Starting a new business is an exciting process – but the financial aspect of things can be intimidating, especially if it’s your first time. Opening startup business bank accounts in the UK doesn’t have to be overwhelming – this guide will help you choose the right options and make sure you are getting sensible rates from trustworthy banks.
Best startup bank accounts UK
| Bank | Monthly fee | Card purchase fee | Bank transfer fee | Overdraft available? |
|---|---|---|---|---|
| Starling Bank | Free | Free | Free | ✓ |
| ANNA Money | £0 – £19.90 | Free | Free | ✗ |
| Tide | £0 or £9.99 or £49.99 | Free | 20p Free on paid-for accounts | ✗ |
| Virgin Money | £60 annual fee | 30p | 65p | ✓ |
| Mettle Bank | Free | Free | Free | ✗ |
| Cashplus Business | Annual charge £69 | Free | Free | ✗ |
| Revolut Business | £25 | Free | Free | ✗ |
| Kinetic | Free for 18 months then £6.50 per month | Free | Free | ✓ |
| Metro Bank | Free providing daily balance exceeds £5k. Under this amount, the £5 a month fee applies | First 50 per month free, then 30p each. This is across all transactions including bank transfers | First 50 per month free, then 30p each | ✓ |
| Bank of Scotland | £7 but free for 12 months | Free for 12 months | Free for 12 months | ✓ |
Starling Bank
Starling Bank offers a competitive package for startups with no monthly fees, free card purchases, and free bank transfers. Notably, they also offer overdraft facilities, making them a flexible option for new businesses needing short-term finance.
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- Monthly Fee: Free
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Available
Pros:
- No monthly fees, making it cost-effective for startups.
- Highly rated mobile app, allowing for convenient banking on-the-go.
Cons:
- Limited physical branch access, which can be a drawback for those who prefer in-person banking services.
- Some features are only accessible through a paid subscription, which may increase costs.
Suited for startups…
Starling Bank is best suited for startups that are comfortable with digital banking and do not require a physical branch for their banking needs. Its no-fee structure and 24/7 customer support make it ideal for online-first startups and entrepreneurs who are tech-savvy.
Read our Starling Bank review or visit the website.
ANNA Money
ANNA Money has a variable monthly fee structure ranging from £0 to £19.90, which could cater to businesses of varying sizes and needs. Card purchases and bank transfers are free, but they do not offer an overdraft option, which might be a limitation for some businesses.
- Monthly Fee: £0 – £19.90
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Not available
Suited for startups…
ANNA Money is optimal for startups that need help with administrative tasks such as invoicing. It is particularly suitable for freelancers or small businesses looking for a flexible banking fee structure and those who can manage without the need for an overdraft facility.
Pros:
- Flexible fee structure that can be adjusted based on the business’s needs.
- Good for managing invoices and administrative tasks, offering a degree of automation.
Cons:
- No option for an overdraft, which can be a limitation for businesses requiring flexible funding.
- Potential higher costs for accessing more premium service tiers.
Read our ANNA Money review or visit the website.
Tide
Tide provides a sliding scale for monthly fees depending on the chosen package. Bank transfers are free on paid-for accounts, and while there is no overdraft, the fee structure is designed to be competitive for startups.
- Monthly Fee: £0, £9.99, or £49.99
- Card Purchase Fee: Free
- Bank Transfer Fee: 20p
- Overdraft: Not available on standard accounts; free on paid-for accounts
Pros:
- Scale of fees allows businesses to select a level of service that matches their size and needs.
- Good integration with accounting software can streamline financial management.
Cons:
- Bank transfer fees are applicable, which could add up depending on transaction volume.
- No physical branches, which may not suit businesses that value face-to-face banking support.
Suited for startups…
Tide is tailored for startups that prioritise integration with accounting software and look for scalable fee structures. It’s a good match for businesses that expect to grow or change rapidly and those that are likely to perform a high volume of electronic transactions.
Read our Tide review or visit the website.
Virgin Money
Virgin Money has a significant annual fee but offers reduced transaction costs, which may benefit businesses with high transaction volumes. They also provide overdraft facilities, which can be advantageous for businesses needing flexible financing options.
- Monthly Fee: £60 annual fee
- Card Purchase Fee: 30p
- Bank Transfer Fee: 65p
- Overdraft: Available
Pros:
- Offers overdraft facilities, providing additional financial flexibility.
- Part of a larger network with high street branches, offering wider services.
Cons:
- Charges an annual fee and transaction fees that could become significant over time.
- Higher card purchase and bank transfer fees compared to some competitors.
Suited for startups…
Virgin Money would be a good choice for startups that expect a higher volume of transactions and could benefit from an established bank with a wide range of banking services. The overdraft facility also makes it suitable for businesses that may require flexible financing options.
Read our Virgin Money review or visit the website.
Mettle Bank
Mettle Bank, associated with NatWest, offers a fee-free structure with no charges for card purchases and bank transfers. This could be especially appealing for startups looking to minimise initial costs. However, they don’t provide overdraft services, which may be a limitation for some.
