The best business bank accounts in the UK

The rise of challenger banks in recent years have meant that there has never been a better range of choices when it comes to finding the best business bank account in the UK, we look at the best highstreet bank accounts as well as the best online business bank accounts available.

Whether you're a new startup looking for a business bank account or an established business looking to  switch or open a new account  we'll show you the options available below.

What is a business bank account?

A business bank account differs to a personal account, a business one is designed with the type of financial activity and features that companies do and need.

Businesses can use these bank accounts to deposit and withdraw money, receive invoice payments and customer payments, pay invoices, staff and any other costs. They can also help to build your companies credit history which can help your company borrow money in the future.

A bank account for your business is, in nearly all cases, essential for you to operate, if you're a registered company in the UK with companies house you'll legally need one to ensure your financial activity for your business is seperate to your personal finances. All of this means finding the right choice from the best business bank accounts is an important decision.

The best online business bank accounts

The range of companies who offer online banking only bank accounts have risen in recent years, these companies allow you to quickly set up a business bank account from your phone often in under 10 minutes and instantly have access including the ability to send and receive money, your own sort code and account number and access to other features.

These types of accounts are great for businesses of all size however they are often favoured by startups and small businesses who want the quick setup and digital features such as easy integration with accounting software.

Comparing the best online business bank accounts

Below we've put some options in a table for you to look at and compare, to see if one fits your business, remember to always check all your options and do your own research on fees and charges when making any financial decision.
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Tide business - Great for free business banking

Tide allows you to open a business bank in minutes in the UK and you can opt for various account plans including one that is free to open and has no monthly fees.

Other accounts you can open include Tide Plus, Tide Pro and Tide Cashback each offering different features all of which can be compared on the Tide website and upgraded to at any point when you've signed up.

Over 450,000 UK companies use Tide for their banking so if you're looking to open a Tide account then you can get £50 credited to your account as well as 1 year of free transactions when you sign up here using the code: FOUNDERPASS (you’ll need to deposit £50 within the first 3 months to qualify for the £50 cashback)

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Things that are great about Tide

• Open an account in minutes easily
• Free to open plus no monthly fee options
• Various plans available to suit your business
• Fee free spending when abroad
• FSCS protection (up to £85,000)
• You can open a limited company for free with them plus get £50 credit

Some cons about Tide

• No overdraft options
• Cost £1 to withdraw cash each time

If this sounds like an account that could be for you, then you can read our full Tide review to find out more information or use our Tide referral code to get a sign up offer if you're ready to join.

ANNA - Open an account in as little as 3 minutes

ANNA is marketed as an account designed for startups, small businesses and freelancers and is focused around making your life easier especially in terms of business admin.

There are several different plans available for you to choose from including a free account with no monthly fee, meaning it could be a good choice for those watching costs.

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Things that are great about ANNA

• One of the quickest accounts to open (sometimes in under 5 mins)
• Option for a free account plan with no monthly fees
• 24/7 support is available
• 100k+ companies use it
• Designed for startups, small businesses and freelancers

Some of the cons of ANNA

• Not FSCS protected
• No overdraft facility

Our full Anna review goes into finer detail about this option for those that are interested.

Revolut - Good for multi currencies

If you're a company that does business across borders and on an international basis then Revolut could be a business account you consider. It is set up and aimed towards businesses that make and take payments in different currencies and so has many benefits surrounding this from good exchange rates to lower fees on certain types of transactions.

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Things that are great about Revolut

• Over 28 currencies you can exchange money into
• 24/7 support
• Range of plans to suit all types of business
• Set fixed future FX rates in your account
• Accept payments worldwide
• Integrate with apps such as Xero, Slack etc.

Some of the cons of Revolut

• No option to deposit cash
• No overdraft facility

Cashplus - Digital only business bank account

Cashplus may be a good option if you're looking for a digital business bank with which you can open quickly, is FSCS protected and has two different plans to suit your needs.

They boast that you can open an account in around 4 minutes and be given a business account number and sort code straight away to use.

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Things that are great about Cashplus

• Open an account in as little as 4 minutes
• Free monthly account option
• Get a business Mastercard
• 24/7 UK based customer support
• Deposit cash via the post office into the account
• Access by either app or online banking
• Save the £9.95 debit card cost by signing up here

Some of the cons of Cashplus

• Only two plans
• No overdraft facility
• No business credit built on the free account

The best high street business bank accounts

Most high street banks in the UK offer a range of different bank account options to businesses, these include basic business accounts as well as premium accounts each with features which may be preferred by you, these include business managers who you can go and speak to, the ability to deposit physical cash, overdraft and loan facilities and more.

Traditionally these banks charge a monthly fee as well as transaction fees, these banks are often are the preferred option by larger companies due to the banks history, size and physical branches.

Comparing high street business bank accounts

We look at the best high street business bank account below, ultimately the right banking for your business will rely on a number of factors surrounding your company, its financial side and how you want to do your banking,

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Natwest business - Good option for startups

Chances are you'll have walked past or even banked with Natwest before, being one of the larger banks in the UK they have a variety of different business accounts to suit companies of all sizes at all stages from startups to well established businesses.

One of the popular accounts for those looking for a new bank is the startup bank account that they offer which is designed for businesses that are under 12 months old with a turnover under £1 million.

Natwest startup business account pros

• 100's of branches in the UK
• Waived monthly fees and transaction charges for the first 18 months
• Overdraft options

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

Being one of the global leaders in business and banking it's no shock that HSBC offer business bank accounts with some great features. The HSBC Kinetic current account is a suitable option to consider and is tailored to meet the needs of startups and small businesses as well as having the added benefit of a 12-months with certain fees wavied. After this initial period, the account will incur a monthly charge of £6.50.  You can access your HSBC account via mobile banking, desktop banking, or in-person at a branch.

