Author
Mark C
- 01st January 2026
The Best Business Bank Account – 2026 Edition
Starting a business in the UK? One of your first and most important decisions will be selecting the best business bank account. Whether you’re a freelancer, a sole trader, or managing a growing small business, choosing the best business account is crucial for simplifying your financial management.
Here at StartupDeals.co.uk, we’ve researched and reviewed the best business bank account providers available, helping you navigate your options with ease. Read on for detailed reviews, comparisons, and all the key information you need to make the best choice for your startup.
See Our Best Business Bank Account Deals:
Monzo
Monzo Business Current Account- Free Business Current Account
- Free UK Transfers
- Accounting Integrations
- Real-Time Spending Notifications
Tide
Tide Business Current Account- Free Business Current Account
- 3 months free on any paid plan
- Earn up to 4% AER (Variable) on savings
- Apply in minutes
Anna Money
Anna Money Business Current Account- Free Business Current Account
- 24/7 In-App Support
- Tax & VAT Tools
- Multi-User Access
Key benefits of opening a Business Bank Account:
A dedicated business account offers several crucial benefits that you won’t get with a personal bank account.
Professionalism
Having a business bank account enhances your company’s credibility and trustworthiness.
Financial Clarity
It separates your business and personal finances, making it easier to manage cash flow, handle taxes, and track expenses.
Better Financial Management
Most business accounts offer features like invoicing tools, expense tracking, and real-time notifications.
Access to Business Loans:
A business account gives you a higher chance of qualifying for business credit or loans.
Best Business Bank Account for UK Startups:
We’ve broken down the best business bank account options available, ensuring there’s something for every type of business. Whether you’re just starting out or scaling up, you’ll find a business account to match your needs.
Whether you’re launching a new startup or scaling your SME, choosing the best business bank account helps you save on fees and access features tailored to your operations.
Tide Business Bank Account
Best for: Simple, flexible business banking with no monthly fees.
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with automated expense categorisation and invoicing tools
Extras: Multi-user access, real-time financial insights
Highlights: Unlimited transactions, instant payments, and easy-to-use dashboard
Offer: Get upto £200 cashback when you open a Tide Business Bank Account (T&C’s apply)
Key Benefits:
✔️ Automated expense categorisation for hassle-free bookkeeping
✔️ Invoicing tools built into the app for seamless financial management
✔️ Real-time financial insights directly on your mobile device
Ideal for: Freelancers, sole traders, and small businesses seeking a free, no-fuss business bank account.
Why Choose Tide?
Tide offers a simple, flexible banking solution for small businesses with no monthly fees and unlimited transactions. It’s perfect for businesses looking for a cost-effective and efficient way to manage their finances with easy-to-use tools for expense tracking and invoicing.
Sign Up for Tide Today and earn upto £200 cashback*, plus, access all the powerful features of Tide Business Banking.
Read our full Tide Business Bank Account review >> here for more details!
Anna Money Business Bank Account
Best for: Simple, straightforward business banking with integrated tax management.
Monthly Fee: £0
Bank Transfers: 20p (10 free per month)
Card Purchases: £0
Overdraft: Not available
FSCS Protection: No
Accessibility: User-friendly mobile app with built-in VAT management and expense tracking
Extras: Tax tools that automatically calculate and store VAT
Highlights: Instant payment notifications, card payments, and easy-to-use dashboard
Offer: Get 1% cashback on card purchases (terms apply)
Key Benefits:
✔️ Integration with popular accounting software for seamless financial management
✔️ Fast account setup—open your account online in minutes
✔️ Real-time financial insights directly on your mobile device
Ideal for: Sole traders, freelancers, and small businesses looking for a no-fuss banking solution.
Why Choose Anna Money?
Anna Money provides a simple, easy-to-use mobile banking experience with powerful features like automatic tax calculations and integration with accounting tools. It’s perfect for freelancers and small businesses that need simplicity and efficiency to manage their finances.
Sign Up for Anna Money Today and start enjoying 1% cashback on your card purchases.
Read our full Anna Money review >> here for more details!
Monzo Business Bank Account
Monthly Fee: £0 (for the Basic Plan)
Bank Transfers: Free (UK transfers)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes
Accessibility: User-friendly mobile app with built-in expense categorisation and budgeting tools
Extras: Multi-currency support for international transactions, instant notifications for all spending
Highlights: Real-time transaction updates, integration with accounting tools, and easy-to-use dashboard
Offer: £50 cashback when opening a business account* (terms apply)
Key Benefits:
✔️ Instant notifications for all card payments and transactions
✔️ Seamless integration with popular accounting software (e.g., Xero, QuickBooks)
✔️ Real-time insights into your business finances directly through the mobile app
Ideal for: Sole traders, freelancers, and small businesses looking for an intuitive, tech-driven banking experience.
