Best Business Bank Accounts UK | November 2024
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12 min read
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If you run your own business – no matter the size – separating your business and personal finances is essential. This not only helps with claiming expenses and filing tax returns, but also shows customers you’re operating as a legitimate business.

A business bank account brings all your company’s finances into one place, making it simpler to handle your income and expenses. Some accounts go a step further by offering useful extras, such as automated invoicing, accounting software integration, and spending reports to help you run your business more efficiently day-to-day.

With so many options out there, it can be difficult to know which one is best for your business. We’ve taken the time to review 15 of the leading business bank accounts in the UK, looking at key factors such as monthly fees, how easy they are to access, and whether they offer FSCS protection. This way, you’ll have the information you need to make a decision that’s right for your business.

Since every business has its own specific needs, it’s important to carefully compare your options and choose the account that fits best with your goals and priorities.

Featured Partners
All-Rounder

Tide Free Business Account

Monthly Fee
£0
Bank Transfers
20p
Card Purchases
£0
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International Use

Revolut Business Basic Account

Monthly Fee
£0
Bank Transfers
20p Tooltip
5 Free per month
Card Purchases
£0
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Sole Traders & Freelancers

Airwallex Business Account

Monthly Fee
£0
Bank Transfers
£0
Card Purchases
£0
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The Top 15 Business Bank Account Providers UK

Monthly Fee

£0

Bank Transfers

20p

Card Purchases

£0

Overdraft

No

FSCS Protection

Yes
Our Rating

Accessibility

Access your Tide account via the web or the mobile app

Overview

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.

Tide also provides 24/7 customer support through their app, ensuring that business owners can manage their finances efficiently and with ease.

They also offer an easy access savings account paying 4.33% AER.

Read our in-depth Tide business account review

Pros and Cons
Pros
  • Accounts can be set up the same day.
  • Easy invoicing, expense management, and rapid loan application processes within the app.
  • Comprehensive digital access and integration with major accounting software such as Xero, Sage and FreeAgent.
  • Strong security measures including two-factor authentication, encryption, and continuous fraud monitoring.
  • Fast approval for eligible businesses applying for business loans. Maximum borrowing amount up to £20mil.
Cons
  • Limited customer service for free accounts.
  • £1 fee per ATM withdrawal
  • No physical cheque deposits.
  • Currently lacks credit cards.
Eligibility Criteria

– 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.

Starling Bank Business Current Account

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

Yes Tooltip
Eligible customers can apply for an overdraft between £1,000 and £50,000.

FSCS Protection

Yes
Our Rating

Accessibility

Access your Starling Bank account via the web or mobile app

Overview

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.

It provides a quick account setup within one day.

Additionally, Starling provides access to business loans ranging from £25,001 to £250,000, subject to approval, making it a comprehensive solution for growing businesses.

Read our in-depth Starling Bank business current account review

 

Pros & Cons
Pros
  • Overdrafts available from £1,000 to £50,000 with a 1.75% arrangement and annual fee, pay interest only on the amount borrowed.
  • Robust security measures, including two-factor authentication and account monitoring for security.
  • 24/7 customer support ensures assistance is always available.
  • Convenient in-app cheque deposits up to £1,000 and support for cash deposits via the Post Office.
  • Integrates with Xero, FreeAgent, and QuickBooks.
Cons
  • No business credit cards, which may be limiting.
  • Does not offer the best interest rates on balances, which may deter savings-focused businesses.
  • Some limitations in ATM access and occasional app issues could disrupt banking activities.
  • Additional business tools such as “The Business Toolkit” or the “Euro business account” cost extra.
Eligibility Criteria

– 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.

Revolut Business Basic Account

Monthly Fee

£0

Bank Transfers

20p Tooltip
5 Free per month

Card Purchases

£0

Overdraft

No

FSCS Protection

No
Our Rating

Accessibility

Access your Revolut account via the web or mobile app

Overview

Revolut Business offers a dynamic free current account that excels in multi-currency transactions, making it ideal for businesses trading internationally.

