Setting up a business bank account is one of the first things you should do as a startup, this will allow you to both receive and send money, make purchases, accept payments, and much more. If you've just started a business then you may want to know which is the best startup  bank account and we'll help you see the options available.

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We'll walk you through which business accounts are suitable for startups from app-only business accounts to high street banks. We'll take a look at the pros and cons of each and which are most suited for various different types of business.

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Best app-only business bank account for startups

Quickest business accounts to open

Best business bank account for freelancers

Best high street bank accounts for startups

Best free startup business accounts

Best business account for foreign currencies

Business bank accounts differ from personal ones, they are designed specifically for companies and so the features as well as the fees reflect this. From larger payment limits, to receipt scanning, expense cards, and the ability to link into digital accounting software, these accounts can make your business's finances easier and more efficient.

Why startups need a business bank

If you're a limited company and registered with companies house then you'll legally need to have a business bank account, this is in order to ensure that your business finances and your personal ones are kept separate. If you're a sole trader then we answer the question do i need a business account as a sole trader in depth or in simple terms, you don't need one but many people option to have one.

If you're running your startup as a sole trader then you legally don't need to have a business bank account but it is recommended in order to keep your personal and business finances separate.

Having a business account in your company name will also look more professional to other companies than being paid to a personal name.

Key things to look for in a business bank account

When it comes to selecting a startup business account make sure you understand all the features and costs and make sure they match your startup's needs and finances.

Fees - This is often one of the main factors that affect which business account to open, most business bank accounts will charge a monthly fee as well as charge a fee for certain types of service such as international payments, ATM withdrawals, deposits and so on. It's therefore important to compare the fees to work out the likely costs to your startup business.

Features - You'll find that most business bank accounts have all of the features that you will require, but if you're after a specific more niche feature it's worth checking the company you go with offer this.

Money Protection - If you plan to keep larger sums of money in your account it is worth checking that your money will be protected, most accounts come under the FCSC which protects your money up to £85,000 in the UK (Not all companies providing business accounts provide this so please check)

Check offers - You'll find companies will have introductory offers such as free startup banking for a certain number of months, these can be good to use but we always recommend weighing up the cost after this introductory period and making sure you're happy with it.

Customer support - Many business account options are now digital and have no branches, so speaking to someone face to face may not be an option, if you prefer this then a high street business bank may be the best option. Most digital and app-only business accounts have 24/7 customer support within the app itself.

In addition to this many companies offering business bank account services offer features such as mobile notifications, the ability to label transactions, invoice tracking, management of team expenses, Xero integration, tax tools, and much more.

Best app-only business bank account for startups

The best business account for your company will only be determined by you, only you know what type of transactions and how often you make them, as well as the type of features you need.

Digital business accounts are often preferred by startups due to the speed of opening as well as the features available to customers.

Revolut Business - One of the most popular accounts

Over 10,000 businesses sign up to Revolut every month, the reason for this is they offer a very complete service, allow easy global payments at great rates, multi-currency accounts and everything else you'd expect from a business account. You can open an account for free and if you need to upgrade to a paid plan their prices are very competitive.

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Revolut Business pros

• Free account option
• Ability to have multi-currency accounts
• Get a physical debit card as well as virtual cards
• Links to your accounting software
• Competitive pricing on paid plans
• One of the most popular choices for businesses in the UK and US

Revolut Business cons

• No options to deposit cash
• No overdraft option

If you're looking for a business account and are a startup, the Revolut Business free plan is an option to consider, if you need the additional features as you grow you can easily upgrade to a paid plan and get the benefits of that plan if and when you need it.

Tide business - Free business account plus £50 cashback

Tide has a variety of plans to choose from including a free business account that has no monthly fee. The plans include Tide Basic, Tide Plus, Tide Pro and Tide cashback, which is right for your startup and will depend on what your business does.

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Tide Business pros

• Free business account option with no monthly fee
• Introductory offer of £50 cashback when you deposit £50 within 3 months
• Fee-free spending in the UK and abroad
• Great app and the application takes minutes
• FSCS protected bank account provided by ClearBank
• Join over 450,000 other UK businesses

Tide Business cons

• No overdraft facility
• £1 ATM withdrawals

If you're interested in this account you may want to read out Tide review which goes into more detail about the company and you'll find our Tide referral code that lets you take advantage of the welcome offer.

