Launching a new business can be daunting, but choosing the right bank account sets a solid financial foundation for everything from daily transactions to steady growth.
In this guide, we compare the top startup-friendly accounts across fees, international payments, and customer support, offering real-world user insights and ensuring you quickly see which fits best for sole traders or limited companies.
Our analysis draws on first-hand experiences, reputable user ratings, and real-time feedback, ensuring you can make confident decisions without wading through unnecessary detail, guesswork, or marketing fluff, and quickly pinpoint an account that suits your needs.
We’ve also included quick-to-skim tables and overviews that highlight eligibility, potential hidden charges, and practical account features, helping you focus on launching and growing your venture with minimal financial hurdles.
Always consult a qualified financial adviser for tailored guidance before making any critical business decisions, as this article provides general information for UK-based startups rather than personalised professional advice, and does not account for individual financial circumstances.
Airwallex Business Explore Account
Tide Free Business Account
ANNA Money Pay as You Go Account
The 7 Best Bank Accounts for Startups in 2024
Tide Free Business Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Tide account via the web or the mobile app.
Offer: Tide is offering £150 cashback just for signing up until 31/1/2025.
Account Summary
Tide claims around 10% of the UK market, with 550,000+ accounts. It offers no monthly fees, quick setup, business expense cards, and free limited company registration. Regulated by the FCA and protected under FSCS, Tide also provides optional loans, a business savings account, and 2023-launched accounting software. Users report strong customer service, reflected in a 4.2-star Trustpilot rating.
Read Our Tide business account review
Eligibility Criteria
- Be at least 18 years old
- Hold a valid UK phone number
- Use an Apple or Android device with UK app store access
- Be a UK-based sole trader or limited company director (no charities, trusts, or high-risk sectors)
- Operate from within the UK
Starling Bank Business Current Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Starling Bank account via the web or mobile app
Account Summary
Starling stands out for its fee-free business account, 24/7 customer service, and free-spending abroad. Recently top-ranked by the Competition and Markets Authority, Starling also lets you deposit cash and cheques at the Post Office. It boasts around 40,000 Trustpilot reviews with a 4.3-star rating, claiming 3% of the UK retail banking market and 7% of SME lending.
Read our in-depth Starling Account Review
Eligibility Criteria
- Directors with account access must be at least 16 years old and UK-based
- All Persons of Significant Control must be UK residents
- Accepts UK sole traders, limited companies, or LLPs
- Excludes holding companies, dissolved businesses, charities/trusts, and high-risk sectors
- Business must be operated within the UK
ANNA Money Pay As You Go Account
Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your ANNA Money account via the web or mobile app
Account Summary
ANNA offers a streamlined, app-first account built for small businesses and freelancers seeking quick setup and user-friendly features.
You can open an account the same day, receive a Mastercard usable worldwide, and enjoy 24/7 customer service.
Free UK transfers and ATM withdrawals are included on paid plans, and it integrates with popular accounting tools. The app also sends handy tax reminders, making it simpler to stay on top of financial admin.
Read our in-depth ANNA Review
Eligibility Criteria
- Must be at least 18 years old
- Must be a UK-based sole trader, limited company director, or LLP partner
- Requires a UK residential address
- Not available to charities, trusts, high-risk businesses, or those operating outside the UK
Zempler Bank Business Go Account
Monthly Fee: £0
Bank Transfers: 30p (3 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: No
Accessibility: Access your Zempler Bank account via the web or mobile app
Account Summary
Zempler Bank is a fully regulated UK bank with FSCS protection up to £85,000, making it appealing for startups seeking financial security. Setup is straightforward, and you can manage your finances online or via a mobile app.
Zempler integrates seamlessly with QuickBooks and Xero for easier accounting, supports cash deposits at any UK Post Office, and lets you issue up to 20 additional cards for team spending.
The mobile app includes 24/7 access, instant payment notifications, digital receipt uploads, and credit-building tools.
With over 15 years in operation and a customer base exceeding 1.6 million, Zempler Bank provides both stability and modern banking features.
Read our detailed Zempler Bank review
Eligibility Criteria
- At least 18 years old with a UK residential address
- UK sole traders (not registered at Companies House), limited company directors, charities, or partnerships
- Limited companies must have no more than four Persons of Significant Control (PSCs)
- Excludes high-risk organisations and businesses operating outside the UK
HSBC Kinetic Current Account
Monthly Fee: £6.50 (Free for 12 months)
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your HSBC Kinetic account via their mobile app, phone, or in-branch
Special Offer: Get a £100 Amazon.co.uk gift card when you open an HSBC Kinetic Current Account and make 10 qualifying transactions.
