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 reviewed 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 the right decision 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.
Tide Free Business Account
Revolut Business Basic Account
Airwallex Business Explore Account
- The Top 15 Business Bank Account Providers UK
- Tide Free Business Account
- Starling Bank Business Current Account
- Revolut Business Basic Account
- ANNA Money Pay As You Go Account
- Monzo Business Lite Account
- Mettle Business Bank Account
- Allica Bank Business Rewards Account
- Airwallex Business Explore Account
- Co-operative Bank Business Directplus Account
- Barclays Business Account for Startups
- Virgin Money M Account for Business
- Lloyds Bank Business Account
- NatWest Business Bank Account
- What are business bank accounts?
- How do they work?
- What’s the difference between personal and business bank accounts?
- Do I need a business bank account?
- Are there benefits to using a business bank account?
- How to choose the right account
- The 15 best business bank accounts
- Pros and cons
- Business account types
- Eligibility
- Opening an account
- How do I switch my business bank account?
- Alternatives
- Best of the bunch
The Top 15 Business Bank Account Providers UK
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.
Overview
Tide is a UK-based financial technology company focused on small and medium-sized enterprises (SMEs) – it claims more than a million sole traders, freelancers and company owners worldwide use its business banking. Tide also offers 1% cashback on all card spending if you sign up through us now.
Tide’s free business current account offers built-in accounting solutions as well as a dedicated savings account paying up to 4.07% AER so you can earn interest on your business’s extra cash.
Tide promises quick and easy same-day account opening and customer support available through the app whenever you need it.
This bank account is one of the best options out there, and is very appealing to tech-first startups and freelancers looking for a simple and intuitive way to bank with minimal fees.
» MORE Read our in-depth Tide business account review
Features
Tide offers free company registration for new businesses.
You can create and send invoices directly from the app.
Expense management tools help categorise and track spending.
Integration with platforms like Xero and QuickBooks simplifies bookkeeping by syncing payments every 24 hours.
Manage up to five business accounts under one login.
Expense cards can be issued to team members with spending limits, costing £5 per card per month.
Cash deposits are supported via Post Office (£2.50 up to £500, 0.5% above) and PayPoint (3% fee per deposit).
Accounts can be set up in minutes.
The app provides business insights and analytics for better financial planning.
Members gain access to perks like a £50 refer-a-friend bonus when referrals spend £500 within three months.
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
FSCS Protection: Yes
Accessibility: Access your Starling Bank account via the web or mobile app
Overview
Digital challenger bank Starling has captured market share with its easy-to-use app-based banking, now boasting more than 500,000 UK business customers.
This bank account can help you get more organised when it comes to your business finances with instant payment notifications and reminders, spending analytics, and separate spaces where you can save toward costs like your tax bill.
Starling Bank has won numerous awards for its account which should appeal to businesses wanting streamlined banking with a well-designed app.
This free bank account could be suitable for you if you’re an entrepreneur or running an SME, especially if you’re looking for finance – Starling offers overdrafts and loans to eligible business.
» MORE Read our in-depth Starling Bank business current account review
Features
Free Faster Payments, Direct Debits, and Standing Orders are included.
Cheques up to £1,000 can be deposited using the mobile app, with a daily limit of £5,000 for businesses.
A marketplace provides access to third-party business services like Zettle, SumUp, and Slack.
Spending insights and analytics aid in budgeting and financial planning.
Real-time notifications keep you updated on account activity instantly.
International spending with no added fees is available using Mastercard’s exchange rate.
The Business Toolkit, available for £7 per month, offers invoicing, VAT recording, and more.
Accounting software like Xero and QuickBooks integrates seamlessly for bookkeeping.
Customer support is available 24/7 via phone, app chat, or email.
Debit cards are made from recycled plastic, supporting Starling’s sustainability efforts.
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 (5 free per month)
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Revolut Business 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. Revolut has now been granted its banking license in the UK (as of 25th July 2024), with restrictions.
You can earn up to 3.51% AER on your business’s cash reserves with Revolut’s business savings accounts.
Revolut’s free Basic business bank account is app-based and is an appealing choice to tech-savvy business owners but perhaps not those who prefer a more traditional approach to banking with the option to visit a branch.
