2021 Best Business Bank Accounts (2024)

Which providers offer the best business bank accounts? And what makes it the best?

Are the best business bank accounts necessarily the cheapest business bank accounts? There is so much competition now in the business bank account sector that it might actually be better and more productive for your company to open an account with higher costs.

Why? The level of services you’re entitled to with a slightly more expensive option might:

• give you access to advice and support from experienced managers,
• make it easier to take payment from customers,
• allow you to pay cash and cheques into your account because they have branches closer to you,
• simplify keeping your company’s financial records to the high standards required by HMRC, and
• do business abroad in different currencies
• entitle you to financial protection if the bank suffers an insolvency event

Compare the Top 4 Business Business Bank Accounts

What is a business bank account?

A business bank account is a separate account from your personal bank account which allows your company to make and receive payments.

Having a business account looks more professional to prospective customers and suppliers – in fact, some customers and suppliers may refuse to deal with you if you ask for payment to be made to or from a personal account.

There are currently 30 financial institutions offering business bank accounts. We have found the top 4. However, we do discuss the others below.

Business bank accounts to consider

Banks now tend to bundle a lot of services together with their business accounts. Below, we list the 27 banks and financial institutions competing for custom in the UK.

If you see the name of a product or service and you’re not sure what it means, please scroll down to our FAQ where we’ll provide you with an explanation.

Acorn

Labelling itself as “a new type of business money management”, Acorn is one of the latest entrants into the UK business banking market.

One of the few services to pitch itself directly at people whose credit history is less than perfect, Acorn does not credit check any individual applying for an account and sign-up is done completely online.

Acorn charges a minimum monthly fee of £12.50 taken from your account on the 1st of the month. Unlike other virtual banks, there is no application fee to join Acorn.

See below for a selection of the features enjoyed by Acorn business customer:

• an experienced account manager – talk directly to an account manager about what you need. They can set up direct debits and regular payments from your account as well as managing your invoices.
• make payments in at a Barclays Bank or Post Office branch – present your cheques together with your pre-printed GIRO to pay money into your account. You can use your own personal barcode to make payments into a Post Office Branch.
• no account opening fee
• daily cash withdrawal limit of £250 from cash machines
• online account management via a password 24 hours a day, 7 days per week – view balances, pay bills, check transaction history and print statements
• IBAN & SWIFT number for international transactions
• Acorn Prepaid Corporate MasterCard provided
• automated telephone service – check your balance and activate cards
• SMS service – access your account via SMS

Please note that Acorn is not a member of the FSCS so, in the event of insolvency, you will not be entitled to receive up to £85,000 in compensation by the government to replace any lost cash. However, any money paid into your account is segregated and held by Fair Payments Limited in their secure client account.

Click to read more about the Acorn Account For Business.

Allied Irish Bank

Although it offers current accounts for individuals, Allied Irish Bank’s main focus is providing services to businesses.

The main features of their business current account are:

• a range of savings accounts to choose from
• business Visa debit (up to £500 can be withdrawn daily)
• electronic payments service via Internet Business Banking (iBB) (standing order, direct debit, or cheque options)
• overdraft facility (subject to status)
• pay cash in via Allied Irish Bank’s business centre, at partner banks, and at Post Offices
• quick access to your current account via AIB’s iBB

Other products offered by Allied Irish Bank to clients include:

• business credit cards
• merchant services
• finance and loans
• asset finance
• corporate banking
• savings and deposits
• customer treasury services

There are currently no introductory offers for either new businesses or businesses wishing to switch their current account provider.

Bank of Ireland has a small network in England and Scotland across the UK which are based in major cities. London has four branches while Wales and Northern Ireland currently have no branches.

Account charges are applied quarterly.

More here about the Allied Irish Bank business bank account.

Anna Bank

Anna Bank offers a combined business account and credit card. It’s designed for very small businesses, contractors, and freelancers.

The bank account has no monthly charge if you turn over less than £500 a month and your balance is less than £5,000. Different packages are available for those with higher turnovers and/or balances from £4.90 a month to £24.90 a month,

The bank’s services are accessed by an app and its main features are:

• Debit card (1 card for free account to unlimited for top tier)
• Multiple user access (on top and second top tier)
• Direct debits
• Connect other bank accounts (via Open Banking)
• Free UK transfers (from 2 per month in and out on the free tariff to an unlimited per month on the top tier at £19.90)
• Free ATM withdrawals (from up to £100 per month on the free tariff to up to £10,000 per month on the top tier – charges payable thereafter)
• Instant payment notifications
• 1% cashback on purchases (on selected purchases)

International transfers are not currently offered but they are working on this at the moment.

Via Anna’s app, you can manage your invoices – the app offers the following functionality:

• Create and send invoices
• Add your logo
• Design invoices without ANNA branding
• Invoice reminders (including chasing overdue clients)
• Invoice reports (see who has paid you and who hasn’t)
• Auto-match payments to invoices
• CSV reports (download your account activity to an Excel spreadsheet or similar)

In the last 12 months, Anna has introduced integration to accounting software packages like Quickbooks and Xero and a new international transfers service.

The app also allows you to capture receipts and store receipts digitally (top tariff only) as well as sending you tax reminders and giving your accountant access to your account.

Click for more on the Anna Bank business bank account.

Bank of Ireland

Although primarily based and trading in the Republic, the Bank of Ireland is actively targeting UK businesses even though, at the moment, there are no branches for clients to use in the UK mainland.

They currently offer a business start-up package featuring:

• business current account – no transaction and maintenance fees for 24 months.
• dedicated business start-up support line
• FCR launch online package worth €425
• enterprise support programme aimed at supporting your business.
• free business tool and guides and online support

For more established businesses, they provide their Standard Business Current Account featuring:

• debit card
• simple pricing plan (€15 a quarter)
• online banking
• mobile banking
• telephone banking – bank whenever you want, wherever you want
• overdraft access (subject to status)
• cash handling services
• you can apply for a savings account and business credit card when you open your account

The Bank of Ireland has specialist divisions for accountants, agricultural businesses, the healthcare sector, hotels, manufacturers, the motor trade, property developers and landlords, pubs, renewable energy companies, the retail convenience sector, and the technology sector.

They have a busy lending department. In addition to business loans, clients are able to apply for farming loans, business overdrafts, green business loans, hire purchase, leasing, and a wider range of commercial finance products.