It allows you to hold and exchange more than 25 currencies at competitive rates and offers free local transactions within a set monthly limit. This account integrates with Xero, QuickBooks and Sage software, and is cryptocurrency- friendly.

Revolut allows accounts to be opened on the same day, with 24/7 customer support available through the mobile app.

This makes Revolut a strong choice for those seeking quick and accessible financial solutions in a fully digital environment.

Read our in-depth Revolut business account review

Pros & Cons
Pros
  • Facilitates international transactions with competitive exchange rates.
  • £1,000 international transfers at the inter-bank rate per month.
  • Strong digital security measures such as two-factor authentication, fraud alerts and safeguarding your money.
  • Caters strongly to team use, with unlimited team members and 3 free cards per member
  • Accounting Integrations with software such as Xero, QuickBooks, and Sage.
Cons
  • Absence of traditional banking services and physical deposits may limit functionality for some businesses.
  • Only 5 free UK transfers per month and only £1,000 fee-free international transfers per month
  • No savings option, not ideal for businesses wanting to build on their balance.
Eligibility Criteria

– 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

£0

Bank Transfers

20p

Card Purchases

£0

Overdraft

No

FSCS Protection

No
Our Rating

App Access

Access your ANNA Money account via the web or the mobile app

Overview

ANNA Money provides a straightforward, low-fee banking solution for small businesses, startups, freelancers, and sole traders.

The Pay As You Go account simplifies banking with an intuitive app that integrates banking, invoicing, and expense management. As the name suggests, there are different charges for individual transactions and you only pay for the services you use.

This account may suit tech-savvy entrepreneurs and small businesses that prefer a digital banking experience.

ANNA offers cashback on select groceries and provides 24/7 customer support through live chat, making it a practical and straightforward choice for small business owners looking for an easy-to-use banking solution.

Read our in-depth Anna business account review

Pros & Cons
Pros
  • Quick and easy account setup, potentially within three minutes.
  • Comprehensive safeguarding measures and collaboration with fraud prevention organisations.
  • Accounting integration with software such as Integrates with Xero, QuickBooks, and Sage.
  • Dedicated payment link for receiving payments from anyone.
Cons
  • Some transaction fees, including bank transfers and ATM withdrawals.
  • Limited credit options; no credit cards or business loans.
  • Cash deposit fee of 1% and monthly limitations.
  • No cheque deposit functionality.
Eligibility Criteria

– 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 Kinetic Current Account

Monthly Fee

£6.50 Tooltip
Free for 12 Months (Refers to the monthly account maintenance fee only).

Bank Transfers

£0 Tooltip
Direct Debits & Internal Transfers: Free; CHAPS: £20 to another HSBC Group bank account, £30 to a non-HSBC Group bank account via by phone or in-branch banking.

Card Purchases

£0 Tooltip
Applies to the UK only. Non-Sterling Transaction fee – 2.99% of the sterling amount of the transaction, minimum £3. Cash Fee – 2.99% of the amount advanced, minimum £3.

Overdraft

Yes Tooltip
Overdrafts from HSBC are not offered by default and are available to eligible businesses only.

FSCS Protection

Yes Tooltip
HSBC UK Bank plc is protected by FSCS.
Our Rating

Accessibility

Access your HSBC account via their mobile app, phone, or in branch.

Overview

The HSBC Kinetic Current Account is designed for sole traders and sole directors of limited companies in the UK with a maximum annual turnover of £6.5 million. With the option to transact online or through the app, by phone or in branch, small business owners can choose how they prefer to bank.

The account offers an overdraft, subject to eligibility, which sets it apart from some competitors, but it also has slightly higher transaction fees and fewer features than other providers.

In-app customer support is available Monday to Friday from 8am to 8pm and on Saturdays from 8am to 2pm, ensuring that small businesses have access to the help they need when they need it.

Read our in-depth HSBC Kinetic Current Account review.

