Business bank accounts

Are you looking for business banking accounts that suit your needs, but don’t know where to start? Whether you’re just starting out as an entrepreneur in the UK or are expanding your current business, it’s important to find the right bank account that won’t take away from what matters most — running and growing your company.

Let us help guide you through some of the best business bank accounts available in the UK and provide insight into finding one that fits all your requirements.

Best business bank accounts UK

Bank	Lowest monthly fee	Offers current account	Offers savings account	Overdraft available
3S Money	$100	Yes	No	No
Acorn Account	£12.50	Yes	No	No
Airwallex	Free	Yes	No	No
Aldermore	Free	No	Yes	No
Allica Bank	Free	Yes	Yes	No
Allied Irish Bank	£2.50	Yes	Yes	Yes
Amaiz	£9.99	Yes	No	No
Anna Bank	£14.90	Yes	No	No
Atom Bank	Free	No	Yes	No
Bank of Scotland	Free	Yes	Yes	Yes
Barclays	£8.50	Yes	No	No
Bunq	€ 4.99	Yes	No	No
Cambridge Building Society	Free	No	Yes	No
CardOneMoney	£12.50	Yes	No	No
Cashplus	Free	Yes	No	No
Cater Allen Private Bank	Free	Yes	Yes	No
Charity Bank	Free	No	Yes	No
Clydesdale Bank	£6.50	Yes	Yes	Yes
Co-operative Bank	£7	Yes	Yes	Yes
Countingup	Free	Yes	No	No
Cumberland Building Society	Free	Yes	Yes	Yes
Cynergy Bank	£5	Yes	Yes	Yes
Danske Bank UK	£9	Yes	Yes	Yes
Fair Everywhere	£12.50	Yes	No	No
GoSolo	Free	Yes	No	No
Hampshire Trust Bank	Free	No	Yes	No
Holvi	€ 9	Yes	No	No
HSBC	£6.50	Yes	Yes	Yes
ICICI Bank UK	Free	Yes	Yes	No
Intergiro	€ 9	Yes	No	No
Kent Reliance	Free	No	Yes	No
Kinetic	£6.50	Yes	Yes	Yes
Lloyds Bank	Free	Yes	Yes	Yes
Masthaven	Free	No	Yes	No
Metro Bank	£6	Yes	Yes	Yes
Mettle	Free	Yes	No	No
Monese	£9.95	Yes	No	No
Monzo	Ask	Yes	Yes	No
Nationwide	Free	No	Yes	No
NatWest	Free	Yes	Yes	Yes
OakNorth	Free	No	Yes	No
PayPal	Free	No	No	No
Redwood Bank	Free	No	Yes	No
Revolut Business	£7	Yes	No	No
Royal Bank of Scotland	Free	Yes	Yes	Yes
Santander	£7.50	Yes	Yes	Yes
Shawbrook Bank	Free	No	Yes	No
Silverbird	Free	Yes	No	No
Starling Bank	Free	Yes	No	No
State Bank of India (UK)	£25	Yes	Yes	Yes
Tide	£9.99	Yes	No	No
Triodos Bank	Free	Yes	Yes	Yes
TSB	£5	Yes	Yes	Yes
Ulster Bank	£2.67	Yes	Yes	Yes
United Trust Bank	Free	No	Yes	No
Virgin Money	£6.50	No	Yes	No
Wise	Free	Yes	No	No
Yorkshire Bank	£5	Yes	Yes	Yes

What is a business bank account?

A business bank account is a financial tool designed to help businesses manage their finances. It is distinct from an individual’s personal banking account and allows for greater flexibility when dealing with larger sums of money, such as those generated through sales or investments.

Business bank accounts also offer access to additional services tailored to the needs of a particular organisation, including loans and lines of credit, overdraft protection, and online accounting software.

By utilising a business bank account to manage their finances, businesses can ensure that they are in compliance with the legal requirements associated with running a business. Additionally, it can help businesses better track their income and expenses and make more informed decisions about the direction of their company.

Why have a business bank account?

Business bank accounts offer a number of advantages for businesses, including:

• Access to financial services – Business bank accounts offer access to a range of financial services that are tailored specifically for business activities. This includes access to overdrafts and credit, as well as payment solutions such as online banking, payment cards and more.
• Improved cash flow – By separating personal and business income and expenses, businesses can more easily keep track of their financial activity. This helps with budgeting as well as understanding where money is coming from and going to in the business.
• Easier tax preparation – With all business transactions recorded in one place, it’s much easier to prepare accurate and timely tax returns.
• Enhanced credibility – Having a business bank account creates the perception that your business is legitimate, which can help when dealing with customers, suppliers and other stakeholders.
• Higher savings interest rates – Businesses may be able to access higher interest rates on deposits than those offered on personal accounts.

How to open a business bank account?

Opening a business bank account is one of the first steps to starting a successful business. Having a dedicated bank account will help you manage your finances and keep track of where your money is going. It’s important to shop around for the right banking solution that best suits your specific needs.

Once you have decided on your banking provider, follow these steps to open a business bank account:

Once you have opened your business bank account, make sure to monitor your account regularly. Ensure that all transactions are accurate and familiarise yourself with the banking services offered by your provider so you can make the most of them.

Remember to also keep all records related to business banking in a secure place for future reference.

What do I need to open a business bank account?

To open a business bank account in the UK, you’ll need several key documents and pieces of information.

Firstly, provide proof of your identity and address, typically through a passport or driving licence and a recent utility bill or council tax bill. You’ll also need to present detailed information about your business, including its name, address, and contact details.

For limited companies, registration documents from Companies House are required, while partnerships should provide their partnership agreement.

Some banks may ask for a business plan, especially for new businesses, and information about your estimated annual turnover.

It’s important to prepare these documents in advance to ensure a smooth and efficient account opening process.

What business bank account is best?

The best business bank account will depend on your individual needs. Before you choose a provider, take the time to compare different banking services and products offered by various banks.

Consider factors such as fees, interest rates, customer service, and online banking features.

Also consider your legal status, such as sole trader, freelancer or limited company.

Additionally, make sure to assess the terms and conditions of each bank account to ensure that it meets your specific needs.

How to close business bank account?

Closing a business bank account is not as straightforward as opening one. Before you close an account, ensure that all outstanding payments have been made and that no additional deposits are due.

Additionally, it is important to keep in mind that closing your business bank account may affect your credit score and other relationships with the banking institution. To close a business bank account, follow the steps below:

1. Contact your bank and inform them that you would like to close the account.
2. Provide all necessary documentation such as a letter of request, proof of identity, and details about the account closure.
3. Sign any required paperwork or submit documents online if applicable.

How long does it take to open business bank account?

The amount of time it takes to open a business bank account varies from one institution to another. Generally, the process can take anywhere from a few days to several weeks depending on the complexity of your application and the documents you need to provide. For example, if you are applying for an online banking solution, approval may be granted within a few days.