Best business bank accounts in the UK for 2024

Frequently asked questions

• Can a foreigner open a business bank account in the UK?

  UK banks are allowed to offer business accounts to non-UK residents, although the application process may be longer because of the extra checks they have to undertake.

  The big high-street banks may also be more likely to offer a non-UK resident an international bank account rather than a business account. As a minimum requirement, you'll need ID and proof of address for the country you reside in.

  But if you're happy to run your business account online or through your mobile phone, there are now many digital-only business accounts available in the UK, thanks to the new digital challenger banks and other fintech providers entering this market.

  The advantage of this for foreign applicants is that some (not all) of these digital banking providers do not require a proof of address, so you can easily open the account from abroad. Learn more about opening a UK bank account as a non-UK resident.

• Can I open a business bank account online?

  Yes, it is possible. The digital banking era brought the possibility of setting things up without having to go into an actual bank. Even though most banks allow account set-up online, some may require your attendance, so make sure you're familiar with all the terms of applying.

• How long does it take to open a business bank account?

  Although the application may take minutes, the actual account setup might take a bit longer. The bank you sign up to usually needs to review your documents and check your eligibility. Your account may be ready for use within minutes, days or weeks, depending on the institution you apply to.

• Is there any free business bank account?

  Being able to open a bank account that is totally free of charge is more common if you only need it for personal use. Business bank accounts can be pretty expensive, whether because of transaction or account management fees. However, some are a lot cheaper than others, so read the terms carefully and estimate the costs of opening an account before you decide. Also, if your company is a startup or you plan to change banks, you may be offered a free banking period.

• Can I open a business bank account if I have bad credit?

  Yes, you can. Most business bank account providers carry out some kind of credit check on you, which will highlight a poor credit score. But a few providers let you open an account without any credit checks (but be aware that these products tend to come with higher usage fees). For more information on opening a business account without a credit check, read our guide to opening a business account with a bad credit score.

• Can I just use my personal account for business purposes?

  Generally not. Some banks might allow it if you're a sole trader, though it's usually a good idea to separate your personal and business finances. If you own a limited company, you will have to use a business bank account. Check your terms and conditions before doing it. You can learn about the benefits of opening a business account.

• How does switching business accounts work?

  You'll need to contact the new financial institution you plan on switching to, and it will take care of that for you. If it's signed up to the Current Account Switch Guarantee, it will transfer your funds, direct debits and standing orders, redirect your incoming payments and, if you want to, close your old account – for free.

  You can switch your account within 7 days if the bank you're switching to is signed up to the Current Account Switch Service. Learn more about the process and find a provider that can help with the switching process.

• Can you have a joint business account?

  Yes, this is possible. Some providers allow you to register with a partner during the application process, while others allow you to add extra users to your account after its creation. Compare joint business bank accounts here.

• What kind of bank accounts are available for clubs and societies?

  Clubs, societies and other community organisations can open dedicated current accounts, which tend to be cheaper than regular business accounts. Most traditional high-street banks offer these "community" accounts.

  In most cases, your organisation won't need to be a registered charity, but it should be able to prove that it has a charitable purpose, a definition that covers a broad range of organisations – from community groups to sports clubs. Read our guide to opening a bank account for a club, community or society.

• Which banks offering business accounts have branches?

  While there are some great accounts from the newer digital-only banks, these won't be ideal if you need in-branch services. Banks with business accounts that let you do branch banking include Barclays, the Co-operative Bank, HSBC, Metro Bank, the Royal Bank of Scotland, TSB and Virgin Money.

• What are the downsides of business bank accounts?

  Business accounts don't usually pay good rates of interest on the money in your account, and you'll have to pay a monthly fee for most of them. There may also be fees for specific transactions.

Customer satisfaction scores methodology

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 ratings score, we used the “would recommend” percentage as a tie-breaker).