What is the best bank account for freelancers? Top options in May 2024

Last updated on 17 May 2024

As a freelancer, having the right bank account can make all the difference in managing your finances efficiently. Traditional business accounts may not always cater to the unique requirements of freelancers.

Flexibility, low costs, invoicing services, and support for multiple currencies are just a few of the features freelancers need. So, let’s delve into some of the best bank accounts available for freelancers in the UK.

Top 10 featured bank accounts for freelancers

Bank Account Details View offer
revolut Revolut Business

✓ Business Current Account
✓ Award-Winning Mobile App
✓ Quick & Easy Application Process

Pricing • Trial period • Contact
icons-revolut-business View Deal
Tide_o27adb-2 Tide Business Bank Account

✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts

Pricing • Trial period • Contact
icons-tide View Deal
card-one-money Card One Money

✓ No Credit Checks
✓ Simple Fees
✓ Up to 3.5% Cashback

Pricing • Trial period • Contact
icons-cardone View Deal
anna ANNA Money

✓ Apply in 10 minutes
✓ Bookkeeping & Payroll Tools
✓ User-Friendly Mobile App

Pricing • Trial period • Contact
icons-anna-money View Deal
logo-co-op Co-Op Business Bank Account

✓ Business Current Account
✓ Online, App & High Street Banking
✓ Quick & Easy Application Process

Pricing • Trial period • Contact
icons-co-op View Deal
HSBC_ezmobp-2 HSBC Business Bank Account

✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected

Pricing • Trial period • Contact
icons-hsbc View Deal
logo-metro-bank Metro Business Bank Account

✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected

Pricing • Trial period • Contact
icons-metro View Deal
Mettle_ohfoi5-2 Mettle Business Bank Account

✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process

Pricing • Trial period • Contact
icons-mettle View Deal
logo-monzo Monzo Business Bank Account

✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected

Pricing • Trial period • Contact
icons-monzo View Deal
virgin-money Virgin Money Business Banking

✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform

Pricing • Trial period • Contact
icons-virgin View Deal
Video: Getting started with business bank accounts

1. Starling Bank – Business Account

Features: Starling Bank provides an award-winning business account that comes with a range of features. These include real-time notifications for payments, the ability to set aside tax and other expenses in separate “spaces”, and integration with popular accounting software like Xero.

Fees: The account is free for sole traders and limited companies with no monthly fees. Foreign currency transfers do attract a small fee.

Pros: The mobile-first approach makes banking convenient. No monthly fees make it an economical choice.

Cons: Physical banking services are limited due to its online-only nature. Also, its accounting integrations are not as extensive as some competitors.

2. Revolut Business

Features: Revolut offers a multi-currency account that’s great for freelancers dealing with international clients. You can hold, receive, and exchange 28 different currencies. It also offers integrations with accounting tools, advanced payment approval workflows, and subscription-based extras like discounted device insurance.

Fees: There are different pricing plans based on your needs, starting from £25/month. Foreign exchange transactions come with a slight markup during the weekends.

Pros: The multi-currency feature is highly beneficial for those with international clients. The flexibility to choose pricing plans based on usage is a plus.

Cons: A base monthly fee is applicable, unlike some other accounts. The weekend markup on currency exchange can add unexpected costs.

3. Tide Business Account

Features: Tide offers a business account that comes with a suite of tools specifically tailored for freelancers and small businesses. These include invoicing tools, automatic categorisation of expenses, and direct integration with accounting software.

Fees: There are no monthly fees, but charges are applicable for cash withdrawals and deposits.

Pros: The strong suite of tools makes managing business finances easier. Also, no monthly fees make it an affordable option.

Cons: Fees for cash transactions can add up, and some users have reported customer service issues.

4. Monzo Business

Features: Monzo provides a business account with budgeting tools, instant spending notifications, and tax pots to set aside money for tax. It also offers integration with popular accounting software like FreeAgent and Xero.

Fees: Monzo offers a free Lite account or a Pro account for £5/month with additional features.

Pros: The budgeting tools and tax pots are great for financial management. Also, the free Lite option can be great for those starting.

Cons: The Pro account, with more features, comes with a monthly fee. Monzo is also a digital-only bank, which may not suit those requiring physical banking services.