ANNA - Open an account in as little as 3 minutes

ANNA is designed for small businesses, startups and freelancers, it offers three different plans to choose from including a Pay As You Go option which means no monthly fees.

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Anna pros

• Very quick to open
• Free account option with no monthly fee
• 24/7 support
• Over 100,000 business, freelancers and startups use it

Anna cons

• Not FSCS protected
• No option for joint accounts
• No overdraft

Popular amongst freelancers and self employed, ANNA are increasingly becoming more and more popular across the UK as an optopn for opening a business account.

Cashplus - Account sign up in around 4 minutes

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As with other digital-only business bank accounts you'll be able to open a Cashplus account in a fast time, they state around 4 minutes on their website but this will depend on your account being reviewed and accepted.

Cashplus accounts are FSCS protected and once accepted you'll get instant access to your account number and sort code.

Plus you can get the £9.95 card price refunded to you if you sign up using this Cashplus link or if check out our Cashplus business review for more details.

Starling - Good for joint business accounts

You'll find that Starling bank have become a popular choice for people looking for a business bank account in the UK, they have a range of money management tools as well as the integrations with other tools that you would expect such as accounting software. They have won awards over the years and always rank well in terms of customer service.

Some of the pros of Starling include that they are a fully regulated UK bank, they have 24/7 UK customer support and that they are FSCS regulated.

You can find out more on Starling and apply online for the account.

Mettle - Apply in minutes

Mettle is the new digital offering from Natwest, they are designed to be fast and easy to apply and you can do this application for Mettle business bank account in minutes and is suitable for both limited companies (with up to two owners though only one owner can access the account) and sole traders.

Your funds will be protected by FSCS up to £85,000 and you can sync your account with accounting software such as Xero, FreeAgent and Quickbooks.

Quickest business accounts to open

If we look at which business accounts are the quickest to open you'll see that it is the digital/app-only options that are the fastest, of course, don't solely base opening a business account on speed but it can be useful if you need a business bank account in a hurry.

The fastest business accounts that you can open can mean you can have a startup business account to use with a sort code and account number in a matter of hours.

Revolut business - Average time of around 10 minutes

The time it takes to open a Revolut business account is typically around 10 minutes although they will review your application so depending on when you do it this time may vary. As with all accounts, the complexity of your startup will affect the speed of your application.

ANNA - Open an account in as little as 3 minutes

As one of the quickest options, ANNA states on their website that you can open a business account in as little as 3 minutes! Once you've got an account you'll get your business Mastercard sent to you within 5 working days.

The App based business account has three plans to suit startups from a Pay as you go option with zero monthly fees to two plans which do have a monthly fee (reduced if paid annually). You can check out our full Anna business account review to find out more details.

Tide business - Open an account in under 10 minutes

Opening an account with Tide is a straightforward process and according to their website over 50% open an account within 10 minutes. The length generally depends on the complexity of your business, the simpler it is the faster the process tends to be.

Tide has various plans to choose from including a free monthly plan as well as 3 additional paid plans which give you various benefits over the free plan.

Best business bank account for freelancers and sole traders

If you're starting a business and you will be more of a freelancer or sole trader then you'll be pleased to know that most business accounts that companies offer are open to you too, there will be exceptions that only allow limited companies but below is a selection that openly welcomes both sole traders and freelancers.

Tide - Specifically mentions freelancers and sole traders

Tide business accounts are suitable for businesses of all sizes and their entry-level account plan which includes no monthly fees is a favoured option by both freelancers and sole traders.

The features you'll get are the same as those accounts for startups and you can also take advantage of the £50 cashback when you sign up offer.

Revolut - Three plans suitable for freelancers

Revolut business has three plans that are designed for freelancers/sole traders, these range from a free monthly plan to £7/month all the way to £25/month for the top plan, which plan will suit you depends on your needs and it's worth checking the Revolut site to compare.

Best high street bank accounts for startups

If you prefer to opt for business bank accounts with the ability to visit a branch then the high street banks offer a range of business bank accounts suitable for startups.

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These benefit from being able to deposit cash and cheques directly at a branch as well as having face-to-face customer service and the option to have a business bank manager too in some cases. It is worth noting that many high street banks are closing (some 192 are planned to shut in 2023) so if you're basing a decision on making use of a branch nearby it is worthwhile checking it's not planned to close.

Many will opt for a high street bank account because of the established and historical nature of these bigger companies as well as debt facilities that are available.

Natwest business - Great for startups

Being one of the biggest names on the UK high street they offer a startup bank account for those companies who are less than a year old and have a turnover of less than £1 million.

