Want to avoid fees? Integrate with accounting software? Compare business bank and e-money accounts to find the best.
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A good business bank account is essential for running your business effectively, whether you’re a sole trader or a large established firm. Here you can see which are the best free and paid-for accounts, and which are best for aspects such as online and app banking or invoicing. We also look at accounts that suit businesses of different sizes. We also have a guide on the best business bank account currently available and also a guide on prepaid business cards if you’re a business owner looking for the best way to allow your employees to pay for expenses as part of their work.
As the name suggests, a business bank account is simply a bank account designed for business transactions. Business bank accounts work in a similar way to personal bank accounts but can help businesses keep track of business income and expenses.
You can use your business bank account to send and receive money, helping you to pay staff wages and receive client payments, and you can set up standing orders and direct debits to pay your bills. Business bank accounts can also offer a range of additional features you won’t find with a personal account, such as the option to carry out transactions in foreign currencies or the ability to integrate with accounting software.
If you run a limited company, you’ll be required to use a business bank account. If you’re a sole trader, there’s no such requirement, but it can still make a lot of sense to open one and keep your business transactions separate from your own.
How do I compare business bank accounts?
When comparing business bank accounts, there are a number of factors you’ll need to consider:
Fees. Some business bank accounts will charge a monthly fee for using the account. Others will charge for everyday banking transactions. Some might even charge for both, so be sure to check carefully. In some instances, fees will be waived for the first year or so which can be useful if your business is just starting out.
Transaction limits. Some banks might limit how much money you can transfer in one transaction, so if you’re likely to be regularly transferring large sums, check if the limit is sufficient.
Overdraft facility. If you’d like to have an overdraft on your business bank account, look for an account that offers one and check how much interest it charges.
Account management. Consider whether you’re happy to manage your business account online or via an app, or whether you’d prefer to have a bank branch to pop into. You might need this if you need to pay cash into the account, for example.
Additional features. Some business bank accounts can integrate with accounting software or help you create invoices, so if these features are important to you, make sure they’re included. Some accounts might also pay interest on credit balances or give you cashback.
International transactions. If you regularly carry out business overseas, look for a business account that charges low fees for doing so. Similarly, check whether your bank card charges for foreign transactions.
Customer support. Check how you can contact your chosen provider and whether customer support is available 24/7.
Eligibility. Before applying for a business account, make sure your business is eligible. Your business will usually need to be registered and trading in the UK, but some banks might also require that your business has been trading for a set time or has a minimum annual turnover.
Related financial services. If you think you might need a business loan or credit card in the future, check whether the provider offers these options.
What do I need to open a business bank account?
Many business bank accounts can be opened online. Otherwise you can pop into your local bank branch (if there is one). You’ll usually need to provide details about your business, including its registered address and contact details. If you’re a limited company, you’ll need to provide details of your company’s registration at Companies House. Incidentally, if you still need to register with Companies House, they unfortunately hiked up the cost of doing so in May 2024 to more than quadruple the previous price in some cases.
Additionally, you will usually need to provide proof of ID for all company directors, such as a passport, as well as proof of address, such as a utility bill.
Business bank account fees explained
Unlike with most personal current accounts, many business accounts come with costs attached, which can range from a monthly fee simply for having the account, to a charge for paying in a cheque.
We outline the main types of business account costs below – bear these in mind when you’re looking at a bank’s pricing structure or an account’s terms and conditions:
This is a flat fee for having and using your business account – it’s usually charged monthly but sometimes it’s an annual fee.
This includes things such as direct debits and standing orders, as well as Faster Payments bank transfers made to other individuals or companies (which you might set up or make through online, mobile or telephone banking). Some business accounts don’t charge for these types of payments, while others will give you a set allowance per month or charge you for each one.
When you deposit or take out cash at a bank branch (or at a Post Office, if your bank supports that service), you might be charged a flat fee or a percentage fee for any cash and coins you deposit or money you withdraw over the counter. Some banks have a set fee for depositing a cheque and also charge when a cheque you’ve written to someone else is paid into their account.
This could include any purchases or cash withdrawals made using your card abroad (non-Sterling transactions). But there are also usually fees for making an international payment – such as a SEPA payment or SWIFT payment – from your bank account to one based overseas. Some providers will also charge you for receiving an international payment into your account.
There are some services you might use occasionally that incur a special charge, such as making a CHAPS payment (this a high value payment that is cleared on the same day) or issuing a banker’s cheque. Some business accounts also offer optional services e.g. a VAT calculation and submission service, which you can expect to pay extra for if you sign up.
Business bank accounts for the self-employed
Whether you’re a freelancer or have a side hustle, it could be a good idea to create a separate bank account to manage your finances. It’s not a legal requirement, but you might find it easier to track your cash flow and calculate your end-of-year taxes.
