A business bank account is a current account designed for businesses, including sole traders, limited companies, partnerships and not-for-profit organisations.
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Virgin M Account for Business
For businesses with a turnover of less than £1 million, the M Account for Business gives you free day-to-day online business banking for all your everyday needs.
Our Best Business Bank Accounts
Each of these products may be one of a range offered by the provider. Always check terms & conditions for suitability before applying. Commission earned affects the table sort order. Only affiliated products are shown. Other products are available. Read our guide to ratings.
Virgin Money M Account for Business
- Available for eligible businesses with up to £1m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
NerdWallet's Review Summary
Virgin Money’s M Account is a great all-rounder. For starters, no monthly charges and free basic transactions make it a cost-effective choice that won’t eat into your cash flow.
Plus, you get everything you expect from a traditional bank, while saving time on admin with integrated accounting software and an online hub for your business’s data.
Virgin Money key features:
- No monthly fees
- No basic transaction fees
- 3-month free trial with Xero or QuickBooks
- Track cash flow and more business data with the M-Track dashboard
- FSCS protected
- Earn cashback on debit card purchases
- Bank online, via app, over the phone or in branch
- Enhanced deals for tradespeople
Who can apply?
Applicants must have a turnover of less than £1 million. Businesses should be based in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man) and have owners, directors, senior management and account signatories above 18 years old.
For further details, read NerdWallet’s Virgin Money Business Account Review.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Free basic transactions
- Great for managing your money with the M-Track dashboard
Cons:
- Free account only for companies with annual turnover under £1 million
- No branches in the South of England, Wales or Northern Ireland
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Wallester Business Free Account
- Must be a legally registered business entity (e.g., Ltd, LLP, sole proprietorship) in the UK, European Economic Area (EEA), Switzerland, USA, Canada, or other supported regions
- All account holders and authorised users must be 18 years or older
- Suitable for businesses of any size and industry, including individual entrepreneurs
NerdWallet's Review Summary
A simple, fee-free account for managing expenses and issuing virtual debit cards that offers an impressive alternative to traditional business banking.
Designed for startups, SMEs, and digital-first teams, this account helps you control spending. A smart choice for businesses needing scalable card and expense management.
Wallester Key Features:
- 300 free Virtual Cards included on the plan.
- Unlimited physical cards available.
- Global card use anywhere that accepts Visa.
- International card payments in 10 currencies.
- No monthly fees or setup costs.
- Integrated accounting with QuickBooks and Xero.
- Real-time expense tracking and budget control tools.
Who Can Apply?
UK, Swiss, or EEA-registered limited companies or limited partnerships.
NerdWallet's Pros & Cons
Pros:
- No monthly subscription fee
- Issue hundreds of business expense cards instantly
- Great for international and remote teams
- Smart budgeting and expense management tools
Cons:
- Not a full-featured business bank account
- No overdraft or business loan options
- Mobile app has mixed reviews
- Not covered by the FSCS protection scheme
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Revolut Basic Business Account
Review Summary
If your business crosses borders, Revolut’s Basic Business Banking Account carries a suite of helpful features. Spend in over 150 currencies and exchange £1,000 per month at the interbank rate.
That means you can avoid the stress of juggling multiple tools by managing your money, charging customers and sending payments across the globe all from one place.
Revolut key features:
- Spend in 150+ currencies
- Take payments via phone, card reader, web and more
- Exchange £1,000 per month at the interbank rate
- No-fee international transfers at higher paid tiers
- 10 free local transfers per month
- Great mobile app
- Integrate accounting software
Who can apply?
Companies applying for a business account with Revolut should be active and fully incorporated. Your legal home address should be in the UK, European Economic Area (EEA), Switzerland, Australia, Singapore or the United States.
To find out more, read NerdWallet’s Revolut Business Account Review.
NerdWallet's Pros & Cons
Pros:
- Great international transfer features
- Extensive options for taking payments
- Enjoy smart features with Revolut’s innovative banking app
Cons:
- Accounts not FSCS protected
- All accounts have a monthly fee
- You cannot deposit cash or cheques
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Barclays Business Account
Review Summary
A Barclays Business Account includes free basic transactions and no monthly fees for 12 months, keeping more money in your business’s pocket.
If you worry about the challenges of running and growing a business, Barclays offers tailored support across a huge range of sectors, ensuring your venture has what it needs to flourish.
A great option for those looking to scale, account holders are in line for great savings on bookkeeping software, business insurance and more through Barclays’s marketplace of partners.
