Best Business Bank Accounts UK September 2024

Virgin Money has a number of accounts to choose from, so there is likely to be something to suit your needs if your business is based in Great Britain.

Its M Account for Business has no monthly fees for start ups and small businesses with an annual turnover of less than £1 million. You can get cashback on debit card purchases and also apply for an overdraft. 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.

Pros:

• Virgin Money offers a free business account, M Account for Business.
• As well as carrying no monthly fee, daily banking transactions, such as standing orders and direct debits, are free.
• Virgin Money has a current account for charities, with no fees for everyday banking for charities with a turnover of less than £1 million a year.
• Around a third of new Virgin Money business accounts are open on the same day as the application, though the average account opening time is three days.

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.
• Virgin Money has no branches in the South of England, Wales or Northern Ireland.

Ideal for anyone just starting out, Monzo Business makes it easy for you to set up a new account and start managing your money. 

Monzo offers an array of business banking services from accounting software integration to ‘tax pots’. Just remember that you won’t have access to its full range of features unless you pay a monthly fee for its Pro account. 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 phone 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. 

Pros:

• There is a free business account available (Monzo Business Lite). 
• Accounts can be accessed online or via Monzo’s mobile app.
• You may be able to get access to online banking on the same day as you apply.
• In addition to no monthly fee, basic transactions are free with Monzo’s Lite account.

Cons:

• It is not possible to manage the account over the phone or at a branch.
• Business accounts are not available to charities or partnerships.
• Cash deposits will have a fee of £1 at the Post Office and PayPoint. This could affect businesses that frequently need to deposit cash.

Starling has a free business bank account available to sole traders, limited companies and limited liability partnerships with no fees for basic transactions. Its apps have some of the best reviews in the banking market, which, coupled with 24/7 customer service, means it could be suitable for anyone looking for a cheap, easy-to-use business account.

Starling key features:

• No monthly fees: There is no monthly fee for Starling’s business bank account.
• Transactions: Everyday UK payments, such as Faster Payments, direct debits and standing orders, are free.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 

Pros:

• The standard Starling business account comes with no monthly fee.
• You can make Faster Payments, direct debits and standing orders in the UK for free.
• Starling business bank accounts take an average of just one day to get up and running.

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.

TSB is an established UK high street bank offering business banking to sole traders, general partnerships and private limited businesses. Your business must be registered in the UK.

The bank offers one everyday bank account for new business customers. Called the Business Plus Account, there is a monthly tariff (£5 per month) and some transaction fees after an introductory 30-month, fee-free period. For further details, see NerdWallet’s TSB Business Account Review.

TSB key features:

• Physical branches: TSB operates a network of branches across Scotland, England and Wales.
• 30 months’ fee-free: TSB’s 30-month offering is competitive since several banks offer 12 months only.
• Deposit cash and cheques: You can deposit cash and cheques into your Business Plus account via a branch or at any Post Office.
• Payment services app: Business Plus customers can access the Revenu app free for 12 months.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• TSB’s 30-month introductory period exceeds many other fee-free periods offered at rival banks.
• Together with no monthly fees, some accounts include free day-to-day transactions, such as standing orders, direct debits and Faster Payments.
• Accounts 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.
• Business Plus account holders get free access to payment services app Revenu for 12 months.

Cons:

• There are no TSB branches in Northern Ireland.
• Following a 30-month introductory period, business accounts cost £5 per month (for accounts with an average monthly balance of under £10,000), while some transaction charges may also apply.
• Manned customer service is limited to 8am to 5.30pm on weekdays via chat or by phone from 8am to 8pm, Monday to Sunday.
• Setting up an account takes an average of six days, which is longer than many other top business bank account providers we’ve reviewed.

HSBC Kinetic is an app-based business bank account. The account is designed for sole traders and sole directors with an annual turnover of less than £6.5 million. It combines many of the benefits of an online-only business account (its app is one of the best reviewed) with the advantages of a traditional bank.

HSBC Kinetic key features:

• Introductory offer: There is no monthly maintenance fee for the first 12 months. 
• Transactions: There are no charges for everyday banking transactions including direct debits, standing orders and other payments.
• 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).

Pros:

• 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.
• HSBC says most new Kinetic accounts are open within 48 hours.