Pros & Cons
Pros
  • Access options via the web, app or telephone cater to various preferences and needs.
  • Integrates with popular accounting software like Xero and QuickBooks.
  • Offers credit facilities that support business cash flow and expansion needs.
  • International payments sending and receiving, to and from over 150 countries and territories Worldwide. Fees may apply.
  • Mobile cheque deposits available and cash deposits accepted at any HSBC UK branch and Post Office branches (fees may apply).
Cons
  • Slower account opening process, within 48 hours.
  • ATM withdrawal fees may add up for businesses that require frequent cash access.
  • Limited weekend customer service hours may not accommodate all business owners.
Eligibility Criteria

– 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.
– *Get a £100 Amazon.co.uk gift card when you open an HSBC Kinetic Current Account and make 10 qualifying transactions.

Monthly Fee

£0

Bank Transfers

30p Tooltip
3 free per month

Card Purchases

£0

Overdraft

Yes

FSCS Protection

No
Our Rating

Accessibility

Access your Zempler Bank account via the web or the mobile app

Overview

FCA-regulated Zempler Bank (recently rebranded from Cashplus Bank) offers two business accounts – Business Go is the free version, promising “simple and secure banking that gets the job done”.

You might like the Business Go Account for its lack of monthly fees and quick application process, though it is less praised for its higher fees on certain transactions and fewer integrated features than some rivals.

The account has the ability to apply for an overdraft after three months, providing a practical solution for startups and small businesses that may need a bit of support for their finances without some of the hurdles that can be associated with other banking options.

Read our in-depth Zempler Bank business account review

Pros & Cons
Pros
  • Quick and easy account opening process, with no credit checks.
  • Overdrafts available for qualifying businesses also with minimal credit checks; offers Business Cash Advance.
  • Strong security features, including 24/7 fraud protection, instant card freezing and 3D Secure.
  • Cash deposits available at any UK post office
  • Broad accounting software integration with brands like QuickBooks, Xero, and Sage facilitates seamless financial management.
Cons
  • Debit cards aren’t included. Your first card is £9.95, extra cards incur an additional fee of £5.95
  • £2 ATM withdrawal fee in the UK. £3 ATM withdrawal fee abroad.
  • 0.5% (minimum £3) cash deposit fee.
  • The absence of direct application for business loans or credit cards could complicate access to additional funds.
Eligibility Criteria

– 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.

Monzo Business Lite Account

Monthly Fee

£0

Bank Transfers

£0 Tooltip
Taking payments by Easy Bank Transfer are free until 2025.

Card Purchases

£0

Overdraft

Yes Tooltip
Eligible sole traders can apply for an overdraft of up to £2,000 with representative EAR of 39.0% (variable). Limited companies are not eligible.

FSCS Protection

Yes
Our Rating

Accessibility

Access your Monzo account via the web or mobile app

Overview

Monzo’s Business Lite Account stands out for its low fees, accessibility, and excellent customer service.

This account could be ideal for cost-conscious businesses seeking a digital-first banking solution. Nice features like being able to open an account entirely through the app, and earn interest on your company’s cash with savings pots, make this a modern-feeling banking option for small firms.

This account is particularly suited for those prioritising convenience, including features like instant notifications, budgeting tools, and fee-free spending abroad.

With no monthly fees and seamless integration with other digital tools, the Monzo Business Lite Account is ideal for startups and small businesses looking to simplify their banking with a reliable, user-friendly app.

Read our in-depth Monzo business bank account review

 

Pros & Cons
Pros
  • Advanced App features such as separate money pots, live payment confirmation and more.
  • Advanced security features including two-factor authentication.
  • 24/7 customer support, ensuring you get the help you need when you need it.
  • Business loans available through the app.
  • Cash deposits available via PayPoint with limits, and cheque deposits over £500 accepted.
Cons
  • 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 integration with accounting software for the free account.
  • No tax pots for the free account.
Eligibility Criteria

– 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.

Mettle Business Bank Account

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

No

FSCS Protection

Yes
Our Rating

Accessibility

Access your Mettle account via the web or mobile app

Overview

Mettle by NatWest is a digital-first banking solution for small businesses and sole traders.

Launched in 2019 as part of NatWest, it operates independently and does not provide access to NatWest’s high-street branches.

