Best for
Small businesses
The 5 best business bank accounts in the UK 2021
Find out the best bank for business in the UK to get the right deal for your business.
Best for
Integrated accounting software
Best for
Beginners
Best for
Poor or no credit history
What's in this guide?
If you’re running a business, being able to manage your finances easily is a key part of your everyday operations. Whether your business is a startup or well established, and whether you’re looking for a great mobile banking app or simply some free banking, our guide to the best business bank accounts in the UK will help you decide which provider could be right for you.
Best business bank accounts for small businesses, sole traders and freelancers
Small businesses and sole traders make up a huge part of the UK economy, and a growing number of banking providers are offering business accounts specifically tailored to their needs.
Best business bank account for small businesses, sole traders and freelancers: Tide
24/7 customer support
Instant notifications
Software integration
Tide is a fintech app which offers business accounts to small businesses and freelancers, hoping to relieve them of some of the financial stress that comes with a growing company.
Tide’s business accounts come with a number of features that address some of the most stressful aspects of working for yourself and offer all of this for free.
- 24/7 customer support
- Categorised spending
- FCA regulated
- Quick set-up
- No monthly fees
- Easy to manage accounts and track payments within the app
- Ability to set up direct debits and standing orders
- Can receive online bank statements
- No branches - all done via the web
- Doesn't accept cheque deposits
- No personal accounts
- No international
- Transfers or interest offered
| Account fee | £0 |
|---|---|
| UK ATM Charge | £1 |
| Account software integration platforms | Xero, QuickBooks, FreeAgent, ReckonOne, Kashflow, Sage |
| UK transfer charge | £0.20 |
| Additional cards | 35 additional cards |
| Additional card fee | Free |
| Credit check | No - Tide performs an electronic check but no credit check |
How can I find the best bank account for small businesses?
- What are the fees? You’re not a big company owner so you probably want to keep your expenses low. Find out if there is any fee for setting up and managing your account and how much you have to pay for each transaction.
- Can the invoices be done directly from your app or desktop account? Being able to create new invoices and manage the existing ones is important. Check if the bank account you’d like to open has this helpful feature.
- Are there any additional perks? Whether there are free credit cards for your employees provided or a discount on coffee supplies available – it’s good to know what possibilities for saving money come with opening an account.
Best business bank accounts for startups
There’s a lot of factors to consider when starting up a business for the first time, and banking is one of them. Spending time to find an account that has all the features you need, and at the right price point, will benefit you in the long run. Best business bank account for beginners and startups: Amaiz
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.
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
How can I find the best bank account for startups?
- Is there any free banking on offer? If you’re going into business for the first time, some banking providers offer a decent period of free business banking with new accounts. (Though be mindful of what the costs may be after this free period ends.)
- What tools come with the account? As a startup, you might be after a “one stop shop” type of business account, so take a look at what features it has. Many accounts can now integrate with your accounting software, create and track invoices for you, or even help calculate your tax bill.
- Are there any other financial services available? If you’re also looking for a business credit card, overdraft or loan, it’s worth checking which business banking providers offer those products as well.
Best business bank accounts for online banking
With bank branch visits on the decline and customers increasingly managing their money through digital channels, the range of features on offer through online banking has become a crucial part of any business bank account.
Best business bank account for app and online banking: Starling
24/7 customer support
Instant notifications
Software integration
The era of banking in its traditional form is being surpassed. Digital banking is on the rise, offering customers 24/7 access to their bank accounts via apps and other types of online accounts. Thanks to that you can manage your money anytime you want and anywhere you are. What’s more, you can get instant notifications about the payments you made or received and, in many cases, sort your invoices quickly and easily. If you’re looking for the best user-experience, Starling may be the best option for you.
- Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
- Completely free UK current account opened and ready to use in 20 minutes
- Safe and secure
- Fully licensed by the FCA and PRA
- Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature competitive and comprehensible overdraft fees
- Decent interest rate paid on current account balances
- Efficient app offering a range of good features such as budgeting tools and saving features
- Has a marketplace offering competitive pensions
- Mortgages and insurance from other growing fintech companies
- Teen account options
- 24/7 customer support (for all types of enquiries)
- Relatively new so does not offer every feature e.g. mortgages
- No bank branches, all done via the web
- Only available to UK residents
| Account fee | £0 |
|---|---|
| UK ATM Charge | Free |
| Account software integration platforms | Xero, FreeAgent |
| UK transfer charge | £0 |
| Additional cards | No additional cards |
| Additional card fee | N/A |
| Credit check | Soft search with no impact on credit score |
How can I find the best bank account for online banking?
