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Best Business Bank Accounts UK October 2024

Finding the right business bank account for your business – whether it’s big or small – can help transform its finances. But where should you start? Compare the pros and cons of NerdWallet’s top 15 best business accounts below.
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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 in the UK, so it is important to pick the best business bank account for your needs. Finding the best account for your business doesn’t have to be difficult, whether you run a small business or a larger operation.

We’ve picked our top 15 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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Top 15 Best Business Bank Accounts

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Provider

NerdWallet’s Rating

Monthly Fee

UK Card Purchase Fees

UK Bank Transfer Fees

4.7 / 5Best for high street Free Free From free
4.7 / 5Best for free accounts Free Free Free
4.7 / 5Best for its app Free Free Free
4.4 / 5 Free for 12 months Free Free
4.3 / 5 Free Free Free
4.2 / 5 Free Free From free
4.2 / 5 Free for 12 months Free Free
4.2 / 5 Free for 12 months Free Free
4.1 / 5Best for transactions Free Free Free
4.1 / 5 Free Free for 24 months Free for 24 months
4.0 / 5 Free Free for 24 months Free for 24 months
3.9 / 5 Free for 24 months* Free for 24 months Free for 24 months
3.8 / 5 Free Free 3 free per month
3.7 / 5 Free Free 20p
3.6 / 5 Free Free Free

Top 15 Best Business Account Providers

This top 15 is from 23 business bank accounts that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings.

Virgin Money M Account for Business

4.7 NerdWallet's ratings

Free

Free

From free

3 months’ free QuickBooks or Xero

  • 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 four business bank accounts include the free M Account for Business. This account includes free basic transactions, such as standing orders and direct debits, and free cash or cheque deposits at ATMs.

Overdrafts and other lending options are available, and users can manage their account online, through an app, over the phone, at a Post Office or in a branch. 

Virgin Money business accounts can be integrated with QuickBooks or Xero accounting software, and opening an account will give you a free three-month trial with either. All accounts feature FSCS protection on deposits of up to £85,000.

Eligibility criteria: 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.

Virgin Money key features:

  • Account perks: There are a number of account perks, such as cashback when using your business debit card and discounts with selected retailers and merchants. 
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
  • Charities: The bank has dedicated current accounts for charities and does not charge fees for every day banking if the charity has less than £1 million turnover a year.
NerdWallet's Pros & Cons

Pros:

  • No monthly fee
  • Free basic transactions
  • A third of Virgin Money business accounts open the same day

Cons:

  • Free account only for businesses 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.

Monzo Lite Business Account

4.7 NerdWallet's ratings

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 free Lite account charges no monthly fees and includes free basic UK bank transfers. Cash and cheque deposits are possible, but cash deposits cost £1 and are limited to £1,000 per six-month period.

Overdrafts of £2,000 are available for eligible sole traders, though interest rates as high as 39% EAR apply. Monzo accounts can be managed online, or via its well-received mobile app. Monzo shines with additional features, including an instant access savings pot, fee-free spending abroad and 24/7 customer service.

On the downside, accounting software cannot be integrated with Monzo’s Lite account. However, Xero, FreeAgent and QuickBooks are compatible with Monzo’s Pro account, which costs £5 per month. This paid account also includes a free trial of Xero for new users.

Eligibility criteria: Monzo applicants must be sole traders or limited companies by shares. They also need to be based and registered in the UK. 

For further details, read NerdWallet’s Monzo Business Account Review.

Monzo key features:

  • Quick set-up: Most customers get an account on the same day, applying via the app.
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
  • 24/7 customer support: You can contact Monzo’s in-app customer support around the clock with urgent concerns. 
NerdWallet's Pros & Cons

Pros:

  • No monthly fee
  • Open account on the day you apply for 90% of customers
  • Free basic transactions

Cons:

  • No phone or branch banking
  • Business accounts not available to charities or partnerships
  • Cash deposits £1 at the Post Office and PayPoint
  • 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.