There is no current branch network in the UK however there are a good number of branches in Northern Ireland.

This is the webpage covering the Bank of Ireland business bank account.

Bank of Scotland

With over 290 different branches (and, uniquely, a number of branching touring the Scottish Highlands and Islands), the Bank of Scotland currently provides banking services to over 150,000 businesses in the UK.

12 months’ free day-to-day business banking is offered to new business whose anticipated turnover will not exceed £3m.

The bank prides itself on its simple pricing policy for business clients as well as its accessibility through internet banking, telephone banking, mobile banking, text alerts, and in-branch support.

Other services offered to business clients include:

• Overdrafts
• Commercial Loans
• Invoice Financing
• Asset Finance
• Vehicle Contract Hire
• Commercial Mortgage
• Residential Buy To Let Mortgage
• Enterprise Finance Guarantee
• Business charge cards, debit cards, key cards, and business credit card
• Business insurance
• Merchant Services
• BACS Direct
• International banking and payments

The bank has specialist divisions offering support to businesses in the agricultural sector, education, franchisors and franchisees, healthcare providers, introducers, manufacturers, real estate developers, and professional services companies.

Find out more about the Bank of Scotland business bank accounts.

Barclays

Barclays is one of the world’s largest banks with over 4,750 branches in about 55 countries of which about 1,600 are in the United Kingdom.

New businesses benefit from 12 months’ free banking where all standing charges and payment-related charges are waived and expected turnover will be less than £6.5m

In the most recent Competition and Markets Authority report, the bank came fifth in the ratings for its online banking and mobile services by its customers.

It has recently launched the SmartBusiness Insights service allowing you to see all the information about your business in one place thanks to its ability to connect to PayPal, Xero, and Quickbooks.

For businesses turning over up to £6,500,000, two types of account are offered:

• the mixed payment plan (for companies accepting cash and cheques as well as other forms of payment)
• e-payments plan (for companies receiving mainly electronic payments)

Different pricing plans for each account are charged to companies with £400,000 or less a year turnover and companies turning over £400,001 to £6,500,000.

Barclays offers a wide suite of other business products that you’d expect from a company of that size including:

• Commercial loans
• Enterprise Finance Guarantee
• Commercial mortgages
• Agricultural mortgage
• Property finance
• SIPP and SSAS loans
• Overdrafts
• Business credit and charge cards
• Asset finance
• Invoice finance
• Merchant services

The bank offers a full range of services for companies wanting to trade internationally including opening foreign currency accounts, transacting of international payments, import documentary collections, import letters of credit, export documentary collections, and export letters of credit.

Click for further reading on Barclays business bank account.

Bunq

Bunq, based in the Netherlands, describes itself as the “Bank of the Free” – here to “break free from the status quo, and create the bank with you in mind. Giving you the freedom to live life on your terms”.

Bunq’s business bank account comes priced at a different range of tariffs from €2.99 to €19.99 and their service is delivered via an app. Unlike other banking apps, the Bunq platform allows you to integrate your app with other apps – accounting apps, expenses management apps, invoicing apps, payment apps, and so on. The company is also offering €120 of Google Ads credit for new customers.

The app’s general features include:

• VAT set-aside on incoming and outgoing payments
• receipt scanning via your mobile phone’s camera
• IBAN for main accounts and sub accounts which can be used for card payments, online payments, and direct debits
• scan an invoice and Bunq will decode the details and make payment
• if you receive an invoice by email, load it into the app
• add or remove users easily
• grant access to sub-accounts to employees
• instant notifications on all transactions, direct debits, and card payments
• block cards linked to your account, change PINs, or adjust account limits
• multi-batch payment of invoices
• interest paid on balances “9 times higher than [a] traditional bank”, according to the company with interest payments made monthly
• you can now manage your account via your Apple Watch as well as your app and your desktop

With the service being completely online, there are no bank branches in the UK – no arrangements seem to have been made yet with the Post Office or another bank to handle transactions for their customers.

There is currently no introductory offer for either new businesses or businesses switching their banking supplier.

More on the Bunq business account here.

Card One Banking

Worried that you won’t be able to open a small business bank account because your credit history is less than perfect? If so, the cardonemoney service may be for you.

There are no credit checks to pass and your account may be opened within three hours. cardonemoney works with customers whose turnover is £2m a year or less.

There is a £55 sign-up fee and a minimum monthly charge of £12.50 and a significant list of additioal business account charges, all of which are listed on their website.

cardonemoney offers all of the normal features you’d expect on a standard business account including:

• access to your account via SMS, phone, and the internet
• UK-based call centre
• the account accepts direct debits you set up with your suppliers (with additional security measures)
• SMS messages every time money is paid into your account
• SMS messages to confirm that you successfully paid a bill
• ability to export your bank statements to popular online bookkeeping and accounting software platforms
• up to 4 prepaid Corporate MasterCards with each account.
• remote administrative to enable or control employees’ MasterCards to manage their expenditure

Please note that transaction charges are high on this account in comparison to other banks and that, because cardonemoney does not have a banking licence, any money you have with the bank will be unprotected in the case that cardonemoney becomes insolvent.

More here about the Card One Banking business bank account.

Cashplus

The Cashplus account is designed for small businesses as a viable and flexible alternative to a standard high street business account.

To join, there’s a simple online application process which takes 5-10 minutes. The account is

ideal for those with bad credit history as no credit check performed on applicants. If your application is accepted (instant decision), your account is set up immediately allowing you to take payment straight away. Customers are also issued with a Business MasterCard (this may take 5-7 days to arrive).

There is no dedicated Cashplus network for customers to use although customers can both withdraw and pay in cash from their accounts at any Post Office.

The bank’s online platform is compatible with popular accounting and bookkeeping software platforms.

The account costs £69 per annum and there are no current introductory benefits on offer to new customers.

In 2017, the bank won the “Top Challenger Bank” award with judges citing the reasons for its success being the lack of monthly maintenance fees, bookkeeping software integration, inclusive expense cards, and membership of the Faster Payments scheme.

Other products and services offered by Cashplus include:

• IDraft – an expensive variation on a traditional overdraft offering a mere £2,000 buffer at 69.9% APR
• Cashplus API – ability to integrate financial information pertaining from your account for software developers
• Up to £300,000 cash advance – a type of loan based upon the average amount of money you take in payment from customers using their debit or credit cards.

