Switching Business Bank Accounts

Considering switching your business bank account? Look at some options here
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What our Nerds say about business bank accounts for switchers

Switching your business bank account can help you find one that is more suitable for your business’s needs. Another bank could offer a better deal for your business.

For example, switching bank accounts could save your business money. You may find a new account that does not charge you for making transactions, or one that offers free access to the accounting software you currently pay for.

You may want to move to a provider with branches nearby. Or if you prefer banking online or via an app, you could consider switching to a digital-only bank.

Kristina Fox Writer at NerdWallet

Learn about business bank accounts for switchers

Written by Kristina Fox

Last updated on 02 November 2022.

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Switch your business bank account

Pros and cons of switching your business banking

How to switch business bank accounts

Switching Business Bank Accounts FAQs

Switch your business bank account

Switching business bank accounts has never been easier thanks to support from the UK government and banking industry. Back in 2013, the government launched the Current Account Switch Service to encourage customers to shop around. The service aims to make switching your current account easy and stress-free and includes bank accounts for small businesses.

The switching service boosts healthy competition in UK banking. For customers, this means lower prices, fairer terms and better service. For many business owners, the benefits of switching can outweigh staying with a provider you’ve been with for years.

What is the Current Account Switch Service?

The Current Account Switch Service was established in 2013 to make it easier for consumers to switch their current accounts and to open up the banking market.

Switching – including accounts for small businesses – should be simple. Banks and building societies signed up to the scheme can complete the switch in seven working days. This includes moving your direct debits, standing orders and any remaining balance to your new account.

What is the Current Account Switch Guarantee?

The Current Account Switch Guarantee is the set of promises made by account providers signed up to the Current Account Switch Service. The guarantee includes promises to:

complete the switch in seven working days
offer the service for free
redirect your incoming payments, such as your salary or one-off payments made to your old account
move your outgoing payments, such as standing orders and direct debits
transfer your existing balance into your new account

The Guarantee also ensures that if you are mischarged interest or fees because something goes wrong with the switch, this amount will be refunded to you.

Pros and cons of switching your business banking

Should you switch? Some common reasons people switch their business banking include:

To match what your business needs

If your business has changed, the way you bank might benefit from changing too. For example, if you no longer need a branch service, or to pay in cash or cheques regularly, then a digital-only account might now be an option for you.

To get a better deal

You could save money or pick up an attractive incentive to switch.

To integrate your account with your accountancy software

You might want to switch if you or your accountant is using a software system, such as QuickBooks, Sage or Xero, but your existing account isn’t compatible.

To use services not offered by your current provider

Providers are offering more features to make your finance admin quicker and easier. You might want to switch to get features, such as invoicing, receipt logging or sub-accounts you can use to put money aside for tax or wages. Or perhaps you’d like access to customer service via an app or by email.

And here are some common reasons why people decide not to switch:

You have to learn how to use a new system

A new account with a new provider means learning new processes and a new online banking system.

You need to tell customers to use your new details

You’ll need to update your invoice template and give your new details to everyone who makes transfers to you. If you use the Current Account Switch Service, your existing provider will redirect payments from your old account to your new one indefinitely and contact anyone who makes a transfer into your old account to give them your new account details. But in terms of your relationship with your customers, it’s best if you let them know the new details.

You have to update your web payments

Web browsers, mobile systems and shopping sites offer to save your details when you’re buying online. If you’ve stored your details to make online purchasing easier, you’ll need to set them up again if you switch accounts.

You have to update your recurring card payments

A recurring payment on your debit or credit card is called a ‘continuous payment authority’ (CPA). This type of payment isn’t switched by the Current Account Switch Service. CPAs are common for services such as mobile or broadband, and for membership subscriptions and insurance. You’ll need to inform the services you’re paying by CPA that your details have changed. If you don’t do anything, it’s likely that your payment will fail, and you might lose access to services or subscriptions. Your service provider may try to take the payment again or contact you to ask for alternative payment details, but it’s best to proactively update these beforehand so you don’t risk disruption.

How to switch business bank accounts

Weigh up the pros and cons of switching

Read through the pros and cons we’ve listed above to help decide whether to switch your account.

Compare business accounts to find the best deal
Get stuck into some research. You can start by using our comparison table below to find deals for business accounts.

If you want to take advantage of the Current Account Switch Service, check which providers are signed up.

Apply and switch
When you’re ready to switch, the first step is to apply for an account with the new provider.

If your new provider is signed up to the Current Account Switch Service, it’s likely it will ask you if you want to use the service when you apply. Expect it to take seven working days for the new bank to arrange the switch. Then, on the date you pick, your new account will be ready to use with your existing scheduled payments (direct debits and standing orders) transferred to the new account. Repeated incoming payments such as your salary will also be moved over.

If your provider isn’t part of the Current Account Switch Service, you’ll need to cancel your existing scheduled payments and set them up on your new account.