» MORE Read our in-depth Revolut business account review
Features
You can hold and exchange over 25 currencies in the account.
International payments are available with no-fee inbound transfers in GBP, EUR, USD, and CHF.
Physical cards can be issued (up to three per team member), and up to 2,000 virtual cards are available.
Expense reports are automated and integrate with tools like Xero, QuickBooks, and Sage.
Online payments can be accepted via links, merchant accounts, and QR codes.
Partner offers and discounts include perks from Shopify, HubSpot, and NordVPN.
APIs allow for automating payments and integration with tools like Slack and Zapier.
Bulk payments let you process up to 1,000 payees at once.
Recurring payments and subscriptions can be tracked and managed effortlessly.
Advanced security includes two-factor authentication, real-time fraud detection, and bulk controls for team access.
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
Accessibility: Access your ANNA Money account via the web or mobile app
Overview
ANNA Money provides a straightforward, low-fee banking solution for small businesses, startups, freelancers, and sole traders. As the name suggests, there are different charges for individual transactions and you only pay for the services you use.
Unfortunately, there are no credit cards or business loans on offer, so this account may not appeal if you’re in the market for new borrowing.
However, if you are a tech-savvy entrepreneur or a small business that prefers a modern digital banking experience, this account is ideal for you.
» MORE Read our in-depth ANNA Money business account review
Features
Earn 1% cashback on select business expenses like travel and food.
Automated tax reminders keep you informed about deadlines for VAT, Corporation Tax, and Self-Assessment.
A personal payment link can be created for clients or shared on social media platforms.
The app automatically categorises expenses to simplify bookkeeping.
Customer support is available 24/7, responding within 10 minutes.
Virtual debit cards are instantly accessible upon account opening.
Integration with Shopify and WooCommerce enhances e-commerce functionality.
Cash deposits are supported at numerous PayPoint locations, costing 1% per transaction.
Customisable pots allow you to set aside funds for specific purposes like taxes or salaries.
Direct debits can be established at no extra cost.
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 (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.
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.
HSBC’s Kinetic Account is designed for small and growing businesses, offering various borrowing options for those companies needing capital to scale up.
If you prefer the security of a well-established high-street bank like HSBC over a digital-only newcomer or e-money institution, the Kinetic Current Account might be the best choice for you.
» MORE Read our full HSBC Business Review
Features
Apply for overdrafts up to £30,000 right from the app, with approved funds available the same day.
Make payments of up to £25,000 daily through the mobile app, ideal for larger transactions.
Deposit cheques easily by scanning them with your phone at only 50p per cheque.
Use cash flow tools in the app to see monthly forecasts and categorised spending insights.
Enjoy discounts on services like Global Payments, Aviva insurance, and Ember’s accounting software.
Send money internationally in over 60 currencies, with fees starting at £17.
Deposit cash and cheques at any HSBC branch or over 11,500 Post Offices.
Startups and switchers get a full year of free banking.
This account doesn’t support multi-user access or relationship managers, keeping it simple for solo users.
Customer support available Mon to Fri 8am to 8pm, Sat 8am to 2pm.
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.
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
Overview
Zempler Bank (formerly Cashplus Bank) offers two business accounts – Business Go is the free version, promising “simple and secure banking that gets the job done”.
While there’s no monthly fee on the Zempler Business Go Account, there are a few higher-than-average fees on individual transactions, such as a £2 ATM withdrawal fee and a cost of £9.95 for your first debit card.
This account is a great choice for startups and small businesses that may need support for their finances without some of the hurdles associated with other banking options.
» MORE Read our full Zempler business review
Features
A Business Creditbuilder feature helps improve credit scores through regular reporting.
Earn 0.5% cashback on every purchase with the business card, capped at £1,000 per month.
Real-time alerts notify you of account transactions instantly.
Accounting platforms like Xero, Sage, and QuickBooks integrate seamlessly for financial management.
The mobile app provides full control over account operations, including payments and invoices.
Tailored lending solutions, such as small business loans, support growth.
In-house customer service offers personalised assistance via phone and app messaging.
Previously known as Cashplus, it now operates with a full banking licence.
Ethical banking practices include a commitment to transparency and environmental responsibility.
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
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
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, and now claims half a million UK business customers.
