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.
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Co-Op Business Banking ✓ Business Current Account ✓ Online, App & High Street Banking ✓ Quick & Easy Application Process |
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HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected |
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Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected |
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Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process |
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Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected |
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Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts |
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Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform |
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 | ✗ |
Yorkshire Bank | £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 | ✓ |
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 business bank accounts include Santander, HSBC, Barclays, Lloyds Bank and NatWest. 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
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.