🏠 Business Banking» Best Business Bank Accounts in the UK (2026)
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Best Business Bank Accounts in the UK (2026)
No single account wins for every business. Tide is our pick for most sole traders and small businesses; Starling is the best all-round free bank, and Monzo tops the independent service survey.
Pick on the fees you’ll actually trigger, not the headline monthly price. A free account that charges 20p a payment and a percentage on every cash deposit can cost you more over a year than a £10 plan that bundles the lot.
Every fee, allowance and protection status in the table below was checked against the provider’s own pages, the FSCS and the Current Account Switch Service list on 22 July 2026.
Quick Compare
Best Business Bank Accounts at a Glance
Best Business Bank Accounts at a Glance: Monthly fee · Free transfers · Cash deposit · Protection · Best for
Data checked against provider websites, the FSCS and the CASS participant list, 22 July 2026. Fees and features change; intro and ongoing prices are shown separately in each provider card.
The Best Business Bank Account for Each Business Type
Match the account to the one job you need it to do. A market trader banking Friday’s cash and a software firm paying contractors in dollars want opposite things, so each pick below says where it wins and where it falls short.
The Best Business Bank Account for Each Business Type
What you need
Our pick
Why it wins
Main limitation
Apply
Best for sole traders and small businesses
Tide
A free plan with invoicing and expense tools in one app, a fast digital application, FSCS via ClearBank and CASS switching. Over 500,000 UK businesses bank with it.
Only five free transfers a month, then 20p each; service trails Monzo, Mettle and Starling.
No monthly fee, no UK payment fees, free ATM use, Post Office cash, invoicing, FSCS protection and CASS switching. Scored 81% for overall service in the Feb 2026 Ipsos survey.
Cash deposits cost 0.7% (minimum £3); some accounting tools are a paid add-on.
Stronger multi-currency tools than most traditional business accounts, with interbank FX inside a monthly allowance.
Which is cheaper depends on your currencies, volume, plan and allowance, so model both. Revolut Business excludes sole traders (use Revolut Pro); Airwallex is an EMI, so funds are safeguarded rather than FSCS protected.
Relationship-led account with up to 1.5% card cashback and a linked savings account paying up to 4.08% AER.
Built for established businesses (usually 12+ months old) holding around £50,000 or an Allica loan; a £25/month fee applies below a £10,000 average balance. Not a startup account.
Start from what you do with the account, not the brand on the card. Find the row that sounds like your week, and it points you at a shortlist or the specialist guide that goes deeper.
Add up the fees you’ll actually trigger before you judge an account. If you run weekly payroll and pay a dozen suppliers a month, the per-payment charges and the spread on any foreign transfer decide the real cost, not the headline monthly price.
So a free account is not automatically the cheapest one.
What These Business Bank Accounts Really Cost
Provider (plan)
UK transfers
Cash deposit
Overseas / FX
Starling
Free
0.7%, min £3 (Post Office)
0.4% conversion
Tide (Free)
5 free, then 20p
£2.50 up to £500 (Post Office); 3% (PayPoint)
2.75% on card use abroad (0% on paid plans)
Monzo (Lite)
Free
£1 per deposit (£3k sole trader / £10k company monthly limit)
1% on incoming FX, capped £1,000/payment
Mettle
Free
£2.75 per deposit (Post Office)
Mastercard rate
Revolut (Basic)
10 free, then 20p
Not accepted
Interbank to £1,000/month, then 0.6%
Zempler (Go)
3 free, then 35p
£4 min or 0.55% (Post Office)
Standard
Allica
Free (to 150/month)
Established-business account
Standard
HSBC / Barclays
Free electronic
Per £100 in branch, within an allowance
HSBC £4 + 2.99% margin
Verified 22 July 2026.
On cash, the app barely matters. If you bank a week’s takings every Friday, what you pay is the Post Office percentage, and Starling, Monzo, Mettle and Allica keep transfers free at any volume anyway.
If you barely touch cash, the free-versus-paid call comes down to your transfer count and whether you pay suppliers abroad. The worked examples below settle it.
Tide Smart does not beat Tide Free on transfers alone
Both plans charge 20p for transfers above their included allowance, and Smart adds a £12.49 monthly fee on top. So on transfer fees alone, Free is always about £7.49 a month cheaper, at any volume. Smart earns its place through its higher included allowance and extra features, not through transfer savings. If a comparison tells you Smart gets cheaper after a certain number of payments, the sums do not hold.
Business Bank Account Costs at Real Usage Levels
Find the profile closest to your week and read across, because a headline fee tells you almost nothing until you feed in how you actually trade. These three run real usage through current tariffs, from a quiet sole trader to a shop taking daily cash.
Business Bank Account Costs at Real Usage Levels
Business profile
Cheapest fit
Roughly what it costs
Assumptions
Low-volume sole trader
Starling or Mettle
£0/year
15 UK transfers a month, no cash, no FX. Both include unlimited free UK transfers and charge no monthly fee, so every line is £0.
Cash-taking local shop
Starling
~£168/year
£2,000 cash a month, 40 transfers. Transfers free; cash is 0.7%, min £3: £2,000 × 0.7% = £14/month (above the £3 minimum) = £168/year.
