Compare business bank accounts UK 2021

Discover what business bank accounts offer and how to compare them to find the best account for you.

Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Cashplus Business Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero
2.99%

On invitation
App, Online
OFFER
Tide
Free
£0.20
Free if both accounts are with Tide
FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Free
App, Online
Register your limited company for free (usually £12) and open a Tide account in one go: choose 'Register a company' from the Tide homepage menu
OFFER
Mettle
Free
Free
FreeAgent, Xero
Unable to make international payments
App
Comes with a suite of free accounting software to integrate with
OFFER
Starling Business Account
Free
Free
FreeAgent, Xero
Free
App, Online
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
CardOneMoney
£12.50
Free in first 3 months
No monthly account fee for the first three months*

From £0.30
N/A
£10
(international transfer out)
App, Online, Telephone
FREE TRIAL
ANNA
Free
Free up to a max. balance of £5,000 (or up to £500 paid in per month)
Free
2 free transfers per month and unlimited free transfers to Anna accounts
N/A
Free
App
Earn 1% cashback for paying with your ANNA card in selected categories. Get a 6-month free trial.
FREE TRIAL
HSBC Kinetic

No monthly account fees during early access*
Free
QuickBooks, Sage, Xero

International payments unavailable

Up to £30,000 subject to eligibility and application
App, Online
*No monthly account fees for 18 months, thereafter a monthly charge of £6.50 applies
FREE TRIAL
Amaiz
£9.99 per month
Free in first month
Free Starter plan available
£0.20
FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
1%
0.5% in Europe, 1% elsewhere
App, Online
Monzo
Free
Free
FreeAgent, QuickBooks, Xero
Mastercard's wholesale rate with no added fees
App
Monese
Free
Free
N/A
£2000 allowance with 2% fee after

No but will deduct the money from your balance the next time you make a deposit and will not charge you a fee
App, Online
Revolut
Free
Free
5/month free then 20p per transfer
FreeAgent, Xero
£3
App, Online
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Compare up to 4 providers

What is a business bank account and what are the benefits?

On a fundamental level, a business bank account is the same as a personal bank account. You’ll use it to store and withdraw cash, and make and receive payments.

However, it’s extremely useful (and compulsory, in some cases) for people to separate their personal and business finances.

This makes it simple to track business expenses, manage cash flow and make tax-based calculations.

Business bank accounts tend to have fewer perks than personal bank accounts, as well as higher fees.

However, you should be able to find some offering advice helplines, tax and budgeting tools, multiple debit cards and/or cashback on spending.

It’s common to receive favourable rates on overseas transactions, which is crucial for international business. You may also be able to access associated business credit cards and other forms of credit.

These are the most important benefits to look out for when comparing business bank accounts.

Do you need a business bank account?

If you have set up your business as a limited company, it is a legal requirement to make and receive all business payments through your business account.

If your business is set up as a sole proprietorship, it is not a legal requirement to open a business account, although you will most likely find it extremely useful to do so.

The reason for the difference in the laws is due to the difference in the tax and liability rules for these different business types. You can learn more in our full guide on whether you need a business account.

How to compare business bank accounts

To compare business accounts, you need to understand which features are most important to you. This will depend on the needs of your business.

It could be:

  • Low account fees
  • Multiple debit cards (at a low price)
  • Access to overdraft or other credit
  • Tax and budgeting assistance
  • Good rates on international transactions

Once you’ve decided which features are most important to you, compare which accounts offer the best of these features using a price comparison website. Our guide on the best business bank accounts could be a great place to start.

Pros and cons

Pros

  • Separate your business and personal finances
  • Many accounts offer assistance with bookkeeping and budgeting
  • Most accounts offer good rates on international transactions

Cons

  • High fees compared to personal accounts
  • Fewer features compared to personal accounts

The bottom line

Whether or not it’s a legal requirement for you to open a business bank account, there are many useful reasons for business owners to have one, especially if you use these tips to find the best one for your needs.

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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