You'll benefit from a variety of tools and services as well as no transactional fees nor monthly fees for the first 18 months, which can be a great help for newer companies.

Natwest startup business account pros

• 100's of branches across the UK
• No monthly fees or transaction charges for the first 18 months
• Overdraft options
• Access to tools and advice

Natwest startup business account cons

• Applications can take longer than digital banks
• Fees start after the initial 18 months free

HSBC business - 12 months free then £6.50/m

If you're looking for a business bank account from one of the largest banks in the world then the HSBC Kinetic current account is a good one to look at. It's designed for startups and smaller businesses and has the benefit of 12 months free in terms of monthly charge and then following this the account is £6.50 per month.

Benefits include Visa business debit cards which you can also request additional cards for employees to use as expense cards as well as the option to apply for a Visa commercial card.

You'll be able to access your new HSBC account via a mobile banking app, desktop banking as well as in branch banking.

HSBC business pros

• 12 months of noo monthly maintenance fees
• Mobile app as well as option to visit branches
• Overdraft options available
• Sync with Sage

HSBC business cons

• Application process can be slower than other business accounts

Lloyds business - Current account for start-ups

If you're wanting a physical bank that you can have your business banking with then Lloyds current accounts for start-ups and small businesses could be a good avenue to explore. They helped nearly 100,000 businesses and sole traders in 2022 to open accounts and grow their businesses.

You'll also be able to benefit from your first year fees relating to the day-to-day business banking waived so you can get a head start and save some money. This means you won't any monthly fees, electronic payment fees or cash deposit and withdrawal fees during this first 12 months. Support is also UK based so you'll be able to talk to someone within the country to help with any questions you have.

Lloyds bank current account pros

• First year free
• Support from a UK based business team

Lloyds bank current account cons

• Fees can be higher on certain transactions
• Fees for cash payments into and out of account

Best free startup business accounts

If free business banking is something you want then there are a number of options available to you, typically this free banking is seen as a business account without a monthly fee, you will still be charged for certain transactions and services.

These types of free accounts are often preferred by startups and small businesses that do fewer transactions as they can work out a more cost-efficient way of business banking.

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Best business account for foreign currencies

If your startup is planning to deal in various different foreign currencies then you may want to consider selecting a business account that specialises in these types of transactions. Not only will you be able to hold various currencies within the account but the exchange rates and fees associated with transactions should be more favourable.

Revolut* - Great option for companies that do business globally

Revolut business accounts are designed for businesses (including startups) that do business on a global scale, allowing you to save money when making payments, transfers and foreign exchange.

• You can exchange money in over 28 currencies
• Opt to set your fixed future FX rates online
• Accept payments worldwide
• Integrate with apps such as Xero, Slack etc.

Wise* - Easy & quick International business accounts

If your startup plans to or currently makes lots of international payments then you should check out Wise as there account is set up for companies like this. You can make payments in 70+ different countries with no exchange rate markups or hidden fees.

The transparent nature of Wise.com makes it a compelling option for businesses who do more international trade, so if your startup is planning on trading internationally then check out how the fees compare to other options.

What documents do I need to open a startup business account

Each company that you decide to will have slightly different requirements but typically you'll find that you'll need the following details:

• Business details such as company name, registered business address and company number
• Personal ID such as driving license or passport
• Some may require proof of personal address

How long does it take to open an account?

The time to open a business bank account varies massively, the newer digital only companies offering business accounts are often faster with the ability to open a new account in a matter of hours and often within 10-20 minutes.

More traditional high street banks often take longer and this can range from a few days to a few weeks.

Are there business banks that offer credit cards?

There are a number of companies that offer credit cards for businesses, one of the most popular in the UK are Capital On Tap, they specialise in this and with our Capital On Tap promo code you can get £75 when you open an account which can give your business a little starting money.

Can I open one if I have poor credit?

If you've got a poor credit rating then you can often still open a business account but you'll be restricted in terms of your options. If you want to see your options then consider reading out guide to bad credit business account options which guide you through which accounts are suitable for those with bad or poor credit in the UK.

Is it easy to switch business bank accounts?

If you're thinking of switching business bank accounts then it's relatively straightforward, you'll simply need to open a new business account, then switch any direct debits or standing orders across as well as make sure any subscriptions on your business card are switching to the new business card.

Once everything is switched across you can close your old account or simply keep it open.