Click for more on the Cashplus business bank account.

Clydesdale Bank

Founded in 1838, Clydesdale Bank has played a pivotal role over nearly two centuries providing for the financial needs of communities and businesses in Scotland. The bank currently has no branches outside Scotland.

The company’s business bank account is designed for companies which do not have complex financial needs. Overdrafts are available on application for customers.

The bank has an extensive online portfolio of support tools including a business health check test, general guides on how to run a business, and interactive online training materials and courses.

New customers and new businesses benefit greatly from a period of 25 months’ free banking (no monthly fees and no transaction charges. At the end of the free banking period, the monthly fee is a low £5.00.

The bank has specialist divisions covering the needs of the agricultural sector, food & drink businesses, healthcare providers, hotels, the automotive sector, professional services firms, renewables companies, social housing providers, and insurance intermediaries

The bank is active in the provision of additional services to clients including:

• business overdrafts
• business credit cards
• asset finance
• invoice finance
• commercial mortgages
• savings accounts (including instant access accounts)
• risk management (forex, interest rate, and commodity)
• business and private wealth management

Clydesdale Bank has roots that extend back to 1838 and has an extensive history of supporting Scottish businesses and communities. Clydesdale Bank only has branches in Scotland.

This is the main webpage for the Clydesdale Bank business bank account.

Coconut

Coconut is a hybrid services offering the functionality you’d expect from both a standard business bank account and a bookkeeping and accounting app. Monthly costs are £3 a month for a limited service (for “side hustlers” offering 30 transactions and 3 invoices) or an unlimited number of both for £10 per month.

The founders of the Coconut service want to attract small businesses, the self-employed, contractors, and freelancers as new customers.

The company wants to “free millions of people from business admin by combining banking and accounting into one simple product”. Citing the rise in the number of people working for themselves, Sam O’Connor, the company’s chief executive told the Daily Mail that, “self-employed people are still one of the most underserved groups of businesses when it comes to banking products and services that meet their specific needs”.

In addition to providing their target audience with a banking service suitable for them, the app also performs the financial recordkeeping required in order to be able to complete and submit tax returns.

The main features of the Coconut service are:

• UK currents account are free with no monthly charge
• the ability to track and report accruing taxes on the app
• expenses are tracked (with receipt capture for expense claims)
• continually updates its tax estimate calculation so that users are aware of what they might owe HMRC
• customers can create and send invoices direct from the app
• financial management – accounts are capable of handling MasterCard debit card and direct debit
• bookkeeping is automated on the app and updates every time a new transaction (inbound or outbound is completed)
• connection to external bank accounts via the Open Banking service – up to 3 for side hustlers and unlimited for £10pm subscribers

Coconut currently has no branch network and it is not offering any introductory benefits for new customers.

Customers can open an account almost instantly when they visit the company’s website.

Further reading on the Coconut business bank account.

Cooperative Bank

The Cooperative Bank has one of the most generous introductory offers for new customers – 30 months’ free banking (no monthly charges or transaction charges).

The Bank won the Moneyfacts’ “Best service from a Business Bank” award in 2017, 2018, and 2019.

There are four main types of business current accounts for customers:

• Business Directplus
• Designed for new customers
• Ability for apply for an overdraft facility

• FSB Business Banking Account
• Designed for members of the Federation of Small Businesses (FSB).
• Free business banking services for up to £2000 cash per month free of charge.
• Yearly £25 bonus for keeping your account active.

• Cash Tariff
• Designed for companies with a high cash turnover and requiring a low cash depositing fee.

• Standard Tariff
• Designed for companies with non-complex banking requirements whose payments in and out are mainly electronic.
• Businesses looking for a simple and straightforward account charging structure.

Other products and services offered by the bank include:

• Business loans
• Savings accounts
• Overdrafts
• Charge cards
• Merchant services
• Online banking
• Post office banking – access banking services at the UK’s 11,500 post office counters.

The Cooperative bank has currently 373 branches in the UK following its merger with the Britannia Building Society. Find out more about the Co-Operative Bank business bank accounts.

Counting Up

One of the UK’s newest business bank account provides, Counting Up targets its joint bank account and bookkeeping app to contractors, freelancers, micro businesses, consultants, construction professionals, and drivers.

Main features of the Counting Up service include:

• You can your account in just 5 minutes
• A Mastercard is included
• Automated bookkeeping comes as standard
• Invoicing & management of bills
• Create profit & loss reports easily
• Receipt capture (take pictures of your receipt for your bookkeeping software to recognise and categorise it)
• Tax estimate (running estimates on accruing taxes)
• ATM withdrawals (just £1 per transaction)
• Cash payments in via Post Office (just £1 per transaction)
• Six months’ free bank transfers in and out (20p per transfer thereafter with the first 3 transactions free each month)
• Cash payments in via Paypoint (charged at 3%)
• Foreign currency transaction fee (charged at 3%)

There is no monthly fee if your turnover is £500 a month or less. Between £500 and £4,000, the fee is £4.95 a month and, above £4,000, it’s £9.95. The first six months’ subscription fees are waived to new clients.

The company is new (opened in September 2017) and claims 28,000 customers. Counting Up has no branch network although customers are able to access many banking services at 11,500 Post Office counters.

More here about the Counting Up business bank account.

Fair Everywhere

Fair Everywhere is another relatively new entrant into the market as, like many of its competitors, it seeks to bundle business banking up with the functionality of an app.

The company behind it is actually a lot older – its parent company is FairFX.

Speaking to Finance Feeds, its CEO, Ian Strattford-Taylor, said that “Fair Everywhere also sees FairFX expand its product offering and make a significant move into the SME banking services space, targeting businesses that require cost effective, efficient current accounts. We are looking forward to announcing the official launch of the Fair Everywhere product in early 2018.”

Its early offering is impressive and customers benefit from:

• Access to a UK-based call centre open 6 days a week,
• Benefit from wallets in the following currencies – EUR, USD, GBP
• Compatible with many online bookkeeping and accounting platforms
• Customers can get 8% cashback using their card from over 50 high street retailers.
• Free standing orders and direct debits
• Hi-spec mobile app and web platform for advanced money management
• Multi-currency business current accounts available
• Multiple cards – you can link several Mastercard cards to your Fair Everywhere account for payment streamlining
• No need to provide signatures or book an appointment with a manager to open an account
• Pay others and be paid in different currencies at very competitive exchange rates.