This account could be ideal for cost-conscious businesses seeking a digital-first banking solution.
This account is particularly suited for those prioritising convenience, including features like instant notifications, budgeting tools, and fee-free spending abroad.
» MORE Read our full Monzo business review
Account Feature
Mobile cheque deposits allow you to deposit cheques up to £500 directly through the app, clearing in four working days.
International transfers are supported via Wise in 40+ currencies, with fees varying based on destination and amount.
Cash deposits cost £1 per transaction, with a maximum of £1,000 every six months.
Fee-free non-EEA ATM withdrawals are allowed up to £200 per 30-day period.
The Lite account supports only one user, with multi-user access requiring the Pro plan.
Pots help separate money for specific business purposes, such as savings or expenses.
Tax pots automate setting aside funds from incoming payments for tax obligations.
Instant notifications for all account activity provide transparency and fraud protection.
The app features spending categorisation to simplify budgeting and financial analysis.
Monzo offers a simple application process, allowing setup in minutes.
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
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. Although it was launched in 2019 as part of NatWest, it operates independently and does not support access from NatWest’s high-street branches.
Mettle by NatWest ensures secure and fully regulated banking with high customer satisfaction, though it has limitations with international payments and no credit facilities.
This account is a practical choice for small businesses and sole traders seeking a fee-free, digital-first banking solution which includes financial management tools.
» MORE Read our full Mettle business bank account review
Features
Earn 1.46% AER on balances over £10 in savings pots, with interest paid monthly.
Open up to 30 pots to save for taxes, expenses, or other goals, capped at £100,000 in total.
FreeAgent software worth £150 a year if you make at least one transaction per month.
Faster Payments ensure your transfers are typically completed in seconds.
Deposit cash at Post Office branches, with a daily limit of £500 and an annual cap of £23,000.
Use customisable invoice templates to send professional invoices directly from the app.
Set up scheduled payments or standing orders easily, but only for weekdays.
Check payee names before completing transfers for added security against fraud.
Add your card to Google Pay or Apple Pay for seamless contactless transactions.
Manage your card from the app, including locking or unlocking it instantly.
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
Accessibility: Access your Allica Bank account via the web or 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.
Note that you can’t currently add your Allica Bank card to Apple Wallet or Google Pay.
» MORE Read our full Allica Bank business bank account review
Features
Earn 1% cashback on all card spending, increasing to 1.5% once monthly spending exceeds £10,000.
Instant access savings pots offer 4.08% AER interest, with daily calculations and monthly payouts.
Bulk payments can be made without additional charges, supporting efficient payroll and supplier payments.
A dedicated relationship manager provides tailored business advice and account support.
Two-person authorisation ensures security for payments and sensitive account actions.
No extra fees for using your card overseas.
International transfers are facilitated by Wise, using transparent fees and competitive exchange rates.
Virtual debit cards with unique details can be issued alongside the physical Visa debit card.
Sustainability efforts include promoting recycling in offices and requiring a minimum EPC rating for secured loans.
Cash and cheque deposits are not supported.
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 Explore Account
Monthly Fee: £19 (£0/month if you deposit at least £10k per month or hold a minimum balance of £10k with Explore Plan)
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your Airwallex account via the web or mobile app
Overview
Airwallex is a global financial technology platform designed primarily for businesses that operate across borders, especially those in the e-commerce space.
The Airwallex Explore Business Account allows the account holder to receive payments in multiple currencies, avoid hefty currency conversion fees, and streamline international transactions.
It is particularly suitable for e-commerce businesses that engage in global trade and is a strong choice for any businesses seeking a comprehensive financial management solution.
» MORE Read our full Airwallex business bank account review
Features
No monthly-fee if you deposit or hold a balance of at least £10k per month.
Multi-currency accounts in 20+ currencies include local banking details for receiving and holding funds.
All foreign card transactions are fee-free, with competitive exchange rates for global payments.
Payment links and shareable social media links simplify how you collect payments from customers.
Expense management features include receipt uploads and approval tools at no extra cost.
Bill Pay consolidates and simplifies domestic and international invoice management.
Multi-currency Visa cards are free to issue, with the first five cards free and £5/month for each additional card.
FX conversions cost just 0.5% above the interbank rate for major currencies.