Starling Bank Business Account

4.7 NerdWallet's ratings

Free

Free

Free

n/a

  • Must be a Limited Company or LLP registered at Companies House. General partnerships or charities that aren’t registered as a Limited Company aren’t supported yet
  • All directors with access to the account must be UK residents
NerdWallet's Review Summary

Starling offers one business bank account, which is free of monthly fees. However, business owners can pay for add-ons such as the £7 per month Business Toolkit, the £2 per month Euro business account or the £5 per month Dollar business account.

Basic UK transactions are free. Cash deposits can be made at the Post Office for a 0.7% or £3 minimum fee, while cheques can be deposited for free via its app or Freepost.

Business overdrafts of up to £50,000 are available, with a 1.75% arrangement fee (recurring annually) and a rate subject to credit assessment.

Xero, QuickBooks and FreeAgent accounting software can be integrated.

Eligibility criteria: Starling applicants must be sole traders, limited companies or limited liability partnerships. All persons of significant control (PSCs) must be individuals who are UK residents.

Starling key features:

  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 
  • Lending options: Businesses can apply for an overdraft, as well as a business loan of up to £250,000.
NerdWallet's Pros & Cons

Pros:

  • No monthly fee
  • Free UK basic transactions
  • Starling business bank accounts open in one day

Cons:

  • Some account features only accessed via its £7-a-month Business Toolkit
  • No banking via phone or branch
  • Cash deposits at the Post Office for a £3 minimum fee

HSBC Kinetic Current Account

4.4 NerdWallet's ratings

Free for 12 months

Free

Free

n/a

  • You are the sole trader, or sole director and sole shareholder of the limited company
  • Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
  • Maximum annual turnover of £6.5M
NerdWallet's Review Summary

HSBC Kinetic is a single account aimed at sole traders and small businesses. It costs £6.50 per month following a 12-month introductory period, though basic UK transactions are permanently free. Cash and cheque deposits are possible, but are subject to 1.5% and 50p fees respectively, in addition to a branch credit fee of £1.50. Customers can also deposit cash and cheques at Post Office branches.

Users can apply via the app for an overdraft of up to £30,000, though a representative EAR of 15.96% and daily fees apply. Accounting software from Sage and Ember can be integrated with this account, with a discounted deal available for the latter. 

Eligibility criteria: Applicants must be a sole trader or limited company with a sole director with annual turnover of below £6.5 million. In addition, applicants must be a UK tax resident (not Channel Islands or Guernsey).

HSBC Kinetic key features:

  • Access to other banking facilities: Eligible customers can apply for a business overdraft or credit card. Similarly, you can apply for an HSBC Kinetic Small Business Loan worth between £1,000 and £10,000.
  • FSCS protection: Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • Free basic UK transactions
  • Up to £30,000 overdraft
  • Most new accounts open within 48 hours

Cons:

  • Monthly fee of £6.50
  • Annual turnover of below £6.5 million required

The Co-operative Bank Business Current Account

4.3 NerdWallet's ratings

Free

Free

Free

Free everyday digital business banking + access to selected Clover payment terminals for £1 a month*

  • Must be aged 18 or over
  • Must be a UK resident with a business address in the UK
  • Must be sole trader or Limited company that is owned or controlled by one person
NerdWallet's Review Summary

The Co-Operative Bank offers six different business bank accounts, including free options like the Business Current Account. Basic UK transactions are free with this account, though cheque deposits cost £1.50 and cash deposits are charged at £1.50 per £100.

Overdrafts are available up to £250,000, though an arrangement fee of 1.5% or £50 (whichever is higher) applies. Interest rates vary.

Accounting software, including Xero and QuickBooks, can be integrated with a Co-Operative Bank business account.

Eligibility criteria: This account is for sole traders and limited companies with one director and a business address in the UK. Applicants and key people must be 18 or over and a UK resident.

For further details, read NerdWallet’s The Co-operative Bank Business Account Review.