Why Choose Monzo?
Monzo provides a mobile-first business banking solution, offering easy-to-use tools like real-time transaction updates, expense categorisation, and multi-currency support for businesses with international clients. It’s perfect for tech-savvy entrepreneurs who want a streamlined banking experience with innovative features.
Sign Up for Monzo Business Account Today and enjoy £50 cashback when opening an account (terms and conditions apply).
Read our full review >> here for more details!
Wise Business Bank Account
Best for: International businesses and freelancers who need a simple, low-cost, multi-currency business banking solution.
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes (up to £85,000, as it is a regulated e-money institution)
Accessibility: Easy-to-use mobile app and web platform with multi-currency accounts, international payments, and expense tracking tools
Extras: Low fees for international transfers, integrated with accounting software like Xero
Highlights: Hold and convert 50+ currencies, low-cost international payments, and transparent exchange rates
Offer: n/a
Key Benefits:
✔️ Multi-currency support: Hold and convert over 50 currencies at real exchange rates
✔️ Low-cost international transfers: Send money abroad without hidden fees or high exchange rates
✔️ Real-time tracking: See the exact amount of each transfer before it’s sent and track payments with ease
✔️ Accounting software integration: Easily integrate with popular accounting software like Xero for seamless business finance management
Ideal for: Businesses with international clients, freelancers, and digital nomads who need to manage multiple currencies and make affordable international payments.
Why Choose Wise?
Wise provides businesses with a global approach to banking, offering the ability to hold and transfer over 50 currencies at the real exchange rate—making it the perfect solution for international businesses. With low-cost international transfers, no hidden fees, and a transparent approach to exchange rates, Wise is ideal for companies that need to manage multi-currency accounts efficiently.
Read our full review >> here for more details!
Zempler Business Bank Account
Best for: Simple, flexible business banking with no monthly fees and low transaction charges.
Monthly Fee: £0
Bank Transfers: 35p (3 free per month)
Card Purchases: Free (Initial £9.95 card fee refunded)
Overdraft: Not available
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with automated expense tracking and financial management tools
Extras: Multi-currency accounts, international payments
Highlights: Low-cost international transfers, automatic expense categorisation, and real-time insights
Offer: Get a free business debit card when you sign up for Zempler
Key Benefits:
✔️ Automated expense categorisation for seamless bookkeeping
✔️ Multi-currency accounts for international businesses
✔️ Real-time financial insights for easy management of business cash flow
Ideal for: Freelancers, small businesses, and startups that need simple, low-cost banking with international payment options.
Why Choose Zempler?
Zempler offers an affordable solution for small businesses, providing no monthly fees and the ability to handle international transactions. Its user-friendly app helps manage expenses and track business performance efficiently, making it a perfect fit for businesses looking to scale with minimal costs.
Sign Up for Zempler Today and enjoy a free business debit card along with all the helpful features of Zempler Business Banking.
Read our full review >> here for more details!
Revolut Business Bank Account
Best for: Innovative business banking with robust features and international transaction support.
Monthly Fee: £10 (Business Basic Plan)
Bank Transfers: Free (UK transfers)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Mobile app and web platform with real-time spending insights and expense management tools
Extras: Multi-currency support, global payments, automated accounting integrations
Highlights: International payments with low fees, instant transfers, and comprehensive financial reports
Offer: n/a
Key Benefits:
✔️ Multi-currency support for seamless global transactions
✔️ Automated accounting tools for integration with Xero and QuickBooks
✔️ Low fees for international payments and real-time financial insights
Ideal for: International businesses, freelancers, and startups that need advanced features like multi-currency accounts and global transaction capabilities.
Why Choose Revolut?
Revolut offers a global approach to business banking with multi-currency support, low-cost international payments, and automated integrations. It’s the ideal choice for businesses dealing with international clients, suppliers, or employees, looking for a simple, cost-effective way to manage business finances.
Starling Business Bank Account
Best for: Streamlined business banking with no monthly fees, intuitive mobile banking, and integrated financial tools.
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with expense tracking and real-time notifications
Extras: Integrated VAT management, business insights
Highlights: Unlimited transactions, free UK transfers, and real-time insights into your business finances
Offer: Get a free business debit card when you open an account with Starling
Key Benefits:
✔️ User-friendly app for managing finances and tracking transactions on-the-go
✔️ Integrated VAT management tools for smooth tax filing
✔️ Real-time financial insights for better decision-making
Ideal for: Small businesses, freelancers, and startups seeking no-fuss banking with real-time financial tools and no monthly fees.
