Kristina FoxMany or all of the products and brands we review are from our partners who compensate us. This may influence which products we write about and the product we choose in our ‘promotions’. However it doesn’t influence our reviews or ratings. Our opinions are our own. Read more on our methodology, ratings and what our use of the word ‘Best’ means.
A business bank account is a current account designed for businesses, including sole traders, limited companies, partnerships and not-for-profit organisations – though some banks don’t cover all types of businesses.
There are many different accounts available, so it is important to pick the best business bank account for your needs. Finding the best business bank account for you doesn’t have to be difficult.
We’ve picked our top 10 business bank accounts based on our own research of the market as well as what business owners say are the most important criteria when searching for a business account. That includes monthly fees, easy account access and protection through the Financial Services Compensation Scheme (FSCS).
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Discover HSBC Kinetic Current Account
No monthly current account maintenance fee for the first 12 months. £6.50 thereafter. Other fees and charges apply. T&C’s Apply.
Top 10 Best Business Account Providers
This top 10 is from ten business bank accounts that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings
| Provider | Star rating | No. of accounts | Free account* |
|---|---|---|---|
| Virgin Money |  | 4 | Yes |
| Starling |  | 4 | Yes |
| TSB | | 1 | No |
| Metro |  | 5 | No |
| Barclays | | 3 | No |
| Monzo |  | 2 | Yes |
| Cashplus | | 2 | Yes |
| Tide |  | 4 | Yes |
| Lloyds |  | 6 | No |
| Bank of Scotland | | 4 | No |
*We have only included providers that currently do not charge a monthly or annual fee. It does not include business bank accounts that offer a fee-free introductory offer period; require a special status, such as a charity account; or have minimum turnover requirements.
NerdWallet Star Rating: 4.8 Stars
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Virgin Money M Account for Business
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFrom freeDirect debits/automated payments: Free | CHAPS payments: £17.50
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OfferFree insights dashboard M-TrackManage all your business data in one place, including data from Sage, Xero, Google, Shopify and more.
Pros:
- Virgin Money offers a free business account, M Account for Business.
- Eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
- Over a third of customers were able to open a Virgin Money business account on the same day as their application.
- Virgin Money business banking app available on Android and iOS.
Cons:
- Although Virgin Money offers 24-hour self-service over the phone, it does not offer 24/7 customer support.
- Virgin Money’s completely free M Account is only available for businesses with an annual turnover of less than £1 million.
NerdWallet Star Rating: 4.7 Stars
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Starling Bank Business Account
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFrom freeFree UK bank transfers (£250,000 limit per transaction) | International transfers to 36 countries, for a fee.
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Offern/a
Pros:
- Starling’s standard business account has no monthly fee.
- This account can be accessed on the bank’s website and via a mobile app.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
Cons:
- You cannot bank in a branch or over the phone with Starling Bank.
- There is a 0.7% fee (minimum £3) to deposit cash at the Post Office.
NerdWallet Star Rating: 4.7 Stars
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TSB Business Plus Account
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Monthly Fee£5Free for 30 months, £5 monthly thereafter | Waived if account balance kept above £10,000
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Card Purchase FeesFrom freeUK card purchases: free | Non-UK card purchases: 2.75%
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Bank Transfer FeesFrom freeUK Sterling Direct Debits, standing orders & faster payments: free | CHAPS: £30 | International transfers carry additional charges
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OfferFREE for first 30 months£5 monthly fee thereafter. Waived if account balance kept above £10,000.
Pros:
- 30 months’ free day-to-day banking for new customers opening a Business Plus account.
- The account can be managed online, via a mobile app and over the phone.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
- There are branches in England, Wales and Scotland for in-branch support.
Cons:
- There are no TSB branches in Northern Ireland (though you can open an account).
NerdWallet Star Rating: 4.6 Stars
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Metro Bank Business Account
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Monthly FeeFrom freeFree if you have an account balance over £6,000 every day of each month, otherwise £6 per month.
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Card Purchase FeesFrom freeFree card purchases in Europe | A 2.99% non-sterling transaction fee applies for transactions outside of Europe.
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Bank Transfer FeesFrom freeFree between Metro Bank accounts | Charges may apply to other types of transfer
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Offern/a
Pros:
- The business account can be accessed online, via an app, over the phone or at a branch.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
- You may be able to set up a business account and begin using it on the same day.
- There are Metro banks across England, with one in Wales, for in-branch support.
Cons:
- There may be a monthly charge, and transaction fees if you don’t meet the minimum balance.
- There are no Metro branches in Scotland or Northern Ireland.
NerdWallet Star Rating: 4.6 Stars
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Barclays Business Account
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Monthly FeeFrom freeFree for 12 months for new customers | £8.50 after first 12 months, or if you're an existing customer.
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Card Purchase FeesFrom free
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Bank Transfer FeesFreeFree between Barclays accounts
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OfferNew customers may be eligible for an introductory offer of 12 months without a monthly fee.