Barclays key features:
- Free basic transactions
- No monthly fee for 12 months
- FSCS protected
- Free FreshBooks accounting software
- Save big on business purchases from partners like Meta and AWS
- Dedicated sector-specific support
- Bank online, via app, over the phone or in branch
Who can apply?
You must be 18 years old or above and have the right to live in the UK. The account is for sole traders and limited companies.
For more details, read NerdWallet’s Barclays Business Account Review.
NerdWallet's Pros & Cons
Pros:
- Free basic transactions
- Free access to FreshBooks accounting software
- Help when you need it, thanks to extensive business support options
Cons:
- Monthly fee of £8.50
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Airwallex Business Account
NerdWallet's Review Summary
A cost-effective business account for seamless global payments, built for modern companies looking to scale across borders.
If your business needs to pay overseas suppliers, manage remote teams, or accept international payments, Airwallex is a great choice as an alternative to a traditional business bank account.
Airwallex Key Features:
- Global Account with local bank details in 60+ countries to hold and manage 20+ currencies.
- Fast and cost-effective international transfers to 120+ countries.
- Interbank exchange rates — no hidden FX fees.
- Virtual and physical company card with no international transaction fees.
- Integrates with leading tools like Xero, QuickBooks and NetSuite.
- Open to businesses in the UK and 50+ countries worldwide.
Who can apply?
Limited companies, LLPs, and partnerships in the UK and many other countries.
NerdWallet's Pros & Cons
Pros:
- Free plan available if you meet balance/deposit threshold
- Save on international payments and FX fees
- Great for remote or international teams
- Handy integrations with accounting software
Cons:
- No FSCS protection
- Can’t deposit cash or cheques
- No loans or overdraft facilities
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Tide Business Account – Free
Free
Free
20p
- For registered business accounts: Must be a director of a UK company registered with Companies House.
- For sole trader accounts: Must be a UK-based sole trader or freelancer with a valid UK home address and be registered with HMRC
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold a compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary
Tide is a great choice for business owners who want to streamline their admin. For example, take the pain out of managing payments by easily charging customers via card reader, smartphone, payment links or the web.
You can even save money at the start of your business’s journey by registering a new limited company through Tide for just £14.99 – far cheaper than the £50 it costs with Companies House.
Tide key features:
- No monthly fee
- Connect accounting software from QuickBooks, Sage and Xero
- Save over £35 on new limited company registration
- Take payments with card readers, payment links, tap to pay and more
- Earn interest with a free Instant Saver Account
Who can apply?
Applicants must be aged 18 plus and have a UK-based business.
For more details, read NerdWallet’s Tide Business Account Review.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Great options for taking payments
- Get started quickly by opening an account within minutes
- Earn interest with a free savings account
Cons:
- No branches
- Basic UK transfers cost 20p each
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Monzo Lite Business Account
Free
Free
Free
n/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
NerdWallet's Review Summary
Monzo’s Lite account will help you keep costs low and enjoy one of the best and simplest to use banking apps on the market. If you want to organise your business’s finances on-the-go, there are few better options.
Avoid getting bogged down with business admin thanks to in-built tools for digital receipts, transaction insights and 24/7 in-app customer support.
Monzo key features:
- No monthly fee
- Free basic UK transactions
- Great app reviews
- Accept payments via smartphone or payment links
- FSCS protected
- Earn interest on your savings
Who can apply?
Monzo applicants must be sole traders or limited companies by shares. They also need to be based and registered in the UK and applicants should be aged 16 or above.
For further details, read NerdWallet’s Monzo Business Account Review.
NerdWallet's Pros & Cons
Pros:
- Pros
- No monthly fee
- Same day account opening for over 90% of customers
- Free basic transactions
- Great app, with helpful features
- 24/7 in-app customer support
Cons:
- No phone or branch banking
- Business accounts not available to charities or partnerships
- No accounting software integration with the Lite account
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Zempler Bank Business Go Account
NerdWallet's Review Summary
Zempler Bank’s Business Go account is a solid option with no monthly fees, as well as invoicing tools and cash flow tracking to help you stay in control of your business’s revenue.
The account will particularly suit businesses with low credit ratings, as no credit check is required. If you want to avoid wasting time on failed applications, Zempler might be a good option.
Zempler Bank key features:
- No monthly fee
- FSCS protected
- No credit checks
- Business Creditbuilder tool
- Integrate accounting software from Sage, Xero or QuickBooks
- Manage invoicing, receipts and more with Zempler’s business tools
Who can apply?
This account is open to sole traders, limited companies, partnerships and charities.