Best freelancer bank accounts

BankLowest monthly feeOffers current accountOffers savings accountOverdraft available

Acorn Account

£12.50YesNoNo

Aldermore

FreeNoYesNo

Allied Irish Bank

£2.50YesYesYes

Amaiz

£9.99YesNoNo

Anna Bank

£14.90YesNoNo

Bank of Scotland

FreeYesYesYes

Barclays

£8.50YesNoNo

Bunq

€ 4.99YesNoNo

Cambridge Building Society

FreeNoYesNo

CardOneMoney

£12.50YesNoNo

Cashplus

FreeYesNoNo

Co-operative Bank

£7YesYesYes

Countingup

FreeYesNoNo

Cumberland Building Society

FreeYesYesYes

Cynergy Bank

£5YesYesYes

Fair Everywhere

£12.50YesNoNo

Holvi

€ 9YesNoNo

HSBC

£6.50YesYesYes

Lloyds Bank

FreeYesYesYes

Masthaven

FreeNoYesNo

Metro Bank

£6YesYesYes

Mettle

FreeYesNoNo

Monese

£9.95YesNoNo

Monzo

AskYesYesNo

Nationwide

FreeNoYesNo

NatWest

FreeYesYesYes

Redwood Bank

FreeNoYesNo

Revolut Business

£7YesNoNo

Royal Bank of Scotland

FreeYesYesYes

Santander

£7.50YesYesYes

Shawbrook Bank

FreeNoYesNo

Starling Bank

FreeYesNoNo

Tide

£9.99YesNoNo

TSB

£5YesYesYes

Ulster Bank

£2.67YesYesYes

Virgin Money

£6.50NoYesNo

Wise

FreeYesNoNo
Top 37 freelancer bank accounts compared

Conclusion

The “best” account will depend largely on your unique needs as a freelancer. If your business operates primarily online and you work with international clients, then Revolut could be a great choice. If you prefer a free option with strong budgeting and tax tools, Starling or Monzo might be more suitable. Meanwhile, Tide provides a great suite of tools tailored for freelancers and small businesses.

Remember, the key is to carefully consider the features that are most important to you, taking into account fees, customer service, and any extra perks that can make your freelancing life more convenient. These could range from ease of integration with accounting software to support for multiple currencies, and even the ability to separate your business and personal finances.

Choosing the right bank account is an important step towards financial control and business success as a freelancer. Don’t forget to read user reviews and check the latest updates from these banks, as features and fee structures may change over time. The choice you make now isn’t set in stone, but finding the best fit from the start can save a lot of time and effort down the line.

Remember, while the cost is important, the value you get from the account in terms of convenience, time saved, and better financial management can far outweigh the monetary cost. In the end, it’s about finding a bank account that helps your freelance business thrive.

FAQ

Can I use a personal bank account as a freelancer?

While it’s possible, it’s generally not recommended. A separate business account can help you track business income and expenses more efficiently, making tax time much easier. Additionally, some banks’ terms and conditions specify that personal accounts must not be used for business purposes.

Is it necessary to pay for a business bank account?

Not always. Several banks, like Starling and Monzo, offer free business bank accounts. However, paid accounts often come with additional features, such as integrations with accounting software, invoicing tools, and personalised customer support.

Do freelancer bank accounts come with a physical bank card?

Yes, most of these accounts come with a physical debit card, even though the banks operate primarily online. This card can be used for payments and ATM withdrawals just like a regular bank card.

What should I consider when choosing a bank account for my freelance business?

Consider factors such as fees, international transaction support, integration with accounting software, invoicing and expense tracking capabilities, customer service, and the reputation of the bank. Think about your specific needs and choose an account that best caters to those.

What are digital-only banks?

Digital-only banks, or neobanks, are banks without any physical branches. They operate entirely online, and customers manage their accounts via a website or app. Many neobanks offer features particularly suited to freelancers, such as instant transaction notifications and financial management tools. However, they may not suit people who need to deposit cash or cheques regularly.

Reviewed by , Managing Director

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Business Financed provides general information, but not financial advice. Always speak to a qualified expert to get personalised advice for your business.

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