- Monthly Fee: Free
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Not available
Pros:
- No monthly fees are a significant advantage for cost-conscious startups.
- The backing of NatWest may offer reassurance of stability and a broader range of services.
Cons:
- No overdraft services, which could limit financial flexibility for growing businesses.
- Reliance on app-based banking without branch support may not suit all businesses.
Suited for startups…
Mettle Bank is ideal for digital-natives startups that are looking for basic banking services without a monthly fee. It’s well-suited for new, small businesses that don’t handle cash transactions and do not require an overdraft.
Read our Mettle review or visit the website.
Cashplus Business
Cashplus Business charges an annual fee but compensates with free card purchases and bank transfers. While they don’t offer an overdraft option, they are known for providing accounts that are accessible even to those with poor credit scores.
- Monthly Fee: Annual charge of £69
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Not available
Pros:
- Accessibility with an instant online decision and no credit check for opening accounts.
- Free card purchases and bank transfers can reduce transaction costs.
Cons:
- An annual fee that may be off-putting for startups looking to minimise fixed costs.
- No overdraft facility and limited physical banking options may restrict some businesses.
Suited for startups…
Cashplus Business is particularly well-suited for startups that may have difficulty in getting approved for traditional banking due to credit issues, thanks to its instant online decision and no credit check for account opening.
Read our Cashplus review or visit the website.
Revolut Business
Revolut Business asks for a minimal monthly fee, offers free card purchases and bank transfers, but does not offer overdraft facilities. They’re known for their strong digital platform and multi-currency features, which may be particularly beneficial for businesses operating internationally.
- Monthly Fee: £25
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Not available
Pros:
- Offers multi-currency accounts with competitive rates, beneficial for businesses dealing internationally.
- Strong digital platform with robust features for modern financial management.
Cons:
- A monthly fee is required, which could impact the overall cost for startups.
- Customer service may not be as comprehensive or accessible as that of traditional banks.
Suited for startups…
Revolut Business is best for startups that engage in international transactions and need multi-currency capabilities. The strong digital platform is advantageous for tech-forward businesses that need robust financial management tools.
Read our Revolut Business review or visit the website.
Kinetic
Kinetic, backed by HSBC, provides an 18-month fee-free period before a standard monthly fee kicks in. They offer free card purchases and bank transfers and include overdraft facilities, which is useful for businesses with variable cash flow needs.
- Monthly Fee: Free for 18 months, then £6.50 per month
- Card Purchase Fee: Free
- Bank Transfer Fee: Free
- Overdraft: Available
Pros:
- An 18-month fee-free period is a substantial benefit for new businesses.
- Overdraft facilities available, offering financial cushioning for unexpected expenses.
Cons:
- Monthly fees apply after the initial period, which businesses need to budget for.
- Overdraft availability and terms may vary, requiring careful consideration.
Suited for startups…
Kinetic, being backed by HSBC, is suitable for startups looking for the security of a traditional bank with a modern digital banking experience. The 18-month fee-free period is particularly attractive for businesses in their early growth stages.
Read our Kinetic review or visit the website.
Metro Bank
Metro Bank offers a free account providing the daily balance exceeds £5k; otherwise, a monthly fee applies. They have a unique structure for transaction fees and offer overdraft facilities, making them a solid choice for startups that can maintain a higher balance.
- Monthly Fee: Free if daily balance exceeds £5k, under this amount, a £5 monthly fee applies
- Card Purchase Fee: Free for 12 months
- Bank Transfer Fee: First 50 per month free, then 30p each
- Overdraft: Available
Pros:
- Offers free banking if a certain balance is maintained, rewarding businesses with higher balances.
- Physical branches are available, providing in-person customer service.
Cons:
- Monthly fees apply if the balance falls below a specified amount.
- The focus is on UK services, which may not be ideal for businesses with international needs.
Suited for startups…
Metro Bank would fit startups that maintain a healthy balance and can thus benefit from fee-free banking. Its physical branches also make it appealing to those who appreciate in-person banking services.
Read our Metro Bank review or visit the website
Bank of Scotland
Bank of Scotland, which offers a 12-month fee-free period for new startups before a standard monthly fee is applied. They offer free card purchases and bank transfers during the initial period and also provide overdraft facilities, appealing to startups looking for a comprehensive banking package with the option for growth.
- Monthly Fee: £7 but free for 12 months
- Card Purchase Fee: Free for 12 months
- Bank Transfer Fee: Free for 12 months
- Overdraft: Available
Pros:
- First-year fee-free banking can significantly lower the initial cost for startups.
- Access to a broad range of services as part of the Lloyds Banking Group.
Cons:
- After the first year, standard fees apply, which businesses will need to factor into their budgets.
- Services may lean towards traditional banking, which might not align with all business models.
