Compare self-employed bank accounts

Discover everything you need to know about opening a business bank account if you're self-employed.

It can be a good idea to create a separate bank account to manage your finances when you’re self-employed. A number of providers offer bank accounts that have been designed for those who are self-employed.

Compare bank accounts for the self-employed

Name Product Account fee Bank transfers Accounting integrations Non-Sterling transactions Overdraft Account management Key benefits
Cashplus Business Bank Account
Free
£0.20
First 10 payments sent each month FREE
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero
2.99%

On invitation
App, Online
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
Starling Business Account
Free
Free
FreeAgent, Xero
Free

Min. 18 months trading to apply
App, Online
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
Mettle
Free
Free
FreeAgent, Xero
Unable to make international payments
App
Comes with a suite of free accounting software to integrate with
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. Enjoy premium benefits free for the first 6 months.
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
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
loading

Compare up to 4 providers

Do I need a business bank account or can I use my personal one?

If your business is set up as a partnership or a corporation, you’ll have to run your business finances through a business bank account, for tax purposes.

If your business is a sole proprietorship, you are still taxed as an individual, so there’s no obligation for you to open a business bank account.

However, you may still find it useful to separate your business and personal expenses.

Can you transfer money from a business account to a personal one?

Yes, most business owners will pay themselves a salary – and perhaps an occasional bonus – from their business account into their personal account.

The important thing to do is to record and declare these transactions, for tax and bookkeeping reasons.

In many cases, these payments will be delivered automatically using a payroll software provider, so that they are automatically recorded and the taxes are paid.

If your business is set up as a partnership or a corporation, all one-off payments to your personal account will need to be signed off by your business partners.

Pros and cons

Pros

  • Business bank accounts allow you to separate your business and personal funds. This makes accounting and bookkeeping far easier.
  • Many accounts include useful incentives and improved rates on international payments.

Cons

  • Business accounts don’t tend to have as many incentives as personal bank accounts.
  • Many of the best business bank accounts have monthly account fees and may charge you for making payments.

The bottom line

For most types of business, it is compulsory to have a business bank account.

Even if this isn’t the case for them, the majority of business owners recognise the advantages of opening one.

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.

More guides on Finder

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked
Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site