- How can I access my bank account on the web? Although slick mobile banking apps are a big thing right now, if you’re specifically after online banking make sure you can access your account on the web via a desktop computer or laptop, and not just through a smartphone.
- What are the online banking features? There are lots of things you can do via online business banking, from making payments and setting up standing orders, to calculating your expenses or sending out an invoice. Check that the account you select has all of the online banking features that you want.
- Are there any transaction fees involved? With business banking it is common to be charged small transaction fees, even for making or receiving online payments. When choosing an account, give consideration to your online banking usage to make sure those small individual fees don’t add up to one big cost for your business.
Good for accounting integrations
Good for integrated accounting software - FreeAgent, Xero and Quickbooks.
Free account
Apply in minutes
By NatWest
Mettle is the first standalone business banking app to be offered by one of the high street banks, NatWest Group. Following a pilot phase, Mettle saw its full launch in November 2019, and looks to rival the mobile app-based business accounts already offered by challenger banks. Mettle lets business customers apply for an account in minutes, forecast business performance and create invoices. All of this is possible in its mobile app, which is designed to be easy to use, as well as free to use.
- Quick and easy application process
- Option to freeze your card if you loose it
- Free and includes some useful features
- Owned by the RBS group whom are very credible
- Sleek easy to use app
- Overdrafts are unavailable
- Savings/pots feature is unavailable however is supposedly in the making
- Not available on android
- Not FSCS protected
- Daily payment limit of £10,000
| Account fee | £0 |
|---|---|
| UK ATM Charge | Free |
| Account software integration platforms | Free agent, Xero |
| UK transfer charge | £0 |
| Additional cards | |
| Additional card fee | |
| Credit check | Soft search with no impact on credit score |
Best business bank accounts for bad credit
A poor credit history can have an impact on opening a business bank account. Fortunately, there are some banking providers who specialise in business accounts for those with bad credit, or don’t conduct credit checks at all.
Best business bank account for bad credit: Cashplus
Poor credit friendly
Instant notifications
Software integration
Opening a business bank account with bad credit can be complicated. Most banks will carry out a credit check when you put in your application and reject it if you don’t meet the requirements. All is not lost, though! Some companies, like Cashplus, offer banking services perfect for businesses who have a poor or no credit history. There are no credit checks when you apply. The only thing that needs to be verified is your contact details.
- Have account up and running in 5 minutes
- Overdraft option "Cashplus iDraft" once you're eligible
- Currency cards to use overseas
- Online services in addition to the mobile app
- Charge to have your bank card issued
- Traditional bank still needed for majority of your business finance needs
| Account fee | £0 |
|---|---|
| UK ATM Charge | Free |
| Account software integration platforms | FreeAgent, Xero, Sage, Kashflow, Quickbooks, Clearbooks |
| UK transfer charge | £0.20 |
| Additional cards | Up to 20 additional cards |
| Additional card fee | £5.95 |
| Credit check | No credit checks to apply |
How can I find the best business bank account if I have bad credit?
- Are there credit checks? Some institutions let you open a bank account without checking your credit history. Make sure the one you choose is one of them.
- Are you eligible? Your credit history may not be that important but there are other things necessary for opening an account. Check what the requirements are and see if you can apply easily.
- How is the account protected? Make sure your money is safe. Get to know which institution it’s regulated or protected by.
Best business bank accounts for invoicing
Issuing invoices and getting paid is obviously vital to running a successful business. It’s now possible to create, send and keep track of invoices directly from some business bank accounts.
Best business bank account for invoice service: ANNA Money
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 |
How can I find the best bank account for invoicing
- What does the invoicing service include? Can you create and send invoices from the business account, then track when payments come in and match them to your records?