Fair Everywhere has no branch network and there is a £55 joining fee (which you are refunded if the bank are unable to approve your account). There is a minimum monthly charge of £12.50 to use the service.

Click for more on the Fair Everywhere business bank account.

Handelsbanken

Originally founded in Sweden in 1871, Handelsbanken now has over 200 branches in the UK and it prides itself on its satisfied customers having finished top twelve years in a row of the EPSI rating scheme.

Service highlights include:

• An overall service quality rating of 85% among its customers (Competition and Markets Authority report)
• Apple and Android banking apps available
• Business VISA debit cards and multipay cards offered
• SME customers also rated their overdraft and loan provision, relationship and account management handling, and in-branch service experience better than their competitors’ customers
• View information about interest paid and received
• View the bank’s current exchange rates on the app and their website

Other than standard business banking, Handelsbanken’s other services include:

• Property finance (property development and investment)
• Corporate loans
• Asset finance
• Trade finance
• Invoice discounting
• Financial planning and investment management for companies and business owners
• FX risk management
• Interest rate risk management

Their online account management system are also very advanced and highly rated by customer:

• Corporate Online Banking – access to account and transaction information, full payment
• Corporate Banking App – view account balances and transactions and make payments to existing beneficiaries
• GlobalOn-Line – management of all your international Handelsbanken accounts all on one platform
• MarketOnline – allows you to execute transactions in real-time in over 20 currencies via FX Spot, Forward and Swap contracts

The bank currently provides no information on any free introductory periods or banking tariffs on their website.

More on the Handelsbanken business bank account here.

Holvi

Their slogan is “Simple. Powerful. Holvi is digital banking for freelancers and small business owners like you.”

Their goal is to allow their clients to focus on doing what they do best – growing and building a business. They want you to spend as little time as possible getting overrun by the day-to-day, mundane, and unproductive stuff.

There are two levels of accounts:

• Builder at no cost per month – just the basics with a maximum of 3 invoices per month
• Grower at €12 a month – providing expenses management and easy, unlimited invoicing

What stood out to us about Holvi was:

• You can open your new account entirely online
• Unlimited bank transfers – send and receive money within Europe
• Unlimited account users – ideal for when there’s more than one person running a business
• Free cash withdrawals on the unlimited package (1% on Complete, 2.5% on Builder and Grower)
• Create, track and send invoices (not available on the Builder account)
• Bookkeeping preparation – store receipts and prepare bookkeeping reports
• MasterCards can be attached to your account

There are currently no introductory offers for new clients and Holvi is entirely based in the cloud – there is no branch network for you to access.

Find out more about the Holvi business bank account.

HSBC

One of the world’s biggest financial and banking companies – and it’s British (sort of).

HSBC are a major player in the business banking sector in the UK and around the world. As you’d expect with the reach and the heritage of the company, they have a wide range of current account and general business finance services to offer customers.

What about for new customers?

• There is a free introductory banking offer for 12 months for new customers extended to 18 months if the new customer is a new business.
• They promise to adhere to their Best Tariff Promise for businesses with a turnover of up to £2 million (they have two tariffs)
• A 12 months fixed price banking post-introductory offer

HSBC have recently launched their new “Kinetic Account” for small business owners whose turnover is less than £10m.

They operate an extensive 1,500-strong branch network across the UK. Managers and business specialists are available at most branches. You can also request face-to-face interviews in branch and large outlets have an international trading desk if you want to expand or trade overseas. HSBC have also teamed up with the Post Office so you can do your basic banking through them if you’re not close enough to a branch.

Among the range of other HSBC business services are

• Commercial Card
• Business Overdraft
• Business Internet Banking
• Business Text Message Banking
• Corporate Card
• IBAN and BIC
• Foreign exchange risk management
• International Business Guarantees
• Import Letters of Credit
• Buyer Loans
• Import Collections

For start-ups, you can claim free banking for 18 months and free standard transaction management for 30 months.

Further reading on the HSBC business bank account.

Lloyds Bank

Lloyds Bank has a large network of over 1,100 branches across England and Wales. Lloyds can be traced back to 1765 and they have developed a reputation over the centuries as one of the UK’s most business-focused banking groups.

Through their branch network, they provide dedicated support from a UK-based business management team. On their website, customers can access a “Knowledge Bank” of regularly updated tools and guides on how to better run a business.

Customers also benefit from online banking, an advanced mobile app, free payments by debit card, free cash machine withdrawals, and free electronic payments.

For brand new businesses, Lloyds offer 18 months’ free day to day banking and, for businesses switching from another bank, there is 6 months’ free day to day banking.

Lloyds provide the following borrowing products for business customers

• Business overdraft
• Mortgages
• Asset Finance
• Base Rate Loan (repayments move up and down with the business rate)
• Fixed Rate Loan (repayments stay the same)
• Commercial Fixed Rate Loan (vary and fix the interest you want to pay during the life of the loan)

They offer four types of business cards linked to your account:

• Credit cards
• Charge cards
• Debit cards
• Cashpoint cards

Lloyds Bank’s payments team provide BACS, bulk payment services, faster payments, CHAPS (same day payments), and merchant services accounts (allowing you to accept debit and credit card payments from customers in-store, over the phone, and online).

More here about the Lloyds Bank business bank account.

Metro Bank

Known as one of the more successful challenger banks, Metro Bank has been punching above its weight since it launched in the aftermath of the financial crisis of 2007-2008.

To open a business account with Metro, your turnover or asset sheet cannot exceed £2m and at least half of the shares in your business need to be owned by a UK resident as well as least half of the business directors and beneficial owners need to be resident in the UK too.

1.7m customers use Metro Bank and its 67 branches are based in London and the South East of England.

How have Metro shaken the market up?

• 50 free transactions per month as long as your balance is more than £5,000
• 76% service quality score based on a 2020 report from Competition and Markets Authority
• a highly rated online banking platform and mobile app (Apple and Android)
• branches are open 7 days a week
• customer support team available 24/7 online and over the phone
• if your balance exceeds £5,000 throughout the entire month, Metro Bank foregoes its monthly account fee (normally £5)
• local business managers
• no appointments needed – turn up and be seen by an expert or a manager
• very simple charging and fees structure

They offer the following borrowing facilities to clients, subject to status:

• business and commercial loans
• business loan calculator
• business and commercial overdrafts
• business credit card
• invoice finance
• asset finance
• enterprise finance guarantee scheme

There are also a number of different types of saving account available:

• business instant access deposit account
• business fixed term deposit account
• business notice account

They have a number of specialist services in too – property industry, healthcare sector, hospitality and leisure industry, financial services sector, partnership banking, inward investment, charities and not-for-profit sector, and a dedicated small business help team.