Growing service company
Tide Free, or a plan for the FX
Transfers ~£180/year
80 UK transfers a month, two users, £2,000 card spend abroad. On transfers alone Tide Free stays cheapest: 5 free + 75 × 20p = £15/month. Tide Smart costs more, so a paid plan wins here only for the FX and extra users, not a transfer break-even. Revolut Grow (£35/month, or £30 billed annually) bundles a large FX allowance.
Internationally trading company
Revolut Grow or Airwallex
Plan + FX margin
£10,000 converted a month, three users. Revolut Grow (£35/month, or £30 billed annually) includes a £15,000 interbank FX allowance, so £10,000 converts with no added margin; a mainstream account typically adds about 2 to 3% (£200 to £300/month). Compare Airwallex on the same figures.
Check who actually holds your money before you trust a balance to it, because “bank” gets used loosely. A licensed bank, an account run through a partner such as ClearBank, and an electronic money institution each hold your cash under different rules.
Only the first two put you inside the FSCS deposit guarantee. The ledger below shows, for each provider, who holds the money, whether the FSCS covers it, and whether you can switch to it through CASS.
Bank, E-Money Account or Payment Platform?
Provider
Type
Account provider
Protection
CASS switching
Starling
UK bank
Starling Bank
FSCS £120k
Yes
Monzo
UK bank
Monzo Bank
FSCS £120k
Yes
Tide
Bank account via ClearBank
ClearBank
FSCS £120k (via ClearBank)
Yes
Mettle
Bank account via NatWest
NatWest
FSCS £120k (via NatWest)
No
Revolut
UK bank (staged migration from EMI)
Revolut Bank UK, or Revolut Ltd (EMI) if not yet migrated
FSCS £120k once on the bank entity; check your account terms
ANNA and Airwallex are electronic money institutions (EMIs). Your money is safeguarded in a ring-fenced account at a partner bank, kept separate from the provider’s own funds, but it sits outside the FSCS deposit-guarantee scheme. If a licensed bank fails, the FSCS pays eligible depositors up to £120,000. If an EMI fails, you rely on the safeguarded pot instead, which can take longer and carries different risks. For larger balances, a licensed bank is the safer home.
Which Business Banks Have the Best Service?
The independent Ipsos business banking service-quality survey, required under the CMA framework, is better evidence than a “best app” line. It measures service the same way across every major provider, and shows why the best app, the best relationship bank and the best lender are rarely the same firm.
Which Business Banks Have the Best Service?
Service measured
1st
2nd
3rd
Overall recommendation
Monzo 85%
Mettle 83%
Starling 81%
Online and mobile service
Monzo 90%
Starling 86%
Mettle 84%
Relationship management
Handelsbanken 85%
Mettle 75%
Monzo 74%
SME overdraft and loan service
Handelsbanken 69%
Metro Bank 65%
Lloyds 57%
Verified 22 July 2026.
Detailed provider reviews
Our Business Bank Account Picks
Below, every provider gets a straight verdict: who the account fits, who it doesn’t, and the limitation the marketing page tends to play down.
Tide Free Business Account
Tide Free Business Account
A free, app-based business account with built-in invoicing and a direct Sage bank feed.
Watch out: After the first 5 free transfers each month, every bank transfer in or out costs 20p, and the free plan caps invoicing at 3 a month. Overseas card use carries a 2.75% FX fee on the free plan (0% on paid plans).
Not ideal if: Businesses needing an overdraft, branch access, or a multi-currency account that holds foreign-currency balances
Free plan£0/month. 5 free transfers in or out per month, then 20p each. 3 free invoices per month.
Smart plan£12.49/month (or £99.99/year). 30 free transfers then 20p each.
Pro plan£27.49/month (or £219.99/year). Unlimited transfers.
Max plan£69.99/month (or £559.92/year). Unlimited transfers and invoicing.
FX fee (free plan)2.75% on overseas card use
FX fee (paid plans)0% on overseas card use
International paymentsSend and receive supported (SEPA and SWIFT); not a multi-currency holding account
FSCS protectionYes, up to £120,000 (new accounts via ClearBank)
Eligible entitiesSole traders and freelancers, and UK limited company directors (not partnerships or LLPs)
Eligibility: UK sole traders and freelancers, and directors of UK limited companies. Partnerships, LLPs, CICs and charities are not eligible. Fast online application with photo-ID and selfie verification; standard KYC checks apply. New accounts are provided by ClearBank and are FSCS-protected up to £120,000. Some legacy accounts issued before the ClearBank switch remain on an e-money safeguarding model.
Not ideal if: Businesses needing an overdraft, branch access, or a multi-currency account that holds foreign-currency balances
Watch out: After the first 5 free transfers each month, every bank transfer in or out costs 20p, and the free plan caps invoicing at 3 a month. Overseas card use carries a 2.75% FX fee on the free plan (0% on paid plans).
No monthly fees on free plan
New accounts FSCS-protected up to £120,000 via ClearBank
Only 5 free transfers a month on the free plan, then 20p each way
Free, Smart and Pro cap invoicing at 3 a month; only Max is unlimited
2.75% FX fee on overseas card use on the free plan
No overdraft facility, and not a multi-currency account for holding foreign balances
Some legacy e-money accounts are safeguarded, not FSCS-protected
No branch access; partnerships and LLPs not eligible
Integrated invoicing: create, send and track from the app (3 a month on Free, Smart and Pro; unlimited on Max)
Automatic expense categorisation and receipt scanning
Direct integrations with Xero, QuickBooks, FreeAgent and Sage
Company formation from £1 with the Company Secretary subscription, or £14.99 stand-alone
Starling Bank Business Current Account
Starling Bank Business Current Account
Free UK transfers, free ATM withdrawals and an optional overdraft make Starling the most complete free digital account for a business that wants a proper bank, not just a payments app.
