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A business bank account is a current account designed for businesses, including sole traders, limited companies, partnerships and not-for-profit organisations – though some banks don’t cover all types of businesses.
There are many different accounts available, so it is important to pick the best business bank account for your needs. Finding the best business bank account for you doesn’t have to be difficult.
We’ve picked our top 15 business bank accounts based on our own research of the market as well as what business owners say are the most important criteria when searching for a business account. That includes monthly fees, easy account access and protection through the Financial Services Compensation Scheme (FSCS).
Virgin M Account for Business
For businesses with a turnover of less than £1 million, the M Account for Business gives you free day-to-day online business banking for all your everyday needs.
Available to sole traders, or the director of a registered limited company by shares (Ltd)
Must be based in the UK
Ideal for anyone just starting out, Monzo Business makes it easy for you to set up a new account and start managing your money.
Monzo offers an array of business banking services from accounting software integration to ‘tax pots’. Just remember that you won’t have access to its full range of features unless you pay a monthly fee for its Pro account. 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 phone 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:
There is a free business account available (Monzo Business Lite).
Accounts can be accessed online or via Monzo’s mobile app.
You may be able to get access to online banking on the same day as you apply.
In addition to no monthly fee, basic transactions are free with Monzo’s Lite account.
Cons:
It is not possible to manage the account over the phone or at a branch.
Business accounts are not available to charities or partnerships.
Cash deposits will have a fee of £1 at the Post Office and PayPoint. This could affect businesses that frequently need to deposit cash.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free
From free
3 months’ free QuickBooks or Xero
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
Virgin Money has a number of accounts to choose from, so there is likely to be something to suit your needs if your business is based in Great Britain.
Its M Account for Business has no monthly fees for start ups and small businesses with an annual turnover of less than £1 million. You can get cashback on debit card purchases and also apply for an overdraft. 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:
Virgin Money offers a free business account, M Account for Business.
As well as carrying no monthly fee, daily banking transactions, such as standing orders and direct debits, are free.
Eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
Virgin Money has a current account for charities, with no fees for everyday banking for charities with a turnover of less than £1 million a year.
Cons:
Although Virgin Money offers 24-hour self-service over the phone, it does not offer 24/7 customer support.
Virgin Money’s completely free M Account is only available for businesses with an annual turnover of less than £1 million.
Virgin Money has no branches in the South of England, Wales or Northern Ireland.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free
Free
Must be a Limited Company or LLP registered at Companies House. General partnerships or charities that aren’t registered as a Limited Company aren’t supported yet
All directors with access to the account must be UK residents
Starling has a free business bank account available to sole traders, limited companies and limited liability partnerships with no fees for basic transactions. Its apps have some of the best reviews in the banking market, which, coupled with 24/7 customer service, means it could be suitable for anyone looking for a cheap, easy-to-use business account.
Starling key features:
No monthly fees: There is no monthly fee for Starling’s business bank account.
Transactions: Everyday UK payments, such as Faster Payments, direct debits and standing orders, are free.
FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
Pros:
The standard Starling business account comes with no monthly fee.
You can make Faster Payments, direct debits and standing orders in the UK for free.
Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
Cons:
Some account features are only available through its Business Toolkit, which costs £7 a month.
You cannot manage your account over the phone or at a branch.
Cash deposits at the Post Office carry a £3 minimum fee.
Free for 30 months
Free
From free
30 months of free Business Banking when you switch to TSB
Your business must be registered in the UK
Must be 18 years or over
TSB is an established UK high street bank offering business banking to sole traders, general partnerships and private limited businesses. Your business must be registered in the UK.
The bank offers one everyday bank account for new business customers. Called the Business Plus Account, there is a monthly tariff (£5 per month) and some transaction fees after an introductory 30-month, fee-free period. For further details, see NerdWallet’s TSB Business Account Review.
TSB key features:
Physical branches: TSB operates a network of branches across Scotland, England and Wales.
30 months’ fee-free: TSB’s 30-month offering is competitive since several banks offer 12 months only.
Deposit cash and cheques: You can deposit cash and cheques into your Business Plus account via a branch or at any Post Office.