There are currently no introductory offers for new businesses or for companies looking to change their banking provider. Please note that the bank is currently not taking any online applications from multi-director companies or sole traders at time of writing.

Click for more on the Metro Bank business bank account.

Mettle

Backed by NatWest, this challenger bank currently only allows businesses to hold balances of up to £100,000 (for sole traders, that figure is £50,000).

Mettle is here for sole traders and limited companies with two owners – they cater for the fastest growing part of the economy during an era which has seen self-employment explode.

As with many of the newer banks, Mettle is an attempt to merge a business current account with an accounting and bookkeeping app. You can literally run your business from your mobile phone.

There is no current branch network and the service is not part of the FSCS scheme meaning that your cash is not protected should the bank become insolvent.

Some of the current selling points of Mettle are:

• your account has a UK account number and sort code
• simple bookkeeping built in – you can categorise incoming payments and add receipts to transactions making year-end accounting a lot easier.
• send invoices from your phone from your phone
• send and receive payments on your phone
• no hidden costs or transaction fees
• lock and unlock your card via the app
• in-app support from the customer service team
• easy account opening – you can apply and be approved in minutes
• confidence knowing that Mettle is part of NatWest
• app based (Apple and Android)

There are currently no introductory offers for new businesses or offers for companies looking to change their banking provider. However, there is no monthly charge or any fees for electronic payments so the service is, in essence, free anyway.

This is the main webpage showcasing the Mettle business bank account.

NatWest

NatWest was founded in 1970 and is part of the RBS group of businesses. Their 960-strong branch network is almost exclusively located in England and Wales.

For start-up businesses, they offer 18-months free business banking after which their standard published tariff applies. They offer the FreeAgent online bookkeeping and accounting platform to clients as part of their “start-up” package. For sole traders or limited companies with 2 owners, they are currently directing them to Mettle, their online banking app.

Online and phone banking is available 24/7 and their app has won a number of awards for its ease of use and range of functionality. Clients get access to a dedicated business planning team, Business Growth Enablers (who get you into access to workshops and events), and, subject to eligibility, their own relationship manager.

For companies wanting to grow, the following finance products are available, subject to status:

• business overdraft
• small business loan
• fixed rate loans
• variable rate loans
• commercial mortgages
• real estate finance
• invoice finance
• asset finance

NatWest has a significant overseas and international expansion team offering clients:

• bonds and guarantees
• standby letters of credit
• documentary collections
• letters of credit
• trade loans
• currency current account
• currency reserve savings account

The bank has sector expertise in the following areas – agriculture, financial institutions, healthcare, leisure, manufacturing and automotive, professional services, real estate, retail and wholesale, service sector, sustainable energy, and technology, media and telecoms

NatWest don’t charge their customers a monthly account fee unless their transaction charges are less than £5.

Find out more about NatWest business bank accounts.

Revolut Business

Revolut Business’s main pitch is their ability to help clients trade internationally with fast payments and competitive foreign exchange conversion fees.

At time of writing, customer can exchange, receive, and hold 24 different currencies with no charge. Clients are also able to spend in over 150 currencies at the interbank exchange rate (the same prices banks charge each other in foreign currencies transactions!)

Your first 14 days is free on paid-for accounts. There is a free monthly tariff in addition to three paid-for tiers:

• Plus at £2.99 a month
• Premium at £6.99 a month
• Mettle at £12.99 a month

The higher the fee you pay, the more:

• team members can access your account (with a £5 per user charge per month for further members),
• free local transfers (UK and EU) (20p charge per transaction past your allocation),
• free international transfers (outside UK and EU) (£3 per transaction past your allocation), and
• allowance of FX at the real rate (past your allocation, a 0.4% mark-up applies).

On the Enterprise tariff, there are no limits to the above.

All account holder benefit from the following:

• hold and exchange the following currencies – GBP, EUR, USD, ZAR, TRY, SGD, SEK, SAR, RUB, RON, PLN, NZD, NOK, MXN, JPY, ILS, HUF, HKD, DKK, CZK, CHF, CAD, AUD, AED, HRK, BGN, QAR and THB.
• local accounts for your business denominated in GBP and EUR
• IBAN provider for global funds transfers
• prepaid debit cards for you and colleagues
• mobile app for cardholders to track spending on business cards
• virtual cards can be issued to team members for online payments
• connect your account to popular online bookkeeping packages like Xero, FreeAgent and Slack.
• open API allows you to create complex integrations so that your business and financial processes can be automated to allow off-payments, recurring payments, onboarding of staff, and so on

Revolut Business has no Branch network – everything’s done online – and they do not accept cash or cheque deposits.

Find out more about Revolut business accounts.

Royal Bank of Scotland

Once one of the largest banking organisations in the world, the Royal Bank of Scotland (RBS) came unstuck in the financial crisis of the late 2000’s. Since then, major parts of the bank have been owned by the government.

The Royal Bank of Scotland has around 700 branches (mainly based in Scotland). It was founded in 1727 and it is the bank responsible for the invention of the overdraft which it introduced in the year following its establishment.

Start-up businesses benefit from 24 months’ free business banking – when that ends, you’ll pay the bank’s standard published tariff. RBS provide the FreeAgent online bookkeeping and accounting platform in their “start-up” package.

Telephone and web-based banking services are available around the clock. There is also a well-developed app for clients. Customers have the benefit of being able to deal with RBS’s dedicated business planning team, their own relationship manager (subject to eligibility), and to the bank’s Business Growth Enablers (gaining you access to workshops and events).

Companies in the following sectors will be able to benefit from RBS’s specialist teams – agriculture, automotive, financial institutions, healthcare, leisure, manufacturing, media, professional services, real estate, retail, service sector, sustainable energy, technology, telecoms, and wholesale.

