Best Business Bank Accounts UK December 2023

Pros:

• There is a free business account available (Monzo Business Lite). 
• At £5 per month, Monzo Pro offers a relatively low monthly fee compared to other banks we reviewed.
• Accounts can be accessed online or via Monzo’s mobile app.
• Your eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
• You may be able to get access to online banking on the same day as you apply.

Cons:

• It is not possible to manage the account over the phone or at a branch.
• Aside from euro transfers, you can’t receive international payments into a Monzo account. 
• Business accounts are not available to charities or partnerships.

Pros:

• The standard Starling business account comes with no monthly fee.
• You can make Faster Payments, direct debits and standing orders for free.
• Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
• The Starling app is one of the best reviewed in the banking market.
• Starling offers 24/7 customer support through its app, over the phone and via email.

Cons:

• Some account features are only available through its Business Toolkit, which costs £7 a month.
• You cannot manage your account over the phone or at a branch.
• Cash deposits at the Post Office carry a £3 minimum fee.

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).
• Virgin Money claims that over a third of customers were able to open its business account on the same day as their application.

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.

Pros:

• All new business customers benefit from 30 months’ free everyday banking.
• The account can be managed online, via the app, over the phone or at a branch.
• Eligible deposits of up to £85,000 are protected by the FSCS.
• There are branches in England, Wales and Scotland for face-to-face support.
• Business Plus customers can get the payment services app Revenu free for 12 months.

Cons:

• While it is possible for customers in Northern Ireland to open a TSB account, there are no TSB branches there.
• Once the 30-month fee-free period is over, the account will be subject to a £5 monthly fee, as well as some transaction charges.
• Customer support is not available 24/7 except for an automated chat service, so any urgent queries can only be answered via the chat’s advisers from 9am to 4.30pm on weekdays or by phone from 8am to 6pm, Monday to Friday and 9am to 2pm on Saturdays.

Pros:

• Introductory period of 12 months with no monthly maintenance fee or transaction fees for certain transactions for new customers.
• The account can be managed via the mobile app, online or over the phone.
• Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Access to a UK-based business management team.
• Customers in Scotland can access face-to-face support at a branch.
• 24/7 customer support via X (formerly Twitter).

Cons:

• There is a monthly fee after the introductory fee-free period.
• With few branches outside Scotland, Bank of Scotland may not be best suited to those who don’t reside there, though you don’t have to be based in Scotland to apply.
• It can take 30 days or longer for the Bank of Scotland to complete all the checks required to open a business account, longer than many of its peers.

Pros:

• The HSBC Kinetic Current Account can be accessed via the app, online, over the phone and at a branch.
• The HSBC Kinetic Current Account business banking app is one of the best reviewed on the market.
• HSBC Kinetic Current Account offers free direct debits, standing orders and other payments.
• You may be able to access a business overdraft, credit card or the specific HSBC Kinetic small business loan.
• Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).

Cons:

• After the 12-month maintenance-fee-free period, HSBC Kinetic costs £6.50 a month.
• While you can make international payments at a branch and over the phone, you cannot make them on the app.
• HSBC Kinetic Current Account is only available to sole traders and limited companies with just one director and shareholder, and a maximum annual turnover of £6.5 million.

Pros:

• You can access the account online, via the mobile app, over the phone and at a branch.
• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• You can deposit cash or cheques at a branch or the Post Office, or via the mobile app.
• Lloyds Bank has branches in England and Wales for face-to-face support.
• The start-up account has no maintenance fee or transaction fees for everyday banking for 12 months with the exception of unauthorised overdrafts and international transactions.
• You can contact Lloyds Bank 24/7 for customer support via its dedicated X account (formerly Twitter).

Cons:

• The account for larger businesses has a monthly fee.
• The start-up account is only free for an introductory 12-month period.
• There are no Lloyds Bank branches in Scotland or Northern Ireland.
• It can take up to six weeks to open an account (though the average is three days).

Pros:

• All three RBS business accounts are free – there is no minimum monthly charge for keeping an account open.
• There are no transaction fees for the first 24 months when using a start-up account.
• RBS claims that 80% of its customers open their business account on the same day as their application.
• RBS call centres are open 24/7 for basic banking enquiries.
• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• You can manage your account in a branch, over the phone, online and via the app.

Cons:

• RBS is less well-suited to a business based in England or Wales as, unless you have an existing RBS business or personal account, you will be directed to open a NatWest account instead. Businesses in Northern Ireland, meanwhile, are directed to open an account with Ulster Bank. 
• The RBS start-up account – which offers 24 months’ transaction fee-free banking – is only available to businesses that have been trading for less than a year and have a turnover of less than £1 million.

Pros:

• Both the HSBC small business banking account and business banking account come with an introductory offer of 12 months of free banking for new customers.
• Accounts can be accessed online, via a mobile app, over the phone or at a branch.
• Everyday banking transactions, such as direct debits, standing orders and other payments, are free with HSBC business accounts.
• Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).
• You may be able to access a business overdraft, credit card or loan through HSBC.

Cons:

• All of HSBC’s business accounts have a monthly maintenance fee after any introductory period has ended (and its charity account charges a monthly fee as soon as you open an account).
• HSBC does not offer 24/7 customer service.
• HSBC says it takes on average 4.9 days to open a business bank account.

Pros:

• NatWest does not charge a monthly fee for business accounts on its standard tariff.
• Accounts can be accessed online, via a mobile app, in a branch or Post Office or over the phone.
• NatWest’s call centres are open 24/7 via its digital assistant for basic banking queries.
• Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Accounts come with free access to integrated accounting software from FreeAgent.
• Accounts can potentially be opened on the same day.

Cons:

• There are no NatWest branches in Scotland or Northern Ireland.
• NatWest’s start-up account is only available to businesses that have been trading for less than a year and have a turnover of less than £1 million.