This account is ideal for small businesses and sole traders seeking a fee-free, digital-first banking solution which includes financial management tools.

Mettle by NatWest ensures secure and fully regulated banking with high customer satisfaction, though it has limitations with international payments and no credit facilities.

The account offers benefits like instant invoicing and real-time transaction tracking, making it a practical choice for businesses looking to streamline their financial management without incurring any extra costs.

Read our in-depth Mettle business bank account review

Pros & Cons
Pros
  • Build on your balance with savings pots.
  • FreeAgent accounting software worth £150 a year included
  • No fees on international card transactions.
  • Multiple security features, including biometric login and card locking via the app
  • Quick and easy setup process.
  • Integrates with FreeAgent, Xero, and QuickBooks; includes instant invoicing and spending categorisation.
Cons
  • Cash deposits are capped at £500 per transaction and £23,000 per year.
  • Does not support international transfers or provide an IBAN, which may be restrictive for businesses dealing with foreign clients.
  • Does not support cheque deposits, which may inconvenience some users.
  • Limited customer support hours, Monday to Friday 8am to 8pm, and weekends from 9am to 5pm
Eligibility Criteria

– 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.

Allica Bank Business Rewards Account

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

No

FSCS Protection

Yes
Our Rating

Accessibility

Access your Allica Bank account via the web or the mobile app

 

Overview

The Allica Bank Business Rewards Account is designed for established UK-based businesses that typically maintain a significant balance in their accounts.

This account is particularly well-suited for businesses seeking to maximise the value of their deposits, as it offers a competitive interest rate on a dedicated Savings Pot and cashback rewards on card spending.

With seamless integration with popular accounting software like Sage and Xero, and the security of FSCS protection, the Allica Business Rewards Account provides both savings opportunities and robust financial management tools.

The account is ideal for businesses looking to earn interest on their balance while maintaining easy access to funds.

Read our in-depth Allica Bank business bank account review

Pros & Cons
Pros
  • Offers a 4.33% AER on an instant access Savings Pot.
  • Earn up to 1.5% cashback on card spending.
  • Direct access to a dedicated relationship manager.
  • Savings Pot offers instant access to funds while earning interest.
Cons
  • No interest on the main account balance.
  • Only one Savings Pot can be opened per account.
  • Cash and cheque deposits are not supported.
  • Allica cards cannot currently be added to Apple Pay or Google Pay.
Eligibility Criteria

– You must be a UK resident and aged 18 or older.
– You must have a minimum balance of £50,000 or more in your account or must have a loan product with Allica.
– Your business must be incorporated for at least 12 months.
– Businesses operating from outside the UK are excluded.

Airwallex Business Account

Monthly Fee

£0

Bank Transfers

£0

Card Purchases

£0

Overdraft

No

FSCS Protection

No
Our Rating

Accessibility

Access your Airwallex account via the web and mobile app

Overview

Airwallex is a global financial technology platform designed primarily for businesses that operate across borders, providing them with tools to manage their finances efficiently.

Airwallex is particularly suitable for e-commerce businesses that engage in global trade. It allows them to receive payments in multiple currencies, avoid hefty currency conversion fees, and streamline international transactions.

Additionally, it integrates seamlessly with popular e-commerce platforms like Shopify and accounting tools like Xero, making it a strong choice for businesses seeking a comprehensive financial management solution.

Read our in-depth Airwallex business bank account review

Pros & Cons
Pros
  • Hold and manage funds in 24 different currencies, avoiding conversion fees.
  • Accept payments from customers in over 180 countries using various local payment methods.
  • Create and share customisable payment links via social media and email for flexible payment options.
  • Competitive foreign exchange rates and low fees on international transfers.
  • Provides comprehensive tools for managing employee expenses with real-time visibility.
Cons
  • Limited customer support may prove difficult for customers who experience issues or require assistance with their account.
  • Local and international fees can add up and become too costly for small businesses making frequent smaller transfers.
  • Physical card options are limited, particularly for broader business use.
  • ATM access is restricted, especially for international withdrawals.
  • Multi-currency accounts do not earn interest on balances.
Eligibility Criteria

– You must be over 18 years old
– You must be a business operating within one of the supported countries/regions
– Your business must be registered and have a physical address.
– Charities and other high-risk organisations are not eligible

Co-operative Bank Business Directplus Account

Monthly Fee

£7 Tooltip
New Co-operative Bank customers can get 30 months free if they maintain a balance of £1,000.