Best for: Free banking with built-in invoicing and an overdraft; MTD accounting is a paid add-on
Watch out: No branch access and limited human support options. International SWIFT transfers cost 0.4% currency conversion plus £5.50 delivery fee each. The free invoicing and Accounting Essentials features are confirmed on Starling’s sole trader account; verify feature parity before assuming an identical set on the limited company account.
Not ideal if: Businesses that need face-to-face banking, complex lending, or Sage integration
Monthly feeFree
UK bank transfersFree
Native invoicingFree (sole trader account)
MTD for Income TaxHMRC-recognised, built into Accounting Essentials, free
Accounting integrationsXero, QuickBooks, FreeAgent, Penfold, SumUp, all free
FX rateMastercard exchange rate
International SWIFT transfers0.4% currency conversion + £5.50 delivery fee per payment
OverdraftAvailable (subject to eligibility)
Multi-currency accountsEuro and USD sub-accounts available
CASS switchingSupported for business accounts
FSCS protectionYes, up to £120,000
Eligible entitiesSole traders, limited companies, LLPs (general partnerships not supported)
Eligibility: UK sole traders, limited companies, and LLPs are eligible. General partnerships are not currently supported. Standard identity and business verification required. FSCS protection up to £120,000 applies to eligible deposits.
Not ideal if: Businesses that need face-to-face banking, complex lending, or Sage integration
Watch out: No branch access and limited human support options. International SWIFT transfers cost 0.4% currency conversion plus £5.50 delivery fee each. The free invoicing and Accounting Essentials features are confirmed on Starling’s sole trader account; verify feature parity before assuming an identical set on the limited company account.
Completely free with no monthly fees and no UK transfer fees
Free invoicing and free Accounting Essentials (HMRC-recognised MTD tool) on the sole trader account
Free integrations with Xero, QuickBooks and FreeAgent
FSCS protected up to £120,000
App scored 86% for online service (Ipsos 2026)
Overdraft available subject to eligibility
Supports the Current Account Switch Service
No branch access
Limited human support options
Free invoicing/Accounting Essentials confirmed for the sole trader account; verify parity on the limited company account
Overdraft not guaranteed
Free business current account with no transaction fees
Free native invoicing and free Accounting Essentials (HMRC-recognised MTD for Income Tax)
FSCS deposit protection up to £120,000
Overdraft facility (subject to eligibility)
Euro and USD sub-accounts
Current Account Switch Service participant
Monzo Business Lite Account
Monzo Business Lite Account
The app leads the 2026 Ipsos service survey, scoring 90% for online banking, with pots that ring-fence money for tax and VAT.
Best for: Clean mobile banking with smart budgeting
Watch out: Free plan is very basic; most useful features require Pro (£9/month, first month free). Incoming foreign currency payments incur a 1% conversion fee (capped at £1,000 per transaction) on all plans.
Not ideal if: Businesses needing branch access or complex lending products.
Lite plan£0/month. Unlimited free UK bank transfers. Very basic feature set.
Pro plan£9/month (first month free). Adds invoicing, Xero and QuickBooks integrations, and multi-user access.
FX on card spendMastercard exchange rate; fee-free abroad on paid plans
Incoming FX payments1% conversion fee (capped at £1,000 per transaction) on all plans
Cash deposits£1 per deposit via PayPoint. Monthly limit: £3,000 (sole trader), £10,000 (limited company).
Accounting integrationsXero, QuickBooks (Pro plan only). FreeAgent (Lite plan, via Monzo’s partnership).
FSCS protectionUp to £120,000 on eligible deposits (Monzo Bank Ltd, all plan tiers)
CASS switchingFull participant
Eligible entitiesSole traders, limited companies
Eligibility: Sole traders, LTDs
Not ideal if: Businesses needing branch access or complex lending products.
Watch out: Free plan is very basic; most useful features require Pro (£9/month, first month free). Incoming foreign currency payments incur a 1% conversion fee (capped at £1,000 per transaction) on all plans.
Regulated UK bank account, FSCS protected up to £120,000 on eligible deposits (all plan tiers)
Budgeting pots; app scored 90% for online service (Ipsos 2026)
Tax pot automatically sets aside estimated tax
Free Lite plan available
Instant spending notifications
Fee-free spending abroad on paid plans
Free plan is very basic
Most useful features require Pro (£9/month)
1% conversion fee on incoming foreign currency payments (capped at £1,000 per transaction)
Overdraft subject to eligibility; not guaranteed
No branch access
Pots for ring-fencing tax, savings, and expenses
Tax pot with automatic percentage set-aside
Integrations with Xero, QuickBooks, FreeAgent
Fee-free spending abroad (paid plans)
Revolut Business Basic Account
Revolut Business Basic Account
Revolut suits incorporated businesses that pay across borders: interbank FX inside a monthly allowance, multi-currency accounts, and team expense cards with per-person limits.