For businesses seeking financial support, the following services are available:

• asset finance
• business overdraft
• commercial mortgages
• fixed rate loans
• invoice finance
• real estate finance
• small business loan
• variable rate loans

And for companies trading overseas, the bank offers:

• bonds
• currency current account
• currency reserve savings account
• documentary collections
• guarantees
• letters of credit
• standby letters of credit
• trade loans

More here about the Royal Bank of Scotland business bank account.

Santander

The Santander Group is a group giant among retail and commercial banking groups. They have over 100 million customers serviced by over 14,000 branches – that’s more branches than any other bank on the planet. At time of writing, they had 614 branches in the UK.

Santander has won the Best Business Current Account Provider award for the past 16 years and it offers a full suite of services for its business customers.

There are two main business current accounts offered by Santander. In addition to their standard current account, they offer the 1|2|3 Business Current Account, a Moneyfacts award winner, featuring:

• Up to £300 cashback each year
• Standard day-to-day banking services
• 0.10% gross/AER (variable) interest per month on the balances of accounts in credit
• Fees are waived for start-ups for their 18 months with the bank
• £7.50 standard monthly fee for switchers
• Online access, at Santander branch counters, ATMs and Post Office branches

Among its other business offerings are:

• Lending
• Overdrafts
• Credit cards
• Small business loans
• Asset finance
• Savings products
• Business Everyday Saver
• Business Reward Saver
• Fixed Rate Business Bond
• Client Saver
• Insurance
• Business insurance
• Landlord insurance
• Van insurance
• Other services
• Merchant services account

It has sector expertise working with charities, the education sector, food & drink manufacturers, healthcare providers, the hospitality & leisure sectors, general manufacturers, real estate business, renewable energy companies, and transport & logistics firms.

Click for more on the Santander business bank account.

Starling Bank

Unlike many of the newer app-based banks, Starling Bank offers its customers FSCS deposit protection – this means that, should the bank become insolvent, the Government will pay you up to £85,000 to replace lost funds.

Starling Bank is a newer provider and, like many of the newer providers, they’re trying to deliver the best service to customers by linking a business account with a bookkeeping-style app. There is a third party marketplace of apps that you can download to improve service – apps currently available include Xero, PensionBee and Wealthify.

There are no monthly fees for using Starling and there are no electronic transaction fees for Faster Payments, Direct Debits, and Standing Orders.

The main features of Starling Bank’s standard account are:

• open your account in minutes via the app
• no fussy forms, no waiting around. Get down to business now with a simple in-app application and no monthly fees.
• connect to accounting software including QuickBooks, Xero and FreeAgent so that you need never upload a statement ever again.
• customer support 24/7 via the app or by phone
• flexible overdraft provision – a slider in the app allows you to adjust how much you need and you’ll find out straight away what it’ll cost you.
• instant payment alerts – whenever money comes into or goes out of your account.
• expenses automation – expenses automatically sorted into the correct business categories to simplify financial recordkeeping.
• make cash deposits at your local Post Office (Starling has no branch network)

Starling Bank is now developing a Business Toolkit – a joint mobile banking and bookkeeping app – promising the following:

• create, send and manage invoices linked to your Gmail account and that automatically tally with your records when you get paid
• bookkeeping manager – an app-based to-do list to keep your financial records up-to-date
• bill payments – upload invoices and schedule future payments.
• record VAT – record VAT on all incoming and outgoing transactions to keep a track on any accruing liability or refund
• submit your VAT – Making Tax Digital-compliant software (support the cash accounting scheme and the flat rate scheme with a cash-based method)

There are currently no introductory offers for new businesses or businesses wishing to switch their banking arrangement to Starling.

Find out more about Starling Bank business accounts.

Tide

100,000 UK business owners use Tide to, in the words of the company, “give owners their time back”.

Primarily aimed at freelancers, contractors, small businesses, and businesses scaling up, Tide brings to the market what it describes as a modern approach to business banking all done via a clever and intuitive app.

While Tide do not charge monthly fees or for card usage, they do charge when you make a transfer to or receive a transfer from a non-Tide account. Fees are also chargeable for cash withdrawals and cash deposits.

You can manage cards linked to your business account on the Tide app and benefit from interactive banking through synching with your accounting software. Tide’s app also allows you to create and pay invoices.

Tide occasionally run offers of a free £50 payment when you open an account – this is not available all year around but it is certainly worth checking if you’re ready to open an account.

The bank does not offer any overdraft itself but you can apply for a loan/revolving credit facility of up to £150,000 on the app via Iwoca, the specialist business lender.

Tide does not have a branch network however you can deposit cash at over 40,000 locations in the UK via their partnership with the Post Office and PayPoint (there are fees for depositing cash).

Find out more about the Tide business bank account.

TSB

Previously married to Lloyds but since divorced, TSB has got married again to Spain’s Banco Sabadell. The bank itself was first established in 1810 and, throughout its lifetime, it has partnered up and then decided to leave other banks with which it has become joined.

It’s still a relatively big player in the market and its current offers are competitive. There’s free day to day business banking for 6 months for start-up companies and other businesses switching their bank to join TSB.

For their business customers, they offer:

• Account updates sent via text message
• Choice of bank account tariffs once the free period has ended
• Faster Payments service access
• Flexible account management in branch, by phone, or online
• Switching team for companies opening an account
• Synchronisation with online bookkeeping software

When your free banking period has ended, you can choose from one of the three following tariffs:

• Fixed Fee Account – features tiered levels with fixed allowances for transactions which have a different fixed monthly fee.
• Business Extra Tariff – no monthly fee but each transaction chargeable
• Electronic Business Tariff – no fixed monthly fee but each transaction chargeable. Primarily designed for businesses that mainly perform automated or electronic banking transactions.

Other products and services for business clients include:

• business debit and credit cards
• ClickSafe – a payment card with extra security for online purchases
• business loans
• overdrafts
• Enterprise Finance Guarantee
• commercial mortgages
• international payments
• CHAPS – guaranteed same day clearance
• SEPA direct debit for debtors – allows you to make cross-border direct debit payments for goods and services across the Single Euro Payments Area

TSB has an extensive network of 550 branches across the UK.

More here about the TSB business bank account.

Ulster Bank

Ulster Bank, part of the Royal Bank of Scotland group, has 146 branches in the Republic of Ireland and 90 in Northern Ireland. The Ulster Bank is important to both countries as it plays a major role in business banking and the provision of funding to companies seeking new equipment and to expand.