Payment services app: Business Plus customers can access the Revenu app free for 12 months.
FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Pros:
TSB’s 30-month introductory period exceeds many other fee-free periods offered at rival banks.
Together with no monthly fees, some accounts include free day-to-day transactions, such as standing orders, direct debits and Faster Payments.
Accounts can be managed online, via the app, over the phone or at a branch.
Eligible deposits of up to £85,000 are protected by the FSCS.
Business Plus account holders get free access to payment services app Revenu for 12 months.
Cons:
There are no TSB branches in Northern Ireland.
Following a 30-month introductory period, business accounts cost £5 per month (for accounts with an average monthly balance of under £10,000), while some transaction charges may also apply.
Manned customer service is limited to 8am to 5.30pm on weekdays via chat or by phone from 8am to 8pm, Monday to Sunday.
Setting up an account takes an average of 12 days, which is longer than many other business bank account providers.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free for 12 months
Free
Free
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
Maximum annual turnover of £6.5M
HSBC Kinetic is an app-based business bank account. The account is designed for sole traders and sole directors with an annual turnover of less than £6.5 million. It combines many of the benefits of an online-only business account (its app is one of the best reviewed) with the advantages of a traditional bank.
HSBC Kinetic key features:
Introductory offer: There is no monthly maintenance fee for the first 12 months.
Transactions: There are no charges for everyday banking transactionsincluding direct debits, standing orders and other payments.
Access to other banking facilities: Eligible customers can apply for a business overdraft or credit card. Similarly, you can apply for an HSBC Kinetic Small Business Loan worth between £1,000 and £10,000.
FSCS protection: Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Pros:
HSBC Kinetic Current Account offers free direct debits, standing orders and other payments.
You may be able to access a business overdraft, credit card or the specific HSBC Kinetic small business loan.
Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).
Cons:
After the 12-month maintenance-fee-free period, HSBC Kinetic costs £6.50 a month.
HSBC Kinetic Current Account is only available to sole traders and limited companies with just one director who is the sole shareholder, and a maximum annual turnover of up to £6.5 million.
Free for 30 months
Free for 30 months
Free for 30 months
Free everyday business banking for first 30 months + free access to the Go Get Paid app
Must be aged 18 or over
Must be a UK resident with a business address in the UK
Must be either a Sole trader or partnership, Limited liability partnership, Limited company
Ethical and sustainable practices are key to The Co-Operative Bank, so you may want to consider one of its accounts if these issues are important to your business.. What’s more, there are many different accounts to choose from, ensuring that there are options for small businesses, charities and larger companies.
The Co-operative Bank key features:
Range of accounts: The Co-op Bank offers six business accounts, so there is an option suitable for almost every business type, including charities.
FSCS protection: Your eligible deposits, up to £85,000 across all of 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:
The Co-operative Bank offers multiple accounts with no monthly service fee, including a small business account developed specifically for members of the Federation of Small Businesses.
Besides no monthly fees, some accounts include free basic transactions, such as standing orders, direct debits and Faster Payments.
You can manage your business account online, over the phone, via the mobile app and in a branch.
You can apply for a business overdraft, credit card, charge card and loan.
Cons:
The Co-operative Bank says that it can take, on average, 14 days to open an account.
24/7 customer service is not available.
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.
Free
Free
From free
Up to 1.5% cashback
For UK-based businesses only
Must have been trading for at least 12 months
Must have a minimum balance of £50k or be an existing Allica loan product customer
With a single product – its Business Rewards Account – Allica Bank is targeting established small and medium-sized enterprises (SMEs). The account carries no monthly fees and allows free bank payments. It could be of particular interest to small business owners looking to earn interest on savings, thanks to dedicated rewards features.
Instant access savings pot: You can earn 4.33% AER on business savings, as well as depositing or withdrawing from these at any time.
Cashback on eligible purchases: Earn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000. Aggregate purchases are when all the smaller sums you’ve spent are added together.
FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Pros:
There are no transaction fees for incoming or outgoing bank payments or card payments, or for outgoing direct debits.
Allica Bank’s business banking customers in England and Scotland have access to local relationship managers who can provide tailored expertise.