Best for: Incorporated UK businesses that want one account for UK banking, multi-currency wallets, team expense cards, and FSCS protection
Watch out: UK sole traders cannot open Revolut Business and are directed to Revolut Pro instead. Revolut is phasing accounts onto the FSCS-covered bank entity; some new signups still open on the e-money side. Check your terms to confirm which entity holds your money.
Not ideal if: UK sole traders, businesses that need branch access, cash deposits, or an overdraft, and anyone whose monthly FX volume regularly spikes above the plan allowance
Basic plan£10/month (no annual discount)
Grow plan£35/month billed monthly, or £30/month effective on annual billing (£360/year)
Scale plan£125/month billed monthly, or £90/month effective on annual billing (£1,080/year)
FX allowance (Basic)£1,000/month at interbank rate, then 0.6% markup
FX allowance (Grow)£15,000/month at interbank rate, then 0.6% markup
FX allowance (Scale)£60,000/month at interbank rate, then 0.6% markup
Currencies held25+
Local account detailsGBP, EUR, USD
Team cardsYes (physical and virtual, with spend limits and controls)
FSCS protectionUp to £120,000 on eligible deposits held by Revolut Bank UK Ltd. Check your account terms for your contracting entity.
Eligible entitiesLimited companies, LLPs, partnerships (UK sole traders not eligible)
Eligibility: Limited companies, LLPs, and partnerships registered in the UK are eligible for Revolut Business. UK sole traders are not eligible and are directed to Revolut Pro, a fee-free account in the personal Revolut app. Revolut is also available to businesses in many EU and EEA countries. Restricted and prohibited industries include gambling, adult content, and certain financial services. Standard KYC and company document checks apply on opening. FSCS protection up to £120,000 applies to eligible deposits held by Revolut Bank UK Ltd; some accounts may still be on the older Revolut Ltd e-money entity during the phased migration. Check your in-app terms to confirm your contracting entity.
Not ideal if: UK sole traders, businesses that need branch access, cash deposits, or an overdraft, and anyone whose monthly FX volume regularly spikes above the plan allowance
Watch out: UK sole traders cannot open Revolut Business and are directed to Revolut Pro instead. Revolut is phasing accounts onto the FSCS-covered bank entity; some new signups still open on the e-money side. Check your terms to confirm which entity holds your money.
FSCS protection up to £120,000 on bank entity accounts
Interbank FX rate inside the monthly allowance
Team expense cards with per-card spend limits and controls
Invoicing on every plan including Basic
API access on Grow and Scale plans
UK sole traders cannot open Revolut Business
Grow is £35/month and Scale is £125/month when billed monthly
FSCS protection is not guaranteed on day one: some new signups still open on the e-money entity
No overdraft facility
FX carries a 0.6% markup above the monthly allowance
Multi-currency accounts with interbank FX inside monthly allowances
Team expense cards with custom spending limits and merchant controls
Best for: Genuinely free banking for sole traders, with native invoicing and free FreeAgent
Watch out: FreeAgent stays free only if you make at least one transaction a month from your Mettle account; the optional Mettle+ upgrade (£4/month) is needed to convert quotes into invoices. Not a CASS participant, so switching in or out is a manual process.
Not ideal if: Businesses needing overdraft, multi-owner access, or CASS switching
Standard planFree. No monthly fee, no transaction fees.
FSCS protectionUp to £120,000 (provided by NatWest)
CASS switchingNot a participant; manual migration required
Eligible entitiesSole traders, limited companies (up to two owners; one account holder only)
Eligibility: Sole traders, LTDs with up to two owners (only one owner can access the account).
Not ideal if: Businesses needing overdraft, multi-owner access, or CASS switching
Watch out: FreeAgent stays free only if you make at least one transaction a month from your Mettle account; the optional Mettle+ upgrade (£4/month) is needed to convert quotes into invoices. Not a CASS participant, so switching in or out is a manual process.
Completely free, no monthly fees, no transaction fees
Native invoicing included free, with automatic payment matching
Free FreeAgent subscription included (subject to a monthly-transaction condition)
FSCS protected (backed by NatWest)
Simple, no-frills interface
No hidden charges
FreeAgent stays free only if you transact at least once a month from the Mettle account
Converting quotes to invoices needs the paid Mettle+ upgrade (£4/month)
Not a CASS participant, switching is a manual process
No overdraft facility
Only one owner can access the account, even on a two-owner LTD
Genuinely free business banking with zero transaction fees
Free FreeAgent accounting software subscription (conditional on monthly account activity)
FSCS deposit protection (NatWest-backed)
Optional Mettle+ (£4/month) for quote-to-invoice conversion
Zempler Bank Business Go Account
Zempler Bank Business Go Account
One of the few digital banks to offer an overdraft facility on a free account, alongside built-in accounting, invoicing and Making Tax Digital tools that most app-only accounts charge for or don’t offer.
Best for: Free banking with built-in accounting and an overdraft option
Watch out: 3 free bank transfers per month, then 35p each. Built-in accounting, invoicing and Making Tax Digital tools are free; third-party integrations are fewer than Tide or Starling.
Not ideal if: Businesses needing deep third-party accounting integrations like Xero or QuickBooks
Business Go (free)£0/month. 3 free UK bank transfers/month, then 35p each.