Bank Transfers

£0.00

Card Purchases

35p Tooltip
Free for 30 months for new Co-operative customers

Overdraft

Yes

FSCS Protection

Yes
Our Rating

Accessibility

Manage your account via online banking, mobile app, telephone banking, in a branch or at a Post Office.

Overview

The Co-operative Bank Business Directplus Account is designed for businesses that value sustainability and ethical banking practices.

This account stands out for its customer-led Ethical Policy, which ensures that the bank only partners with organisations that share its commitment to environmental and social responsibility.

With over 30 years of experience in sustainability, the Co-operative Bank is working towards becoming a lifetime carbon-neutral bank and supports businesses in achieving their own sustainability goals.

This makes it an excellent choice for businesses looking to align their financial practices with their ethical values.

Read our in-depth Co-operative Business Current Accounts Review

Pros & Cons
Pros
  • Free access to Zellar, a tool designed to help businesses manage and improve their sustainability goals.
  • Multitude of articles explaining how to become more sustainable, making businesses aware of their environmental impact.
  • Access to a range of business support tools, including start-up guides, articles on the Business Exchange, and free webinars.
  • £1,000 of free cash deposits per month.
  • Integration with popular accounting software like Xero, Sage, and QuickBooks.
Cons
  • Strong emphasis on ethical practices may not appeal to businesses that do not prioritise sustainability.
  • Cash deposit fee of 80p per £100 after allowance.
  • Cannot earn interest on deposited funds.
  • Limited customer support could hinder those who require more frequent assistance.
Eligibility Criteria

– You’re a sole trader or have a partnership, limited liability partnership or limited company.
– Where your organisation is a limited company, the director must never have been disqualified, the business must never have been subject to insolvency or an intention to dissolve, and the business has not had a negative net worth in the last set of financial accounts.
– You and all key individuals are at least 18 years old.
– You and all key individuals are UK residents
– You have a UK business address.
– All key individuals are free from county court judgements, bankruptcy and individual voluntary agreements for the last 6 years.
– All key individuals are free from missed payments on any personal credit obligations in the last 6 months.

Barclays Business Account for Startups

Monthly Fee

£8.50 Tooltip
New Barclays business current account customers get their first 12 months free

Bank Transfers

£0.00

Card Purchases

£0.00

Overdraft

Yes

FSCS Protection

Yes
Our Rating

Accessibility

You can access your account online, through the mobile app, through telephone banking, or in person at a Barclays branch.

Overview

The Barclays Bank Account for Startups is specifically crafted to support the financial needs of new businesses.

Startups benefit from 12 months of free banking, helping to ease the initial financial burden.

This account also includes complimentary access to FreshBooks, a valuable tool for invoicing and accounting, which typically costs over £250 annually.

With flexible options for managing your finances—whether online, via the mobile app, or in-branch—this account is an excellent choice for entrepreneurs aiming to establish and expand their business with confidence.

Read our in-depth Barclays Business Bank Account Review

Pros & Cons
Pros
  • Startups can connect with a network of business resources and support through Barclays Eagle Labs, helping to foster growth and innovation.
  • Startups can customise their Visa debit card’s limits for contactless payments, cash withdrawals, and daily spending
  • Access to the Barclays Business Marketplace, which offers a range of products and services such as credit cards, payment solutions, and insurance.
  • 24/7 customer support.
Cons
  • Cash deposits at the Post Office or via Barclays Collect incurs a fee of 60p per £100. Cheque deposits also incur a fee of 60p per item.
  • International transactions using the debit card incur a 2.99% non-sterling transaction fee.
  • Transactions initiated by a Barclays employee are charged at £1.50 each.
  • Cannot earn interest on deposits.
Eligibility Criteria

– You are at least 18 years old.
– You have the right to live in the UK permanently.
– As of August 2024, Barclays only accepts applications for current accounts from sole traders and limited companies.
– You have been trading for less than 12 months.
– You have at least 12 months of UK address history.
– If your business is a limited company, it can’t have more than 10 (including you) directors, shareholders or company secretaries.