Airwallex APIs allow you to automate workflows like account creation and payment management.
Payments can be accepted from 180+ countries using local methods like WeChat Pay and GrabPay.
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 (New Co-operative Bank customers can get 30 months free if they maintain a balance of £1,000)
Bank Transfers: £0
Card Purchases: 35p (Free for 30 months for new Co-operative customers)
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Co-operative Bank account via their mobile app, phone, or in-branch
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 could make it a good choice for businesses looking to align their financial practices with their ethical values.
You could also benefit from the Co-operative Bank’s partner offers on insurance, legal advice, IT and HR support.
» MORE Read our full Co-operative Business Current Accounts Review
Features
Offers free access to the “Go Get Paid” payment request tool to streamline invoicing and cash flow.
Provides free integration with accounting software such as Xero, Sage, and QuickBooks.
Free access to Zellar, a tool designed to help businesses manage and improve their sustainability goals.
Access to Co-op’s knowledge bank on sustainability issues.
Business support tools including start-up guides, articles on the Business Exchange, and free webinars.
Includes a bulk BACS payment feature through an optional Financial Director Online subscription.
£1,000 of free cash deposits per month.
Offers tailored AXA insurance products for businesses to address specific risks.
Access to a dedicated business concierge service for HR, IT, and legal advice.
Provides comprehensive in-branch support and free online banking tools for managing multiple businesses.
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 (New Barclays business current account customers get their first 12 months free)
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Barclays account via their mobile app, phone, or in-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.
If you choose to join the more than 900,000 businesses that bank with Barclays, you can enjoy a myriad of benefits specially tailored to startups.
Barclays promises “simple, straightforward and secure” business banking with borrowing and payment solutions designed around growing businesses.
» MORE Read our full Barclays Business Bank Account Review
Features
Enjoy free access to FreshBooks invoicing and accounting software worth more than £260 per year.
Tap into Barclays Eagle Labs for networking, mentorship, and business growth opportunities.
£1,000 of free cash deposits per month (80p per £100 thereafter)
Green asset financing is available from £5,000 to help fund sustainable business projects.
Set limits and controls on debit card spending to manage your team’s expenses securely.
Get discounts on Amazon Business, HubSpot, and Meta Ads to support your business.
Use the 24/7 mobile banking app for secure, round-the-clock account management and support.
Work with Net Zero specialists to achieve carbon neutrality for your business.
Easily make Faster Payments, CHAPS, or international transfers with competitive rates.
Access solutions for credit cards, insurance, and pensions through Barclays’ Business Marketplace.
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: £6.50 (Free for 25 months for new businesses and new Virgin Money customers when you open an account or use the Current Account Switch Service)
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Virgin Money account via the web, their mobile app or telephone
Overview
The Virgin Money M Account is an ideal choice for small businesses with a turnover of less than £1m, particularly those looking to maximise cashback rewards and perks.
The Virgin Money M Account is designed for startups, sole traders, limited companies and partnerships. It stands out for its ability to reward everyday business spending.
The account is 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.
» MORE Read our full Virgin Money Business Bank Account Review
Features
Track spending automatically with the M-Track dashboard, offering real-time insights.
Spend up to £10,000 daily internationally with no fees on card transactions.
Earn 0.25% cashback on eligible debit card purchases to reward your spending.
Get three months of QuickBooks or Xero for free to manage your bookkeeping.
Access to exclusive Mastercard discounts at selected merchants.
Deposit cheques up to £10,000 daily through the mobile app for convenience.
Deposit up to £250,000 annually in cash at Post Offices, with a £10,000 daily limit.
Access expert mentoring and guidance through Virgin Startup programmes.
Handle online payments easily with BACS, CHAPS, and Faster Payments.
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: £8.50 (New customers can get a free account for 12 months)
Bank Transfers: 20p (100 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Lloyds Bank account via the web, their mobile app, telephone banking or in-person at a 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.
This account is a good choice 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. That said, there are a lot of individual transaction fees, some of which are higher than competitor banks.
» MORE Read our full Lloyds Bank Business Current Accounts’ Review
Features
Get free accounting support with the Business Finance Assistant to track transactions effortlessly.
Deposit up to £10,000 in cheques daily using Immediate Deposit Self-Service Machines.
