- Compare startup business accounts with NerdWallet
- Access features and support tailored towards newer businesses
- Will often have no or low monthly fees to keep business costs down
Finding a good business bank account should be a priority for any startup business owner. As well as keeping your business and personal finances separate, business accounts for startups often have low fees, plus tools and features designed to save time around payments, invoicing and accounting. Choose from our pick of the best startup bank accounts and apply today.
Our Top 5 Business Bank Accounts for Startups
Our Best Startup Business Bank Account Providers
Each of these products may be one of a range offered by the provider. Always check terms & conditions for suitability before applying. Only affiliated products are shown. Other products are available. Read our guide to ratings.
Monzo Lite Business Account
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
Challenger bank Monzo offers businesses intuitive and efficient app-based banking, making it a great option for new start ups. Features offered by Monzo that might be useful to any business just taking off include round-the-clock customer service, free trials of accounting software and a pots feature that lets customers separate their money. However, some of these features are only included with Monzo’s Pro account, which carries a £9 monthly fee, or the Team account, which is £25 per month.
For further details, read NerdWallet’s Monzo Business Account Review.
Monzo key features:
- Accounts open quickly: New business bank accounts with Monzo are usually open and ready to use on the same day an application goes through.
- Free transactions: Electronic payments within the UK are completely free for Monzo’s business banking customers.
- Customer service: In-app customer support from Monzo is available to business customers with urgent concerns at all hours.
NerdWallet's Pros & Cons
Pros:
- New customers can find free business banking with Monzo’s Lite offering.
- Monzo’s mobile app is one of the best-reviewed mobile banking platforms on the market.
- Businesses can get started very quickly with Monzo, as accounts tend to be open on the same day an application is made.
Cons:
- Monzo has no branches and no telephone banking options, so it might not be best for those who like a human touch.
- Charities and partnerships cannot get an account with Monzo.
- Some perks, like accounting software trials, are locked behind Monzo’s paid tiers.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Virgin Money M Account for Business
- 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
Startups and businesses with an annual turnover below £1 million can use Virgin Money’s M Account for Business. There are no monthly fees, and business owners can enjoy cashback on debit card purchases, three-month accounting software trials and a free business data insights platform.
For further details, read NerdWallet’s Virgin Money Business Account Review.
Virgin Money key features:
- Transaction costs: Electronic payments are free with a Virgin Money business account.
- Extras: Additional features like free data insights and accounting software trials could enhance your startup.
- FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
NerdWallet's Pros & Cons
Pros:
- There is no monthly fee for the M Account.
- Business owners can get cashback of 0.25% on business debit card purchases.
- Over a third of new Virgin Money business banking customers can access their account on the same day they apply, with average account opening speed sitting at two days.
- Borrowing options including overdrafts and business loans are available through Virgin Money.
Cons:
- A business must have an annual turnover of less than £1 million to open the M Account.
- With no branches in the South of England, Wales or Northern Ireland, customers in these areas will struggle to access some face-to-face services.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
The Co-operative Bank Business Bank Account
NerdWallet's Review Summary
There is a lot to like about The Co-operative Bank for start-ups and growing businesses. The bank offers free access to online guidance resources, a range of third party support services, access to insurance through AXA, and more. The bank also places ethics at the forefront of its mission, so it may appeal strongly to socially conscious business owners.
For further details, read NerdWallet’s The Co-operative Bank Business Account Review.
The Co-operative Bank key features:
- Free everyday business banking: No monthly fee, and no charges for all automated credits, cash withdrawals, and debit card purchases.
- Business tools: Integrates with your accountancy software. Customers also get free, unlimited access to the Go Get Paid app. Plus access to selected Clover payment terminals for £1 a month for the first 12 months (fees apply).
- Account management: Online and in-person banking including mobile, instant secure messaging, UK based contact centre, and in branch. Rated ‘Excellent’ on Trustpilot.
NerdWallet's Pros & Cons
Pros:
- No monthly service fee, and free basic transactions.
- Customers can manage their accounts online, over the phone, via the mobile app (subject to eligibility) and in a branch.