Regardless of whether or not you use the Current Account Switching Scheme, you'll need to:
- download any statements you need from your old account – your bank will also send your statements from the past five years
- update your invoice template with your new details
- tell customers to use your new details
- update any companies you’re paying by CPA
- update your saved payment details next time you buy online
Check your old account
If you’ve switched using the Current Account Switch Service, your old account will be closed automatically. Check your post and email for notifications.

If you didn’t use the Current Account Switch Service and you want to close the old account, you’ll need to ask your old provider to do this.

Review your business banking regularly
It’s a good idea to review your business banking at least once a year to make sure you’re getting the service you need. You could set a recurring reminder in your calendar or if you have an accountant, you could ask them to keep an eye on your account to make sure you’re getting value for money.

How long does it take to switch business bank accounts?

For business accounts covered by the Current Account Switch Service, banks and building societies promise to complete the entire switching process in seven working days.

You’ll need to apply for an account with your new provider and inform them that you want to use the switching service (often you will be asked about this during the application process).

You can then pick a date for the switch – it must be a weekday in at least seven working days’ time, and not a weekend or bank holiday. Your new bank will do the rest. You don’t need to inform your old bank. If you’re switching to a provider that isn’t covered by the Current Account Switch Service, it is likely to take longer than seven working days to switch accounts.

Once your new account is open, you’ll need to do the switch yourself: cancel existing scheduled payments and set them up again on the new account, transfer across money in the old account, inform your customers and so on.

Do I have to close my existing account when I open a new business bank account?

If you use the Current Account Switch Service, your old provider will automatically close your existing account for you after they have transferred all the money and scheduled payments (direct debits and standing orders) to your new account.

So if you want the option to keep your old account open, you can’t use the Current Account Switch Service, and will need to arrange the switch yourself.

Will I be charged a penalty fee if I switch business accounts?

You shouldn't be charged a penalty to switch accounts but you’ll need to clear any debts with your existing provider before you can close your account.

Can I switch business bank accounts if I have an overdraft?

If you have an overdraft with your existing bank, you can use the Current Account Switch Service. You will need to check whether your new bank will match your existing overdraft facilities and will allow you to transfer the money you owe to your new account.

Switching Business Bank Accounts FAQs

Can I switch my business bank account?

Switching business bank accounts isn’t only possible, it has been made easier by the UK government and banking industry.

In the past, switching was a complicated process but the Current Account Switch Service has made it much easier and there is more choice than ever.

Is switching business bank accounts worth it?

You may consider moving your business account to another bank. Other providers may have features or services that are not offered by your current provider, so it can be worth shopping around to find a business account that works for you.

About the author

Kristina is a writer at NerdWallet. A recent graduate trading French for finance, she has experience creating content for student newspaper Cherwell and an edtech company. Read more

Compare business bank accounts

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Virgin Money M Account for Business

Apply for access to £1,000 of Planned Borrowing (overdraft) with no arrangement fee for first year
Free day-to-day online banking
Earn 0.25% Cashback when you use your Debit Card – with no limit

Terms and conditions apply. Subject to eligibility and status. Virgin Money is a trading name of Clydesdale Bank PLC.

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Choose your business current account options

26 products found

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Offer

FreeAgent for Free *

Mettle by NatWest

Monthly Fee

Free
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

App & Online

See Deal More info

*To get FreeAgent for free you'll need to make at least one transaction a month from your Mettle account. A saving of £114 a year (based on FreeAgent's lowest tariff).

Product Features

Mettle is 100% free - no hidden charges
Get paid faster - create and send invoices on the go
Sync with accounting software like FreeAgent, Xero and Quickbooks

Eligibility Criteria

For sole traders or limited companies with up to two owners
Maximum balance of £100k for limited companies and £50k for sole traders
For UK-based companies with owners that are UK residents

See Deal

Offer

No monthly account fees for the first 12 months

HSBC Kinetic

Monthly Fee

£6.50*
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

App & Online

See Deal More info

Product Features

No monthly current account maintenance fee for the first 12 months. (£6.50 thereafter. Other fees and charges apply. T&Cs apply.)
Includes in-app lending products (subject to eligibility and separate application)
Stay on top of your business expenses with categorised spending and cashflow insights

Eligibility Criteria

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
Subject to application including credit checks. T&Cs apply
Annual turnover must be below £2m

See Deal

Offer

Free everyday business banking for first 30 months + free access to the Go Get Paid app *

The Co-operative Bank Business Current Account

Monthly Fee

£10*
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

Branch, App & Online

See Deal More info

*For new customers, if you maintain a credit balance of £1,000+ there is no monthly service charge for 30 months, and all automated debits including standing orders, Direct Debits, Faster Payments, debit card payments and writing up to 30 cheques per charging period are free. Charges apply for exceeding these monthly limits.