Make payments of up to £250,000 daily through the app or online banking.
Receive personalised guidance from Lloyds’ dedicated relationship management team.
Enjoy enhanced security with fingerprint and Face ID integration on the mobile app.
Withdraw up to £700 daily with your Visa debit card, which also supports contactless payments up to £100.
Deposit cash quickly with machines that handle up to 5 cheques or 50 notes in one go.
Benefit from competitive rates for international transfers using Lloyds’ Foreign Exchange Rate.
Monitor and categorise transactions in real time to keep your cash flow in check.
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
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your NatWest Bank account via the web, their mobile app or telephone.
Overview
The NatWest Business Bank Account is aimed at 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 as well as 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 designed for businesses prioritising security and dependable service.
» MORE Read our full Natwest Business Bank Account Review
Features
FreeAgent accounting software is included for as long as you keep the account active.
Use the Business Cash Card to allow staff to manage deposits and withdrawals securely.
Access the NatWest Accelerator programme for expert mentoring and networking opportunities.
Green loans and carbon reporting tools help make your business more sustainable.
Withdraw up to £1,500 daily from UK ATMs with your business debit card.
MentorDigital offers HR, Health & Safety, and legal advice for your business at no cost.
Join local Business Growth Events to connect with industry peers and learn from experts.
Enjoy two years of free banking if you’re a startup or switch using the Current Account Switch Service.
Manage complex needs with Bankline, offering tailored support for larger businesses.
Access 24/7 banking through the mobile app, online banking, or over the phone.
15% annual rate fee on unarranged overdrafts.
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?
Our comparison table primarily features challenger banks and e-money institutions in our best business accounts shortlist.
This decision is supported by our rigorous research methodology, proprietary rating system, and an awareness of broader market trends.
Notably, digital banks in the UK have seen a remarkable 659% increase in users, growing from 2.9 million to 19.1 million between 2018 and 2023, indicating a significant shift towards digital-only banking.[2]
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:
- Fees and charges: Consider whether you want accounts with no monthly fees, and remember that some accounts have transaction fees.
- Interest rates: Some banks offer interest but may increase fees over time; others do not provide interest.
- Overdraft facilities: Check the availability and conditions of overdraft facilities, if required.
- Online banking and mobile app: Consider if banks with user-friendly digital banking platforms are preferred or if a more traditional banking setup (with branches) is required.
- Customer service: Evaluate customer support availability, particularly 24/7 service options, if required, and the communication channels offered.
- Integration with accounting software: Where required, confirm compatibility with popular accounting software like Xero and QuickBooks.
- Deposit protection: If desired or required, verify if the provider offers FSCS protection up to £85,000. Note that not all account providers offer this.
Why Trust Business Expert?
At Business Expert, we’re committed to empowering business owners with reliable information to make confident, well-informed decisions about their financial and operational needs. Our team combines decades of experience across finance, business management, and consulting to deliver insights you can count on.
Here’s what sets us apart:
Transparent and Trustworthy: Business Expert’s recommendations are provided with transparency and independence, enabling you to make the right choice for your business without hidden agendas.
Independent Insights: Our content is researched by knowledgeable professionals who prioritise objectivity, providing balanced, impartial information tailored to today’s business market.
Thoroughly Vetted Information: We conduct careful fact-checking and analysis, ensuring our reviews, guides, and comparisons are accurate, up-to-date, and relevant for businesses of all sizes.
Focused on Practical Solutions: From bank accounts to business tools, our resources are designed to simplify complex decisions, helping you find the best options for your unique business needs.