Business Extra£9/month. 20 free transfers/month, then 35p each.
Business Pro£19/month. 500 free transfers/month, then 35p each. Includes 0.75% interest-earning savings pot.
Card purchasesFree
OverdraftUp to £10,000 subject to eligibility. First £5 interest-free.
Built-in bookkeepingYes, free on all plans: receipt scanning, invoicing, expense categorisation
MTD for Income TaxBuilt in on all plans
Tap to PayFree in-app via Stripe (iPhone XS+ / Android NFC). No Zempler fee; standard Stripe rate applies.
Cash depositsPost Office: £4 minimum or 0.55% of deposit, whichever is greater
Eligibility: Sole traders, LTDs, LLPs, partnerships
Not ideal if: Businesses needing deep third-party accounting integrations like Xero or QuickBooks
Watch out: 3 free bank transfers per month, then 35p each. Built-in accounting, invoicing and Making Tax Digital tools are free; third-party integrations are fewer than Tide or Starling.
Built-in accounting, invoicing and MTD tools at no extra cost
FSCS protected up to £120,000
No monthly fees
Overdraft facility available, rare for a digital bank
Personal phone support
Free in-app Tap to Pay for accepting contactless card payments, no separate reader or Zempler fee
Only 3 free bank transfers/month, then 35p each
Third-party accounting integrations more limited than Tide or Starling
Fewer digital features than Tide or Starling
Relatively small user base
Free business current account with built-in accounting, invoicing and MTD tools
FSCS deposit protection up to £120,000
No monthly account fees
3 free UK bank transfers/month, then 35p each
In-app Tap to Pay (via Stripe) to accept contactless card payments, free of any Zempler fee
ANNA Money Pay As You Go Account
ANNA Money Pay As You Go Account
ANNA scans your receipts and works out your tax as you go, so it suits sole traders who would rather the bookkeeping ran itself than log into a separate tool.
Watch out: 20p per transfer after the first 20 free each month; international SWIFT payments cost £5 plus 1% currency conversion.
Not ideal if: Businesses making many daily transactions or needing FSCS deposit protection
Pay As You Go (PAYG)£0/month. 20 free transfers/month, then 20p each. 0.95% commission on all incoming payments other than transfers from your own accounts. £5 per SWIFT payment.
Business plan£22.90/month + VAT. 60 free local transfers/month, then 20p each.
Big Business plan£59.90/month + VAT.
+Taxes add-on£29.00/month + VAT. For limited companies only.
Incoming-payment cost exampleA freelancer receiving £5,000/month in client payments on PAYG pays £47.50 in incoming-payment commission alone (0.95%), before any other fees.
FX fee1% currency conversion on card payments abroad
International SWIFT transfers£5 per payment
Accounting integrationsBuilt-in tax and expense tools (limited third-party integrations)
OverdraftNot available
FSCS protectionNo on the main account (e-money, safeguarded under the Electronic Money Regulations 2011). ANNA’s separate Griffin easy-access savings account is FSCS protected up to £120,000.
Eligibility: UK sole traders, limited companies, and LLPs are eligible. Fast app-based setup. Standard KYC and identity checks apply. ANNA is an e-money account (not a bank), so funds are safeguarded at partner banks rather than covered by FSCS.
Not ideal if: Businesses making many daily transactions or needing FSCS deposit protection
Watch out: 20p per transfer after the first 20 free each month; international SWIFT payments cost £5 plus 1% currency conversion.
AI-powered receipt scanning and tax calculations
Automatic expense categorisation
Built-in invoicing with payment chasing
Company formation through the app
Pay As You Go pricing suits low-volume businesses
0.95% commission on incoming payments on PAYG makes it expensive for freelancers with regular client revenue: £47.50/month on £5,000 of receipts
20p per transfer after the first 20 free each month on PAYG
No FSCS protection on the main account (e-money safeguarded; only the separate Griffin savings account is FSCS protected)
Not a Current Account Switch Service participant
Limited third-party integrations
No overdraft facility
AI receipt scanning, photograph and auto-categorise expenses
Best for: Established businesses holding larger balances
Watch out: Aimed at established businesses holding roughly £50,000+ or an Allica loan; a £25/month fee applies if your average balance falls below £10,000 in any month. Fewer features and integrations than the digital banks.
Not ideal if: Newer or low-balance businesses, and anyone needing invoicing tools or broad accounting integrations. This is not a general startup account.
Eligibility: Established businesses, usually incorporated 12+ months; aimed at those holding around £50,000+ or an Allica loan. LTDs and LLPs (minimum requirements apply)
Not ideal if: Newer or low-balance businesses, and anyone needing invoicing tools or broad accounting integrations. This is not a general startup account.
Watch out: Aimed at established businesses holding roughly £50,000+ or an Allica loan; a £25/month fee applies if your average balance falls below £10,000 in any month. Fewer features and integrations than the digital banks.
Competitive interest on business current account balances
FSCS protected up to £120,000
No monthly fee if average balance stays above £10,000
Dedicated relationship managers
Savings pots with competitive rates
£25/month if average balance drops below £10,000
Relatively new, fewer features than established digital banks
Limited accounting integrations
No invoicing tools
Minimum requirements apply for eligibility
Interest-earning business current account
Savings pots with competitive AER
FSCS deposit protection up to £120,000
Dedicated relationship manager
Airwallex Business Explore Account
Airwallex Business Explore Account
Built around cross-border trade: multi-currency accounts, mid-market FX with a 0.5% markup, and an API for batch payments.