Pros:
- Accounts can be managed in a branch, online and via the provider’s app.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
- Customers can access in-branch support in England, Wales, Scotland and Northern Ireland.
Cons:
- A monthly fee applies to Barclays business accounts (after introductory offer, if applicable).
- Barclays can take longer than some mainstream banks to set up your account.
NerdWallet Star Rating: 4.5 Stars
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Monzo Lite Business Account
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFree
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Offern/a
Pros:
- There is a free business account available (Monzo Business Lite).
- Accounts can be accessed online or via Monzo’s mobile app.
- Deposits of up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
Cons:
- Aside from euro transfers, you can’t receive international payments into a Monzo account.
- Business accounts are not available to charities or partnerships.
NerdWallet Star Rating: 4.5 Stars
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Cashplus Business Account
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Monthly FeeFreeOne-off card fee of £9.95
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Card Purchase FeesFree
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Bank Transfer Fees30pFree for first 3 payments sent each month | £0.30 for every transfer thereafter | Direct debits: free
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Offern/a
Pros:
- Cashplus offers a business bank account with no monthly fees.
- Accounts can be accessed online and through Cashplus’s mobile app, on iOS and Android.
- Cashplus business accounts are FSCS protected.
- Cashplus claims that 99.95% of its customers open an account on the same day as their application.
- Cashplus business customers can potentially access overdraft and credit facilities.
Cons:
- You cannot cash cheques with a Cashplus business account.
- You cannot send international payments through your Cashplus account.
- Cashplus doesn’t have any physical branches.
- Cashplus does not have 24/7 customer service.
NerdWallet Star Rating: 4.3 Stars
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Tide Business Account – Free
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer Fees20p
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OfferFREE Tide Accounting + VAT Manager until end of MayTide Accounting is available to non-VAT registered Sole Traders. VAT manager is available to VAT registered sole traders and limited companies (LTDs).
Pros:
- A business account with no monthly fee is available.
- You can access the account digitally via a mobile app and on the Tide website.
- Accounts provided by ClearBank are eligible for protection through the Financial Services Compensation Scheme (FSCS).
Cons:
- Currently, it is not possible to deposit cheques into a Tide account.
- Tide has no physical branches you can visit.
- Business partnerships and charities cannot open a Tide account.
NerdWallet Rating: 4.2 stars
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Lloyds Bank Small Businesses and Start-ups Account
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Monthly Fee£7
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Card Purchase FeesFree
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Bank Transfer FeesFree
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Offer12 months’ free day-to-day business banking for new businessesFree day-to-day Business Banking includes electronic payments, cheques, cash, deposits and withdrawals. You must operate your account in credit or within agreed limits. All lending is subject to status. Security may be required.
Pros:
- You can access the account online, via the mobile app, over the phone and in a branch.
- Deposits may be protected by the Financial Services Compensation Scheme (FSCS).
- You can pay in cash and cheques at a branch or at the Post Office.
- Lloyds has branches in England and Wales for in-branch support.
Cons:
- This account has a monthly fee (after an introductory period, if applicable).
- There are no Lloyds branches in Scotland or Northern Ireland.
- It can take up to six weeks to open a business account.
NerdWallet Rating: 4.2 stars
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Bank of Scotland Small Business Bank Account
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Monthly FeeFree for 12 monthsFree for 12 months, £7 monthly thereafter. Applies to small businesses, including individuals setting up their first business bank account.
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Card Purchase FeesFree
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Bank Transfer FeesFree
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Offer12 months’ free day-to-day business banking for new businessesApplies to small businesses, including individuals setting up their first business bank account.
This top ten only contains business account providers reviewed by NerdWallet UK.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business bank account features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and Cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
How business current accounts work
Business current accounts operate in a similar way to personal current accounts. Generally speaking, you can withdraw or deposit cash and make payments using a debit card, whether you’re shopping online or in a store. You can also accept incoming payments, transfer money to others, and set up standing orders or direct debits.
There are many options available, from online only to those with a high street presence, and from basic accounts to those with more complex add-ons. Many providers offer a free account as well as a paid one but, whichever you pick, you’ll likely be charged transaction fees of some sort. Below is a guide to what you should bear in mind when choosing.
Choosing a business bank account
Consider what type of business bank account you need and whether you want an online business account, a personal experience or a combination of the two. Then compare your business bank account options, taking the following factors into account.
Business bank account features
- Monthly fees: Some business accounts have a monthly fee, which may include some or all transactions. Others will charge transaction fees instead of a monthly fee but a few don’t have any fees at all. It’s worth shopping around to see which pricing structure best suits how you would use the account.
- FSCS protection: The Financial Services Compensation Scheme (FSCS) protects deposits in bank accounts up to £85,000, so you will automatically get your money back up to this limit if your bank fails. If you are a sole trader, money in a personal bank account within the same banking group would count towards your £85,000. E-money accounts do not have FSCS coverage, though there are safeguarding rules in place to protect your money.