There are lots of business bank accounts designed for the self-employed. Some are free, while others charge a monthly fee. You should also think about what services you might need. For example, do you want your account to link to accounting software such as QuickBooks and Zero, or do you need invoicing support?
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 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
Companies House registration number, if you’re a limited company
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.
Business banks by customer satisfaction in 2024
Our customer satisfaction awards are decided by the only votes that really matter – yours. We asked customers of 13 major business banking providers to tell us about their experiences. Now we can reveal how they rated these UK banks. Learn more about the awards here including our ratings methodology.
Brand
Logo
Overall satisfaction
Customers who’d recommend
Review
Revolut
★★★★★
97%
Revolut Business has been innovating and adding new features, and it apears this has paid off. It secured the top spot in this year’s survey with a score of 4.9 out of 5.
TSB is currently offering an initial period of free business banking for 30 months to startups and account switchers. This and its services have proved popular with customers, scoring it 4.7 out of 5.
The Co-operative Bank is known for its ethical business banking, and customers in our survey commended it on its reliable service. It scored 4.2 out of 5.
Santander operate a range of different business accounts, some of which come with discounted fees for startups or customers who are switching. It achieved a score of 4.2 out of 5 in our survey.
Long-established Lloyds Bank recorded a score of 4.2 out of 5 in our survey. It offers business accounts for new and established businesses as well as one for clubs and charities.
Tide is a digital-only business banking provider, and its customers highlighted its “top notch” customer service and ease of use. It scored 4.2 out of 5 in our survey.
Another high-street veteran Barclays posted an impressive 94% “would recommend” score and secured 3.9 out of 5 from its customers. The bank operates different business accounts depending on company size.
HSBC the largest bank in the UK, posted a rating of 3.9 out of 5 in our survey. It now has HSBC Kinetic, which is an app-based business account with no monthly fee for the first 12 months.
Zempler scored 3.9 out of 5 in our survey and a “would recommend” score of 93%. Its business bank account is designed for small businesses and is FSCS protected.
Royal Bank of Scotland posted 3.8 out of 5 and a “would recommend” score of 90%. Its customers that we canvassed praised its “trustworthiness” and level of service.
We asked business account holders to rate their satisfaction with the service they had received from their banking provider, and also whether they would recommend that provider to a friend. Our independent survey of 400 business banking customers was carried out in December 2023 – read full details of our methodology here.
We have crunched the numbers and shown the results for the 13 banking providers listed in the table above. We used these ratings to decide the winners of our awards (if there was a draw on the star rating, we used the “would recommend” percentage as a tie-breaker).
Business banking scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Our customer satisfaction scores (“Customers say”) are based on a survey of 400 customers carried out in December 2023.
Getting down to business: How banking is evolving to cater to SMEs in a new era
Finder published a paper in February 2022 exploring current trends, innovations and account switching within the business account sector. The report includes the findings of our survey of business account holders, and insights from experts at ANNA, the Federation of Small Businesses, Kent Business School, Savanta and Starling Bank.
Can help you to keep personal and business finances separate, making it easier to file your tax return
You could benefit from perks such as accounting integrations or cashback
Some accounts enable you to carry out foreign transactions
It can help you build a business credit rating
If your money is held with a UK-authorised bank or building society, it will be protected under the Financial Services Compensation Scheme (FSCS)
Cons
You might have to pay monthly and/or transaction fees
Having a business account as well as a personal bank account means twice the banking admin
If your account comes with a prepaid card, this won’t be protected by the FSCS – it’ll be covered under e-money regulations instead
Bottom line
There are many reasons why it pays to open a business bank account. But when comparing them, it’s important to check the eligibility criteria carefully to be sure you qualify, and also check the fees so you don’t get caught out. On top of this, you’ll want to check what perks come with the account, such as invoicing tools or cashback, so that you can be confident of picking the best account for your business.
Frequently asked questions
Many online business bank accounts can be opened within a day or 2. But if you’re opening an account with a high street bank, it could take between 1 to 4 weeks as the bank will need to carry out various identity and business checks.
If you have bad credit, your banking options will be more restricted. But the good news is a number of online or app-based providers don’t require a credit check as part of their application process. These include Zempler, Tide and Card One Money.
If you’re a sole trader, there’s nothing really stopping you from using your personal bank account for business purposes. However, some banks won’t like this and could close your account, while it can also make it harder to keep your personal and business finances separate.
Limited companies are required to open a business account as the business is a separate legal entity.
If you're setting up a business, a business plan is vital to your success.
Use our free business plan toolkit including a walk-through guide, business plan template and example business plan.
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 244 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
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