Are high street banks safer than digital banks?

Not necessarily. Both high street and digital banks can offer strong security. The key thing to check is whether the bank is authorised by the Financial Conduct Authority (FCA) and whether your money is protected by the Financial Services Compensation Scheme (FSCS). Eligible deposits are generally protected up to £120,000 per person, per financial institution, and this applies to both traditional high street banks and digital ones.

Are high street business bank accounts more expensive?

High street business bank accounts can be more expensive than their digital rivals, but it depends on the account. Some will charge a monthly fee and some may also charge for transactions such as cash deposits, direct debits and withdrawals, so check carefully.

Can I switch my business bank account?

Yes, like with personal bank accounts, you can usually switch your business bank account using the Current Account Switch Service. This means the switch will be completed within 7 working days and your new bank will take care of everything for you - including moving over any outgoing payments you have set up and redirecting any payments that go into your old account.

Best high street business bank accounts

While online business bank accounts have become increasingly popular, not every business owner wants to bank digitally. If your business regularly handles cash, or if you’d simply prefer to be able to speak to someone face to face rather than dealing with online bots that drive you up the wall, a business account with a high street bank could be a better fit.

There are still plenty of options available, so here’s what to consider when choosing one.

How to choose the best high street bank

When comparing high street business bank accounts, you’ll want to consider how you expect to use the account and which features could save you time and money. Here are some of the most important factors to bear in mind:

Branch access

We’ve already mentioned it, but if speaking to a human is important to you, this will be high on the priority list. Check how many branches the bank has and whether there is one within a convenient distance. Also check which services you can use in-branch and which ones you’ll need.

Account fees

As a general rule, high street banks tend to charge more than their digital rivals. Some business accounts are free for an introductory period, while others charge a monthly fee from the outset. Check how long any free period lasts and what you’ll pay afterwards.

You should also check what fees apply for paying in cash, making payments and withdrawing money, and whether there’s a free monthly limit for certain transactions. If your business carries out a lot of transactions, it could be more cost-effective to pay a higher monthly fee in return for a larger fee-free allowance.

Cash and cheque deposits

If your business handles cash or cheques, check how much you can pay in and what fees apply. This can be particularly important for businesses such as shops, restaurants and tradespeople that regularly handle cash.

Online and mobile banking

Even if you choose a high street bank for its branches, you may still be able to use its app or online banking for everyday tasks. Check these services offer the functionality you need, such as making payments and managing standing orders.

Overdrafts and borrowing

High street bank accounts often come with an overdraft and may also offer a suite of other business finance options, such as credit cards and loans.

Customer support

Consider how easy it is to get help when something goes wrong. Check the bank’s telephone support, opening hours and whether you can resolve problems in a branch.

Advantages high street banks have over a digital account

Digital banking might be all the rage but sometimes you just can’t beat being able to walk into a branch and speak to a real person.

If your business regularly handles cash, a local branch can be a real bonus. You can pay in cash and cheques without needing to hunt for alternative options – though do check the bank’s limits and fees first. That said, some digital banks also allow cash deposits through third-parties, such as the Post Office, so you don’t necessarily need a high street branch to pay in cash.

High street banks also typically offer a wider selection of business services, from overdrafts and business loans to credit cards and specialist support. If your business is growing or your finances are becoming more complicated, it can help to sit down with someone to discuss your options.

That said, remember that branch networks have been shrinking, and some services are now online-only. Check exactly what your local branch offers and where alternative branches are located before making your decision.

Bottom line

There’s a lot to like about choosing a high street bank for your business account, but the right option for you will depend on how you actually use your account.

If you like being able to pop into your local branch to deal with queries or pay in cash or cheques, a high street bank business account could be a good fit. Just keep an eye on fees as you may pay more for the convenience.

But if your business rarely handles cash, you’re happy to bank online and you want to keep costs to a minimum, a digital bank might be more suitable.

Frequently asked questions

Not necessarily. Both high street and digital banks can offer strong security. The key thing to check is whether the bank is authorised by the Financial Conduct Authority (FCA) and whether your money is protected by the Financial Services Compensation Scheme (FSCS). Eligible deposits are generally protected up to £120,000 per person, per financial institution, and this applies to both traditional high street banks and digital ones.
Yes, like with personal bank accounts, you can usually switch your business bank account using the Current Account Switch Service. This means the switch will be completed within 7 working days and your new bank will take care of everything for you – including moving over any outgoing payments you have set up and redirecting any payments that go into your old account.

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 is provided by Defaqto. In other cases, Finder has sourced data directly from providers.

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Rachel Wait

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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio

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