Some business bank accounts allow you to open an account together with someone else and other accounts allow you to add additional users once the account is up and running. Compare accounts below and learn the advantages and disadvantages of using a joint business bank account.
30 months of fee-free Business Banking when you switch to TSB.
Switch to this account from TSB and you'll benefit from 30 months of free business banking. There will be no monthly fee and no transaction charges to pay during that time. The account comes with a debit card and you'll be able to monitor all your business transactions in the app 24/7. You can deposit cash and cheques into the account at Post Office or TSB branches. Plus you'll have 12 months' free access to Enterprise Nation for tailored advice from industry experts. It's easy to apply for the account online but you'll need to provide details about each partner and have your partnership agreement to hand.
12 months' fee-free monthly and transactional business banking for Business Banking switchers.
This account is ideal for small enterprises and offers 12 months of free business banking for startups or switchers. You can also apply for an overdraft on the account and you can request Visa business debit cards for you and your employees. What's more, you can sync your account with Sage for invoicing, tax and VAT purposes and you'll be able to manage your banking transactions on the go via the mobile app. The account also enables you to carry out international payments (for a fee) and you can request accounts in various foreign currencies too.
This business bank account from Starling has no monthly fee and no UK payment charges. It's easy to apply for the account via the app and you'll benefit from free ATM withdrawals, no fees abroad, integration with accounting software such as QuickBooks, FreeAgent and Xero, automated business spending categorisation, receipt capture, and international payments. Your money will also be protected up to £85,000 under the Financial Services Compensation Scheme and you'll have free 24/7 UK support via the app, phone or email. Accounts can also be customised with add-ons, if you're happy to pay a monthly fee. This includes the Business Toolkit which helps you create and send invoices, calculate tax, record your VAT and submit your VAT return, a Euro business account for exchanging and holding euros, and a US dollar business account for holding, sending and receiving US dollars.
Add the new Business Toolkit onto your free Starling account and get the first month free of charge (RRP £7pcm)
Completely free UK current account opened and ready to use in 20 minutes
Safe and secure
Fully licensed by the FCA and PRA
Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature, competitive and comprehensible overdraft fees
Decent interest rate paid on current account balances
Efficient app offering a range of good features such as budgeting tools and saving features
Has a marketplace offering competitive pensions
Mortgages and insurance from other growing fintech companies
Teen account options
24/7 customer support (for all types of enquiries)
Relatively new so does not offer every feature, e.g. mortgages
No monthly account fee for the first three months.
The CountingUp business account has built-in accounting software that automates bookkeeping and taxes, making it easier to run your business. You can open an account in a matter of minutes and your first 3 months of using the account are free of charge. After that, depending on how much you pay into your account, there are 3 different pricing plans available. This can change from month to month, so if your business has a quieter month, your fee may go down, but if you have a better month and lots of money is paid into your account, your fee will increase. All plans offer automated categorisation, instant notifications, receipt capture, invoicing and billing, profit and loss statistics, tax estimates and the option to share your finances with your accountant. Cash can be paid into the account via the Post Office or PayPoint.
No annual or monthly fee when you apply using the Finder link.
The Cashplus business account can easily be opened online. You'll need to provide some details about your business and, if you're asked to provide ID documents, you'll need to do this for both you and your business partner. The Cashplus business account has 2 different pricing plans, one of which is free, and you'll receive a contactless Mastercard once your account is up and running. The account offers accounting integrations, including Xero, Quickbooks and Sage, and you'll be able to create invoices and categorise spending automatically. If you opt for the paid-for plan you can also benefit from cashback on your spending.
Open an account in 5 mins
"Cashplus iDraft" once eligible
Currency cards for travel
Online services in addition to the mobile app
Charge to have your bank card issued
Traditional bank still needed for majority of your business finance needs
No monthly account fee for the first three months.
You can have your Card One Money business account up and running on the same day you apply, with no credit checks to worry about. The account offers online and mobile access 24/7, and you will be able to manage and pay bills, invoices and wages with ease. You can also pay in cash and cheques and add 4 additional cards for your employees to use for business expenses. Note that the account has a monthly fee plus a one-off application fee. Most card transactions will also incur a fee.
Quick application process
No credit check required
Cashback rewards available on the associated Mastercard
No failed payment fees
Quite a few charges involved compared to some other business accounts, including the £55 application fee, £12.50 monthly account fee and various other transaction fees
No credit or overdrafts available
Account fee
N/A
Bank transfers
N/A
Accounting integrations
FreeAgent Sage Wave Xero
Requires credit check
N/A
Overdraft
N/A
What is a joint business bank account and why open one?
This is a business bank account that more than one person can open and manage jointly. The maximum number of account holders is usually between 2 and 4, depending on the bank.