Each Business Rewards Account provides an instant access savings pot with 4.33% AER.
Cashback of 1% offered (and 1.5% once you spend £10,000 a month) on eligible purchases using the Business Rewards Account debit card.
Cons:
It isn’t possible to deposit cash or cheques into the Business Rewards Account.
While Allica Bank’s customer service team is based in the UK, it doesn’t offer 24/7 customer support.
It’s only possible to manage your account online or via the app, not over the phone.
It isn’t possible to send money outside the UK with this account.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free for 12 months
Free
Free
For small enterprises (including not-for-profits) with borrowing needs of up to £100k
Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
Not available for sole trader or single director shareholder businesses
HSBC offers a range of business accounts for different needs, including an account tailored specifically for small businesses. These options are separate from HSBC Kinetic, which has its own dedicated app.
All of the HSBC business accounts provide free basic banking transactions, such as direct debits, standing orders and other payments. However, there will be a monthly fee once the 12-month free period (if applicable) ends.
HSBC key features:
Free introductory offer: New business customers will benefit from 12 months of free banking.
Transactions: Everyday banking transactions are free with an HSBC business account.
Account access: You can benefit from banking at a branch, as well as managing your account on the app, online or over the phone.
Credit facilities: Business overdrafts, credit cards or loans may be available through HSBC.
Both the HSBC small business banking account and business banking account come with an introductory offer of 12 months of free banking for new customers, as well as free daily transactions.
Accounts can be accessed online, via a mobile app, over the phone or at a branch.
Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).
You may be able to access a business loan through HSBC.
Cons:
HSBC’s small business banking account business banking account both charge a monthly maintenance fee after the introductory period has ended.
Its charity account charges a monthly fee as soon as you open an account.
HSBC does not offer 24/7 customer service.
HSBC says it takes on average 4.5 days to open a business bank account.
Free for 12 months
Free
Free
Free invoicing and accounting software
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
British high-street bank Barclays offers accounts for start ups and established businesses. Barclays also offers accounts specifically designed for charities and community groups.
Account access: Barclays accounts can be accessed online, via the app, over the phone, or at a branch.
Credit facilities: Banking with Barclays can offer access to credit facilities, including loans, mortgages and overdrafts.
FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Pros:
There are tailored accounts for start ups or more established businesses, as well as charities and community groups.
Opening a Barclays business account online means gaining free access to Freshbooks accounting software.
Eligible deposits of up to £85,000 are protected by FSCS.
Customers can access support in branches across England, Wales, Scotland and Northern Ireland
Cons:
Following an introductory offer period of 12 months, Barclays business accounts carry an £8.50 per month maintenance fee. However, charity accounts continue to be free of monthly fees.
With an average set-up time of eight days and the potential for a 50-day wait, Barclays is slower at getting customers started than much of the competition.
Barclays’s start-up account is limited to businesses that have been trading for less than a year.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free
Free
For sole traders or limited companies with up to two owners
Maximum balance of £1million
You’ll need an iOS or Android device to open and manage the account
For UK-based companies with owners who are UK residents and pay tax in the UK only
Mettle business accounts are aimed at self-employed workers and limited companies with up to two owners. Accounts have no monthly fees or transaction charges. Mettle, which is part of the NatWest Group, also has one of the best reviewed apps on the market, making for a low-cost and simple-to-use account for everyday business banking.
Mettle key features:
Business banking app: Mettle’s business banking app has excellent reviews on both iOS and Android devices.
Sole traders and limited companies: You can only get a Mettle business account if you are a UK-based sole trader or a limited company with up to two owners.
Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.
Pros:
Mettle business accounts are completely free. There are no monthly fees or transaction charges.
Mettle’s business banking app is one of the best reviewed on the market.
You can pay in cash at the Post Office (and also at a PayPoint for e-accounts).
You can access Mettle customer support via the app or email and over the phone seven days a week.
Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
Cons:
You cannot access your account at a branch.
It’s not possible to pay cheques into a Mettle account.
You cannot make or receive international payments with your Mettle account.
You cannot access business overdrafts, credit cards or loans through Mettle.
