Business bank accounts for startups

Started up your own business and want to know more about opening a bank account? We take a look at what's involved.

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Business bank accounts for startups

Amaiz

Amaiz Starter

★★★★★

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24/7 customer support

Instant notifications

Software integration
Opening a business account is a new experience for company owners who are just starting out, but it shouldn’t be a daunting one. Amaiz is one of the new breed of challengers to offer a digital-only current account to sole traders and limited companies. You can open a business account in minutes through its mobile app – which also offers features that bring together banking, invoicing and accounting. Even better, you can sign up for a free trial before committing to any of the monthly pricing plans.
  • Transparent charges - everything included in the monthly fee
  • An app packed with features such as instant notifications
  • Jar sub-accounts and the ability to create
  • Customize and track invoices
  • 24/7 customer support
  • The ability to freeze your
  • Card with a singular tap
  • Quick to get your account up and running
  • No integration with Sage or Xero
  • No branches/face to face communication
  • No overdraft feature or credit facilities available
  • Extra fees to use the card abroad
Account fee £0
UK ATM Charge Free
Account software integration platforms Free Agent
UK transfer charge £0.20
Additional cards Only allowed one card at present
Additional card fee N/A
Credit check They conduct a soft credit check - they check your name against credit agencies, but do not report any of your information to credit score checking sites

ANNA Money

ANNA

★★★★★

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24/7 customer support

Instant notifications

Software integration
Invoices are crucial for keeping solid financial and accounting records. To invoice your company’s clients you can always do it the old-fashioned way and create them manually, using templates and sending the invoices out via email. It can be time-consuming though, and the last thing you want is making a mistake while creating them. To avoid that, choose a digital bank that offers accounting software and services that automatically generate invoices you can send to your clients. One such company is ANNA Money which can help you save time and avoid the stress of chasing payments.
  • Ability to connect other provider accounts to the ANNA app through Open banking
  • 24/7 support through the app aiming to give a response within 10 mins
  • Fast set-up
  • Invoice and expense services within the app
  • No seperate fees for account activities solely the monthly fee
  • No credit or overdrafts available
  • Still require a traditional bank account for majority of your business financial needs
  • No cash and cheque deposits
  • Cannot be used in web browser
Account fee £0
UK ATM Charge Free up to £100 per month
Account software integration platforms Coming soon
UK transfer charge £0
Additional cards
Additional card fee
Credit check Soft search with no impact on credit score
Promoted
Tide

Try Tide

  • Award-winning, smart, simple business account
  • The hassle-free account for your business
  • Get your sort code and account number in minutes

What is a startup business account?

A business bank account is different from a personal bank account in that it’s used to make and receive payments that are purely business-related. You need to be a registered business to open one and you can’t use it like a personal current account.

Some business accounts are specifically targeted at startups (newly formed, and often very small, businesses). But don’t be put off a business account that is not described as being for startups, as many standard business accounts will also be suitable for your needs.

Unlike the majority of personal accounts, it’s not unusual to be charged a monthly fee to have a business account. Though business accounts often have extra features and tools available to help you manage your business finances.

Starting business stats illustration

Do I need a startup business account?

If you’ve just started out or are a sole trader, you might have begun by using your personal current account to make and receive payments.

That might be fine for a small number of initial transactions, but some banks will not let you use your personal bank account for business purposes, plus all of your finances will be mixed up in one place.

Opening a business account keeps your personal and business money separate and easier to manage. This means you can identify your revenue and expenses more effectively, which will certainly help when calculating that tax bill.

Many business accounts come with tools to assist you with managing your invoices, analysing your spending and working out your tax reporting. Some also offer integrations with accounting software, to make your paperwork even easier at year-end.

Compare business bank accounts for startups

Data indicated here is updated regularly
Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Starling Business Account
Free
Free
Xero, FreeAgent
Free

Min. 18 months trading to apply
App, Online
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
Tide
Free
£0.20
Free if both accounts are with Tide
Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow and Sage
Free
App
Free spending abroad and at home in any currency, instant payment alerts, automatic categorisation
Amaiz
£9.99 per month
Free in first month
Free Starter plan available
£0.20
FreeAgent, Xero, Sage, Reckon One, Kashflow, QuickBooks
1%
0.5% in Europe, 1% elsewhere
App, Online
ANNA
Free
Free up to a max. balance of £5,000 (or up to £500 paid in per month)
Free
2 free transfers per month and unlimited free transfers to Anna accounts
Coming soon
Free
App
Earn 1% cashback for paying with your ANNA card in selected categories. Enjoy premium benefits free for the first 6 months.
Cashplus business
£69
First year's annual fee refunded.
£0.99
Free transfers in first 3 months
FreeAgent, Xero
2.99%

On invitation
App, Online
First year's annual fee refunded.
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Compare up to 4 providers

What is the best startup business account?

It’s important that you consider all of the features and fees that come with the various business accounts out there on the market, before deciding which one to apply for.

This means the account that is “best” for you and your startup business will depend on your individual needs.

But here are some of our favourite business accounts with links to their full reviews, so you can check out exactly what they offer:

  • Amaiz: App-based account that comes with a wide range of business banking tools that are ideal for beginners.
  • Anna: Digital-only account that features an invoicing service and 24/7 assistance.
  • CardOneMoney: Has higher fees, but you can open the account without a credit check and it includes a cashback program.
  • Starling: Comprehensive and free business bank account that offers accounting software integration.
  • Tide: Digital-only account that is designed for small businesses and freelancers.
  • TSB: Offers free business banking for the first 25 months and has a branch network.

How can I apply for a startup business account?

Once you’ve researched and chosen which business account you’d like to go for, you’ll need to apply to that banking provider to open it. Many applications can be now be done online or through a mobile app (especially given the growing number of digital-only accounts), although some banks with a branch network might ask you to visit in person.

Every business bank account will have a slightly different application process, but here is a general list of information and documents that you should have to hand:

  • Your business name and address
  • Your own personal details and contact information
  • A form of ID
  • Proof of address
  • Estimated business turnover
  • Personal banking/financial statements

Not every banking provider will ask you for all of this documentation, and on the flip side, there may be some who request even more detailed information about your business and its finances.

Most business bank account providers will also carry out some kind of credit check on you, although there are a few that will let you open an account without one (but be aware these products tend to come with higher usage fees). For more information on opening a business account without a credit check, check out our guide to opening a business account with a bad credit score.

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