Virgin Money M Account for Business

Monthly Fee

£0 Tooltip
Free for 25 months for new businesses and new Virgin Money customers when you open an account or use the Current Account Switch Service. After the free period, the account fee is £6.50 per.

Bank Transfers

£0 Tooltip
BACS, standing orders and direct debits are free. CHAPS are £17.50 through Business Internet Banking or £25.00 through stores and telephone banking.

Card Purchases

£0 Tooltip
Free for purchases in GBP, Euro, Swedish Krona and Romanian Leu. Purchases in other currencies incur a fee of 2.75% the transaction value, with a minimum amount of £1.50.

Overdraft

Yes Tooltip
Subject to eligibility and status. Interest rate negotiable.

FSCS Protection

Yes
Our Rating

Accessibility

Access your Virgin Money account via the web, mobile app or telephone

Overview

The Virgin Money M Account is an ideal choice for small businesses with a turnover of less than £1 million, particularly those looking to maximise cashback rewards and perks.

This account stands out for its ability to reward everyday business spending.

The Virgin Money M Account offers no monthly fees and added bonuses like three months of free access to QuickBooks or Xero.

It’s tailored for businesses that want to earn while they spend and benefit from additional perks, all while managing their finances efficiently through a robust online banking platform.

Read our in-depth Virgin Money Business Bank Account Review

Pros & Cons
Pros
  • 0.25% cashback on eligible card purchases.
  • Access to exclusive Mastercard discounts at selected merchants, enhancing savings on business expenses.
  • Software integration with platforms such as Sage, Xero and Quickbooks.
  • £700 daily cash withdrawal limit, offering flexibility in accessing funds.
Cons
  • Cashback earnings may be limited by spending thresholds.
  • Cannot earn interest on the main balance.
  • Debit card payments and withdrawals in non-EEA currencies incur additional fees.
  • Limited customer support may be inconvenient for some businesses.
Eligibility Criteria

– You must be 18 years old.
– You must be the owner/director of your business, which must be based and operate in the UK (except the Channel Islands, Isle of Man, and NI).
– At least one business owner needs to be a UK resident.
– You must have a maximum annual turnover of no more than £1 million to apply for an M Account or no more than £6.5 million for the Business Current or Choice Accounts.
– You must not be currently bankrupt.
– You must not have ever been disqualified as a company director.
– Businesses operating from the Channel Islands, Isle of Mann, NI or outside the UK are excluded.
– Charities, those holding clients’ money and high-risk organisations are not eligible.

Lloyds Bank Business Account

Monthly Fee

£0.00 Tooltip
New customers can get a free account for 12 months.

Bank Transfers

20p Tooltip
100 free per month.

Card Purchases

£0.00

Overdraft

Yes

FSCS Protection

Yes
Our Rating

Accessibility

Manage your account via online banking, the mobile app, telephone banking, or in person at a Lloyds or Post Office branch.

Overview

Lloyds Bank, one of the UK’s largest and most established financial institutions, offers a range of business accounts designed to cater to the needs of small and medium-sized enterprises (SMEs).

The Lloyds Bank Business Current Account is particularly well-suited for small businesses, offering essential banking services such as online and mobile banking, free accounting software, and access to overdraft facilities.

The account is ideal for businesses that need straightforward, reliable banking with a blend of digital tools and in-person support.

With a 12-month fee-free introductory period and a robust support network, it is a strong option for new businesses or those looking to switch banks.