Account Summary
HSBC’s Kinetic account is a move toward app-first banking, offering free banking for the first 12 months, FSCS protection, and integrations with QuickBooks and Xero.
A soft credit check is required, which won’t affect your credit score. Overdrafts, credit cards, and savings accounts are available.
However, online reviews average 1.4 stars from 6,500 ratings, and the Competition and Markets Authority ranked HSBC among the bottom three for business account customer service in August 2022.
Read our in-depth HSBC Kinetic Current Account Review
Eligibility Criteria
- You must be at least 18 years old and UK-based
- Accepts sole traders or single-director limited companies with annual income under £6.5m
- Excludes businesses operating outside the UK, Isle of Man, or Channel Islands
Mettle Business Bank Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Mettle account via the web or mobile app
Account Summary
Mettle emphasises zero fees and straightforward setup, making it appealing for startups seeking a hassle-free option.
You can quickly open an account and link it to popular accounting software, without the need for a credit check.
However, no in-branch services or cheque deposits are available, and you won’t get FSCS protection, overdrafts, credit cards, or international payments.
There’s a maximum balance limit of £100,000 for limited companies and £50,000 for sole traders. Despite these limitations, Mettle maintains a strong 4.6-star rating on Trustpilot across about 1,800 reviews.
Read our in-depth Mettle Review
Eligibility Criteria
- Must be a UK resident, aged 18 or older
- Must be a sole trader or a limited company with up to two owners
- Main account balance cannot exceed £1 million
- Requires a UK phone number and a compatible iOS/Android device
- Must pay tax and be tax resident in the UK
- Excludes PLCs, charities, high-risk businesses, and any entity operating outside the UK
NatWest Business Bank Account
Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Natwest account via the web, mobile app or telephone
Account Summary
NatWest offers broader functionality than many app-only banks, including access to 960 branches, a dedicated account manager, and traditional banking options like overdrafts, credit cards, and loans.
Savings accounts are also available, catering to businesses wanting in-branch services and more personal support. However, despite its longstanding reputation, NatWest receives low user ratings, with an average of 1.4 stars on Trustpilot.
Read our in-depth Natwest business Account Review
Eligibility Criteria
- Must be aged 18+ and at least one applicant must be a UK resident
- Open to sole traders and directors of UK-registered companies
- Requires trading history of over one year if turnover is below £1 million
- Company must be registered for UK tax, with no bankruptcy or CCJs
- Excludes high-risk businesses and those operating outside the UK
What is a Startup Bank Account?
A startup bank account is a business account tailored for newly formed or small-scale ventures. It typically offers low or no monthly fees, app-first banking, and tools for easier bookkeeping.
Unlike traditional accounts, startup-focused options often provide simpler eligibility requirements and features like invoicing support or quick setup—all designed to help new businesses manage finances smoothly.
What Startups Should Look For
Below is a quick comparison table, followed by five essential factors to consider when choosing a bank account for your new business:
| Monthly Fee | Transfers | Overdraft | Access | Trustpilot | Website | |
|---|---|---|---|---|---|---|
| Tide | Free | 20p | X | App/Online | 4.2 | Get Deal |
| Starling | Free | Free | ✓ | App/Online | 4.3 | Get Deal |
| ANNA | Free | Free | X | App Only | 4.6 | Get Deal |
| Zempler Bank Business | Free | Free | ✓ | App/Online | 3.5 | Get Deal |
| HSBC Kinetic | £6.50 | Free | ✓ | App/Online | 1.9 | Get Deal |
| Mettle | Free | Free | X | App/Online | 4.6 | Get Deal |
| Natwest | Free | 35p | ✓ | App/Online | 1.4 | Get Deal |
1. Fees – Check for monthly, transaction, or foreign currency charges—choose what best aligns with your expected usage.
2. Introductory Offers – Many banks provide free banking for a limited period, helpful for early-stage startups.
3. Customer Service – Look into opening hours, support channels (phone, app, online chat), and user ratings.
4. Particular Requirements – Need an overdraft or multi-currency? Ensure your chosen provider supports these extras.
5. Protection – FSCS-authorised banks safeguard up to £85,000. E-money licences lack this FSCS cover, so decide based on your risk tolerance.