Business accounts are not available to partnerships or charities.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free for 24 months
Free for 24 months
24 months free banking
Available to eligible customers over 18, who have the right to be self employed in the UK
This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
RBS offers three accounts that only charge for what you use, meaning there is no fixed monthly fee.
In addition, the RBS Start-Up Account carries no transaction fees for the first 24 months, making it well-suited to new businesses. For more details, see NerdWallet’s RBS business account review.
RBS key features:
Transaction fees: Opening a Start-Up Account means you will not have to pay transaction fees for the first 24 months.
Additional features: You can also apply for a business overdraft, credit card or loan through an RBS business account.
Account perks: Benefits include free access to FreeAgent accounting software and access to a dedicated relationship manager.
Charities included: A range of charities and not-for-profit organisations can have access to RBS business accounts.
FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Pros:
There are no transaction fees for the first 24 months when using a Start-Up Account.
RBS claims that 85% of its customers open their business account within one day of their application.
Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
You can manage your account in a branch, over the phone, online and via the app.
Cons:
RBS is less well-suited to a business based in England or Wales, as unless you have an existing RBS business or personal account, you will be directed to open a NatWest account instead. Businesses in Northern Ireland, meanwhile, are directed to open an account with Ulster Bank.
The RBS Start-Up Account – which offers 24 months’ transaction fee-free banking – is only available to businesses that have been trading for less than a year, and have a turnover of less than £1 million.
After the end of fee-free promotional periods, all transactions from RBS business accounts carry a cost.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free for 24 months
Free for 24 months
24 months free banking
Available to eligible customers over 18, who have the right to be self employed in the UK
This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
NatWest has a variety of business account offerings. There’s an account for start ups, an account for more established businesses, a community account for charities and societies, and even a foreign currency account for businesses that cross borders. For sole traders and small businesses searching for a free mobile business account, there is also NatWest’s Mettle app, which we have reviewed separately.
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:
Accounts can be accessed online, via a mobile app, in a branch or Post Office or over the phone.
Business customers can access 24-hour customer service from NatWest’s digital assistant.
Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
Opening an account gives you free access to accounting software from FreeAgent.
Cons:
NatWest does not have any branches in Scotland or Northern Ireland.
Eligibility criteria for NatWest’s start-up account mean it is only open to businesses that have been trading for less than a year and have a turnover of less than £1 million.
All transactions carry a cost after the end of Natwest’s two-year introductory period.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free for 24 months
Free for 24 months
Free for 24 months
24 months free banking
Available to eligible customers over 18 who have the right to be self employed in the UK or Northern Ireland
Ulster Bank is part of the NatWest Group and serves customers in Northern Ireland. It offers three business accounts at a cost of £8 per quarter, equivalent to £2.66 per month. In addition, it offers an international currency account for businesses that operate across borders.
FSCS Protection: Accounts at Ulster Bank are protected by the FSCS for deposits up to £85,000 as part of the NatWest group.
Lending Facilities: Customers have access to a number of different loans and finance options, as well as business overdrafts and a credit card.
Account extras: Features include access to free accounting software provided by FreeAgent.
Pros:
Ulster Bank offers easy account management with access available via phone, app, branch or online.
Customers can receive free accounting software provided by FreeAgent.
Ulster Bank’s lending options include business overdrafts and fixed-rate loans.
Cons:
Ulster Bank serves Northern Ireland, so customers in Great Britain may prefer an account with NatWest (if they are based in England and Wales) or Royal Bank of Scotland (for customers in Scotland).
Following a fee-free period, customers will need to pay a standard quarterly tariff as well as fees for everyday transactions.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
3 free per month
Available to UK registered companies with at least one UK resident director or UK-based sole traders and self-employed
Applicants must be aged 18+ and have a valid UK phone number and residential address
For business owners with bad credit, Zempler Bank might be an appealing option. There is no credit check when you apply for a business account and the paid-for Business Extra account (£9 a month) includes a credit-building feature.
Credit and overdraft facilities: You can get a business overdraft or a business credit card 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:
There is no credit check to open a Zempler business account.
Zempler Bank accounts are very quick and easy to open, with 99.90% of customers getting their account up and running on the same day they apply.