Why Choose Starling?
Starling provides free business banking with unlimited transactions, seamless VAT management, and easy mobile access to track your business expenses. Perfect for those looking to manage business finances simply, whether you’re just starting out or scaling up.
Mettle Business Bank Account
Best for: A simple and flexible business account for freelancers and sole traders, with instant access to essential banking tools.
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with automatic expense categorisation
Extras: Integration with accounting software, financial insights
Highlights: Free UK transfers, real-time transaction updates, and customisation banking features
Offer: Get a free business debit card with your Mettle account
Key Benefits:
✔️ No monthly fees and free domestic transfers
✔️ Expense categorisation for seamless bookkeeping
✔️ Integrated accounting tools for quick and easy tax filing
Ideal for: Freelancers, sole traders, and small businesses who need a no-fee business account with simple, integrated tools.
Why Choose Mettle?
Mettle provides a hassle-free banking experience with no monthly fees and easy integration with accounting software like Xero. It’s ideal for small businesses or freelancers looking to manage their finances without the complexity of traditional banks.
Cooperative Bank Business Account
Best for: Ethical business banking with a strong focus on supporting sustainable businesses.
Monthly Fee: £7 (Free for the first 30 months)
Bank Transfers: 35p (free for the first 30 transactions per month)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Traditional banking with a mobile app and in-branch support
Extras: Ethical banking, support for charities and non-profits
Highlights: Strong focus on sustainability and ethical business practices
Offer: Free for the first 30 months (with a minimum deposit)
Key Benefits:
✔️ Ethical business banking with a focus on sustainability
✔️ Free transactions for the first 30 transfers per month
✔️ In-branch support and comprehensive online banking
Ideal for: Businesses committed to ethical practices, including charities, social enterprises, and sustainable startups.
Why Choose Cooperative Bank?
Cooperative Bank offers ethical business banking with a strong focus on supporting sustainable practices. If your business values environmental and social responsibility, this is the ideal business account for you.
Sign Up for Cooperative Bank Today and enjoy free business banking for the first 30 months, with the support of ethical banking practices.
HSBC Business Bank Account
Best for: A comprehensive business banking solution for established businesses with international needs.
Monthly Fee: £6.50 (Free for the first 12 months)
Bank Transfers: Free (for domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Online banking and branch services available
Extras: Access to global banking, trade finance services
Highlights: International business support, overdraft options, and robust customer support
Offer: Free for the first 12 months
Key Benefits:
✔️ Comprehensive global banking with access to international accounts
✔️ Overdraft options and access to credit facilities
✔️ Robust customer support and global trade services
Ideal for: Established businesses with international needs and those requiring advanced banking services like trade finance.
Why Choose HSBC?
HSBC offers a comprehensive business banking solution for companies looking for global banking support, overdraft facilities, and trade finance services. It’s perfect for businesses that require advanced banking features and international capabilities.
Sign Up for HSBC Today and get free business banking for the first 12 months, with access to global business solutions.
What are Business Bank Accounts?
A business bank account is a specialised financial account designed for businesses, offering features that cater to the unique needs of entrepreneurs, sole traders, and companies. Business accounts provide a way to separate business transactions from personal finances, helping businesses to manage cash flow, taxes, and financial records effectively.
Business bank accounts often include services such as debit cards, cheque writing, online banking, and the ability to accept payments from clients. These accounts also help businesses establish credibility and professionalism in the marketplace, especially with customers, vendors, and investors.
There are two main types of business bank accounts: those offered by traditional banks and challenger banks (digital banks). While both are regulated financial institutions, challenger banks often provide more flexible, digital-first solutions, while traditional banks may offer more in-person services and a broader range of financial products.
How Do Business Bank Accounts Work?
A business bank account helps businesses manage their finances more efficiently by separating business funds from personal funds.
These accounts are used for:
✔️ Receiving payments from customers or clients
✔️ Paying expenses, including payroll, supplier payments, and overhead costs
✔️ Tracking transactions to help with budgeting, cash flow management, and tax reporting
Business bank accounts typically provide features such as cheque writing, debit card access, and online banking. Many accounts also allow access to merchant services for processing payments, business loans, and credit facilities to help businesses grow and operate efficiently.
What’s the Difference Between Personal and Business Bank Accounts?