The Co-operative Bank key features:

  • Range of accounts: The Co-op Bank offers six business accounts, so there is an option suitable for almost every business type, including charities.
  • FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
  • Access to overdraft and credit facilities: With a Co-op business account, you can apply for an arranged overdraft, a charge card for expenses, a credit card, and a variable rate business loan.
  • Customer support options: The account can be managed online, over the phone, via the app and at a branch.
NerdWallet's Pros & Cons

Pros:

  • No monthly service fee
  • Free basic transactions
  • Account management online, by phone, via app or branch
  • Arranged business overdraft of up to £25,000

Cons:

  • Takes, on average, 13 days to open an account
  • No branches in Northern Ireland

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Allica Bank Business Rewards Account

4.2 NerdWallet's ratings

Free

Free

From free

Up to 1.5% cashback

  • For UK-based businesses only
  • Must have been trading for at least 12 months
  • Must have a minimum balance of £50k or be an existing Allica loan product customer
NerdWallet's Review Summary

Allica Bank customers pay no monthly fee and can make basic UK transactions for no charge. However, cash and cheque deposits are not possible with Allica. 

Allica does not offer business overdrafts, though borrowing options such as loans are available. In addition, accounts can be integrated with Xero and Sage accounting software.

Eligibility criteria: Applicants should be businesses that have been incorporated for a minimum of 12 months, and keep a balance of more than £50,000 in their account. In addition, businesses that have a loan product with Allica Bank may be eligible.

For more details, read NerdWallet’s Allica Bank Business Account review.

Allica Bank key features:

  • Instant access savings pot: You can earn 4.33% AER on business savings, as well as depositing or withdrawing from these at any time.
  • Cashback on eligible purchases: Earn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000. Aggregate purchases are when all the smaller sums you’ve spent are added together.
  • FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • Free basic UK  transactions
  • No monthly fees
  • Local relationship managers in England and Scotland
  • Access an instant access savings pot with 4.33% AER
  • 1% cashback (and 1.5% once you spend £10,000 a month) on eligible purchases

Cons:

  • No cash or cheque deposits
  • No phone or branch banking
  • Set-up time of between three and five days

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

HSBC Small Business Banking Account

4.2 NerdWallet's ratings

Free for 12 months

Free

Free

n/a

  • For small enterprises (including not-for-profits) with borrowing needs of up to £100k
  • Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
  • Not available for sole trader or single director shareholder businesses
NerdWallet's Review Summary

HSBC’s Small Business Banking Account costs £8 per month following the end of a 12-month promotional period. Simple UK transactions are free, though cash deposits cost 1.50% and cheques are 50p apiece.

HSBC does offer business overdrafts, which are subject to an arrangement fee (minimum £25 and annually recurring) and representative EAR 15.96% variable. Users can integrate accounting software products, such as Sage and Ember.

Eligibility criteria: This account is for small and medium-sized businesses, with HSBC pointing sole traders and single directors towards its Kinetic account. However, sole traders, limited companies, unlimited companies, partnerships, limited liability partnerships and non-charitable clubs/associations/societies can all apply. Relevant parties need to be based in the UK (excluding the Channel Islands and the Isle of Man) and aged 18 or above.

HSBC key features:

  • Account access: You can benefit from banking at a branch, as well as managing your account on the app, online or over the phone.
  • Credit facilities: Business overdrafts, credit cards or loans may be available through HSBC.
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons

Pros:

  • Free basic UK  transactions
  • Account access online, in-app, by phone, at a branch or Post Office
  • Potential to access an overdraft

Cons:

  • Pay £8 a month for the small business bank account
  • Average set-up time of 4.9 days

Barclays Business Account

4.2 NerdWallet's ratings

Free for 12 months

Free

Free

Free invoicing and accounting software

  • Must have an annual turnover between £400k- £6.5m
  • Must have a straightforward and clearly defined ownership structure
  • Must be at least 18 years old and be based and operate in the UK – including business owners
NerdWallet's Review Summary

Barclays offers accounts for start-ups and more established businesses and we have picked out the latter. It costs £8.50 per month following a year-long introductory period, though simple electronic payments are free. Cash and cheques can be deposited, with cash costing 60p per £100 and cheques at 60p each. 

Customers can get a business overdraft of as much as £50,000 from Barclays, with representative EAR standing as high as 18.30%. 

When it comes to accounting software, Barclays accounts can integrate with multiple providers and customers receive access to FreshBooks for free.

Eligibility criteria: Businesses must have been trading for more than 12 months for this account, though Barclays does have a startup account for younger companies. You must be 18 years old or above, have the right to live in the UK and be able to provide a three-year history of UK addresses. The account is for sole traders and limited companies.

