Best business bank accounts for a startup

As a new business, you’ll want to find a bank account that can alleviate some of the admin so you can focus on getting your business off the ground. The good news is that there are business bank accounts created specifically for startups — many of which are free and come with perks and features.

Latest reviews of business accounts for startups

Revolut Business Account (Basic)

8.7 Great

Minimum opening balance	£0
Account fees	£10 per month
Interest (AER)	0% AER

Go to site Read review

Exclusive £100 welcome bonus when you sign up and add money to your account.

Revolut’s low-fee business account could be appealing to startups that rely on sending and receiving international payments. It accepts payments worldwide and it’s possible to swap and hold a large range of currencies. Revolut lets account holders add an unlimited number of team members (unlike many business accounts that restrict access to 1 or 2 company directors). It also offers a wide range of features, such as creating and tracking invoices and linking to accounting software. There’s a lot to like about this account, and now that Revolut is a licensed bank it also offers FSCS protection.

• Pros and cons

  Pros

  • Flexible account options
  • Mobile app with lots of good features
  • Ability to issue cards to all employees
  • Easy to apply
  • Freeze card if lost or stolen
  • Safe and secure
  • Free purchases

  Cons

  • Basic account does not include many free transactions
  • Only incorporated companies are eligible
  • All ATM withdrawals incur a charge
  • Can't deposit cash or cheques into your account
  • Direct debits only available for EUR accounts

• More details

  Minimum opening balance	£0
  Minimum operating balance	£0
  Account fees	£10 per month

Minimum opening balance	£0
Account fees	£10 per month
Interest (AER)	0% AER

Go to site Read review

Tide Business Bank Account (Free)

8.7 Great

Minimum opening balance	£0
Account fees	£0
Interest (AER)	0% AER

Go to site Read review

Get £250 cashback when you open a Tide business bank account by 31 July.

Tide’s simplest bank account is pay-as-you go, which could be a good option if you’re unsure about what features your business might use. You can hold up to 5 business accounts per device, so it could be worth considering if you’ve got multiple companies. Tide’s free account charges for bank transfers, which is a cost that might quickly add up. But the free account has many features that won’t cost you any extra, such as creating and tracking invoices, linking to accounting software, and matching receipts to transactions. For a fee, you can get expense cards for team members too.

• Pros and cons

  Pros

  • 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

  Cons

  • No branches - all done via the web
  • Doesn't accept cheque deposits
  • No personal accounts
  • No international transfers or interest offered

• More details

  Minimum opening balance	£0
  Minimum operating balance	£0
  Account fees	£0

Minimum opening balance	£0
Account fees	£0
Interest (AER)	0% AER

Go to site Read review

Zempler Bank Business Extra

8.7 Great

Minimum opening balance	£0
Account fees	£9 per month
Interest (AER)	0% AER

Read review

No annual or monthly fee when you apply using the Finder link.

The Business Go account is designed with startups in mind. It doesn’t charge a monthly fee and offers credit options such as a cash advance and overdraft to help eligible customers with cash flow issues. Receive money, create invoices and integrate with accounting software without incurring fees. But if you send more than 3 payments each month, want to withdraw cash or need more than 1 card, you will be charged. While the bank doesn’t have its own branches, you can deposit cash into your account at any of the 11,500 Post Office branches around the UK.

• Pros and cons

  Pros

  • Open an account in 5 minutes
  • Pay in cash at any of the UK’s 11,500 Post Offices
  • Tools like cashflow tracking, instant notifications and integrated accounting

  Cons

  • Traditional bank still needed for majority of your business finance needs

• More details

  Minimum opening balance	£0
  Minimum operating balance	£0
  Switch service guarantee	Yes
  Account fees	£9 per month

Minimum opening balance	£0
Account fees	£9 per month
Interest (AER)	0% AER

Read review

What is a startup business bank account?

Some business bank accounts are designed for young companies in their first year of trading. They might offer features, such as free accounting software, invoice tools or programmes to help improve the way you run your business.