While both personal and business accounts serve as a place to store money, there are several key differences:
Purpose: A personal bank account is for managing individual finances, while a business account is for managing business transactions and finances.
Features: Business accounts typically offer additional features, such as higher transaction limits, the ability to accept customer payments, credit facilities, and merchant accounts for processing card payments.
Regulations: Business accounts are often subject to different taxation rules and business laws, while personal accounts are geared toward individual financial needs.
Personal accounts don’t include the tools necessary for managing a business’s finances, such as business loans, merchant services, or expense tracking.
Do I Need a Business Bank Account?
While it is not a legal requirement for all businesses, a business bank account is essential for:
Limited Companies: If your business is a limited company, you must have a separate business account.
Professional Image: A business account presents a professional image to clients, suppliers, and investors, separating your personal finances from your company’s.
Tax Filing: Keeping business and personal finances separate simplifies tax filing and bookkeeping, helping to avoid tax complications.
You may not need a business account if you are a sole trader or freelancer who doesn’t have a registered business structure. However, it’s still a good idea to have a separate account to keep finances organised.
Are There Benefits to Using a Business Bank Account?
Here are several benefits to having a business bank account:
Separation of Finances: Keep business and personal finances separate, making it easier to track expenses and profits.
Professional Image: A business account helps present a more professional image to customers and clients.
Simplified Invoicing and Payments: Business accounts help you accept payments, issue invoices, and manage cash flow more efficiently.
Builds a Credit History: A business account helps establish your business’s credit rating, which can be useful when applying for loans or credit cards.
How to Choose the Best Business Bank Account:
Selecting the right account depends on several factors, such as the type of business you run and the specific features you need. Here’s a breakdown to help you decide:
- Fees and Charges: Does the bank charge monthly maintenance fees, transaction fees, or fees for certain services? Consider accounts with no monthly fees or transaction fee-free options.
- Interest Rates: Some business accounts offer interest on deposits. Ensure you know whether your account offers this and if it changes over time.
- Overdraft Facilities: Does the bank offer an overdraft facility? If so, check the interest rate and terms.
- Digital Banking: Do you prefer a digital-only banking solution with mobile apps and online banking, or do you need access to physical branches?
- Integration with Accounting Software: Does the account integrate with popular accounting software like Xero or QuickBooks?
- Customer Service: Does the bank offer 24/7 support? Check the customer service hours and quality of service.
Pros and Cons of a Business Bank Account:
Pro’s:
✔️ Separation of Personal and Business Finances: Helps keep personal expenses distinct from business expenses.
✔️ Builds Business Credit: Establishes a credit history for your business, essential for future loans or credit applications.
✔️ Tax Benefits: Simplifies tax filing by separating personal and business transactions.
✔️ Professional Appearance: Makes your business look more professional to customers, partners, and investors.
Cons:
❌ Higher Fees: Some business accounts come with higher fees compared to personal accounts.
❌ More Administration: Managing multiple accounts means more time spent on bookkeeping and financial organisation.
❌ Minimum Deposit Requirements: Some business accounts may require an initial deposit or a minimum monthly balance.
What Are the Different Types of Business Bank Accounts?
Here are the most common types of business bank accounts available:
Current Accounts: These are the most common type, used for everyday transactions like paying bills, processing payments, and managing expenses.
Savings Accounts: Business savings accounts allow businesses to store surplus funds and earn interest over time.
Merchant Accounts: These accounts help businesses process card payments, essential for e-commerce businesses or physical stores.
Foreign Currency Accounts: For businesses that deal with international transactions, these accounts help avoid currency exchange fees.
Fixed Deposit Accounts: These accounts are designed to lock funds for a specified period to earn a better interest rate.
Client Accounts: Used by businesses like solicitors or estate agents to hold client funds in trust.
Steps to Open a UK Business Bank Account:
Choose a Bank: Research and compare fees, features, and customer service ratings to find the best business bank account for your needs.
Prepare Documents: Gather necessary documents such as proof of identity, proof of business address, and company registration information.
Apply: Fill out an online or in-branch application to open the account.
Verification: Submit documents and undergo any necessary verification processes.
Fund Your Account: Deposit initial funds as required and start using your account for business transactions.