- Customers can access a business overdraft, credit card, charge card and loan (subject to application, eligibility and credit checks).
Cons:
- Customers do not have access to round-the-clock customer support.
- There are 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.
Barclays Business Account
- 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
This British high-street bank has a specific account for startups, with features including a business community hub, which is intended to help new business owners meet new contacts and grow their ideas. The bank also has branches throughout the UK and offers a variety of borrowing options.
For more details, read NerdWallet’s Barclays Business Account review.
Barclays key features:
- Points of access: Barclays customers can manage their money online, via the app, over the phone, or at a wide choice of Barclays branches.
- Borrowing options: Borrowing options include 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:
- There are no transaction fees for everyday banking.
- The specialised account for startups includes features such as the Eagle Labs community hub, which could help them to grow and develop.
- Barclays business banking customers get free access to FreshBooks accounting software.
- Barclays has branches in England, Wales, Scotland and Northern Ireland.
Cons:
- A Barclays business account will cost £8.50 per month following the end of the 12-month introductory offer of free digital banking.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Tide Business Account – Free
- For registered business accounts: Must be a director of a UK company registered with Companies House.
- For sole trader accounts: Must be a UK-based sole trader or freelancer with a valid UK home address and be registered with HMRC
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold a compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary
Customers can choose between four different Tide business bank accounts, including an option with no monthly fees. Open an account through NerdWallet and the usual bank transfer fee of 20p per transaction will be waived for 12 months too.
In addition, Tide offers several tools for managing your business, including point of sale, accounting software and invoicing.
For more information, see NerdWallet’s Tide business account review.
Tide Key Features:
- Special offer: Free bank transfers for 12 months when you apply via NerdWallet.
- Protection: Up to £85,000 of eligible deposits are protected under the Financial Services Compensation Scheme.
- Point of sale: Account holders can take payments in person and online with Tide, which offers a variety of POS (point of sale) solutions.
- Borrowing: Businesses can borrow between £1,000 and £20 million through Tide’s business loans.
NerdWallet's Pros & Cons
Pros:
- Tide offers an account with no monthly fee.
- Free transfers for 12 months when applying through NerdWallet.
- You can open an account in a matter of minutes, although some more complex applications can take a few days to approve.
- Tide offers point of sale capabilities, accounting tools and more to help account holders run their business.
Cons:
- Tide does not offer a business overdraft to customers.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
What is a startup business account?
A startup business bank account is a current account designed for new businesses that are just getting going. Startup accounts work in much the same way as business bank accounts aimed at more established ventures – this means most can be used to make and receive payments, deposit cash and cheques, and for direct debits and standing orders.
Where bank accounts for startup businesses can differ is that they’ll often offer features tailored specifically to younger businesses. These may include lower fees, specialist support and guidance, and services to help register your business as a limited company.
Is my business eligible for a startup bank account?
Some startup business accounts are only available to businesses that have been trading for a short period of time, for instance, perhaps less than a year. There might also be an upper limit on annual turnover.
However, there are also many standard business accounts that aren’t specifically targeted at new businesses which startups can still apply for. Some of these accounts are included among our selection of the best startup bank accounts.
How could a business account benefit your startup?
There are many reasons why you might want to open a startup business account, including:
- Separates finances: It keeps your business and personal finances separate, making it simpler to manage both.
- Better oversight: It’ll be easier to keep track of your business, as transactions are all readily visible in the one account.
- Saves you time: It should save time and effort when it comes to compiling accounts and filing taxes.
- Helpful tools: Many accounts include integrated payment, invoicing, payroll and accounting tools to help make running a business easier.
- Tailored support: Startup business accounts are designed with new business owners in mind, with support and other guidance often offered to suit.
- Builds credibility: It looks more professional to have your business name on invoices and next to payments.
- Improves credit: A standalone business account can help establish your business’s credit score.
- Future borrowing: Some accounts include overdrafts or open up access to business loans and other credit options.
» MORE: What are the benefits of a business bank account?
Do startup businesses need a separate business account?