Product Features

Manage your account on the go with mobile app (subject to eligbility), online banking, telephone banking via UK-based call centre plus banking in-branch and at your local Post Office
Unlimited access to the Go Get Paid app - free for Co-operative Bank business customers.
Access business support services from our preferred third party providers (additional charges apply)

Eligibility Criteria

Aged 18+, UK resident with a business address in the UK. Applications subject to status, eligibility and T&Cs.
You or your organisation must be either a: Sole trader or Limited company (Single Director)

See Deal

Offer

No monthly fee for the first 3 months

Card One Money Business Account

Monthly Fee

£12.50*
Card Purchases

Free
Bank Transfers

30p
Overdraft
Access

App & Online

See Deal More info

Product Features

No credit checks to open an account
Pay in cash and cheques
IBAN and SWIFT codes for international payments

Eligibility Criteria

Limited companies
Sole traders
Partnerships

See Deal

Offer

*FREE for first 30 months £5 monthly fee thereafter. Waived if account balance kept above £10,000.

TSB Business Plus Account

Monthly Fee

£5*
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

Branch, app & online

See Deal More info

Product Features

Savings account available with instant access – 0.90% AER variable paid monthly for balances over £5,000, subject to eligibility and application
Contactless payments, with free Square Reader on request, no fees on your first £1,000 sales
Business Debit Card allows you to withdraw money from an ATM and you pay no fees on transactions using your Debit Card

Eligibility Criteria

Business use only, available for Sole Trader, Partnerships and Limited UK Businesses, 18+
Arranged overdraft available subject to approval
When applying you’ll need to share, a form of identification, proof of your business and home address

See Deal

Acorn Business Account

Monthly Fee

£12.50
Card Purchases

Free
Bank Transfers

30p
Overdraft
Access

App & Online

See Deal More info

Product Features

No credit checks to open an account
Pay in cash and cheques
IBAN and SWIFT codes for international payments

Eligibility Criteria

Available to Limited companies, sole traders and Partnerships
Maximum turnover £2m per year

See Deal

NatWest Business Bank Account (Standard Tariff)

Monthly Fee

Free
Card Purchases

Free
Bank Transfers

35p
Overdraft
Access

App & Online

See Deal More info

Product Features

No minimum monthly charge - only pay for what you use
Fee-free accounting software from FreeAgent
24/7 Online and Telephone banking

Eligibility Criteria

NatWest Business Banking is available to eligible customers, over 18 who have the right to be self-employed in the UK

See Deal

Offer

12 months’ free day-to-day business banking for new businesses *

Lloyds Bank Business Banking Switcher Account

Monthly Fee

£7*
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

Branch, App or Online

See Deal More info

*Free day-to-day Business Banking includes electronic payments, cheques, cash, deposits and withdrawals. You must operate your account in credit or within agreed limits. All lending is subject to status. Security may be required.

Product Features

Simple pricing and free electronic payments
Dedicated support from UK-based business management team
Useful guides and practical business tools

Eligibility Criteria

To qualify for this account you need to be a sole trader, partner or company director and be aged 18 or over
You must have a turnover of less than £3m
Must not already have a Lloyds Bank business account for this business
Overdrafts - all lending is subject to status. Security may be required. A Guarantee may be required for Limited Companies and Limited Liability Partnerships.

See Deal

Offer

12 months’ free day-to-day business banking for new businesses *

Bank of Scotland Switcher Account

Monthly Fee

£7*
Card Purchases

Free
Bank Transfers

Free
Overdraft
Access

Branch, App or Online

See Deal More info

Product Features

Simple pricing and free electronic payments
Dedicated support from UK-based business management team
Useful guides and practical business tools

Eligibility Criteria

To qualify for this account you need to be a sole trader, partner or company director and be aged 18 or over
You must have a turnover of less than £3m
Must not already have a Bank of Scotland business account for this business
Overdrafts - all lending is subject to status. Security may be required. A Guarantee may be required for Limited Companies and Limited Liability Partnerships.

See Deal

Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the sorting options at the top of the comparison table to order by other criteria.

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Switching Business Bank Accounts

What brings you here today?

What our Nerds say about business bank accounts for switchers

Learn about business bank accounts for switchers

Switch your business bank account

What is the Current Account Switch Service?

What is the Current Account Switch Guarantee?

Pros and cons of switching your business banking

How to switch business bank accounts

How long does it take to switch business bank accounts?

Do I have to close my existing account when I open a new business bank account?

Will I be charged a penalty fee if I switch business accounts?

Can I switch business bank accounts if I have an overdraft?

Switching Business Bank Accounts FAQs

About the author

Compare business bank accounts

Virgin Money M Account for Business

Virgin Money M Account for Business

Virgin Money Business Current Account

Mettle by NatWest

HSBC Kinetic

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Tide Business Bank Account

Tide Plus Business Bank Account

Tide Cashback Business Bank Account

Cashplus Business Bank Account

Cashplus Business Bank Account with 1% Cashback

ANNA Money - Business

ANNA Money - Pay as you go

ANNA Money - Big Business

The Co-operative Bank Business Current Account

Card One Money Business Account

Countingup Business Account (Starter)

Countingup Business Account (Standard)

Countingup Business Account (Premium)

TSB Business Plus Account

Acorn Business Account

NatWest Business Bank Account (Standard Tariff)

Lloyds Bank Business Banking Switcher Account

Bank of Scotland Switcher Account

Award winning comparisons you can trust

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