The 15 best business bank accounts at a glance
| Provider | Monthly Fee (maintenance fee) | UK Bank Transfers | UK Card Purchases | Our Rating | Check Eligibility |
|---|---|---|---|---|---|
| Tide (Free Business Account) | £0 | 20p | Free | 4.8/5★ | Visit site |
| Starling Bank | £0 | Free | Free | 4.8/5★ | Visit site |
| Revolut Business (Business Basic Account) | £0 | 20p (5 free pm) | Free | 4.7/5★ | Visit site |
| ANNA Money (Pay as You Go Account) | £0 | 20p | Free | 4.6/5★ | 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) | Free | 4.4/5★ | Visit site |
| Monzo (Business Lite Account) | £0 | Free | Free | 4.3/5★ | Visit site |
| Mettle by NatWest | £0 | Free | Free | 4.3/5★ | Visit site |
| Allica Bank (Business Rewards Account) | £0 | Free | Free | 4.3/5★ | Visit site |
| Airwallex (Business Explore Account) | £19 (£0 if you deposit or hold at least £10k per month) | Free | 1.3% + 20p | 4.2/5★ | 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) | Free | Free | 4.1/5★ | Visit Site |
| Virgin Money (M Account for Business) | £0 | Free | Free | 4/5★ | Visit Site |
| Lloyds Bank | £8.50 (Free for 12m) | 20p (100 free pm) | Free | 4/5★ | Visit Site |
| Natwest | £0 (dependant on business size and function) | 35p | 35p | 4/5★ | 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:
- Bank accounts for start-ups
- Bank accounts for sole traders
- Free business bank accounts
- International business bank accounts
- Business bank accounts with overdrafts
- Business bank accounts with no credit check
- Quickest business bank accounts to open
- Joint business bank accounts
- App-based business bank accounts
- Bank accounts for charities
- Bank accounts for e-commerce businesses
Who is eligible for a business bank account?
Eligibility for a business bank account varies by provider, but typically, applicants must meet certain basic criteria. Generally, the applicant must be at least 18 years old, have a UK residential address, and be the director of an active UK company registered at Companies House, or a sole trader/freelancer registered with HMRC.
Some banks may also have specific requirements related to the business’ operation within the UK, and they often exclude charities, trusts, and high-risk industries. Additionally, certain banks may require the business to not be a holding company, dissolved, or in liquidation. Each bank will have its own set of eligibility requirements which need to be met to open a business bank account.
Steps to open a UK business bank account
To open a UK business bank account, you will typically need to follow these steps:
- Choose a bank: Compare the features and fees to find the best fit for your business.
- Gather necessary documentation: You will need to provide information about your business, including your company registration number, proof of identity, and the nature of your business.
- Apply: Complete the application process, which may involve an in-person meeting or the submission of an online application.
- Wait for approval: Based on the average length of time it takes to get all of the accounts set up on this page, you can expect to wait anywhere between 15 minutes to 10 days before getting access to your new account.
- Fund your account: You will need to transfer funds into your new business bank account to start using it.
The documents required
Banks require specific documents to verify your business identity and legitimacy. Common documents include:
- Proof of identity: Driver’s license or passport.
- Proof of personal address: Recent utility bill or council tax statement.
- Proof of business address: Correspondence from HMRC or Companies House.
- Company registration: Companies House formation document.
- Estimated annual turnover: Projected income and expenses.
- Financial history: Some banks may ask for documents showing a clean credit history.
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
Our analysis of 40+ UK business bank accounts brought us to 15 key accounts that we believe to be great choices for business owners in the UK for specific reasons.
Business Expert’s Proprietary Rating System
Once we had our final 15, we put them all through our own 8-point rating system. Our bespoke rating system is comprised of the following.
These metrics are led primarily by what business owners consistently mention as being most important to them when looking for a business bank account:
- Monthly Fees: Lower fees score higher.
- Transaction Fees: Fewer and lower fees score higher.
- Accessibility: More access options (web, app, branch, phone) score higher.
- Features: More features score higher.
- Accounting and Invoicing Software Integrations: More integrations score higher.
- Customer Service: Better service (availability, quality) scores higher.
- Customer Reviews: Higher ratings score higher.
- Ease of Setup: Quicker and simpler setup scores higher.
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 of up to 4.07% 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
A research report that was carried-out on behalf of New Zealand exporters to get an understanding of the current state of the UK banking sector uncovered the following statistics about neobank users and trends:
Between 2018 – 2023 the amount of users of neobanks in the UK grew from 2.9mil – 19.1mil, respectively, and this trend is translating into the business sectors here in the UK.
Source: Statista, Digital Market Insights: NeobankingUK, 2023.
As of 2023, the distribution of market share for the banking sector in the UK between the minor and major players was in favour of the minor players by 57%, leaving 43% of the market for the major players.
Source: IbisWorld, Banks in the United Kingdom, 2023.