For more details, check out NerdWallet’s Zempler Bank Business Account review.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Simple account opening with no credit checks
- Same-day account opening for 99.9% of customers
- Overdraft available
Cons:
- No cheque deposits
- No branches
- Transfers out cost 35p each when monthly allowance is exceeded
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
NatWest Start Up Business Account
- Available to eligible customers over 18, who have the right to be self employed in the UK
- This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
NerdWallet's Review Summary
NatWest’s Startup Business Account has no monthly fees and free basic UK transactions for two years, helping you keep more of your money where it belongs: in your business.
Get banking essentials like branches and a great mobile app, and tackle your money management headaches with free accounting software.
NatWest key features:
- No monthly fee
- No basic transaction fees for 2 years
- FSCS protected
- Free accounting software from FreeAgent
- Great mobile app
- Bank online, via app, over the phone or in branch
Who can apply?
Accounts are limited to businesses that have been trading for less than 12 months, have turnover under £1 million and are registered in the UK. Applicants must be 18 or older. One person on the application must be a UK resident.
For more details, see NerdWallet’s NatWest business account review.
NerdWallet's Pros & Cons
Pros:
- No monthly fees
- Enjoy two years of free basic transactions
- Manage accounts easily online, via the app, branch, Post Office or phone
- Free accounting software from FreeAgent
Cons:
- No branches in Scotland or Northern Ireland
- New accounts take an average of 42 days to open
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Countingup Starter Business Account
- Must be a UK resident, at least 18 years old and running a small business (Sole Trader/Director of a limited company)
- If your maximum monthly deposit is exceeded, then your account will automatically upgrade to the appropriate subscription plan. You will not be able to downgrade from this plan.
Review Summary
Designed for sole traders and small businesses who want to keep things simple, Countingup combines a business current account with built-in accounting tools.
You only pay for what you use as pricing is based on how much you deposit each month.
Here’s how it works:
- Deposit under £750/month? You’ll pay £3/month.
- Deposit between £750–£7,500? It’s £9/month.
- Over £7,500/month? That’s £18/month.
Countingup Key Features:
- All-in-one account with built-in accounting.
- Auto-categorises transactions & estimates tax.
- Real-time profit/loss dashboard.
- Fast account opening – often within 2 hours.
- App rated highly for ease of use.
Who Can Apply?
UK residents aged 18+ who are either sole traders or directors of limited companies.
NerdWallet's Pros & Cons
Pros:
- Built-in accounting tools – no need for separate software
- Quick, fully digital application
- Great for solo business owners
- Transparent pricing tied to deposit volume
- Cash deposits supported at Post Office branches – (0.5%, £2 minimum)
Cons:
- No free plan available
- Every transaction costs 30p
- Doesn’t support cheque deposits
- No FSCS protection
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
What is a business bank account?
Business bank accounts give businesses a place to keep, send and receive money. They are similar to personal bank accounts, but are specifically for business transactions and needs.
They will also bear the name of your business and allow you to access features and customer support that is specifically tailored to business customer requirements. They can also help businesses to build a credit rating, organise their finances and keep up with tax obligations.
» MORE: What is a business bank account?
How business bank accounts work
Business bank accounts, sometimes also known as business current accounts, operate similarly 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 different types of business bank accounts available. These include:
- free business bank accounts
- online-only business bank accounts
- joint business bank accounts
- sole trader bank accounts
- start-up business bank accounts
Choosing a business bank account
Different factors are important to different customers. NerdWallet’s 2025 business banking survey found 70% of business owners are happy to consider a provider with no physical branches, with 43% saying they find digital banking easier. But every business owner is different, and different factors might matter more to you.
Then compare your business bank account options, taking the following factors into account.
- Fees: Business accounts charge a variety of different fees, which you should consider carefully as different pricing structures fit different businesses.
- FSCS protection: The Financial Services Compensation Scheme (FSCS) protects eligible deposits in bank accounts up to £85,000 if your provider goes bust.
- Set-up time: Some providers can set up business accounts on the same day you apply, while others can take several days.
- Minimum balance requirements: Some providers may require you to keep your balance above a certain threshold to waive the account’s monthly fee.
- Cash and cheque deposits: Not all providers allow you to deposit cash or cheques, while others may charge a fee.
- International payments: Not all providers support cross-border payments, while others use a partner. Many that do allow payments abroad charge fees.
- Ways to bank: Check for branch banking, telephone banking, online banking or a mobile app, depending on how you want to access your account.
- Accounting software: Many business accounts offer integration or free trials with accounting software providers.
- Borrowing options: If you are also looking for a loan for your business, you might want to use the same provider for your business bank account.
