Best Business Bank Accounts UK June 2025

Monzo’s free Lite account charges no monthly fees and includes free basic UK bank transfers. Cash and cheque deposits are possible, but cash deposits cost £1 and are limited to £3,000 per month for sole traders and £10,000 for limited companies.

Overdrafts of £2,000 are available for eligible sole traders, though interest rates as high as 39% EAR apply. Monzo accounts can be managed online, or via its well-received mobile app. Monzo shines with additional features, including an instant access savings pot, fee-free spending abroad and 24/7 customer service.

On the downside, accounting software cannot be integrated with Monzo’s Lite account. However, Xero, FreeAgent and QuickBooks are compatible with Monzo’s Pro account, which costs £9 per month, or its Team account, which costs £25 per month. The Pro account also includes a six-month free trial of Xero for new users, While the Team account offers an eight-month trial.

Eligibility criteria: Monzo applicants must be sole traders or limited companies by shares. They also need to be based and registered in the UK. 

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 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:

• No monthly fee
• Open account on the day you apply for over 90% of customers
• Free basic transactions

Cons:

• No phone or branch banking
• Business accounts not available to charities or partnerships
• No accounting software integration with the Lite account

Virgin Money’s four business bank accounts include the free M Account for Business. This account includes free basic transactions, such as standing orders and direct debits. Cash deposits cost 90p per £100, but cheques can be paid in for free via the app.

Overdrafts of up to £25,000 are available, with Virgin Money charging an establishment fee of 2.5% (minimum £120) and representative EAR of 13.6%.

Virgin Money business accounts can be integrated with QuickBooks or Xero accounting software, and opening an account will give you a free three-month trial with either. All accounts feature FSCS protection on deposits of up to £85,000.

Eligibility criteria: Applicants must have a turnover of less than £1 million. Businesses should be based in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man) and have owners, directors, senior management and account signatories above 18 years old.

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:

• No monthly fee
• Free basic transactions
• More than a third of Virgin Money business accounts open the same day

Cons:

• Free account only for businesses with annual turnover under £1 million
• No branches in the South of England, Wales or Northern Ireland

The Co-Operative Bank offers six different business bank accounts, including free options like the Business Current Account and the Community DirectPlus account for charities and community groups. Basic UK transactions are free with the Business Current Account account, though cheque deposits cost £1.50 and cash deposits are charged at £1.50 per £100.

Overdrafts are available up to £250,000, though an arrangement fee of 1.5% or £50 (whichever is higher) applies. The Co-Operative Bank advertises representative EAR of 10.75% on overdrafts up to £25,000.

Accounting software, including Xero and QuickBooks, can be integrated with a Co-Operative Bank business account.

Eligibility criteria: This account is for sole traders and limited companies with one director and a business address in the UK. Applicants and key people must be 18 or over and a UK resident.

For further details, read NerdWallet’s The Co-operative Bank Business Account Review.

The Co-operative Bank key features:

• Range of accounts: The Co-op Bank offers six business accounts, so there are options suitable for almost every business type, including charities.
• FSCS protection: Your eligible deposits, up to £85,000 across all 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:

• No monthly service fee
• Free basic transactions
• Account management online, by phone, via app or branch
• Arranged business overdraft of up to £250,000

Cons:

• Takes, on average, 10 days to open an account
• No branches in Northern Ireland

Tide has four business current accounts, including a free account with no monthly fees. Basic transactions entering or leaving your account cost 20p each with this account, while cash deposits at the Post Office cost 0.99% of the amount deposited or a £2.50 minimum or 3% at PayPoint. 

Cheque deposits can be done via the Tide app. In addition, Tide does not offer a business overdraft facility.

Tide customers can integrate their accounts with accounting software providers, such as Sage, QuickBooks, Xero, FreeAgent, ClearBooks and more. 

Eligibility criteria: Applicants must be aged 18 plus and have a UK-based business.

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:

• Well-reviewed mobile app
• No monthly fee
• More than half of new business accounts open within 10 minutes

Cons:

• Basic UK transfers cost 20p each
• No branches

NatWest’s accounts for start ups and more established businesses are both free of monthly fees. However, following a free 24-month period, all transactions carry a cost. For example, basic UK transactions, such as standing orders and direct debits, cost 35p every time they enter or leave an account.

Cash deposits cost 70p per £100 and cheques cost 70p each. 

Meanwhile, overdrafts of up to £50,000 are available, though arrangement fees of between £50 and 1.5% apply. On a £25,000 overdraft there is a representative EAR of 13.81%.

Accounting software integration is available with FreeAgent, which is included for free with a NatWest business account. 

Eligibility criteria: Accounts are limited to businesses that have been trading for less than 12 months, have turnover under £1 million and are registered in the UK. Applicants must be 18 or older. One person on the application must be a UK resident. Applicants in Scotland may be directed to apply for an account with RBS, while those in Northern Ireland may be redirected to Ulster Bank.

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:

• Manage accounts online,via the app, branch, Post Office or phone
• Free accounting software from FreeAgent

Cons:

• No branches in Scotland or Northern Ireland
• NatWest’s start-up account only open to newer businesses
• Fees for all transactions
• New accounts take an average of 42 days to open

Zempler Bank, which has rebranded from Cashplus, offers three accounts. Its Business Go account has no monthly fee, though basic payments cost 35p each after using up a monthly allowance of three free transactions.

Cash deposits at a Post Office are subject to a £4 minimum fee or 0.55% of the total amount paid in. Cheque deposits are not possible with a Zempler account.

Zempler does offer a business overdraft of up to £2,000, with customers paying an annual fee of £50 for access. The first £5 of the overdraft is interest free, with interest rates detailed upon application. 

Xero, QuickBooks and Sage accounting software can all be integrated with a Zempler business bank account.

Eligibility criteria: This account is open to sole traders, limited companies, partnerships and charities.

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 business credit builder tools 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:

• No monthly fee
• No credit check
• Same-day account opening for 99.9% of customers
• Overdraft available

Cons:

• No cheque deposits
• No international payments
• No branches
• Transfers out of 35p each after monthly allowance used up
• Overdraft limited to £2,000 and fees apply