is FCSC protected using their free tool here: https://www.fscs.org.uk/check/check-your-money-is-protected/
How to Choose the Right Business Bank Account for Your Company
We suggest making a detailed checklist for your business requirements to ascertain which account will be right for you. We have provided some examples of items that you may want to include on your checklist below:
- What the monthly, annual and transaction fees will be.
- Whether the bank is FSCS deposit protected.
- Whether the account includes an overdraft.
- Are you looking for an app-based bank, online, or bricks and mortar branch?
- Whether there is a need for a credit check.
- Do you need accountancy software integration?
- What the fees are going to be for cash deposits.
- Whether there are international transaction charges.
- Are there ATM cash withdrawal fees?
- Read the terms and conditions carefully: Before opening a business bank account, make sure you understand the terms and conditions of the account, including any fees and charges that may apply.
- Consider any special requirements: If you have specific requirements for your business banking, such as foreign currency transactions, make sure the bank you choose offers the services you need.
- Compare the customer reviews: Look for a bank with a strong reputation for customer service and support, and read customer reviews to get a sense of their experiences.
Switching Business Bank Accounts: A Quick Guide
Yes, you can switch your business bank account in the UK. 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.
Those banks that are signed up will switch your payments and transfer your balance, while your previous bank will take care of closing your old account.
The following banks are signed up to the free Current Account Switch Service: Acorn, Bank of Ireland, Bank of Scotland, Barclays, CardOneMoney, Co-operative Bank, Handlesbanken, HSBC, Lloyds, Monzo, Natwest, Royal Bank of Scotland, Santander, and Virgin Money.
Which banks offer a business savings account?
Although the purpose of our article is to compare current accounts, you may wish to put surplus business to capital to use with a business savings account. The following banks and e-money institutions offer separate savings accounts:
- Aldermore
- Al Rayan
- Clydesdale Bank
- Cynergy Bank
- Hampshire Trust Bank
- Kent Reliance
- Market Harborough BS
- Nationwide BS
- Newcastle Building Society
- Recognise Bank
- Shawbrook Bank
- Teachers BS
- Virgin Money
- Yorkshire Bank
Business Expert: Helping You Find the Best Bank Accounts for Your Company
We’ve collected the best business bank accounts available in the UK, so you can easily compare them. If you want to find an account based on annual turnover requirements, transfer fees, sole trader eligibility, overdraft limits, or the monthly fee, we’ve covered you.
The accounts listed on this page are business current accounts. However, we have other articles on the best free accounts in the market, start-up accounts, poor credit accounts and business savings accounts. You can access these articles from our main menu at the top of the website.
Featured Banks
Alternative Comparisons: Finding the Right Business Bank Account for You
Below are some alternative comparison options for business bank accounts for you to consider.
Service Quality: Which Business Bank Account Offers the Best Service?
| Ranking | Bank | Percentage of Customers That Recommend | Previous ranking |
|---|---|---|---|
| 1. | Starling Bank | 86 % | N/A |
| 2. | Handelsbanken | 75 % | 1 (-1) |
| 3. | Metro Bank | 68 % | 2 (-1) |
| 4. | Santander | 61 % | 3 (-1) |
| 5. | Barclays | 58 % | 4 (-1) |
Mobile and Online Banking: Which Business Bank is the Best for Digital Services?
| Ranking | Bank | Percentage of customers That Recommend | Previous ranking |
| 1. | Starling Bank | 88 per cent | N/A |
| 2. | Metro Bank | 72 per cent | 3 (+1) |
| 3. | Barclays | 71 per cent | 1 (-2) |
| 4. | Santander | 70 per cent | = 4 |
| = 5. | NatWest | 69 per cent | 2 (-3) |
| = 5. | Lloyds Bank | 69 per cent | = 4 (-1) |
Best Business Bank Account FAQs
Do business bank accounts earn interest?
Most business current accounts will earn low or no interest at all. Business savings accounts do offer interest and bring a better return than simply leaving the money in your current account.
Do I legally need a business bank account?
Yes, if you are trading as a limited company it is a legal requirement to have a company bank account. If you’re a sole trader (self-employed), it is fine to use you personal account.
How long Does it take to open a business bank account?
It typically takes 1-4 weeks to set up a business bank account in the UK, although no credit check accounts may be faster.
Which business bank accounts have no fees?
Starling, Tide, Cashplus and Mettle all currently charge no monthly fees, though certain account features are charged for, in some cases.