Best Online Only Business Bank Accounts December 2024

Monzo’s free online 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, and only £1,000 can be paid in cash and cheques into your account during a six-month period. 

In addition, a small overdraft of £2,000 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 its £5 per month Pro account is compatible with Xero, FreeAgent and QuickBooks. In addition, it also includes a six-month trial with Xero.

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 one you pay for, but at £5 per month its premium offering is more affordable than much of the competition.

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
• Cash deposits for Monzo business accounts cost £1 at PayPoint
• Overdraft has high interest rates and is restricted to sole traders

Starling is an online-only bank offering a single account with no monthly fees or charges for basic UK transactions. Though the basic account is free, customers can add extra features through the Business Toolkit for £7 per month.

Cash deposits can be made for a £3 minimum fee and account holders can also deposit cheques for free via Starling’s app or post. Customers can also access a sizeable overdraft of up to £50,000 with Starling though an annual fee of 1.75% applies along with an interest rate decided following a credit assessment but that averages at 11.5% EAR. 

Additionally, Starling customers can use integrated accounting software from Xero, QuickBooks and FreeAgent. 

Eligibility criteria: Starling’s business account is for sole traders, limited companies and limited liability partnerships. Company directors with access to the account will also need to be UK residents.

Starling key features:

• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 
• Customer service: Starling customers can access support 24/7. 
• International capabilities: Paying by card and making ATM withdrawals won’t cost a penny when you’re abroad. 
• Saving spaces: You can organise your money into different areas with Starling’s Savings Spaces feature.

Pros:

• No monthly fee
• Make Faster Payments, direct debits and standing orders for free
• 24/7 customer support via app, phone and email
• Most accounts open within one day of an application

Cons:

• Some features only available through the £7 per month Business Toolkit
• Cash deposits cost £3 minimum fee
• Partnerships and charities cannot apply for an account

Mettle’s business account is completely free, meaning no monthly fees or transaction charges of any type. While cash can be deposited at the Post Office (up to a daily limit of £500 and an annual limit of £23,000), there is no way to deposit cheques into a Mettle account.

Mettle also does not offer any form of overdrafts or loans to business customers. However, accounting software from FreeAgent can be integrated, and Mettle customers get free access as long as they make at least one transaction per month from their Mettle account.

Eligibility criteria: Sole traders and limited companies can apply for a Mettle account as long as they are based in the UK. Applicants should be UK taxpayers of at least 18 years old.

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

Mettle key features: 

• App reviews: The Mettle business banking app is one of the best reviewed on the market, with positive responses from customers.
• Eligibility criteria: Mettle business accounts are only open to UK-based sole traders or limited companies with up to two persons of significant control.
• Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Pros:

• No monthly fees
• No transaction charges
• Strongly reviewed  business banking app
• Customer support via the app, email and by phone seven days a week

Cons:

• It’s not possible to deposit cheques
• You cannot make or receive international payments
• No overdrafts, credit cards or loans
• Not for partnerships or charities
• Mettle aims to review new applications within 72 hours (excluding weekends)

The Business Rewards Account from Allica is an online-only option with no monthly fee and free basic UK transactions. However, customers cannot deposit cash or cheques into their account.

In addition, there are no business overdrafts available from Allica, though it does offer business loans of up to £10 million. Finally, you can integrate accounting software from providers such as Xero and Sage with an Allica Bank account.

Eligibility criteria: To apply for an Allica Bank account, your business will need to have been incorporated for at least a year. In addition, you should be prepared to keep a minimum of £50,000 in your account.

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

Allica Bank key features:

• Savings: Account holders can earn 4.08% AER on business savings, as well as depositing or withdrawing from these at any time.
• Cashback: Customers also have the opportunity to earn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• No monthly fee
• No basic transaction fees 
• Instant access savings pot with 4.08% AER
• Cashback of up to 1.5% on eligible purchases

Cons:

• It isn’t possible to deposit cash or cheques
• Strict eligibility requirements 
• Opening a new account takes between three and five days

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 but charges 20p per basic UK transaction. 