- Is there 24/7 customer support? As a busy entrepreneur you may be doing your invoicing in the evening or at the weekend, so if you run into any operational problems it’s good to know there’s someone available to help you out.
- Is there a full range of other banking features? It’s great being able to run your invoicing from your business account, but if that’s its main feature you may need to weigh up if the account has everything else you might need, such as international banking or the ability to make cash deposits.
Good for international payments
If you have customers or suppliers based overseas, then the ability to make or receive international payments from or to your business bank account will be an important factor. Low currency conversion on international payments
Easy to open
Send money internationally
Create business invoices
Monese allows you to open multiple accounts with multiple currencies. International money transfers to 30 countries are permitted at a cheaper rate than high street banks.
Your accounts are run through an app with useful budgeting software. You can swap between personal and business accounts seamlessly.
Account fee
£0
UK ATM Charge
£200 free monthly - 2% fee after
Account software integration platforms
Avios, Paysafe
UK transfer charge
£0
Additional cards
Additional card fee
Credit check
How can I find the best business account for international payments?
- International banking capabilities. A few of the newer or more basic business accounts don’t offer the ability to make or receive international payments, so if you need this functionally, be sure to check before you sign up for an account.
- Fees. How much will your bank charge to make or receive overseas payments? There could be upfront charges as well as currency conversion fees to pay.
- Multi-currency accounts. A banking provider that lets you hold balances in different currencies, or one that offers different currency accounts linked to one another, might be a better bet if you’re going to dealing with a high volume of international payments.
Good for opening an account quickly
If you need a business account in a hurry, or you just don’t want to be caught up in a lengthy application process, choosing an account that’s quick to open might be at the top of your consideration list. 10 minute online application
Software integrations
Multiple Company cards
Pay abroad like a local
Revolut places an added focus on international money transfers. With this account, you can send and receive funds in 28+ currencies at the real Interbank exchange rate.
This account comes with an intelligent app that allows you to monitor your business income and expenses with ease.
Account fee
£0
UK ATM Charge
2% on all withdrawals
Account software integration platforms
Xero, Time management, Freeagent and Slack
UK transfer charge
£0
Additional cards
One for each team member
Additional card fee
Free for the first card for each team member, the fee for an additional card is £4.99
Credit check
How can I find the best business account to open quickly?
- Check what documentation you need. You’ll always be asked for a basic set of information about you and your business when you sign up to a business account, but some providers will ask for less documentation than others.
- Branches or digital only? If you’re happy with a digital-only business bank account, they are often quicker to open as no branch visits are required.
- No credit checks. If you’re really keen to open an account quickly and with less hurdles in the way, there are providers who don’t conduct credit checks or ask for proof of address (although be aware that these accounts sometimes come with higher fees attached).
Other business bank accounts to consider
CardOneMoney – Good for cashback
The chance to earn cashback as you spend money is a great perk, and that is what you get with a business account from CardOneMoney. You can apply to open an account online and then manage it through the mobile banking app. You’ll also receive a Mastercard which qualifies for the rewards scheme, which means you can earn cashback of up to 3.5% at more than 35 high street retailers when you shop using the prepaid card.
Handelsbanken
Handelsbanken is actually a Swedish bank, but this lesser known financial institution does have branches in the UK. With its business account, you are assigned your own dedicated account manager and also have access to 24/7 customer support over the phone.
The business current account is available in a range of currencies – great if you have international banking needs – and there is the option to apply for an overdraft. Customers can also use the corporate online banking portal, which includes accountancy software integration, plus the corporate mobile banking app.
There is a monthly fee involved, but the nature of the bank’s personalised service means that account fees are tailored to each business customer. This bespoke charging structure makes it difficult to compare Handelsbaken with other business accounts, but expect to pay the top end of the scale for the one-to-one customer support.
Pro
- Personalised service means the bank polls consistently well for business customer satisfaction
Con
- Bespoke charging structure means account fees will likely be at the higher end of the spectrum
Metro Bank
Metro Bank is unusual in that it’s a challenger bank that also has a branch network. And unlike its bigger high street counterparts, those branches are open 7 days a week, 362 days a year. Business customers also get access to online and mobile banking too, to manage their finances on the go.