Best for: Multi-currency wallets and batch payments
Watch out: £19/month fee unless you maintain £10k+ monthly deposits. Not a full UK current account and no FSCS protection.
Not ideal if: Domestic-only businesses with simple banking needs
Monthly fee£19/month (free if you deposit £10,000+ in the month)
FX rateInterbank rate +0.5%
Transfer feeFree (including batch payments)
Currencies held60+
Local account detailsMajor markets including USD, EUR, GBP, AUD, CAD, SGD and more
API accessYes (for treasury automation and integrations)
Accounting integrationsXero, QuickBooks, NetSuite
OverdraftNot available
FSCS protectionNo (e-money safeguarded)
Eligible entitiesUK-registered limited companies and LLPs (not sole traders)
Eligibility: UK-registered limited companies and LLPs are eligible. Sole traders are not currently supported. Standard KYC checks and business registration documents required. Unsupported industries include gambling, adult content, and certain financial services.
Not ideal if: Domestic-only businesses with simple banking needs
Watch out: £19/month fee unless you maintain £10k+ monthly deposits. Not a full UK current account and no FSCS protection.
Multi-currency wallets in 60+ currencies
Competitive FX at interbank +0.5%
Batch payment processing
API access for treasury automation
Local account details in major markets
£19/month unless you deposit £10,000+ in the month
Not a full UK current account
No FSCS protection (e-money safeguarded)
Overkill for domestic-only businesses
Multi-currency wallets holding 60+ currencies
Local receiving accounts in USD, EUR, GBP, AUD, and more
Batch payments for payroll and supplier runs
API and webhook integration for treasury automation
HSBC Small Business Bank Account
HSBC Small Business Bank Account
HSBC offers branch access, relationship managers, and lending products that digital banks cannot match.
Watch out: £10/month after 12-month free period; first 100 electronic payments free then 20p each; cash deposits £1.50/£100 at counter
Not ideal if: Businesses wanting zero-fee banking or advanced digital tools
Eligibility: Sole traders, LTDs, partnerships
Not ideal if: Businesses wanting zero-fee banking or advanced digital tools
Watch out: £10/month after 12-month free period; first 100 electronic payments free then 20p each; cash deposits £1.50/£100 at counter
12 months free day-to-day banking for new businesses
FSCS deposit protection up to £120,000 (full banking licence)
Branch network across England and Wales
Business overdraft up to £50,000 with instant online decision
Full lending suite: loans, asset finance, and commercial mortgages
Relationship managers for qualifying businesses
First 100 electronic payments out each month are free
£10/month after the 12-month free period
Cash deposits at counter cost £1.50 per £100 (machine rate £0.85/£100)
Electronic payments beyond 100/month cost 20p each
Digital experience behind challenger banks
From December 2025: £12/month additional fee for unauthorised overdrafts over £12
£10/month (12 months free for new businesses)
Branch network across England and Wales
Business overdraft up to £50,000
First 100 electronic payments out each month free
NatWest Business Bank Account
NatWest Business Bank Account
NatWest drops the monthly account fee and throws in a free FreeAgent subscription for as long as you bank with them, and switchers get two full years of free everyday banking.
Watch out: Two years’ free everyday banking comes two ways: automatically on the Start-up account (new business, trading under a year, turnover under £1m), or via a full CASS switch to the standard Business account (existing business, turnover under £2m, not switching from RBS or Ulster Bank). After either free period you move to NatWest’s Standard Tariff, where cash paid in costs £0.95 per £100 (plus a £0.95 per-item manual handling charge), and non-sterling card transactions carry a 2.75% fee.
Not ideal if: Businesses wanting permanently free banking or multi-currency support
Eligibility: Sole traders, LTDs, partnerships, startups
Not ideal if: Businesses wanting permanently free banking or multi-currency support
Watch out: Two years’ free everyday banking comes two ways: automatically on the Start-up account (new business, trading under a year, turnover under £1m), or via a full CASS switch to the standard Business account (existing business, turnover under £2m, not switching from RBS or Ulster Bank). After either free period you move to NatWest’s Standard Tariff, where cash paid in costs £0.95 per £100 (plus a £0.95 per-item manual handling charge), and non-sterling card transactions carry a 2.75% fee.
Free FreeAgent accounting software for as long as you hold the account
No standard monthly account fee
Two years’ free everyday banking for switchers
FSCS protected up to £120,000
Strong lending options and startup support
Standard transaction charges kick in once the free-banking period ends
Cash handling costs £0.95 per £100 on the Standard Tariff, once the free period ends
2.75% fee on non-sterling card transactions
Digital experience still trails the fintechs
Two years’ free everyday banking for switchers (turnover up to £2m)
Free FreeAgent accounting software while you hold the account
Business overdraft and loan facilities
Entrepreneur accelerator programme
Virgin Money M Account for Business
Virgin Money M Account for Business
Virgin Money’s M Account pairs free everyday banking with unlimited 0.25% cashback on debit card spend, in-app cheque scanning and branch access, a combination most digital-only freelancer accounts don’t offer.