For more details, read NerdWallet’s Barclays Business Account review.

Barclays key features:

  • Account access: Barclays accounts can be accessed online, via the app, over the phone, or at a branch.
  • Credit facilities: Banking with Barclays can offer access to credit facilities, including loans, mortgages and overdrafts.
  • FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • Tailored accounts for start ups, established businesses, charities and community groups
  • Free access to FreshBooks accounting software
  • Branches, and at Post Offices, throughout the UK

Cons:

  • Monthly fee of £8.50
  • Average set-up time of seven days
  • Start-up account only for businesses less than a year old

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Mettle Business Bank Account

4.1 NerdWallet's ratings

Free

Free

Free

FreeAgent Included

  • For sole traders or limited companies with up to two owners
  • Maximum balance of £1million
  • You’ll need an iOS or Android device to open and manage the account
  • For UK-based companies with owners who are UK residents and pay tax in the UK only
NerdWallet's Review Summary

Mettle offers a single business banking product, which is completely free of monthly charges or transaction fees. 

Cheques cannot be deposited into a Mettle account and cash deposits, which must be made at the Post Office, are limited daily at £500 and annually at £23,000. In addition, Mettle does not offer overdrafts or any other form of lending.

Accounting software can be integrated, with customers getting free access to FreeAgent as long as they make a minimum of one transaction per month from their Mettle account.

Eligibility criteria: Mettle is for UK-registered sole traders and limited companies. Applicants need to be aged 18 and over and only pay tax in the UK. In addition, account balance is capped at £1 million.

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features:

  • Business banking app: Mettle’s business banking app has excellent reviews on both iOS and Android devices.
  • Sole traders and limited companies: You can only get a Mettle business account if you are a UK-based sole trader or a limited company with up to two owners.
  • Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons

Pros:

  • No monthly fees
  • Free transactions
  • Well-reviewed app
  • Mettle customer support via the app, email and by phone daily

Cons:

  • No branch access
  • No cheque deposits
  • No international payments
  • No overdrafts, credit cards or loans
  • Not for partnerships or charities
  • Can take 72 hours to open an account

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

RBS Start Up Business Account

4.1 NerdWallet's ratings

Free

Free for 24 months

Free for 24 months

24 months free banking

  • 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

RBS offers several different business accounts for companies of different sizes, but each account has no monthly fee. Following two years of free banking, transactions do carry a fee. All automated payments coming in or going out of your account (such as direct debits, standing orders and ATM withdrawals) cost 35p each. In addition, cash payments cost 70p per £100 and cheque deposits are 70p each.

RBS also offer business overdrafts of up to £50,000, though set-up fees of between £50 and 1.5% apply. In addition, the representative EAR on a £25,000 overdraft is 14.64%. Free access to FreeAgent accounting software is included with an account.

Eligibility criteria: Applicants must be aged 18 or over and applying on behalf of a business registered in the UK. These businesses must have been trading for less than 12 months and have turnover of less than £1 million. One person on the application must also be a UK resident. Applicants from England and Wales may be directed to open an account with NatWest, while those in Northern Ireland may be directed to apply with Ulster Bank.

For more details, see NerdWallet’s RBS business account review.

RBS key features:

  • Transaction fees: Opening a Start-Up Account means you will not have to pay transaction fees for the first 24 months.
  • Additional features: You can also apply for a business overdraft, credit card or loan through an RBS business account.
  • Charities included: A range of charities and not-for-profit organisations can have access to RBS business accounts.
  • FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • No monthly fees
  • No transaction fees for 24 months
  • Account opening takes an average of one day
  • Manage accounts in branch, at the Post Office, by phone, online and via app
  • Free FreeAgent accounting software

Cons:

  • RBS best-suited to customers in Scotland 
  • Fees for all transactions after 24 months

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

4 NerdWallet's ratings

Free

Free for 24 months

Free for 24 months

24 months free banking

  • 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 accounts for start ups and more established businesses are both free of monthly fees. However, following a free 24-month period, all transactions carry a cost. For example, basic UK transactions, such as standing orders and direct debits, cost 35p every time they enter or leave an account.