Business customers have access to a number of credit options, including an overdraft.
Cons:
There is no way to cash cheques with a Zempler Bank business account.
International payments are not possible through Zempler Bank, though this is on track to be implemented before the end of 2024.
There are no Zempler Bank branches, so face-to-face support is unavailable. However, account holders can visit the Post Office to deposit cash.
There is no monthly fee for a Zempler Business Go account, but transfers out cost 30p each after using up the monthly allowance of three free transactions.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Free
Free
20p
£50 Voucher when you open a Tide Business Bank account
For registered business account: you must be registered with UK Companies House as a director of that company or partnership
For sole trader account: you must be a UK based sole trader/freelancer
For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
There is a lot of choice when choosing a Tide business account. Customers have the option of Free, Plus, Pro and Cashback accounts, each offering different features and prices. But there are attractive extras even with the Free account, which includes accounting software integration, free invoicing, a free company card and more. In addition, Tide boasts quick set-up times and a well-reviewed app.
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:
Tide accounts can be accessed via its website, or a mobile app that is one of the best-reviewed on the market.
New accounts opened with Tide are eligible for protection through the Financial Services Compensation Scheme (FSCS).
With more than half of new business accounts opened within 10 minutes, Tide is one of the quickest and efficient options if you need immediate access to banking.
Cons:
Some existing accounts from Tide are not protected by the FSCS.
Tide account-holders cannot deposit cheques into their account.
While Tide’s Free plan charges no monthly maintenance fee, everyday transactions, such as incoming and outgoing transfers, carry a cost.
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
This selection of brands has been reviewed and evaluated by Nerdwallet, but others are available in the UK market. Find out what we mean when we say ‘best’, why we are comfortable using it, and an in-depth explanation of Nerdwallet UK’s review methodology.
Important Information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing.
This top 15 only includes providers currently offering accounts to new customers.
*We have defined free accounts as ones that do not charge a monthly or annual fee. This definition does not include business bank accounts that offer a fee-free introductory period; require a special status, such as a charity account; or have minimum turnover or balance requirements.
How business current accounts work
Business current accounts operate in a similar way to personal current accounts. Generally speaking, you can withdraw or deposit cash and make payments using a debit card, whether you’re shopping online or in a store. You can also accept incoming payments, transfer money to others, and set up standing orders or direct debits.
There are many options available, from online only to those with a high street presence, and from basic accounts to those with more complex add-ons. Many providers offer a free account as well as a paid one but, whichever you pick, you’ll likely be charged transaction fees of some sort. Below is a guide to what you should bear in mind when choosing.
Choosing a business bank account
Consider what type of business bank account you need and whether you want anonline business account, a personal experience or a combination of the two. Thencompare your business bank account options, taking the following factors into account.
Business bank account features
Monthly fees: Some business accounts have a monthly fee, which may include some or all transactions. Others will charge transaction fees instead of a monthly fee, but a few don’t have any fees at all. It’s worth shopping around to see which pricing structure best suits how you would use the account.
FSCS protection: The Financial Services Compensation Scheme (FSCS) protects deposits in bank accounts up to £85,000, so you will automatically get your money back up to this limit if your bank fails. If you are a sole trader, money in a personal bank account within the same banking group would count towards your £85,000. E-money accounts do not have FSCS coverage, though there are safeguarding rules in place to protect your money.
Set-up time: Some providers can set up business accounts on the same day you apply, while others can take days or weeks to set up your account.
Minimum balance requirements: Some providers may require you to keep your balance above a certain threshold to waive the account’s monthly fee.
Individual transaction fees: You may be charged a fee per transaction with some business current accounts. These fees can differ depending on the provider and the type of transaction. Some accounts include a certain amount of transactions per month before individual fees then apply.
Cashpoint access (withdrawals and deposits): Some providers will charge a fee for withdrawing cash at an ATM, at a branch counter or at the Post Office. Some may also charge for cash deposits, while others do not accept cash. It’s worth checking this if your business uses a lot of cash.
Cheque deposits: Not all business account providers allow you to deposit cheques, while others will charge a fee for this service. If this is important to your business, bear this in mind when choosing a provider.