- Set-up time: Some providers can set up business accounts on the same day you apply, while others can take days or weeks to set up your account.
- Minimum balance requirements: Some providers may require you to keep your balance above a certain threshold to waive the account’s monthly fee.
- Individual transaction fees: You may be charged a fee per transaction with some business current accounts. These fees can differ depending on the provider and the type of transaction. Some accounts include a certain amount of transactions per month before individual fees then apply.
- Cashpoint access (withdrawals and deposits): Some providers will charge a fee for withdrawing cash at an ATM, at a branch counter or at the Post Office. Some may also charge for cash deposits, while others do not accept cash. It’s worth checking this if your business uses a lot of cash.
- Cheque deposits: Not all business account providers allow you to deposit cheques, while others will charge a fee for this service. If this is important to your business, bear this in mind when choosing a provider.
- International transfer and payment capabilities: If you’re looking to trade in other countries, you’ll need to find a business account provider that supports international payments. Not all providers support this, while others use a partner. Many that do allow payments abroad charge fees for this service.
- Incidental fees (stopping payments, insufficient funds, overdrafts): It’s worth noting whether your chosen provider charges for services, such as unarranged overdrafts or stopping a payment. These fees will vary by provider.
- Online and mobile banking: Depending on how you want to access your account, you may want to check whether an account provider has online banking or a mobile business banking app.
- Additional features, such as integration with other business tools: Many business accounts offer integration with popular accounting software packages. Some providers also have offers where you can get free accounting software with a business account.
Business Bank Account Methodology
NerdWallet evaluated and reviewed 10 business bank accounts from high street and digital-only banks. Collectively, these accounts represent the largest banks by assets and internet search traffic, along with notable or emerging players in the industry.
We considered more than 10 data points for each account, based on the criteria that matter most to users, scoring them on fees, accessibility and customer service, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, data is collected regularly and reviewed by our editorial team for consistency and accuracy.
Using the same data across all products and features we were able to create star ratings on presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.
Frequently asked questions about business bank accounts in UK
What you need to do to open a business bank account in the UK will vary depending on the account provider.
You can usually apply in one of the following ways:
- In a branch: Talk in person with a member of staff before applying.
- Online via the provider’s website: Apply from anywhere, and you could open an account on the same day.
Through a provider’s mobile app: Set up mobile banking and manage your account on your phone as soon as it’s open without having to wait for your card and account details in the post.
Sole traders can open a business bank account. Providers may offer you a specific sole trader account or a standard business account.
If you run a limited company or a limited liability partnership, no matter its size, you are likely to be able to open a business bank account.
Charities, clubs and societies may be able to open a business account. Eligibility is likely to vary between providers, so it’s worth shopping around if you’re looking to open a bank account for a not-for-profit organisation.
Some business bank accounts have strict eligibility criteria, such as minimum or maximum turnover or trading history. Providers may also have restrictions on which business structures and industries can open an account, so it’s a good idea to look through the terms of an account to make sure you’re eligible before applying.
Whether you legally need a business bank account depends on the structure of your business.
Limited companies and limited liability partnerships (LLPs) should open a business current account to manage their money and keep business and personal funds separate.
This is because your business is a separate legal entity to you, so you must have a duty to keep its finances away from your own. One of the ways to do this is by using a business bank account.
Not-for-profit organisations such as charities may find it useful to have a separate business account to manage their finances and keep accurate records of income and expenditure.
Sole traders can also open business bank accounts, though it’s not a requirement; sole traders can also use a personal account for their business.
Along with personal ID, proof of your residential address, and proof of your business address, you may also be asked to show evidence of your annual turnover or estimated income, such as your previous tax return or your business plan.
It can take anything from just a few minutes to a few weeks to open a business current account. It depends on the provider, and how long it takes to complete its checks.
Review methodology
At NerdWallet Ltd UK we base our reviews & ‘Best Of’ pages’ on the results of surveys we undertook about what was important to people that use these products. This allows us to look at products impartially of any commercial arrangements we have, and fairly rate the products on the same set of criteria.
Best means ‘our best’, and is based only on what products we have aligned to our surveys and which forms the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘best of’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible but it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.
You can view our full review methodology here.
About the Author
6 Benefits of a Business Bank Account
Is it worth having a separate business bank account? Limited companies and partnerships legally need to have a business account, but it’s optional for sole traders. However, there are many potential benefits to opening a business account, as listed below.
Rhiannon Philps
What is a Business Bank Account?
If you run a small business, you may need a separate bank account for it. But what is a business account and what can you do with one? Below, we look at what business bank accounts are and what they can offer you in detail.
Why choose an online business bank account?
Online business bank accounts are inexpensive, convenient and easy to use. While they can differ from more traditional options, online accounts may offer extra services or functions that you won’t find at the typical high street bank.
Vivienne Egan