Best for: Free banking with cashback, cheque handling and branch access
Watch out: Only available to businesses with annual turnover under £1m. Digital tools and integrations lag behind fintech competitors. International SWIFT transfers cost £17.50 each; cash-deposit tariffs are set out in Virgin Money’s separate Tariff Guide and haven’t been independently re-verified here.
Not ideal if: Businesses with turnover above £1m, or those wanting advanced invoicing, multi-currency features, or frequent international payments.
Eligibility: UK-based sole traders, limited companies, LLPs and partnerships with annual turnover under £1m. Excludes clubs, charities, and businesses based in the Channel Islands, Isle of Man or Northern Ireland.
Not ideal if: Businesses with turnover above £1m, or those wanting advanced invoicing, multi-currency features, or frequent international payments.
Watch out: Only available to businesses with annual turnover under £1m. Digital tools and integrations lag behind fintech competitors. International SWIFT transfers cost £17.50 each; cash-deposit tariffs are set out in Virgin Money’s separate Tariff Guide and haven’t been independently re-verified here.
Free business banking with no monthly fees
Unlimited 0.25% cashback on debit card spend (0.5% on trade supplies)
In-app cheque scanning
Branch access across the UK
Xero free for 6 months on signup
FSCS protected up to £120,000 (combined with Nationwide holdings)
Overdraft available subject to eligibility
Free UK bank transfers up to £30,000 per transaction
Only available to businesses with turnover under £1m
Digital tools and integrations lag behind fintechs
International SWIFT transfers cost £17.50 each
Fewer business lending options than major banks
Smaller branch network than HSBC or Barclays
Free M Account for business with no monthly charges
Unlimited 0.25% cashback on debit card spending
In-app cheque scanning
Branch access for in-person banking
FSCS deposit protection up to £120,000
Business overdraft (subject to eligibility)
Co-operative Bank Business DirectPlus Account
Co-operative Bank Business DirectPlus Account
The Co-operative Bank is one of the few UK banks with an explicit ethical policy, and new customers get 30 months of free banking as long as they keep at least £1,000 in the account.
Watch out: The 30-month free period only holds while your balance stays above £1,000; drop below and you move to £7/month. After the intro period, electronic payments cost 35p each.
Not ideal if: Businesses wanting a fintech-grade app or deep accounting integrations
Eligibility: Sole traders, LTDs, partnerships, charities
Not ideal if: Businesses wanting a fintech-grade app or deep accounting integrations
Watch out: The 30-month free period only holds while your balance stays above £1,000; drop below and you move to £7/month. After the intro period, electronic payments cost 35p each.
Explicit ethical banking policy
Branch access across the UK
FSCS protected up to £120,000
Overdraft facility available
Supports charities and social enterprises
£7/month after the 30-month free period
Digital tools lag behind fintech competitors
Limited accounting integrations
Cash handling charges apply
Values-driven banking with published ethical policy
Branch access for cash and cheque handling
FSCS deposit protection up to £120,000
Business overdraft facility
Can You Open a Business Bank Account?
Check your structure is accepted before you fall for a headline, because eligibility, not price, decides what you can actually open.
Sole traders have the widest choice, whether you run payroll and pay suppliers weekly or barely move money at all. A few specialist accounts take registered companies only, and Revolut Business turns sole traders away entirely.
Can You Open a Business Bank Account?
Structure
Can you open one?
Where to look
Sole trader
Yes, widest choice
Tide, Starling, Monzo, Mettle, Zempler, ANNA (not Revolut Business, which sends sole traders to Revolut Pro)
Limited company
Broad, subject to checks
Most accounts here, subject to each provider’s industry, residence, ownership and trading-history rules
Partnership / LLP
Most, but check
Starling, high-street banks, Revolut Business; not Monzo or Mettle
Tide and Monzo Business verify your identity rather than running a hard credit check on the base account, which we confirmed on their own pages on 22 July 2026. A thin or bruised credit file needn’t block you there.
Overdrafts and lending are a separate question, and still need a credit assessment anywhere.
If you’ve a CCJ or a default behind you, check each provider’s stated policy before applying, because a hard credit search leaves a mark on your file whether or not you are approved. Where a provider does not confirm its check type, treat the account as credit-checked.
No business has an automatic right to an account
UK law lets a bank decline any business on commercial or risk grounds, with no obligation to explain. Some trades are turned away almost across the board, and an account that is open today can still be frozen mid-review.
High-risk sectors such as cryptocurrency, gambling, adult entertainment and money service businesses are routinely refused by mainstream banks, and usually need a specialist Electronic Money Institution (EMI) instead.
A bank can freeze an account while it runs identity and source-of-funds checks. If a freeze would stop you trading, keep a second account open as a backup.
If a mainstream bank says no, an identity-led digital account is normally the faster route back in. Our bad-credit accounts guide covers the options in detail.
How FSCS Protection Works for Business Accounts
Don’t assume a second account at the same bank doubles your safety net, because it won’t. Since 1 December 2025 the FSCS covers eligible deposits up to £120,000, but the limit counts per authorised firm, not per brand and not per account.
What matters is your legal entity. A sole trader’s personal and business savings at the same bank are added together under one limit, while a limited company, as a separate legal person, gets its own £120,000.