Read our in-depth Lloyds Bank Business Current Accounts’ Review

Pros & Cons
Pros
  • Direct access to a dedicated relationship team for personalised support.
  • Comes with a Visa debit card with no annual fees, allowing you to make payments and withdrawals easily.
  • Daily cash withdrawal limit of £700, offering easy access to funds.
  • Free access to Lloyds Bank’s Business Finance Assistant software for accounting.
Cons
  • Cash deposits at Immediate Deposit Machines and Automated Deposit Machines are £0.85 per £100, and cash deposits at the branch or ATM are charged at £1.50 per £100.
  • Cheque deposits are charged at £1.00 over the counter or £0.85 at deposit machines.
  • Cannot earn interest on deposits.
  • Does not provide a chequebook, which might be limiting for businesses that still use cheques regularly.
Eligibility Criteria

– You must be at least 18 years old
– You are a sole trader or the only director of a limited company
– You have an annual turnover of less than £25 million
– Only one person needs to access the account
– You are a UK resident
– Your business is based in the UK
– You are applying for your first bank account with Lloyds

NatWest Business Bank Account

Monthly Fee

£0

Bank Transfers

£0 Tooltip
Free banking on everyday transactions for 2 years when you switch your business current account to NatWest using the Current Account Switch Service.

Card Purchases

£0 Tooltip
Free banking on everyday transactions for 2 years when you switch your business current account to NatWest using the Current Account Switch Service.

Overdraft

Yes Tooltip
You can borrow up to £50,000 unsecured, subject to approval.

FSCS Protection

Yes
Our Rating

Accessibility

Access your NatWest account via the web, mobile app or telephone

Overview

The NatWest Business Bank Account is tailored for small businesses seeking a secure and reliable banking experience with a well-established UK bank.

This account offers robust security features, including sophisticated fraud detection systems and FSCS protection for deposits up to £85,000.

NatWest also provides additional tools to help businesses protect themselves against fraud, such as free fraud awareness webinars and an e-learning course.

With comprehensive support options and multiple ways to manage your account, including online, via a mobile app, and in-branch services, this account is ideal for businesses prioritising security and dependable service.

Read our in-depth Natwest Business Bank Account Review

Pros & Cons
Pros
  • NatWest’s name-checking service ensures that payments are sent to the correct recipient, reducing the risk of fraud.
  • Biometric login options available.
  • NatWest uses One-Time Passcodes for online banking and purchases, adding an extra layer of security to digital transactions.
  • Eligible businesses can enjoy two years of free banking on everyday transactions, helping to reduce initial costs.
  • Automated fraud alert systems that flags and alerts you to suspicious activity.
  • Provides scam advice during digital and mobile banking payments, helping users stay informed and vigilant against potential fraud.
Cons
  • Setting up payees and making payments often requires a physical card reader, which can be seen as inconvenient and outdated.
  • The emphasis on security measures means it may ask for your PIN more frequently when making contactless payments, which could slow down transactions.
  • 15% annual rate fee on unarranged overdrafts, which can be costly for businesses that occasionally dip into the red.
  • 70p per cheque deposit via the mobile app.
Eligibility Criteria

– You must be aged 18+.
– At least one person on the application must be a UK resident.
– You must be a sole trader or the owner/director of your company.
– Your business has an annual turnover of either more than £1 million or below £1 million but has been trading for over a year.
– Your business must be registered for tax purposes in the UK.
– You haven’t been declared bankrupt or received a County Court Judgment or Court Decree.
– Businesses operating from outside the UK are excluded.
– High-risk organisations are not eligible.

What guided Our best picks?

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?

A business bank account is a financial account used by businesses to manage their money separately from personal finances.

It allows companies to receive payments, pay expenses, and track transactions, making it easier to manage cash flow, taxes, and financial records.

These accounts often include features such as cheque writing, debit cards, and online banking, and they may provide access to credit and merchant services for processing payments.

Business bank accounts also help establish credibility and professionalism with customers and vendors.

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.

What’s the difference between personal and business bank accounts?

The key difference between a business bank account and a personal bank account is their purpose and features.

A business bank account is specifically designed for managing a company’s finances, separating business transactions from personal ones.

It typically offers features like higher transaction limits, the ability to accept customer payments, and access to business-specific services such as merchant accounts and credit facilities.

In contrast, a personal bank account is for individual use, focused on personal income and expenses, and lacks the specialised tools needed to manage business finances.