To open an account, your business must have an address in Northern Ireland and not turn over more than £2m a year. Ulster Bank is currently offering fee free business banking for 18 months for start-up businesses but only for businesses registered in Northern Ireland. Business owners across the UK can open an account with the bank though.

The main features and benefits of the Ulster Bank offering are:

• 24/7 banking through mobile, telephone, and online banking
• low quarterly management fee of £8
• access banking services at the Post Office
• free bank statements
• immediate withdrawal of any cash or Ulster Bank cheque you deposit
• Relationship Manager network
• subject to status, Pre-arranged overdrafts
• fee free business banking for 18 months
• Use of Free Agent software at no extra cost

For businesses seeking financial support, the following services are available:

• variable rate loans
• small business loan
• real estate finance
• invoice finance
• fixed rate loans
• commercial mortgages
• business overdraft
• asset finance

Ulster Bank is able to offer its sector expertise to companies in the following lines of business – agriculture, automotive, financial institutions, healthcare, leisure, manufacturing, media, professional services, real estate, retail, service sector, sustainable energy, technology, telecoms, and wholesale.

And for companies trading overseas, the bank offers:

• trade loans
• standby letters of credit
• letters of credit
• guarantees
• documentary collections
• currency reserve savings account
• currency current account
• bonds

Click for more on the Ulster Bank business bank account.

Yorkshire Bank

Yorkshire Bank, established in 1859 in Halifax, was bought by the National Bank of Australia in 1990, and merged with Clydesdale Bank although both brand names persist to this day.

Yorkshire, like both Clydesdale and the National Bank of Australia, has a long-standing presence in business banking and their products and services are as broad and competitively-priced as ever.

Currently, new businesses and companies switching their banking arrangements to Yorkshire benefit from free day to day banking for 25 months for businesses with a turnover of under £2m.

The bank offers a team of dedicated business banking support specialists to support customers and you can also choose how frequently you receive your statements.

The bank also offers:

• asset finance
• business and private wealth management
• business credit cards
• business overdrafts
• commercial mortgages
• invoice finance
• risk management (commodity, forex, and interest rate)
• savings accounts (including instant access accounts)

Yorkshire Bank operates a branch network at 84 locations backed up by 22 business and private banking centres located in the Midlands and in the north of England.

This is the Yorkshire Bank business bank account webpage.

Business bank account FAQ

Why is it a good idea to approach the bank you have an account with for additional services?

Over time, you may find that you wish to purchase more services from your bank as your business grows and changes.

Many bank customers believe that they are more likely to be accepted for financial products and other services from their bank because they build up a good track record of behaviour. Some other bank customers may believe that, in addition to a higher likelihood of acceptance, they may get a better deal because of the trading relationship they have established with their bank.

Although both situations sound plausible, there is no independent evidence to support either belief.

What are additional services that business bank account customers can access?

Most banks offer a range of additional services to clients over and above their day to day banking. Please bear in mind that many of these services are subject to status – you will likely have to present a business plan to your bank manager if you wish to borrow money.

What are merchant services?

Merchant services allow you to take credit and debit card payments from your client either face to face, over the phone, or online.

You will normally pay a monthly fee for the service in addition to charges for every successful transaction.

What is Open Banking?

Open Banking is a system allowing other companies to access your bank account with your permission.

You may have been asked by your current banking app if you want to link any other accounts you have with other banks so you can see them all on the same app instead of having to switch between multiple apps.

This is an example of Open Banking and many UK banks are a member of this scheme.

Business bank cards

Many business bank accounts allow account holders to spend a company’s money or withdraw money from a cash machine using a credit or a debit card. Please note that, for credit cards and charge cards, you and your company may be subject to a credit search upon application.

What is a business credit card?

A business credit card is a form of revolving finance.

With a business credit card, you receive a card limit from your bank and you’re allowed to spend up to that limit on the card. The bank charges interest on the money you’ve spent.

Your bank will collect a minimum payment from your card every month (normally a percentage of the amount of money you’ve spent). This payment is made from your business current account meaning that the available balance will reduce as a result.

You can make more than the minimum repayment every month to reduce the amount of interest charged or you can clear the balance in full.

What is a business debit card?

A business debit card is linked to your business current account. Whenever you make a purchase on your business debit card, that purchase is then charged to your business current account reducing the available balance.

What is a business charge card?

Like a business credit card, a business charge card has a limit – a maximum amount you can spend on it. However, you must clear the balance on the card each month (in other words, pay for all the spending that took place on it from your current account).

Purchases made on the card will generally be interest free as long as the balance is cleared in full.

What is a business key card?

A business key card is a type of card which allows you to withdraw cash from ATMs. The cash you withdraw is cash from your current account.

What is a prepaid business card?

With a prepaid business card, you load funds onto the card which the cardholder can then use to make purchases or withdraw money from ATMs. Funds are paid onto your card from your business current account.

The purpose behind prepaid business cards is to restrict the spending of employees or other people within the business who are cardholders.

General business finance

Other than credit cards and charge cards, banks assist many of their customers by providing them with overdrafts, loans, and other types of finance. You will likely have to prepare a business plan and financial forecasts before being approved for commercial finance and credit checks may be run on you, your company, and other shareholders in your business.

What is a business overdraft?

A business overdraft is a revolving form of credit which allows you to spend more money than you actually have in your bank account.

If you do spend more money, what’s available in your bank will show a minus sign before the number – for example, -£500.00. This means that you have spent £500 more money than you had in your bank account. When you are not in your overdraft, there is no minus sign before the number.

You must ask your bank for an overdraft. If they accept your application, they will agree a limit to your overdraft. Overdrafts are normally granted for one year but they can be withdrawn by your bank with 30 days’ notice. You will pay a fee for your overdraft and interest on the amount your account is overdrawn by.

If you attempt to exceed your overdraft limit, the bank may refuse to allow payment meaning that a cheque might bounce or a card transaction be declined. If the bank does allow payment which takes you past your overdraft limit, you will likely pay significant additional charges for this.

What is a business loan?

A business loan is a sum of money that a bank lends to a customer for business purposes. Common reasons for borrowing money include business expansion, to smooth cash flow, and to purchase business equipment.

If your loan is approved, the money will be paid into your business current account. Repayments will also be collected from your current account. Interest will be charged on the loan and you may have to give a personal guarantee to repay any outstanding balance on a loan if the loan account goes into default.

What is asset finance (including hire purchase and leasing)?

