A good business bank account is crucial for running your business effectively, whether you’re a sole trader or a large established firm. Here you can compare free and paid-for accounts, and see which accounting software each one works with. Find out the accounts that excel in particular aspects in our best business bank accounts guide. We also have 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.
To make comparing even easier we came up with the Finder Score. Fees, features and customer service across 20+ of the most popular banks are all weighted and scaled to produce a score out of 10. The higher the score the better the account – simple.
Read the full methodologyA 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 they 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. You can also set up standing orders and direct debits to pay your bills. Business bank accounts offer a range of extra features you won’t typically 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.
These are some of the key factors you’ll need to consider:
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, it 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.
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:
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. Check out our guide on best business bank accounts for freelancers.
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 Xero, or do you need invoicing support?
Take a look at our guide on the best business bank accounts for the self-employed.
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:
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.
Our customer satisfaction awards are decided by the only votes that really matter – yours. We asked customers of major business banking providers to tell us about their experiences. Now, we can reveal the top rated UK banks – the Customer Satisfaction champions. Learn more about the awards here, including our ratings methodology.
| Brand | Logo | Customers who’d recommend | Review | |
|---|---|---|---|---|
Monzo Business |  | 97% | Monzo Business is rated highly by its customers for ease of use and the ability to manage accounts through its innovative mobile banking app. | |
Airwallex |  | 97% | Airwallex has competitive foreign exchange rates, multi-currency cards and monthly account fees can be waived if certain account conditions are met. | |
Revolut Business |  | 97% | A Revolut Business account is slick, smart and easy to use and set up and great for customers who need to make international payments. | |
Anna |  | 93% | Anna is a digital-only business account which also comes with invoicing and expense management features. | |
Zempler |  | 93% | Zempler is a business bank account designed for small businesses and is FSCS protected. | |
Virgin Money |  | 90% | Virgin Money is a great option if you’re happy to do most of your business banking online with a free trial available. | |
Lloyds Bank |  | 90% | Long-established Lloyds Bank offers business accounts for new and established businesses as well as one for clubs and charities. | |
RBS |  | 90% | Royal Bank of Scotland is loved by business banking customers for its “trustworthiness” and level of service. | |
Santander |  | 87% | Santander operate a range of different business accounts, some of which come with discounted fees for startups or customers who are switching. | |
Tide |  | 83% | Tide is a digital-only business banking provider, and its customers highlighted its “top notch” customer service and ease of use. | |
Allica Bank |  | 83% | Allica Bank provides a business bank account that offers cashback on your spending and no monthly fees, as well as a dedicated relationship manager. | |
TSB |  | 83% | TSB‘s business banking services have proved popular with customers due to the bank’s reliability and good level of customer service. | |
Mettle |  | 83% | Mettle is a digital-only offshoot from parent company NatWest which is free to open and use, and it has strong mobile banking features. | |
HSBC |  | 80% | HSBC offers business banking for startups and new businesses, existing and larger businesses, as well as community organisations. | |
Barclays |  | 77% | Another high-street veteran Barclays business accounts cover most business needs and come with all the advantages of a big bank. | |
The Co-operative Bank |  | 77% | The Co-operative Bank is known for its ethical business banking, and customers commended it on its helpful service. | |
NatWest |  | 73% | NatWest offers a range of business banking options, including specialised accounts for startups and charities. | |
Metro Bank |  | 70% | Metro Bank offers different business account types depending on what your business does and how much it earns. |
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.
Use our free business plan toolkit including a walk-through guide, business plan template and example business plan.
Is your UK business a limited company? We take a look at why you might need a business bank account and how you can go about opening one.
If you have a less than perfect credit history, it’s still possible to get a business bank account – check out our guide to find out how.
The Cumberland building society has two business banking options available for customers within its operating area. Find out what they offer, including all the fees involved.
What can you expect from the Card One Money business bank account? Check out all the features and fees by reading our review.
TSB is a well-known banking name on the British high street, but how does its business account shape up?
Danske Bank provides business banking and investment accounts for large businesses, charities and community organisations.
HSBC offers a range of business banking options, including current and savings accounts, business credit cards and overdrafts.
Bank of Scotland offers banking solutions for businesses of all sizes as well as extensive educational resources.
Bank of Ireland offers straightforward banking options for existing businesses, as well as specialised accounts for startup or new businesses.
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