When you open a joint business account, all account holders will be able to make deposits, debit card transactions and withdraw cash at ATMs. They will also be able to set up direct debits and standing orders.
You’ll need all account holders to provide personal details when opening an account, and you may require permission from all of them to close it or switch to a new account.
It is far more convenient and cost-effective – for tax and accounting reasons – when all company funds are funnelled through one account, and that’s why most partnerships opt for a joint business bank account.
Can I open a business account that offers access to services for my employees?
Some business accounts allow you to grant a level of access to some employees, even if they aren’t an official account holder. This comes with its own set of risks though.
It might also be possible to order multiple debit cards or prepaid cards to be used on the same business account. Many business owners take this route instead, although think carefully about this, as you may be charged a one-off or even a monthly fee per card.
What do I need to open a joint business bank account?
To open a joint business bank account you’ll need to provide the following:
Proof of ID for all account holders. For example, a passport or driving licence.
Proof of address for all account holders. For example, a utility bill or bank statement.
Your business details. Including your company’s registered address and contact details. If you’re a limited company, you’ll also need details of your company’s registration at Companies House and possibly your tax and VAT registration details. Some banks will also require a projected yearly turnover.
Can two business partners open a joint business account?
Yes they can. Setting up a business account together can make it much easier to manage your business finances and both partners will have equal access to the account.
However, it’s vital that you and your business partner trust each other. Because you will both have equal access to the money held in the account, one business partner could choose to withdraw all the funds without the other partner’s permission.
Keep in mind too that if you open a joint account, you and your partner will be financially linked. This means if one of you has a poor credit score, it could negatively affect the other partner’s score too.
Pros and cons
Pros
It’s incredibly convenient to allow all business owners access to the same account.
You may be able to order several debit cards for employees to use.
Cons
You’ll need to be able to trust other account holders to use company money wisely.
All account holders may need to sign off on closing or switching the account.
Alternatives to joint business accounts
Depending on your business needs, you could simply opt to open a standard business account with a single signatory. This way you could delegate all financial tasks like paying invoices, staff salaries and company tax payments to one individual. All banks that offer joint business accounts will also offer the ability to open a regular ‘sole’ business account.
If your business trades with customers in other currencies, like euros, then you may want to open a business account for making and receiving payments in that currency. This is a service that’s typically offered by the raft of newer digital challenger banks, like Starling. These accounts will usually charge a monthly account maintenance fee, so take some time to research the product’s terms and conditions before signing up.
If your business is a small side hustle and you haven’t registered a limited company for these activities, you could open a sole trader bank account.
Bottom line
If your business has multiple owners, it can make a lot of sense to open a joint business bank account. Most business bank account providers allow you to add multiple account holders, so there is plenty of choice available.
However, do your research first before choosing your account provider to be sure it’s the right account for your business. As with sole business accounts, fees and charges will vary between banks.
Frequently asked questions
If you open an account with a UK-authorised bank or building society, your money will be protected by the Financial Services Compensation Scheme (FSCS). This protection applies to the first £85,000 per person per financial institution, or £170,000 for joint accounts. Keep in mind that some digital-only providers do not offer FSCS protection. Instead, your money will be protected through safeguarding rules under the Electronic Money Regulations 2011.
This will depend on the provider, but some business bank accounts do offer an overdraft, particularly if you have a good credit score. Keep in mind that if you’re opening the account with a partner, you’ll be equally liable for repaying the debt. Learn more about getting a business bank account with an overdraft.
The criteria that needs to be met in order for a second or third person to be added to your business account will vary slightly between banks. But as a general rule, the person you wish to add will need to be registered with Companies House as a company director or “person of significant control”. Once this is done, adding that person as a signatory to the account should be relatively straight forward.
Your options will certainly be more limited if you have a poor credit score. But the good news is some providers will allow you to open an account without carrying out any form of credit check – though be aware these can come with higher usage fees and you won’t have access to an overdraft. If you’re opening an account with a partner who has a good credit score, this could improve your chances of getting accepted. But equally the financial link could drag the other person’s credit score down. Learn more about opening a business bank account with bad credit.
This will depend on the provider and the type of business you run. If you’re opening a business account with a digital-only bank, your account could be up and running in a matter of minutes. In other cases, it could take a few days, or even a few weeks if your business structure is more complex.
This largely depends on what type of partnership you form. To get technical for a second, if you form what’s known as a general partnership, then you don’t need a business bank account. A general partnership doesn’t need its own account, as it’s basically an agreement between two or more people (but which can also include a limited company as a “legal person”) to work together in business. If your general partnership owes money then both you and your partner(s) can be personally liable for those debts. If you form a limited partnership, then you will legally need a business bank account to manage the partnership’s finances separately .
Banking scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
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 has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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.
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