Do I 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.

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

Are there benefits to using a business bank account?

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

Read more about: The benefits of business bank accounts

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:

  1. Fees and charges: Consider whether you want accounts with no monthly fees, and remember that some accounts have transaction fees.
  2. Interest rates: Some banks offer interest but may increase fees over time; others do not provide interest.
  3. Overdraft facilities: Check the availability and conditions of overdraft facilities, if required.
  4. 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.
  5. Customer service: Evaluate customer support availability, particularly 24/7 service options, if required, and the communication channels offered.
  6. Integration with accounting software: Where required, confirm compatibility with popular accounting software like Xero and QuickBooks.
  7. 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.

Why Trust Business Expert?

What are the Best Business Bank Accounts?

The 15 best business bank accounts at a glance

ProviderMonthly Fee (maintenance fee)UK Bank TransfersUK Card PurchasesOur RatingCheck Eligibility
Tide
(Free Business Account)
£020pFree4.8/5★Visit site
Starling Bank£0FreeFree4.8/5★Visit site
Revolut Business
(Business Basic Account)
£020p
(5 free pm)
Free4.7/5★Visit site
ANNA Money
(Pay as You Go Account)

£0
20pFree4.6/5★Visit site
HSBC UK (Kinetic Current Account)£6.50
(Free for 12m)
Free
(Direct Debits & Internal Transfers: Free; CHAPS: £20 to another HSBC Group bank account, £30 to a non-HSBC Group bank account via by phone or in-branch banking.)
Free
(Non-Sterling Transaction fee – 2.99% of the sterling amount of the transaction, minimum £3. Cash Fee – 2.99% of the amount advanced, minimum £3.)
4.5/5★Visit site
Zempler Bank
(Business Go Account)
£0 30p
(3 free pm)
Free4.4/5★Visit site
Monzo
(Business Lite Account)
£0 FreeFree4.3/5★Visit site
Mettle by NatWest£0FreeFree4.3/5★Visit site
Allica Bank
(Business Rewards Account)
£0FreeFree4.3/5★Visit site
Airwallex£0Free1.3% + 20p4.2/5★Visit site
Co-op Bank
(Business Directplus Account)
£7
(Free for 30m)
35p
(Free for 30m)
35p
(Free for 30m)
4.2/5★Visit Site
Barclays
(Business Account for Startups)
£8.50
(Free for 12m)
FreeFree4.1/5★Visit Site
Virgin Money
(M Account for Business)
£0FreeFree4/5★Visit Site
Lloyds Bank£8.50
(Free for 12m)
20p
(100 free pm)
Free4/5★Visit Site
Natwest£0
(dependant on business size and function)
35p35p4/5★Visit Site
Important Information

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.

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

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.

Read more about business accounts tailored to meet popular needs below:

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:

  1. Choose a bank: Compare the features and fees to find the best fit for your business.
  2. 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.
  3. Apply: Complete the application process, which may involve an in-person meeting or the submission of an online application.
  4. 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.
  5. 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.

Read more about: How to open a business bank account

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 more about: Switching your business bank account

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, such as some of the ones mentioned on this page, offer e-money accounts for electronic funds handling, often without some of the traditional banking services and credit lines like loans.

2. Payment service providers (PSPs): PSPs, such as PayPal, Stripe, SumUp and Square, handle online payment processing and temporarily hold funds.

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 to 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

Disclosure:

This review reflects our assessment of the associated banking products and is intended for informational purposes.

It is not financial advice, a recommendation, or an endorsement suited to your specific financial situation.

If you’re uncertain about the best steps for your business, please consult a qualified financial advisor.

Frequently Asked Questions (FAQs)

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 more about: The quickest business bank accounts to open

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.

 

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 more about: The best business bank accounts for bad credit

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 4.33% AER capped on deposits up to £75,000.
  • 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 4.00% 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: The best business savings accounts

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.

Read more about: The FCA

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.

Read more about: The PRA

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.

Read more about: The FSCS

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.

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

[2] UK Neobank User and Trend Statistics

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