Compare Business Bank Accounts
- Help your company grow by choosing the right business bank account to suit your business needs.
- Whether you're looking for your first business bank account or want to switch from your current provider.
Choose your business current account options
Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the drop down menu at the top of the page to order by other criteria.
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How to choose a business bank account
In the past, anyone setting up a new business would have to choose between a high street bank or a private bank for their business bank account. Now, times have changed and although these are still popular, there is a vast number of new options in the form on online-only ‘challenger banks’ that offer business current accounts.
With so many similar business account providers out there, it can be difficult to decide which kind of account will work best for your business. Do you value in-branch service, or would you prefer access to a state-of-the-art money management app? Do you want to pay a monthly fee, or would you prefer a ‘free’ account that only charges you for certain transactions instead?
Let’s start by comparing some of the different types of business bank account out there via our comparison table above. The table, together with this simple guide to choosing a business bank account might just help you to find the perfect account for your needs.
High street bank vs online banks
Perhaps the first decision to make is whether you would like to open a business bank account with a traditional bank, which probably has physical branches on high streets around the UK, or whether you would be happy having an online-only account.
You may find that there are advantages and disadvantages to each option. For example, some online business bank account providers may offer useful online tools that can help you keep tabs on things like staff expenses and tax liabilities. However, high street banks usually offer more features and services as standard, although this won’t always be the case. With so many factors to consider, it’s important to take the time to weigh up the pros and cons and use the online research tools available to you.
Deciding which business bank account features and services are important
Perhaps the most important decision to make when comparing business bank accounts is deciding which features and services you need from your account.
Browse the list of common bank account features and services below to help decide what’s important to you. Then check our comparison table to find the accounts that offer your preferred features. It’s then simply a case of finding one that offers charges and fees that you’re happy with and you may have found the right account for you.
Common business bank account features
- Deposits/withdrawals
- Standing orders
- Direct debits
- Bank transfers
- Access to a debit card
- Access to a credit card
- Access to an overdraft
- Mobile app
- Telephone/online banking
- Interest paid on balances
- Accounting tools
Our comparison table above gives you some details of the features offered and the eligibility criteria for each account, so it’s a useful starting point for your research.
Monthly fee vs per-transaction
Business bank accounts usually come at a cost. Some will offer an initial introductory ‘fee-free’ offer, but at some point, almost all business bank account providers will begin to charge you for services. They do this in two distinct ways and, again, it’s up to you to decide what type of charging model suits you best.
Set monthly or annual fee Some business bank accounts charge a set monthly, or even annual, fee. Many transactions and services are then usually included for ‘free’ as part of the account, although additional fees may be chargeable for certain features. This model of paying for your account might be more suitable for you if you plan to make lots of transactions on your account.
Fee-per-transaction This model is often promoted as ‘no monthly fee’, but you pay for the service through fees for certain transactions, such as withdrawals or transfers, for example. If you are expecting to use your account rarely, you may find this model of payment cheaper than a monthly fee.
Choosing the right business bank account FAQs
Can I open a business bank account with a bad credit history?
You may find it difficult to open a traditional business bank account with a high street bank if you have a poor credit rating. You are also likely to come up against problems when applying for credit facilities. However, many basic online business current accounts are available to business owners with poor credit ratings. In fact, some will allow you to open an account without being subject to a credit check at all. However, the features and services offered may be limited.
Are business bank account charges tax deductible?
Yes. You are usually able to include bank account charges and interest charges in your chargeable expenses.
Do I have to open a business bank account?
If you are running a limited company you are obliged to ensure that your business finances don’t get muddled up with your personal finances - though there is no specific law requiring you to open a business bank account. If you are a sole trader, however, you are perfectly within your rights to use your personal account for business income and outgoings, However, if you are struggling to keep your business finances separate, opening a business bank account might make completing your accounting responsibilities easier.
Who can open a business bank account?
Although many business bank accounts do have strict eligibility criteria, such as minimum turnover or trading history, others ask for very little by way of information from applicants. The minimum criteria, however, tends to be that you can provide evidence of a registered business name and address in the UK.
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