There are several types of business account on offer at Metro bank, which include an account for smaller businesses and an account for larger businesses (those with an annual turnover of more than £2 million).
There’s a monthly fee of £5 for the small business account, although if you keep your balance above £5,000 that fee is waived, and you’ll also get 50 transactions for free that month (rather than at the usual charge of 30p each).
Pro
- Offers mobile and online banking, plus branches that are open 7 days a week
Con
- Smaller branch network compared to the main high street banks
Santander
A well-known name on the high street, Santander has four business accounts available depending on the type, size and banking requirements of your organisation.
Its two main business accounts come with periods of free banking or discounted fees for startups and switchers, plus the 1|2|3 Business Current Account offers the opportunity to earn annual cashback on your credit turnover.
As well as Santander’s own extensive branch network there are also some banking services available at branches of the Post Office. There’s a mobile banking app and an online banking service for businesses looking to manage their day-to-day finances digitally.
Pro
- Free or discounted banking period on offer to startups and switchers
Con
- After the free banking ends the charges are not the most competitive
Barclays
There is a range of business accounts to choose from at Barclays, including ones designed for startups, charities, small firms or large businesses.
There are two main types of fees applicable on these accounts – monthly fees and individual transaction fees. There is a choice of price plans, and you can select the most economical one for you depending on the payments mix that your business normally requires (e.g. cash deposits vs electronic payments).
As with all the high street banks there’s the option for business customers to bank online, via mobile or in person at a branch. There’s also the opportunity to apply for other Barclays’ business products, such as overdrafts, loans and insurance.
Pro
- Range of business accounts on offer, with a choice of price plan
Con
- Account fees could be cheaper elsewhere
Lloyds
One of the biggest banks in the UK, Lloyds offers different business accounts to startup businesses, established businesses and charities.
New account holders and people switching to a Lloyds business account can enjoy an initial 12 months of free banking. After that there are transaction fees involved and a set monthly account fee, which is £7.
Customers can take advantage of mobile, online and branch banking, and have the option of applying for other financial services from Lloyds, including business overdrafts, credit cards and savings accounts. Business account holders can also choose from a range of card payment solutions from the Lloyds Cardnet service, which allows them to take customer payments in person, online or on the phone.
Pro
- Option to take card payments from your customers
Con
- Monthly fee and other charges for depositing cash and cheques
First of all, fees are often higher – you can get yourself a free current account pretty much anywhere, but it won’t be as easy for your business. Secondly, there are more options and different ways of approaching business banking, so the best deal for your business will largely depend on what your business looks like. But no worries, we’ll help you figure out how to approach this particular problem.
Useful tips on how to choose the best business bank account for your business
There are many factors to consider when choosing a business account, many of which apply whether you are a foreigner or a UK resident. It’s important to do your research and think about the following:
- Cost. Pricing structures can be complicated for business bank accounts. Some have monthly fees, some have transaction fees, and many have both. So think about how you’ll use your account and what will work out the cheapest option for you.
- Your type of business. It’s a good idea to look for something that’s as tailored to your business as possible. Some banks offer both startup accounts and ones that are designed for more established businesses.
- Cash. If you take a lot of cash payments and need to load this cash into your business account, you’ll want to make sure that you have a bank branch nearby.
- Ways to bank. Some business owners prefer to discuss banking in person, while others would rather have a great mobile app that makes banking slicker on the go. Not all banks will provide both.
- Accepting payments. Do you need to set up card payment terminals as well as a business account?
- Accounting software integration. If you’re managing a small business, being able to do banking and accounting from the same place makes life easier. Popular integrations include Xero, Quickbooks and FreeAgent.
- Related financial products. Do you also need a savings account, insurance or a business loan, and does your chosen bank provide these?
- International banking. Do you trade abroad or need to make a lot of international payments? Check if you can do this with the business account, or perhaps if you open an accompanying account in a different currency.
- Bad credit. If you have a poor credit history you might be more likely to have your business account application rejected, but some banking providers specialise in accounts for these type of customers (we mention more on this below).
- Address checks. Some of the digital-only banking providers don’t ask for proof of address. This is particularly relevant if you have bad credit or are a foreigner without a UK address and are looking to open a business account here.