You might also find that some startup accounts have a free introductory period. However, once the promotional period ends, the account automatically converts to a normal business account. Once it converts, you might have to pay a monthly fee. You can compare business accounts with sign-up bonuses here.

Also, keep in mind that some banks don’t offer a dedicated account for startups and only offer one type of business account.

Does a startup need a business bank account?

You will need a separate business bank account if you are set up as a limited company. A limited company is a separate legal entity from you, and the money belongs to your business, so you must have a separate bank account from your personal one.

This is mainly for accounting reasons, as your business transactions should be clearly shown. It’s much easier to be transparent about your business expenses if all the payments relate to your company rather than being muddled with your personal transactions.

You might find that many banks just won’t process company payments into a personal account anyway, so you may not have much choice other than using a business account.

If you are a sole trader, this might be less of an issue because your business is not legally separate from you. But it’s still a good idea to have different accounts for personal and business transactions.

Business bank accounts also tend to come with extra features that might be useful for your new company and can make you seem more credible. Learn more about using a personal bank account for business and, conversely, how a business bank account can support a startup.

How to choose a business account as a startup?

If you’ve never run a business before, it might be hard to imagine what you might need from a bank account, but it’s important to think about this carefully.

Here are some things to consider:

• Customer support. If you’ve got a 24-hour business, you might want to look for a bank with round-the-clock support.
• Invoicing. Some accounts make it easy to create invoices and mark them as paid or notify you when a company has missed the payment date.
• Accounting software. Most business accounts let you link to accounting software, but some give you access to this for free.
• Restrictions. Check your chosen bank’s requirements because it may have restrictions on things like the type of business or annual turnover, which might rule out some accounts.
• Customer satisfaction. It’s also worth looking at reviews from existing customers to see if the bank’s service is up to scratch.

How to apply for a startup account (what documents you need)

The banks have different requirements to set up a startup bank account, but most need:

• A form of ID, like a driving licence, passport or national ID card
• Proof of your address
• Your registered company number or name (if you’re a limited company)
• Your unique tax reference number
• Information about the nature of the business

The bank could likely ask for other documents, too, particularly if you’re opening a limited company account.

For example, you might need to provide details about the shareholders and directors of the company, who may also need to carry out an identity check.

Depending on the nature of your business, you might need to provide other documents, such as proof of:

• Qualifications, registrations or licences
• Property ownership
• Membership to an industry body

The exact documents you need to provide might not be evident until you apply for an account.

Bottom line

Given that most startup bank accounts are free, you shouldn’t have to worry about bank fees.

They also typically come with features that suit a new business, so they are worth checking out. That’s not to say that you specifically need a startup business account. But as other business bank accounts may charge you fees, you’ll need to make sure they’re worth the extra cost.

It’s important to compare features and other perks of the various bank accounts, as they could make a difference to the future of your business. Check out our best business bank accounts guide.

Frequently asked questions

• Is it illegal to use a personal bank account for business?

  It’s not illegal to use a personal bank account for business if you’re a sole trader, but it’s still sensible to have a separate business account. If you’re a limited company, it’s mandatory to use a businees bank account for your business transactions as you are legally required to separate your personal and business finances.

• Which bank account is best for startups?

  There’s no simple answer to this, as it depends on your business and what you want from your account.

  As a starting point, you might want to compare the best business bank accounts. Make sure you understand the fees and features.

  If you’re interested in freelance bank accounts, check out our guide on best business bank accounts for freelancers.

  You might also want to read our expert reviews, where we outline the pros and cons of the business bank accounts currently on the market.

To make sure you get accurate and helpful information, this guide has been edited by Holly Jennings as part of our fact-checking process.

Written by

Matthew Boyle

Publisher

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 214 Finder guides across topics including:

• Helping first-time buyers apply for a mortgage
• Comparing bank accounts and highlighting useful features
• Publishing easy-to-understand guides