Cash deposits cost 70p per £100 and cheques cost 70p each. 

Meanwhile, overdrafts of up to £50,000 are available, though arrangement fees of between £50 and 1.5% apply. On a £25,000 overdraft there is a representative AER of 14.64%.

Accounting software integration is available with FreeAgent, which is included for free with a NatWest business account. 

Eligibility criteria: 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. Applicants in Scotland may be directed to apply for an account with RBS, while those in Northern Ireland may be redirected to Ulster Bank.

For more details, see NerdWallet’s NatWest business account review.

NatWest key features:

  • In-branch support: Customers across England and Wales can head into NatWest branches for customer service in person.
  • Introductory offer: Day-to-day transactions are free for two years and there are no monthly fees.
  • FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • Manage accounts online,via the app, branch, Post Office or phone
  • New accounts typically open in one day
  • Free accounting software from FreeAgent

Cons:

  • No branches in Scotland or Northern Ireland
  • NatWest’s start-up account only open to newer businesses
  • Fees for all transactions

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Ulster Bank Business Bank Account

3.9 NerdWallet's ratings

Free for 24 months*

Free for 24 months

Free for 24 months

24 months free banking

  • Available to eligible customers over 18 who have the right to be self employed in the UK or Northern Ireland
NerdWallet's Review Summary

Ulster Bank’s business bank accounts cost £8 per quarter, with basic credits and debits to the account (such as direct debits) costing 43p each. In addition, standing orders are 58p each. Cash deposits cost 70p per £100 and cheque deposits are 48p each. These deposits can be made at a branch or the Post Office.

Customers can get a business overdraft of up to £50,000, though an arrangement fee of 1% (with a £150 minimum) applies. A £25,000 overdraft from Ulster Bank has a representative AER of 12.55%.

Free accounting software from FreeAgent is bundled in with accounts from Ulster Bank. 

Eligibility criteria: This account is for sole traders, limited companies and partnerships where all members reside in the UK. Applicants must be 18 or older and their business should have been trading for less than a year with turnover below £1 million.

For more information, read NerdWallet’s Ulster Bank Business Account review.

Ulster Bank key features:

  • FSCS Protection: Accounts at Ulster Bank are protected by the FSCS for deposits up to £85,000 as part of the NatWest group.
  • Lending Facilities: Customers have access to a number of different loans and finance options, as well as business overdrafts and a credit card.
NerdWallet's Pros & Cons

Pros:

  • Manage accounts via phone, app, branch or online
  • Business accounts, on average, open in one day 
  • Free accounting software from FreeAgent
  • Overdraft of up to £50,000 available

Cons:

  • Ulster Bank best serves customers in Northern Ireland
  • Maintenance fee of £8 per quarter
  • Charges for all basic UK transactions

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Zempler Bank (formerly Cashplus) Business Go Account

3.8 NerdWallet's ratings

Free

Free

3 free per month

n/a

  • Available to UK registered companies with at least one UK resident director or UK-based sole traders and self-employed
  • Applicants must be aged 18+ and have a valid UK phone number and residential address
NerdWallet's Review Summary

Zempler Bank, which has rebranded from Cashplus, offers two accounts. Its Business Go account has no monthly fee, though basic payments cost 30p each after using up a monthly allowance of three free transactions.

Cash deposits at a Post Office are subject to a £3 minimum fee or 0.5% of the total amount paid in. Cheque deposits are not possible with a Zempler account. 

Zempler does offer a business overdraft of up to £2,000, with customers paying an annual fee of £50 for access. The first £5 of the overdraft is interest free, with interest rates detailed upon application. 

Xero, QuickBooks and Sage accounting software can all be integrated with a Zempler business bank account.

Eligibility criteria: This account is open to sole traders, limited companies, partnerships and charities.

For more details, check out NerdWallet’s Zempler Bank Business Account review.