Cons:

• After the 12-month maintenance-fee-free period, HSBC Kinetic costs £6.50 a month.
• HSBC Kinetic Current Account is only available to sole traders and limited companies with just one director who is the sole shareholder, and a maximum annual turnover of up to £6.5 million.

Ethical and sustainable practices are key to The Co-Operative Bank, so you may want to consider one of its accounts if these issues are important to your business.. What’s more, there are many different accounts to choose from, ensuring that there are options for small businesses, charities and larger companies.

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.

Pros:

• The Co-operative Bank offers multiple accounts with no monthly service fee, including a small business account developed specifically for members of the Federation of Small Businesses.
• Besides no monthly fees, some accounts include free basic transactions, such as standing orders, direct debits and Faster Payments.
• You can manage your business account online, over the phone, via the mobile app and in a branch.
• You can apply for a business overdraft, credit card, charge card and loan.

Cons:

• The Co-operative Bank says that it can take, on average, 13 days to open an account, making it one of the slowest providers to get started with.
• 24/7 customer service is not available.
• There are no branches in Northern Ireland.

With a single product – its Business Rewards Account – Allica Bank is targeting established small and medium-sized enterprises (SMEs). The account carries no monthly fees and allows free bank payments. It could be of particular interest to small business owners looking to earn interest on savings, thanks to dedicated rewards features. 

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).

Pros:

• There are no transaction fees for incoming or outgoing bank payments or card payments, or for outgoing direct debits.
• Allica Bank’s business banking customers in England and Scotland have access to local relationship managers who can provide tailored expertise.
• Each Business Rewards Account provides an instant access savings pot with 4.33% AER.
• Cashback of 1% offered (and 1.5% once you spend £10,000 a month) on eligible purchases using the Business Rewards Account debit card.

Cons:

• It isn’t possible to deposit cash or cheques into the Business Rewards Account.
• While Allica Bank’s customer service team is based in the UK, it doesn’t offer 24/7 customer support.
• It’s only possible to manage your account online or via the app, not over the phone.
• It isn’t possible to send money outside the UK with this account.
• With a set-up time of between three and five days, quicker options are available for businesses looking for a speedy start. 

HSBC offers a range of business accounts for different needs, including an account tailored specifically for small businesses. These options are separate from HSBC Kinetic, which has its own dedicated app.

All of the HSBC business accounts provide free basic banking transactions, such as direct debits, standing orders and other payments. However, there will be a monthly fee once the 12-month free period (if applicable) ends.

HSBC key features:

• Free introductory offer: New business customers will benefit from 12 months of free banking.
• Transactions: Everyday banking transactions are free with an HSBC business account.
• 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.

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, as well as free daily transactions.
• Accounts can be accessed online, via a mobile app, over the phone or at a branch.
• You may be able to access a business loan through HSBC.

Cons:

• HSBC’s small business banking account business banking account both charge a monthly maintenance fee after the introductory period has ended.
• 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.

British high-street bank Barclays offers accounts for start ups and established businesses. Barclays also offers accounts specifically designed for charities and community groups.

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).

Pros:

• There are tailored accounts for start ups or more established businesses, as well as charities and community groups.
• Opening a Barclays business account online means gaining free access to Freshbooks accounting software.
• Customers can access support in branches across England, Wales, Scotland and Northern Ireland

Cons:

• Following an introductory offer period of 12 months, Barclays business accounts carry an £8.50 per month maintenance fee. However, charity accounts continue to be free of monthly fees.
• With an average set-up time of seven days and the potential for a 48-day wait, Barclays is slower at getting customers started than much of the competition.
• Barclays’s start-up account is limited to businesses that have been trading for less than a year.

Mettle business accounts are aimed at self-employed workers and limited companies with up to two owners. Accounts have no monthly fees or transaction charges. Mettle, which is part of the NatWest Group,  also has one of the best reviewed apps on the market, making for a low-cost and simple-to-use account for everyday business banking. 

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.

Pros:

• Mettle business accounts are completely free. There are no monthly fees or transaction charges.
• Mettle’s business banking app is one of the best reviewed on the market.
• You can pay in cash at the Post Office (and also at a PayPoint for e-accounts).
• You can access Mettle customer support via the app or email and over the phone seven days a week.