HSBC business pros

• 12 months of monthly maintenance fees waived
• Mobile & desktop access 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

Lloyds are another option if you prefer to be able to visit a physical branch rather than solely have a digital app, with over 100,000 customers of their business banking options in 2022 alone means they certainly know how to deal with companies of all sizes in all kinds of markets.

As with many of the high street banks you'll get a first year offer which means that certain transaction and monthly fees are waived during the first year, these include monthly fees, electronic payment fees or cash deposit and withdrawal fees during this first 12 months.

Lloyds bank current account pros

• First year free
• UK based customer support
• High street branches
• A good app and desktop access

Lloyds bank current account cons

• Branches are reducing in numbers
• Fees after the first year

The Importance of Choosing the Right Business Bank Account

Choosing the right business bank account is an important decision regardless of whether you're a newly formed startup or a business who have operated for years.

Making the right choice will mean that you'll not have to think, worry or question your banking decision and it'll operate perfectly in the background allowing you to focus on your business.

Operationally if you select a business bank that suits how you run your business this will also make your life easier, whether this is one that allows fast access via your phone to one that has a branch as you like to go in and talk to a business manager.

Financially, choosing the right bank will mean you can manage your finances more effectively, you'll be happy with the cost of this banking whether it's a monthly fee, the transaction fees or other factors.

So it's well worth taking time to research and compare your options so when you do select a business bank you'll be sure its the right one for you and your business.

Things to keep in mind

Selecting a bank account for your business is important as this will be your main hub for all financial transactions, therefore you need to make sure you think about the following:

• Fees and charges - Think about which types of services and transactions your business will likely use and select an account which have good rates for these.
• How will you access it - If you're tech minded then a digital account can be a great option, if you prefer to go into branches then you may want to use a high street bank.
• Cash - Will you be paying it in a lot, if so then check how you do this and any costs associated with it
• FSCS protected - Not all companies who offer business accounts are FSCS protected meaning you may want to choose one that is if you hold large sums of money in your account

What is the difference between Free vs Paid business accounts?

Generally speaking the main difference between a free offering from a business bank and a paid one is the number of transactions you can do for free themselves. For example a free account may allow you to do 10 free transactions a month and then each receives a fee, where as a paid one may allow 100 free.

Often paid business accounts have additional features such as integrations with accounting software,

Best free business bank account

You'll struggle to find a truly free business bank account, this is because they all will be setup to make money from you in some way. The 'Free' accounts typically don't charge a monthly fee in comparison to others and will include a certain number of fee free transactions.

The 'best' account will differ from founder to founder and will depend on what your company does, the types and number of transactions and much more. Therefore it's essential to make sure you fully weigh up all of your options and come to an informed decision.

Best startup business bank accounts

The needs of a startup vary from more established businesses and thus the needs of a bank account will too, the best start up business bank accounts are often those that are lower in cost to have, quicker and easier to open and designed with startups in mind.

With that being said, startups are generally attracted to the digital business bank accounts due to the ability for those to offer all of the above, we've explained this in more detail in our guide to the best startup business account which is focused on the options available to new businesses.

Small business bank accounts

When it comes to finding the best business bank accounts that suit you, the size of the your business is one of the key factors to consider. If you're a small business owner then monthly fees are likely to be something you want to avoid or keep to a minimum.

Then look at your number of payments you make and receive and see which business bank accounts fit you in terms of fees which relate to transactions. You may find that a business account which charges a monthly fee but has a large number of transactions included is a better option than one that is free but charges a monthly fee.

Another factor to think about is if you need to pay cash and cheques in, some digital/online only business bank accounts only accept cash deposits (which are typically done via the Post Office or within shops) , others do accept cheques but some accept neither.

Finally if you're a small business who likes to have the ability to talk to someone face to face then you may be better suited to a high street business bank account where you can pop into branch.

What do I need to open a business bank account?

Many banks only need a photo of your ID, some basic information and the app and you can get started, others require you to go into a brand.

When it comes to the items you'll need when opening a business in the UK you'll typically need the following:

• A form of personal ID such as a passport or UK driving license
• Business information - such as business type, ltd company name, address and company number
• Personal information such as name, address and date of birth

Additionally some banks (often high street banks) may require further information such as:

• Other business documents - including items like certificates of incorporation or partnership agreements.
• Proof of address - for you personally
• Licenses or permits - that show your business can legally do what its set out to do in your particular market
• Financial statements - Some businesses will require previous years tax returns, cashflows, profit and loss accounts
• Initial funds - some business bank accounts may require an initial deposit when you open the account

If you're looking for options for business bank accounts with bad credit you'll find a variety do offer options where there are not credit checks.

Do remember that what is required does vary from bank to bank, you will be able to see what is needed on the banks website so please check this beforehand.

Can I run a business through a personal account?

If you run a limited company in the UK then you will legally need to make sure you have a separate bank account for trading with.  This is because all financial transactions legally must be done via the business account rather than any personal accounts.

Does a sole trader need a business bank account is a common question, If you're a sole trader then you can run a business through a personal account but it is not generally recommended,  his is because it's important that you keep personal and business transactions separate from each other.

If you don't separate them then when it comes to accounting and paying tax it can be an incredibly hard and frustrating job that if not done correctly can get you in trouble.

It's also worth noting that some personal bank accounts do not allow you to use your personal account as a business account. Some people opt to open a second personal account to run their business through but it's just as easy nowadays to simply open a free business bank account instead.