Cheque deposits can be made via the Tide app, but are only available to sole traders at the moment. Cash deposits via the Post Office cost 0.5% or a £2.50 minimum fee. 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:

• No monthly fee
• POS technology also available
• Accounts are generally open the day an application is made

Cons:

• Not possible to deposit cheques digitally for limited companies
• Even everyday transactions carry fees

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. With the free account, basic UK transactions cost 30p 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 0.5% charge or £3 minimum fee. 

When it comes to lending, Zempler offers a modest business overdraft of £2,000, though you’ll need to pay £50 a year for access to this feature. 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 20p each after three free monthly allowances
• You cannot send international payments

SumUp offers a free online only business bank account with no monthly fees and free basic UK transactions. However, there is no way to deposit cash or cheques into a SumUp account.

In addition, SumUp does not offer a business overdraft. Accounting software from FreeAgent, Xero and QuickBooks can be integrated with a SumUp account.

Eligibility criteria: Applicants need to be at least 18 years old, but freelancers, sole traders, limited companies, partnerships and charities can all get an account with SumUp.

Find out more by reading NerdWallet’s SumUp Business Account Review.

SumUp key features:

• Quick application: SumUp applicants can have an account open on the same day that they apply.
• Business tools: An account comes with a suite of useful tools for business owners, including the means to create and send invoices and ways to send easy payment links via channels such as WhatsApp and Instagram.
• Point of sale (POS): SumUp also provides POS technology, including software and card readers for taking payments.

Pros:

• Set up a new business account in minutes
• SumUp also provide card readers and POS technology (sold separately)
• No monthly fee
• Free basic UK transactions

Cons:

• Deposits not protected by FSCS
• You can’t deposit cash or cheques
• You can’t transfer funds internationally or in different currencies

ANNA Money is an online-only provider with an account that charges no monthly fee. However, this Pay As You Go account does charge 20p for local bank transfers. Cash deposits carry a 1% charge and are limited to £500 per day and £1,000 per month, while cheque deposits are not possible.

While ANNA Money does not offer a conventional overdraft, its ANNA Credit offering allows customers to draw down from a pool of credit worth up to £10,000. Borrowers are charged 3% interest per month on any funds they draw down.

Accounting software from popular providers such as Xero and QuickBooks can be integrated with an ANNA Money account.

Eligibility criteria: Sole traders, freelancers, limited companies and limited liability partnerships can apply for ANNA Money accounts.

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

ANNA Money key features:

• Easy opening: Opening a new account usually takes just a few minutes.
• Earn cashback: Account holders can earn up to 40% cashback on eligible purchases.
• Business tools: ANNA Money’s business tools include ANNA +Taxes, which gives users one place to tackle payroll, VAT and corporation tax. A one-month free trial is included with a free account.
• No FSCS protection: ANNA Money accounts are not covered by the Financial Services Compensation Scheme (FSCS).

Pros:

• No monthly fee
• Earn up to 40% cashback on eligible purchases
• Open an account within minutes
  

Cons:

• No FSCS protection
• Local transfers cost 20p each
• Cannot deposit cheques

A Basic account from Revolut has no monthly fee, though local transfers cost 20p each outside a monthly allowance of five 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. 

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. 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). 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:

• No monthly fee
• Great international payment features
• Innovative banking app
  

Cons:

• You cannot deposit cash or cheques
• Accounts not FSCS protected
• Transaction charges apply outside of monthly allowance

Countingup’s cheapest account costs £3 per month and 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 most accounts are opened within two hours of an application.
• No FSCS protection: Countingup is an e-money institution and so is not covered by FSCS protection.

Pros:

• Built-in accounting software
• Well-received app
• Most accounts are open in under two hours

Cons:

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