Compare the best business bank accounts
What is the best business bank account in the UK 2020? A summary:
Ultimately it depends on what you want the account to do, and also on your circumstances, however here are our top picks:
- Best for small businesses, sole traders and freelancers: Tide
- Best for international spending: Revolut
- Best for app and online banking: Starling
- Best for bad credit: Cashplus
- Best for invoice services: ANNA Money
- Best for beginners and startups: Amaiz
- Best for free banking: TSB
- Best for cashback: CardOneMoney
Best bank for business UK 2020 by customer service
In August 2020, the Business banking service quality survey took place by the BVA BDRC. SME customers with business current accounts were asked how likely they would be to recommend their provider, their provider’s online and mobile banking services, services in branches and business centres, SME overdraft and loan services and relationship/account management services to other SMEs. The findings are reported below.
| Ranking | Provider | Score |
|---|---|---|
| 1 | Handelsbanken | 79% |
| 2 | Metro Bank | 67% |
| 3 | Santander | 63% |
| 4 | Barclays | 59% |
| 5 | Lloyds Bank | 55% |
| 6 | NatWest | 54% |
| 6 | Yorkshire Bank | 54% |
| 8 | Clydesdale Bank | 52% |
| 8 | HSBC UK | 52% |
| 10 | Bank of Scotland | 51% |
| 11 | The co-operative bank | 50% |
| 12 | TSB | 47% |
| 13 | AIB | 45% |
| 13 | Royal Bank of Scotland | 45% |
| Ranking | Provider | Score |
|---|---|---|
| 1 | Barclays | 73% |
| 2 | Metro Bank | 72% |
| 3 | Santander | 69% |
| 3 | NatWest | 69% |
| 3 | Lloyds Bank | 69% |
| 6 | Bank of Scotland | 65% |
| 7 | Royal Bank of Scotland | 63% |
| 7 | HSBC UK | 63% |
| 9 | Handelsbanken | 62% |
| 9 | Yorkshire Bank | 62% |
| 11 | Clydesdale Bank | 57% |
| 12 | TSB | 52% |
| 13 | AIB | 44% |
| 14 | The co-operative bank | 41% |
| Ranking | Provider | Score |
|---|---|---|
| 1 | Handelsbanken | 78% |
| 2 | Yorkshire Bank | 65% |
| 3 | Santander | 63% |
| 4 | Barclays | 61% |
| 4 | HSBC UK | 61% |
| 6 | Clydesdale Bank | 59% |
| 7 | Lloyds Bank | 58% |
| 7 | NatWest | 58% |
| 9 | AIB | 53% |
| 10 | Royal Bank of Scotland | 52% |
| 11 | Bank of Scotland | 51% |
| 11 | TSB | 51% |
| Ranking | Provider | Score |
|---|---|---|
| 1 | Handelsbanken | 86% |
| 2 | Santander | 66% |
| 3 | Metro Bank | 63% |
| 4 | Barclays | 59% |
| 5 | Yorkshire Bank | 58% |
| 6 | NatWest | 57% |
| 6 | Clydesdale Bank | 57% |
| 8 | Lloyds Bank | 56% |
| 8 | AIB | 56% |
| 10 | TSB | 53% |
| 11 | HSBC UK | 52% |
| 12 | Bank of Scotland | 50% |
| 13 | The co-operative bank | 49% |
| 14 | Royal Bank of Scotland | 48% |
| Ranking | Provider | Score |
|---|---|---|
| 1 | Handelsbanken | 73% |
| 2 | Metro Bank | 72% |
| 3 | Lloyds Bank | 61% |
| 4 | TSB | 58% |
| 5 | Yorkshire Bank | 55% |
| 5 | Clydesdale Bank | 55% |
| 7 | Santander | 54% |
| 7 | Bank of Scotland | 54% |
| 9 | HSBC UK | 53% |
| 10 | Barclays | 52% |
| 11 | NatWest | 50% |
| 12 | The co-operative bank | 47% |
| 13 | Royal Bank of Scotland | 40% |
| 14 | AIB | 38% |
Source: BVA BDRC.
Frequently asked questions
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.
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