At a glance - Business Bank Account Comparison:
 |
 |
 |
 | |
|---|---|---|---|---|
| Opening Fee | £0 | £0 | £0 | £0 |
| Monthly Cost | £0 (Free account) £12.50–£69.99 (Paid plans) | £0 (Free account) £14.90 (Paid plans) | £0 (Free account) £5 (Pro plan) £15 (Premium plan) | £0 (Free account) |
| Card Transaction Costs | Free | Free up to turnover limit | Free UK card transactions | Free UK card transactions |
| Transfers to/from other bank accounts | Free UK transfers Fees for international | Free up to turnover limit | Free UK transfers Fees for international | Free transfers (for major currencies) |
| ATM Withdrawals | £1 | Free (up to £500/month) Fees after | Free up to £250/month Fees above that | Free |
| Tap to Pay | ✔️ | ✔️ | ✔️ | ✔️ |
| Payment links | ✔️ | ✔️ | ✔️ | ✔️ |
| Accounting Integrations | ✔️ | ✔️ | ✔️ | ✔️ |
| Sign-Up Offer | Up to £200 cashback* (T&C's apply) | 1% cashback* (T&C's apply) | £50 cashback* (T&C's apply) | N/A |
| Apply Now | Apply Now | Apply Now | Apply Now |
How to Switch Your Business Bank Account:
Switching your business account is simple, especially if the bank is part of the Current Account Switch Service, which makes the transition seamless. Look for a bank that is signed up to this service for an easy switch.
Alternative Business Banking Options:
If you don’t want a traditional business bank account, here are some alternative options:
E-Money Accounts: Digital-only accounts provided by non-bank financial institutions. These accounts are typically not covered by FSCS protection but offer lower fees.
Payment Service Providers (PSPs): Services like PayPal, Stripe, or Square are used to process payments, especially for e-commerce businesses.
FAQ's:
Can I open a business account if I’m a sole trader?
Answer: Yes! Most of the accounts listed above, including Anna Money and Tide, cater specifically to sole traders.
What documents do I need to open a business bank account?
Answer: Typically, you’ll need to provide proof of identity (passport or driver’s license), proof of address, and your business details (such as your company registration or tax number).
Are there fees for business accounts?
Answer: Some accounts have no monthly fees, like Anna Money and Tide. Others may have fee structures based on usage, such as transaction limits or additional services.
How long does it take to open a business account?
Answer: Many accounts, such as Monzo and Tide, allow you to open an account instantly through their mobile apps.
Are there business accounts for startups?
Answer: Yes, there are business accounts for startups! Check out our business bank account comparison to find the best business bank account for your startup.
What is the best business bank account for startups in the UK?
Startups often need low fees, flexibility, and simple onboarding. Comparing the top business bank accounts UK providers can help entrepreneurs find the best business bank account for startups that suits their growth stage.
How do I compare business bank accounts effectively?
When doing a business bank account comparison, consider monthly fees, transaction charges, customer support, and online features. The best business bank account for you will depend on whether you are a sole trader, freelancer, or SME.
Are online-only business bank accounts better than traditional ones?
Online business accounts for startups can offer lower costs and faster setup, but traditional banks may provide branch access and more complex lending products. The best business bank account balances cost, convenience, and long-term needs.
Do I need a separate business bank account as a sole trader?
While not legally required, having a separate business bank account helps sole traders keep personal and business finances organised. Many of the best business bank accounts in the UK now offer tailored options for sole traders.
Which banks offer the top business bank accounts UK companies recommend?
Some of the top business bank accounts UK entrepreneurs choose include both high-street names and challenger banks. The best business bank account depends on whether you value integrations, international payments, or low running costs.
Can I switch to a better business bank account easily?
Yes, most UK providers are part of the Current Account Switch Service. This makes moving to the best business bank account for your company structure quick and straightforward.
What features make a business bank account the best choice for SMEs?
For SMEs, the best business bank account will typically include accounting integrations, multiple user access, low fees, and credit options. Comparing business bank accounts side by side helps in choosing the right fit.
Are there free business accounts for startups in the UK?
Yes, some banks and fintech providers offer free or low-cost business accounts for startups. These can be the best business bank account options for early-stage companies looking to save money.
What documents do I need to open a business bank account?
Most banks require proof of ID, business registration details, and proof of address. If you’re looking for the best business bank account with fast approval, online providers often require fewer documents.
How do business bank account comparisons help entrepreneurs save money?
By reviewing business bank account comparison tables, entrepreneurs can identify the best business bank account with lower fees, better support, and features that match their business model.
Conclusion:
Choosing the best business bank account is a crucial decision for your business. Consider all the factors, from fees and features to customer service and account compatibility with your business needs. Whether you need a traditional bank account or a digital challenger bank, it’s important to make an informed decision that aligns with your business goals.
Start Your Business Journey Today with the Best Business Bank Account:
Choosing the best business bank account is a key step towards managing your finances and setting your startup up for success. Explore our top business bank accounts UK and get started today!
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