Zempler Bank key features:

  • Credit and overdraft facilities: You can get a business overdraft or a business credit card with Zempler Bank..
  • FSCS protection: Zempler Bank is a fully licensed bank, so your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
NerdWallet's Pros & Cons

Pros:

  • No monthly fee
  • No credit check
  • Same-day account opening for 99.9% of customers
  • Overdraft available

Cons:

  • No cheque deposits
  • No international payments
  • No branches
  • Transfers out of 30p each after monthly allowance used up
  • Overdraft limited to £2,000 and fees apply

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Tide Business Account – Free

3.7 NerdWallet's ratings

Free

Free

20p

Earn 4.33% AER each month when you open a business bank account T&Cs apply

  • For registered business account: you must be registered with UK Companies House as a director of that company or partnership
  • For sole trader account: you must be a UK based sole trader/freelancer
  • For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary

Tide has three business current accounts, including a free account with no monthly fees. Basic transactions entering or leaving your account cost 20p each with this account, while cash deposits at the Post Office cost 0.5% of the amount deposited or a £2.50 minimum. 

Cheque deposits can be done via the Tide app, but are only possible for sole traders at the moment. In addition, Tide does not offer a business overdraft facility.

Tide customers can integrate their accounts with accounting software providers, such as Sage, QuickBooks, Xero, FreeAgent, ClearBooks and more. 

Eligibility criteria: Applicants must be aged 18 plus and have a UK-based business.

For more details, read NerdWallet’s Tide Business Account Review.

Tide key features:

  • Protected: Eligible deposits of up to £85,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
  • Free and paid accounts: Tide customers can enjoy free basic accounts, or more comprehensive paid packages.
  • Business lending: Tide offers business lending options, as well as a business credit builder feature.
NerdWallet's Pros & Cons

Pros:

  • Well-reviewed mobile app
  • No monthly fee
  • More than half of new business accounts open within 10 minutes

Cons:

  • No cheque deposits for limited companies
  • Basic UK transfers cost 20p each
  • No branches

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

SumUp Business Account

3.6 NerdWallet's ratings

Free

Free

Free

n/a

  • Free account available to businesses transacting less than £10K per month. Bespoke fees and premium support available if over £10k is transacted per month
  • Must have a valid form of ID, such as a passport or driving license
  • Must be able to provide a utility bill or bank statement as a means of verifying your address
NerdWallet's Review Summary

SumUp’s business account has no monthly fee and includes free basic UK transactions, such as transfers, direct debits and Faster Payments. Cash and cheque deposits are not possible with a SumUp account. In addition, no overdraft is available from SumUp.

However, you can link your account with accounting software providers including FreeAgent, Xero and QuickBooks.

Eligibility criteria: Freelancers, sole traders, limited companies, partnerships and charities can open a SumUp account. However, applicants must be at least 18 years old.

For more details, check out NerdWallet’s SumUp Business Account Review.

SumUp key features:

  • Not protected: SumUp’s business account is an emoney account and does not include protection from the Financial Services Compensation Scheme (FSCS).
  • Point of sale: SumUp provides point of sale (POS) technology, allowing you to take payments via a terminal and have the money in your account in just one day. 
  • Business tools: Invoice management and online store creation tools are available through the SumUp app.
NerdWallet's Pros & Cons

Pros:

  • No maintenance fees
  • No fees for direct debits and Faster Payments
  • Open an account in minutes online

Cons:

  • No cheque or cash deposits
  • No overdraft available
  • No branches
  • Not FSCS protected
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This top 15 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.

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:

Choosing a business bank account

Different factors are important to different customers. NerdWallet’s 2024 business banking survey found that business owners most commonly looked for an account with no monthly fee (chosen by 43% of respondents) and free basic UK transactions (selected by 34%). However, you may look for other factors when making your decision.

Then compare your business bank account options, taking the following factors into account.

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

Disadvantages of a business bank account

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

Business Bank Account Methodology

NerdWallet evaluated and reviewed 23 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 presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.  

Best business bank account FAQs

How do I open a business bank account?

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.

Who can open a business bank account?

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.

Do I legally need a UK business bank account?

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.

What is required to open a business bank account?

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.

How long does it take to open a business bank account?

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.

What are small business accounts?

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.

Which bank account is best for a small business?

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.

Can you open a business bank account with a bad credit history?

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.

» MORE: Business bank accounts with no credit checks

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Review methodology

At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who 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, which form 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’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.

Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.

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 there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.

While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.

You can view our full review methodology here.

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