9 Useful Startup Business Bank Account Features
- Well-designed mobile APP
- Good integration with your accounting software
- Invoice tracking
- Phone notifications
- 24/7 Customer Service
- Expenses management
- No monthly fee or free banking period
- Overdraft
- Reporting features
Startup Account Comparison (Free Periods & Fees)
The table below outlines selected providers’ free banking periods, any special conditions, and monthly fees. Use it as a starting point to match an account’s cost structure with your anticipated usage, but always confirm current rates on each bank’s website.
| Bank | Free | Restrictions | Monthly Fee |
|---|---|---|---|
| Tide | Forever | Per transaction Fees | Tide has a free account. Tide Plus comes with extra benefits at £9.99 + VAT |
| Starling Bank | Forever | Almost everything is free if you have less than 10 employees and <£1.7m turnover. | No monthly fee. Some charges for paying in cash. |
| Countingup | Forever | Free account available dependent on income being £500 per month. | £4.95-£9.95 |
| Mettle | Forever | Free | N/A |
| Anna | Income Dependent | Free if monthly income is <£500. | £4.90-£19.90 |
| The Co-operative Bank | 30 months | No monthly charges if your balance stays above £1000. | £7.00 |
| TSB | 25 months | Free for startups and switchers | £5-£40 |
| Royal Bank of Scotland | 24 months | Free for startups and turnover <£1 million. | No monthly fee. Transaction charges apply. |
| NatWest | 18 months | Free for startups and turnover <£1 million. | No monthly fee. Transaction charges apply. |
| Barclays | 12 months | Free for startups (less than 12 months trading) | Up to £8.50 |
| HSBC | 12 months | 12 months free for new businesses and switchers | From £6.50 |
| Lloyds | 12 months | 12 months free for startups | £7.00 |
| Bank of Scotland | 12 months | Free for startups | £7.00 |
How Much Do Startup Bank Accounts Cost?
Most providers offer free banking for 12 to 30 months, which is handy when you’re just starting out. After this period, you’ll typically pay a monthly fee plus transactional charges for withdrawals, deposits, and transfers. Certain challenger banks like Tide and Starling advertise free accounts indefinitely, though you may still encounter per-transaction fees.
Eligibility Criteria for Startup Business Accounts
- Must usually be 18+ and a UK resident or have a UK-registered business
- Covers sole traders, partnerships, and limited companies
- Commonly requires ID, address verification, and basic proof of business (e.g., invoices or incorporation documents)
How to Open a Startup Business Bank Account
- Choose: Identify a suitable provider based on fees, features, and eligibility
- Apply: Complete an online form or mobile app signup; some banks do soft credit checks
- Verify: Provide ID and business documentation as needed
- Activate: Once approved, you’ll receive your account details and a physical or virtual card
High street banks like NatWest may have additional requirements for specialist “startup” accounts (e.g., under one year in business and turnover below £1m).
How to Choose the Right Startup Account?
Pick an option that balances affordability, user-friendly tools, and growth potential. Challenger banks (e.g., Tide, Starling) excel at quick setup, low fees, and app-based management. Traditional banks may offer more in-branch help but can be slower to open and have higher costs. Evaluate:
- Digital Integration
- Fees & Charges
- Flexibility & Scalability
- Customer Support
- Security
- Business Loans & Overdrafts
How Long Does it Take to Open a New Business Bank Account?
Fully digital accounts can be up and running in minutes, sometimes providing an instant sort code and account number. Traditional banks often take longer—anywhere from a few days to a couple of weeks—due to more detailed checks. Make sure you have all required documents handy to avoid delays.
Startup Bank Account FAQs
What do Documents Need to Open a Startup Business Account?
To open a startup business bank account you’l need correct documentation, plus more specific requirements for particular institutions that require credit checks. Typically, that includes:
- Proof of Identification, such as a driving license or passport
- Proof of current address, such as a recent Utlity bill or bank statement
- Companies House Registration Document – if creating a limited company account
- Project Yearly Turnover
- Director’s Details – Including names, dates of birth, addresses and National Insurance numbers
How Long will it Take to Open my New Business Account?
Typically, it takes 1 to 4 weeks to open a new business bank account. While many banks promise miracles such as 3 minutes’, it take time for them to do the identity and credit checks and send your bank cards out in the post.
No Credit Check accounts can be faster for this reason and some will even allow you to start paying with a virtual card before the real one arrives.
How Much do New Business Bank Accounts Cost?
Most business bank account’s don’t charge an application fee, or an ongoing monthly fee, at least until the initial introductory period is over. After this point, you’ll typically pay for certain services and transactions, such as ATM withdrawals, cheque deposits and foreign currency, but each account will vary widely in this regard. Some offer a range of monthly fee options with the higher rates covering more free transactions, up to a certain level.
Is my money safe in a startup business account?
In the UK, the financial sector is tightly regulated, ensuring that all business accounts, including e-money accounts, are secure. Even accounts not covered by the FSCS have stringent safeguards in place. Of course, FSCS-protected accounts offer the highest level of protection.
Can I switch my business account to another bank later?
Yes, you can switch your business account to another bank if you find an account that better suits your needs. Some banks offer a switching service to make the process easier.