Cons:

• You cannot access your account at a branch.
• It’s not possible to pay cheques into a Mettle account, or make and receive international payments. 
• You cannot make or receive international payments with your Mettle account. 
• You cannot access business overdrafts, credit cards or loans through Mettle.
• Business accounts are not available to partnerships or charities.
• Mettle can take 72 hours (excluding weekends) to update you on the success or failure of your account application.

RBS offers three accounts that only charge for what you use, meaning there is no fixed monthly fee. 

In addition, the RBS Start-Up Account carries no transaction fees for the first 24 months, making it well-suited to new businesses. 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.
• Account perks: Benefits include free access to FreeAgent accounting software and access to a dedicated relationship manager.
• 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).

Pros:

• There are no transaction fees for the first 24 months when using a Start-Up Account.
• RBS claims that 77% of its customers open their business account on the same day of their application.
• 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.
• After the end of fee-free promotional periods, all transactions from RBS business accounts carry a cost.

NatWest has a variety of business account offerings. There’s an account for start ups, an account for more established businesses, a community account for charities and societies, and even a foreign currency account for businesses that cross borders. For sole traders and small businesses searching for a free mobile business account, there is also NatWest’s Mettle app, which we have reviewed separately.

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).

Pros:

• Accounts can be accessed online, via a mobile app, in a branch or Post Office or over the phone.
• Business customers can access 24-hour customer service from NatWest’s digital assistant.
• New accounts take an average of just one day to open.
• Opening an account gives you free access to accounting software from FreeAgent.

Cons:

• NatWest does not have any branches in Scotland or Northern Ireland.
• Eligibility criteria for NatWest’s start-up account mean it is only open to businesses that have been trading for less than a year and have a turnover of less than £1 million.
• All transactions carry a cost after the end of Natwest’s two-year introductory period.

Ulster Bank is part of the NatWest Group and serves customers in Northern Ireland. It offers three business accounts at a cost of £8 per quarter, equivalent to £2.66 per month. In addition, it offers an international currency account for businesses that operate across borders.

 
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.
• Account extras: Features include access to free accounting software provided by FreeAgent.

Pros:

• Ulster Bank offers easy account management with access available via phone, app, branch or online.
• New business accounts from Ulster Bank take an average of only one day to open. 
• Customers can receive free accounting software provided by FreeAgent.
• Ulster Bank’s lending options include business overdrafts and fixed-rate loans.

Cons:

• Ulster Bank serves Northern Ireland, so customers in Great Britain may prefer an account with NatWest (if they are based in England and Wales) or Royal Bank of Scotland (for customers in Scotland).
• Following a fee-free period, customers will need to pay a standard quarterly tariff as well as fees for everyday transactions.

For business owners with bad credit, Zempler Bank might be an appealing option. There is no credit check when you apply for a business account and the paid-for Business Extra account (£9 a month) includes a credit-building feature.

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).

Pros:

• There is no credit check to open a Zempler business account.
• Zempler Bank accounts are very quick and easy to open, with 99.9% of customers getting their account up and running on the same day they apply. 
• Business customers have access to a number of credit options, including an overdraft.

Cons:

• There is no way to cash cheques with a Zempler Bank business account.
• International payments are not possible through Zempler Bank, though this is on track to be implemented before the end of 2024.
• There are no Zempler Bank branches, so face-to-face support is unavailable. However, account holders can visit the Post Office to deposit cash.
• There is no monthly fee for a Zempler Business Go account, but transfers out cost 30p each after using up the monthly allowance of three free transactions.

There is a lot of choice when choosing a Tide business account. Customers have the option of Free, Plus, Pro and Cashback accounts, each offering different features and prices. But there are attractive extras even with the Free account, which includes accounting software integration, free invoicing, a free company card and more. In addition, Tide boasts quick set-up times and a well-reviewed app.

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.

Pros:

• Tide accounts can be accessed via its website, or a mobile app that is one of the best-reviewed on the market.
• With more than half of new business accounts opened within 10 minutes, Tide is one of the quickest and efficient options if you need immediate access to banking.

Cons:

• Although new accounts are covered by the FSCS, some existing accounts from Tide are not protected.
• Tide account-holders cannot deposit cheques into their account.
• While Tide’s Free plan charges no monthly maintenance fee, everyday transactions, such as incoming and outgoing transfers, carry a cost.