How FSCS Protection Works for Business Accounts
Your structure
How the £120,000 limit works
Sole trader
Your personal and business deposits at the same authorised firm are added together and share one £120,000 limit.
Limited company
The company is a separate legal entity, so it has its own £120,000 limit, separate from your personal one.
Partnership / LLP
Treatment depends on the legal form; check the FSCS small-business guidance rather than assuming.
Two brands, one licence
The limit is per authorised firm, not per brand. Brands that share a banking licence share the single limit.
Verified 22 July 2026.
Switching Business Bank Accounts
Check your new account is on the switch service before you apply, and the rest is easier than most people fear. The Current Account Switch Service moves your payments and balance and closes the old account under its guarantee, usually within seven working days.
Check the product-status table above before you count on switching. Most of the 15 support CASS, but Mettle, ANNA and Airwallex don’t, so with those you re-set your direct debits by hand. We checked each against the official list on 22 July 2026.
A full CASS switch closes the old account for you and redirects incoming payments and direct debits for three years, so there is nothing left to keep open.
A manual move to a non-CASS account is different: keep the old account running for a billing cycle so a stray quarterly VAT payment doesn’t bounce. Switch before any introductory rate ends, and our switching guide covers both routes.
Frequently Asked Questions
Do I need a business bank account as a sole trader?
HMRC doesn’t require sole traders to hold a separate business bank account, and you can legally run business money through a personal account. In practice, most personal-account terms ban business use, so the bank can close it once it notices, and mixing the two makes your tax return harder. Several free options (Starling, Mettle) make the cost argument moot, so the usual advice is to open one anyway.
Can I open a business bank account with bad credit?
Often, yes. Tide, Monzo Business and Starling verify your identity rather than credit-scoring the base account, so a CCJ or a default needn’t stop you opening one. Traditional banks (HSBC, Barclays, NatWest) are more likely to run a credit check and decline, and any overdraft or lending is credit-assessed everywhere. See our bad-credit accounts guide for the full picture.
What happens if my business bank goes bust?
If your provider holds a full UK banking licence, or provides the account through a licensed partner bank, your eligible deposits are covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 per authorised firm. The PRA raised that from £85,000 on 1 December 2025. Starling, Monzo, Allica, Zempler and every high-street bank here are covered directly; Tide’s current account is covered through ClearBank and Mettle’s through NatWest. ANNA and Airwallex are e-money firms, so your money is safeguarded in a ring-fenced account rather than FSCS protected, a weaker guarantee for a large balance.
How long does it take to open a business bank account?
Digital banks (Tide, Revolut, Monzo, Starling) usually open an account within minutes to a few hours using online ID checks, though every provider caveats this as subject to passing those checks. Traditional banks (HSBC, Barclays, NatWest, Lloyds) take roughly three to ten working days and may want a video call. If you need one urgently, compare the fastest accounts to open first.
Can I have more than one business bank account?
Yes, there’s no limit on how many you hold, and plenty of businesses run two: one for daily transactions and one for savings or overseas payments. Just remember that spreading money to protect it only works across separate authorised firms, since the £120,000 FSCS limit is counted per firm, not per account or per brand.
How We Reviewed Business Bank Accounts
Ranking criteria. We weight cost and fee transparency most heavily, then independent service quality, cash and payment access, admin tools, eligibility, international reach, and protection. Cost and protection weigh most, because they matter to every business.
How the winners are chosen. Each winner answers one defined need and is reproducible from the criteria above and current data. Affiliate deals can affect which products we link to, but never a score or a ranking, and we never recommend an account to a structure the provider excludes.
Data sources. We checked every fee, allowance, eligibility rule, FSCS status and CASS entry against the provider’s own pricing and terms pages, the FSCS and the Current Account Switch Service list on 22 July 2026.
Independent service scores come from the Ipsos survey required by the CMA, published February 2026. No comparison sites, no press releases, no affiliate material.
Update cadence. We re-verify every provider at least monthly, and whenever a provider changes pricing, eligibility or protection. The change log below records what we last corrected. Some links are affiliate links; see our editorial policy.
Change Log
Change Log
Date
What changed
22 July 2026
Corrected Tide’s free-transfer allowance (five a month, not 50), confirmed its ClearBank-provided account is FSCS protected, and corrected its CASS status to participating. Removed an invalid Tide Smart break-even claim.
22 July 2026
Corrected Lloyds (£10/month after 12 months), Monzo and Mettle cash deposits, Starling’s £3 cash minimum, Revolut Basic transfers (10 free, then 20p) and sole-trader eligibility, and Zempler’s CASS status to participating.
22 July 2026
Added the Ipsos Feb 2026 service-quality survey, an FSCS-by-structure explainer, a bank/e-money product-status ledger and worked cost scenarios.
Tide Free Business Account
Starling Bank Business Current Account
Monzo Business Lite Account
Revolut Business Basic Account
Mettle Business Bank Account
Zempler Bank Business Go Account
ANNA Money Pay As You Go Account
Allica Bank Business Rewards Account
Airwallex Business Explore Account
HSBC Small Business Bank Account
Barclays Business Account for Startups
Lloyds Bank Business Account
NatWest Business Bank Account
Virgin Money M Account for Business
Co-operative Bank Business DirectPlus Account