Asset finance is used by companies to purchase business equipment and vehicles that they need to carry on trading. For example, a postal mailing company might want the latest letter sorting machinery for their premises but they do not have the cash to be able to afford it. Asset finance allows a company to have the machinery and vehicles that it wants by paying for use of the equipment in instalments instead.

With hire purchase, a company may purchase the machinery or vehicles at the end of the term of the finance facility for a balloon payment or they may return it. With leasing, a company is not offered the chance to purchase the equipment – at the end of term, it is sent back to the leasing company.

What is invoice discounting and invoice factoring?

Many companies give their customers 30 days to pay the invoices they issue. Invoice discounting and invoice factoring allows you to sell those invoices in return for immediate payment of up to 90% of the value of an invoice. This type of finance is used by tens of thousands of companies to improve their cash flow.

When the client pays, you receive the remainder of the invoice minus a factoring fee (normally between 1 and 3%).

With an invoice factoring company, your client knows that you are selling their invoices to a third-party.

With invoice discounting, your finance provider sets up a bank account in your name which your client sends payment to. Invoice discounting is a better option if you do not want your clients to know that you’re selling their invoices.

Property finance through your bank

You may wish to approach your bank for help in purchasing either residential or commercial property.

What is a commercial mortgage?

You would request a commercial mortgage from a bank if you wanted to:

• purchase the premises from which you intend to trade or
• purchase commercial or part-commercial property which you intend to let out so that you receive rental income

What is an agricultural mortgage?

An agricultural mortgage is a mortgage used to purchase agricultural, rural, or equestrian properties.

What is a buy-to-let mortgage?

A buy-to-let mortgage is used to purchase residential property with the intention of letting it out to tenants to produce rental income.

What fees do banks charge businesses?

Banks publish the charges they levy to clients on their websites and in branch. Before agreeing to open a business account with a bank, you should satisfy yourself about what you will be charged for and whether you are happy with those charges.

Banks make money in various different ways including the following…

Monthly fees

You may be charged every month for having an active business account with a bank. Other charges may be made monthly for additional services including an overdraft.

Fees related to payments

You may be charged whenever you make a payment from your account to someone else. For example, a guaranteed same day payment using the CHAPS system often provokes a charge of between £20 to £30 per payment.

Charges may also be incurred for payments made by direct debit, standing order, debit card, online banking, mobile banking, telephone banking, or branch faster payments.

Manual payments

You may be charged for paying in a cheque direct to a branch, to a Post Office counter, or via a cash and deposit machine.

Payments in cash

You may be charged for paying cash into your bank account or for using your card to withdraw money from an ATM.

International transactions

Some banks charge fees for payments made to or from a foreign country. If you withdraw money overseas via an ATM using a business card, there are likely to be further fees for doing so.

Other types of charge

Other types of charge you may have to pay include but are not limited to:

• obtaining a bank draft
• obtaining a special cheque clearance
• administration fee for exceptional work
• bank report for auditing purposes
• cheque retrieval
• cheques (telephone request on fate)
• duplicate statements
• night safe facilities
• safe keeping – envelope or box parcel plus access fees
• status and other confidential enquiries

Risk management services

Banks offer larger clients risk management services including:

• Commodity risk management – protection against unfavourable changes in the value of commodities for producers, buyers, and exporters
• Interest rate risk management – protection against unfavourable moves in interest rates
• Foreign exchange risk management – protection of cash flow, liability value, and assets against unfavourable changes in exchange rates

International trading services

For companies trading overseas, particularly in goods, many banks offer the following services:

• international business guarantees – giving you confidence that you will be paid if the other party breaches the contract
• import documentary collections – trade settlement with which the company exporting to you instructs their bank to release trade documents to you in return for immediate or later payment
• import letters of credit – where your bank promises to pay the company exporting goods to you
• export documentary collections – trade settlement with which you instruct your bank to release trade documents to the company you’re exporting to in return for immediate or later payment
• export letters of credit – allowing you to ship your goods overseas with confidence that you will be paid
• import collections – a way to pay your supplier after the goods you’ve ordered have been shipped

What ID do I need to open a business bank account?

Except for those bank accounts listed which do not require ID, you should expect to be asked to present some or all of the following when opening a bank account:

• passport
• driving licence with your current address on it
• bank statement, credit card statement, or a UK gas, electricity, water or landline bill, dated within the last three months.

Do business current accounts earn interest?

Most business current accounts do not earn interest.

Can my business open its own savings account with a bank?

Many of the banks listed in this article offer business savings accounts with either immediate access to funds or delayed access to funds. Accounts with delayed access to funds generally pay a higher rate of interest.

What is corporate banking?

Corporate banking is for companies with a higher level of turnover than small businesses. For example, NatWest consider working with businesses with a turnover of £2m or less as “business banking”. For companies with a turnover in excess of £2m, they call this “corporate banking”.

Within many banks, the business banking teams and corporate banking teams work completely separately from each other.

What name will appear on my business bank account?

If you are a sole trader or a partner, the business bank account will generally be titled as “Your Name T/A Company Name”. “T/A” is short for “trading as” and “Company Name” is whatever you decide to call your company.

If you run a limited company, your limited company’s registered name will appear as the bank account name.

The name of your bank account is also the name that appears on any chequebook your bank issues you.

Best business bank accounts – what bank customers actually think

The Competition and Markets Authority conducts a survey of personal and business bank customers once a year to gauge overall levels of satisfaction with the services and the delivery of services provided by banks.

The latest report was published in February 2021 and yielded the following results from 17,069 customers of the 19 largest business current account providers in England, Scotland, and Wales. A separate survey is published for bank customers in Northern Ireland.

Service quality

The survey asked how likely customers would be to recommend the bank they currently hold a business account with to other small-to-medium-sized enterprise owners.

Online and mobile banking offering

Online and mobile banking is becoming increasingly important for business bank account customers. How did the customers of various banks rate their online and mobile banking offer?

Access to loans and overdrafts

Overdrafts and loans provide businesses with the finance they need to trade through tougher times and the cash they need to pay for expansion. How did various business bank account customers rate how helpful their bank was in providing them with access to loans and overdrafts?

In branch quality

Although more and more banking is done online, many business owners still consider it important that they have the opportunity to visit a branch for everything from paying in cash to meeting their manager. How do business current account holders rate the quality of the in-branch experience provided by their banks?