» MORE: Best Business Loans
How to choose the best small business bank account
For small business owners, picking the right bank account will impact on day-to-day operations. Some providers offer products branded as ‘Small Business Account” or similar which are specifically designed for new or small businesses.
These include features like spending insight tools and access to business mentoring, discounts or free access to other key products, such as accounting software and insurance.
The key thing to remember is to find the account that best matches the requirements of your small business.
For example, an account with no monthly fees might sound great on the surface. However, if everyday transactions carry costs and your small business requires a lot of buying and selling, you could pay a steep price.
Do business bank accounts charge fees?
Most business bank accounts charge some sort of fee. Generally, these can be separated into a regular monthly fee (also sometimes called a maintenance fee) and transaction or service fees.
Transaction or service fees include:
Basic transactions: This term (often interchangeable with ‘transfers’, ‘automated transaction’, ‘electronic payment’ or similar) is usually a catch-all term for day-to-day transactions such as standing orders, direct debits and BACs payments. They are sometimes free or free in the case of account credits.
Cash deposits: Most accounts will charge a fee for adding cash to an account. This fee is generally a percentage of the total deposit, though a minimum flat fee may apply.
Cheque deposits: Cheque deposits normally carry a cost, which is often a flat fee for each cheque you are paying in.
ATM withdrawals: These are free with some providers, though some will charge a flat fee for getting cash out of your account.
International transactions: These fees vary considerably across different providers. If your business will heavily rely on international payments, finding a bank account that caters to this is key.
Overdraft arrangement fee: This is charged when setting up a business overdraft. It may be a flat fee or a percentage of your new overdraft limit. These charges may recur annually.
Costs vary from account to account, but providers usually provide a price list which details the cost of all available transactions and services.
» MORE: Business bank account charges explained
Business bank account pros and cons
Advantages of a business bank account
- Bonus features: Many business bank accounts include extra features such as accounting software, invoicing tools and tax pots.
- Tailor-made: Business accounts are specifically designed for professional use, which means customer support and features are more likely to be helpful for a business owner.
- Professional: A business account will make your venture look more professional.
- Build credit: Building your business credit score could help you to secure financing and investment.
- Easier tax: Working out your taxes is easier with a business bank account, thanks to special features and separation from your personal account.
Disadvantages of a business bank account
- Fees: Though free accounts are available, business bank accounts are more likely to charge fees than personal accounts.
- More admin: Juggling a business and personal account could increase the admin you need to do.
Can you switch business bank accounts?
Switching business accounts is very similar to switching personal bank accounts.
Businesses with fewer than 50 employees and annual turnover of less than £6.5 million can take advantage of the current account switching service. This service simplifies the process and ensures that balances and regular payments are automatically moved across to the new account, while any attempted payments into the old account will be transferred over too.
The providers of both your old and new business bank accounts need to be signed up to the Current Account Switch Service to change accounts in this streamlined way.
» MORE: How to switch business bank account
Best business bank account FAQs
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.
Some providers offer accounts that are tailored for small or new businesses. These products often include additional extras that might appeal to small business owners, such as discounts on third party accounting software or access to business mentoring programmes.
However, small businesses will often be eligible for normal business accounts too, though there might be requirements based on turnover or how long you have been trading.
Every small business is different, and there is no one-size-fits-all answer. However, small business owners may want to focus on accounts with low charges and features that are relevant to their business. This way, small business owners can ensure they get value for money and do not find themselves paying for features they are unlikely to use.
When examining overdrafts, you might often see reference to the equivalent annual rate (EAR). This term represents the interest and compound interest a borrower would pay over 12 months if they used the product. However, EAR does not include additional fees that may be charged by a lender.
It’s easy to confuse EAR with the annual equivalent rate (AER). While they look similar, AER is almost a mirror of EAR. That’s because it refers to the interest that a saver will earn with a product like a savings account, while EAR refers to the interest a borrower will pay.
A final variant worth looking at here is annual percentage rate (APR). This is similar to EAR, but it crucially includes additional fees that a borrower may have to pay.
When it comes to the term ‘representative’, you should be aware that this means a rate is offered to more than half of customers. However, that does not mean that you will be offered the representative rate, as your financial circumstances may not qualify.
Even if you have bad credit, there are still some business bank accounts that you can open. This is because some providers do not require a credit check as part of their application process.
For example, CardOne Money allows business owners to open an account with no credit check. Meanwhile, Zempler Bank even has a tool to help businesses with a poor credit score to improve their rating.
Image source: Getty Images
About the Author
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