Online Business Bank Accounts

Monzo’s free online business bank account has no monthly fees and free basic transactions. Despite being online-only, the account allows you to deposit cash and cheques, though the former comes at a cost of £1 per deposit.

In addition, a small overdraft of £3,000 is available to Monzo customers with no annual fee. However, representative EAR stands, on average, at 39% variable and the overdraft is only available to sole traders. You cannot integrate third party accounting software with Monzo’s free account, but both its £9 per month Pro account and £25 per month Team account are compatible with Xero, FreeAgent, Sage and QuickBooks.

Eligibility criteria: Monzo is for sole traders or directors of limited companies. Applicants should also be based and registered in the UK.

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

Monzo key features:

• Account opening: Accounts are generally open on the same day as an application is made.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
• Low cost: Monzo has a free business account and two you pay for.

Pros:

• Free online business account available 
• Simple transactions are free with Monzo accounts
• You may get access to online banking on the day you apply
• Wise integration for speedy international transactions

Cons:

• Not available to charities or partnerships
• Overdraft is restricted to sole traders

Tide is an online-only provider with a choice of four different business bank accounts. Among these are its Free account, which has no monthly fee and free UK card transactions. Bank transfers normally cost 20p but are free for 12 months if you apply via NerdWallet.

Cheque deposits can be made via the Tide app. Cash deposits via the Post Office cost 0.99% or a £2.50 minimum fee or 3% via PayPoint. Tide does not offer a business overdraft, though other lending options are available. 

Finally, you can integrate third party accounting software from Sage, QuickBooks, Xero and more. 

Eligibility criteria: Tide applications need to come from UK-based businesses with an owner aged 18 or over.

To learn more, read NerdWallet’s full Tide Business Account Review.

Tide key features:

• FSCS Protection: Eligible deposits of up to £85,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
• Lending options: With Tide, customers have access to lending options such as a government-backed loan for start ups. 
• POS technology: In addition to business bank accounts, Tide offers card readers that allow your business to take payments.

Pros:

• Free bank transfers for 12 months if you apply via NerdWallet
• No monthly fee
• POS technology also available
• Accounts are generally open the day an application is made

Cons:

• Some transactions carry fees
• No business overdraft available

Zempler’s online-only offering is available with no monthly fee through its Business Go account, though you can upgrade to the £9 per month Business Extra account or £19 per month Business Pro account. With the free account, basic UK transactions cost 35p each after you have exhausted a free monthly allowance of three transactions.

Cheque deposits are not available, but cash can be deposited at the Post Office for a 0.55% charge or £4 minimum fee.

When it comes to lending, Zempler offers a modest business overdraft of £2,000, though you’ll need to pay a minimum £50 a year for access. Interest rates apply to all overdraft use beyond the initial £5, though Zempler is not transparent about interest rates as your rate will only be detailed following an application.

Finally, Zempler customers can integrate Xero, Sage or QuickBooks accounting software with their accounts.

Eligibility criteria: Sole traders, limited companies, partnerships and charities can apply for a business account with Zempler.

To find out more, read NerdWallet’s full Zempler Bank Business Account Review

Zempler Bank key features:

• FSCS Protection: Eligible deposits up to £85,000 are protected by the FSCS.
• Lending Facilities: Account holders can apply for business overdrafts or a credit card from Zempler Bank. 
• Additional tools: Zempler offers invoice-building and cash-flow tracking tools designed to help businesses with every day activities.

Pros:

• No monthly fees
• Almost all accounts open on the same day as application
• Overdraft available

Cons:

• You cannot cash cheques
• UK payments and transfers cost 35p each after three free monthly allowances

A Basic account from Revolut, which is designed for limited companies and incorporated businesses, costs £10 per month. Local transfers cost 20p each outside a monthly allowance of ten free transactions. Unfortunately, Revolut does not allow cash or cheque deposits.

In addition, there are no borrowing options available with Revolut. However, accounting software from providers, including Xero and FreeAgent, can be integrated with an account. 

Revolut also offers bank accounts for sole traders, which cost between £0 and £45 depending on your plan.

Eligibility criteria: Applicant companies must be fully incorporated and active, and cannot be charities, cooperatives or operate in the public sector. In addition, sole traders are not eligible for a Revolut business account, but can apply for a Pro account. Finally, an applicant’s legal home address must be in the UK, the European Economic Area (EEA), Switzerland, Australia, Singapore or the United States. 

To find out more, read NerdWallet’s Revolut Business Account Review.

Revolut key features:

• International capabilities: An impressive array of international capabilities includes support for more than 25 currencies and £1,000 a month to exchange at the interbank rate (the rate used between banks). Some of Revolut’s paid accounts even include some free international transactions.
• Impressive app: Revolut’s mobile banking app is one of the best-scoring among consumers, with its features including the ability to instantly take contactless card payments.
• No FSCS protection: Revolut accounts are not protected by the FSCS, as it is classed as an e-money institution.

Pros:

• Sole trader account with no monthly fee
• Great international payment features
• Innovative banking app
  

Cons:

• No free account for limited companies
• You cannot deposit cash or cheques
• Accounts not FSCS protected
• Transaction charges apply outside of monthly allowance

Countingup’s cheapest account tier costs £3 per month, though the tier you are in will automatically be determined by how much each month’s deposits total. The £3 tier is for businesses with deposits under £750, while businesses with deposits between £750 and £7,500 are charged £9. For monthly deposits north of £7,500, a Countingup account will cost £18 per month.

All transactions also carry a fee, with transfers in or out and direct debits costing 30p each. Cash deposits can be made via the Post Office for a 0.5% (minimum £2) fee or PayPoint for 3%. Cheque deposits are not supported.

Countingup offers no overdrafts or borrowing options. However, the account has built-in accounting software and is designed to allow businesses to easily share their financial information with their accountant.

Eligibility criteria: To apply for an account, you will need to be 18 or older, a UK resident and applying as a sole trader or a director of a limited company.

If you want to learn more, read our Countingup Business Account Review.

CountingUp key features:

• In-built accounting software: Accounting tools are included with a Countingup account, including auto-categorisation of transactions, real-time profit/loss tracking and tax estimates.
• Quick application: Countingup says you can sign up in four minutes.
• No FSCS protection: Countingup is an e-money institution and so is not covered by FSCS protection.

Pros:

• Built-in accounting software
• Highly rated app
• Fast accounts opening

Cons:

• No free account available
• All transactions carry a fee
• No cheque deposits
• No FSCS protection