International transfer and payment capabilities: If you’re looking to trade in other countries, you’ll need to find a business account provider that supports international payments. Not all providers support this, while others use a partner. Many that do allow payments abroad charge fees for this service.
Incidental fees (stopping payments, insufficient funds, overdrafts): It’s worth noting whether your chosen provider charges for services, such as unarranged overdrafts or stopping a cheque (unless it is stolen). These fees will vary by provider.
Online and mobile banking: Depending on how you want to access your account, you may want to check whether an account provider has online banking or a mobile business banking app.
Additional features, such as integration with other business tools: Many business accounts offer integration with popular accounting software packages. Some providers also have offers where you can get free accounting software with a business account.
How to choose the best small business bank account
For small business owners, picking the right bank account can have a major impact on day-to-day operations. Some providers offer products branded as ‘Small Business Account‘ or similar which are specifically designed for new or small businesses.
These might include features like spending insight tools and access to business mentoring, as well as discounts or free access to other key products, such as accounting software and insurance.
The key thing to remember is to find the account that best matches the requirements of your small business.
For example, an account with no monthly fees might sound great on the surface. However, if everyday transactions carry costs and your small business requires a lot of buying and selling, you could find yourself paying a steep price.
You might even find that the best account for your small business is open to companies of all shapes and sizes.
Business Bank Account Methodology
NerdWallet evaluated and reviewed 23 business bank accounts from high street and digital-only banks. Collectively, these accounts represent the largest banks by assets and internet search traffic, along with notable or emerging players in the industry.
We considered more than 10 data points for each account, based on the criteria that matter most to users, scoring them on fees, accessibility and customer service, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, data is collected regularly and reviewed by our editorial team for consistency and accuracy.
Using the same data across all products and features we were able to create star ratings presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’.
You can usually apply in one of the following ways:
In a branch: Talk in person with a member of staff before applying.
Online via the provider’s website: Apply from anywhere, and you could open an account on the same day.
Through a provider’s mobile app: Set up mobile banking and manage your account on your phone as soon as it’s open without having to wait for your card and account details in the post.
Sole traders can open a business bank account. Providers may offer you a specific sole trader account or a standard business account.
If you run a limited company or a limited liability partnership, no matter its size, you are likely to be able to open a business bank account.
Charities, clubs and societies may be able to open a business account. Eligibility is likely to vary between providers, so it’s worth shopping around if you’re looking to open a bank account for a not-for-profit organisation.
Some business bank accounts have strict eligibility criteria, such as minimum or maximum turnover or trading history. Providers may also have restrictions on which business structures and industries can open an account, so it’s a good idea to look through the terms of an account to make sure you’re eligible before applying.
Limited companies and limited liability partnerships (LLPs) should open a business current account to manage their money and keep business and personal funds separate.
This is because your business is a separate legal entity to you, so you must have a duty to keep its finances away from your own. One of the ways to do this is by using a business bank account.
Not-for-profit organisations such as charities may find it useful to have a separate business account to manage their finances and keep accurate records of income and expenditure.
Along with personal ID, proof of your residential address, and proof of your business address, you may also be asked to show evidence of your annual turnover or estimated income, such as your previous tax return or your business plan.
It can take anything from just a few minutes to a few weeks to open a business current account. It depends on the provider, and how long it takes to complete its checks.
Some providers offer accounts that are tailored for small or new businesses. These products often include additional extras that might appeal to small business owners, such as discounts on third party accounting software or access to business mentoring programmes.
However, small businesses will often be eligible for normal business accounts too, though there might be requirements based on turnover or how long you have been trading.
Every small business is different, and there is no one-size-fits-all answer. However, small business owners may want to focus on accounts with low charges and features that are relevant to their business. This way, small business owners can ensure they get value for money and do not find themselves paying for features they are unlikely to use.
Limited companies and partnerships are required to get a business bank account. If you are a sole trader, you can choose to use a personal bank account for your business if your bank allows it. However, getting a business bank account can make your small business appear more professional, while also allowing you to create a clear distinction between personal and business transactions.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