If your startup is set up as a limited company or a limited liability partnership, the law requires that you have a dedicated business bank account. This is in order to keep your business’s money separate from your own.
However, if you’re operating as a sole trader or in a general partnership, there is no such legal requirement. This raises the possibility of using your personal bank account for your business finances as well.
But even if there’s no legal obligation to have one, opening a business account for your startup can still be sensible, in order to make life easier and to take advantage of the various features, tools and support on offer.
» MORE: Do you need a business bank account?
Startup business banking insights
In a survey of small business owners to find out which business bank account features they value the most, the Current Account Switch Service found:
- 65% rated the ability to integrate accounting software most highly
- 54% appreciated digital features such as mobile banking the most
- 37% cited the strong customer service they received
Finding a startup business account that suits you
The best bank account for your startup depends mainly on the nature of your business and what you want from an account.
For instance, if your business takes a lot of cash payments, you’ll almost certainly want an account that accepts cash deposits and charges either low or no fees for paying that money in.
Always check the various fees you could be charged. Startup business bank accounts are generally designed to keep costs low, with many charging no monthly fee, or perhaps offering a promotional period when certain fees will be waived. However, most will charge for some transactions or services, perhaps such as international payments.
Also think about the features that could make running your business easier, for example, some accounts include built-in tools to create invoices or integrated software to help with accounting. Whether you’re comfortable banking online or would like the option of face-to-face support is important, too.
Features to look out for
While basic transactions like transfers, direct debits and standing orders should be available for all startup business accounts, other features can vary significantly between accounts and providers.
Different startup accounts may offer features such as:
- fast customer payment systems
- instant payment notifications
- international transactions
- invoicing, including tracking and reminders
- integration with accounting software
- expenses management
- spending reports and data
- multi-user access
- an overdraft
- cashback on spending
- savings ‘pots’
- credit building tools
- 24/7 customer support
- general business support
- mobile banking and app
- virtual office address
How to open a startup business bank account with NerdWallet UK
Applying for a startup business account through ourselves couldn’t be easier.
- Compare the startup accounts above and decide on the most suitable.
- Click the ‘See Deal’ button to go straight to the provider.
- Apply on the provider’s website – there’s nothing we need from you.
» TAKE ME TO: NerdWallet’s best startup business bank accounts
What you’ll need
When opening a business account, it’s usually best to have ready most of the following:
- Proof of your identity: your passport or driving licence
- Proof of your address: a recent bank statement or utility bill
- Proof of business address: a utility bill or similar (if it’s different to your residential address)
- Contact details: for you and your business, if different
- Business details: including when your business started trading, past and/or predicted revenue, and your business’s tax information
- Registration documents: as a sole trader, your business tax return or self-assessment registration, or for a limited business, its Companies House registration number and certificate of incorporation
Need more help deciding?
Check out reviews of our top startup business bank account providers:
Want to see our other business account picks?
Startup business bank account FAQs
The best bank account for a startup business depends on your wants and needs as an owner and those of your business. However, an independent BVA-BDRC survey saw Monzo come out on top for overall service quality. Monzo, Virgin Money, The Co-Operative Bank, Barclays and Tide are some of the providers we consider to be good options.
A sole trader isn’t legally required to have a separate business account, whether that be a startup account or another type. But while this means you could potentially use your personal bank account for your business finances, there are several benefits to having a separate startup account that are likely to make running your business easier overall.
Yes, startup business accounts with no monthly fees are available from providers such as Monzo, Virgin Money, The Co-operative Bank and Tide. Just be aware of the other charges that may apply. Our roundup of free business bank accounts explains more.
Depending on the provider, it may be possible to open a startup business account in a matter of minutes or it could take several days or perhaps even weeks. If speed is a priority, online business accounts tend to be much faster to open than accounts from traditional high-street providers.
Some startup business bank accounts will offer protection under the Financial Services Compensation Scheme (FSCS), while some have alternative safeguards. Always check which applies. Where an account is covered by the FSCS, eligible deposits are protected to a maximum of £85,000. Where an account is provided by an e-money firm, different protections will apply.
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