Suited for startups…
Bank of Scotland is appropriate for startups looking for a comprehensive banking package with a wide network of services, particularly those who will benefit from the initial year of fee-free banking.
Read our Bank of Scotland review or visit the website.
How to choose a bank account for a startup business
Choosing the best UK bank account for your startup business is an important decision that can make a huge impact on your long-term success. Finding a reputable bank with competitive rates and fees, as well as helpful customer service and support, is essential to the health of any new business.
With so many startup bank accounts available, it can be difficult to choose the best bank account for your needs. To help you decide, we’ve put together a list of what to consider when selecting the perfect UK banking solution for your startup business.
1. Fees and charges
While it can be tempting to simply open an account with the lowest fees, it is important to evaluate all costs associated with an account, such as minimum balance requirements and transaction fees.
2. Transaction types
Some banks may offer more advanced features, such as debit cards or online banking capabilities. It is important to research the types of transactions your business will need in order to make sure you have access to all the necessary tools for managing your finances.
3. Account support
It is important to evaluate the customer service and support offered by your chosen bank. Can you get help with setting up a business account? Are there any additional services available such as fraud protection or payroll assistance?
4. Location
Where is the bank located in relation to your business premises? Having easy access to a branch or ATM can be extremely helpful when managing your finances.
5. Reputation
Read reviews and customer feedback to get an idea of what other customers think of the bank’s services and support. This will give you an insight into how reliable and trustworthy the bank is.
Which UK banks offer the best startup business bank accounts?
Some of the UK’s top banks that offer excellent startup bank accounts include Starling Bank, Virgin Money, Mettle, and Revolut. Each bank offers a range of features such as debit cards, online banking capabilities and fraud protection services. Depending on your individual needs, one of these banks may be the perfect fit for your startup business.
Finding a bank account for the unique needs of a startup business
Startup businesses may need to access more flexible banking services than larger businesses, as they are often in a period of rapid growth. Features such as overdrafts and quick access to funds can be incredibly helpful for new business owners.
Additionally, many banks offer special discounts or financial assistance specifically tailored to startups. It is important to research exactly what features you need in order to select the perfect UK banking solution for your startup business.
Ultimately, choosing the right bank account for your startup business is an important decision that can have long-term implications. Make sure to do your research and evaluate all costs associated with potential banks before making a final decision.
Startup business bank fees and charges explained
Most banks will charge a variety of fees and charges for business accounts. Common fees include account opening fees, monthly or annual maintenance fees and transaction charges such as ATM withdrawals, electronic transfers and international payments. It is important to investigate exactly what fees you can expect to pay in order to avoid any surprise costs down the line.
How to open a startup business bank account
Opening a business bank account is usually a straightforward process. However, the exact requirements may vary depending on the bank you have chosen. Typically, you will need to provide proof of identity and address, as well as any relevant business documents such as an employer identification number (EIN) or articles of incorporation.
How to open a startup bank account
- Gather your documents
The first step is to collect all the necessary documents, such as your proof of identity and address
- Contact the bank
Next, contact the bank to find out exactly what documentation you need to provide in order to open an account
- Submit your application
Once you have gathered all the required documentation, submit the application to the bank
- Wait for approval
The bank will then review your application and decide whether or not to approve your account opening request
- Activate your account
If your application is approved, you will need to activate your account by setting up online banking and accessing any additional services such as debit cards or overdrafts
Following these steps should help you to open a startup business bank account without any hassle. It is important to remember that banks may have slightly different processes, so make sure to check with your chosen bank before submitting an application.
FAQ for best startup bank account
You will likely need to provide proof of identity (such as your passport or ID card), proof of address (such as a recent utility bill) and proof that you have registered your business with Companies House (if applicable). You may also need to provide other documents, such as documents outlining the structure or ownership of your business.
This varies depending on the bank, but normally it takes between one and two weeks for a business bank account application to be processed. It’s important to note that some banks may require additional documents or information before they can open the account.
It depends on your specific needs – different banks offer different features, fees and benefits. It’s best to research the various options available and find the one that best suits your business.
Yes – some banks will charge a fee for setting up a business account, and may also have additional ongoing monthly or annual fees. It’s important to check with your chosen bank to find out exactly what fees you may be charged.
It is not necessarily required, but having a well-thought-out business plan can help demonstrate that your business has clear objectives and goals. A good business plan can also help to provide evidence that you have considered the risks and rewards associated with running a business.
Yes, many banks offer joint accounts specifically tailored for businesses. These types of accounts may require both owners to sign off on transactions, which can be useful if you’re running a business with multiple partners. It is important to check the terms and conditions of each bank before opening a joint account.
Yes – some businesses may choose to use other financial services, such as online payment providers or peer-to-peer lending platforms. It’s important to consider the different options available and find the one that best suits your business needs.
Yes – depending on your circumstances, having a separate business bank account can help you track expenses more easily and provide you with evidence to help support any business tax deductions. It is important to check with a qualified accountant or financial adviser before claiming any tax benefits associated with a business bank account.