Compare business bank accounts in the UK

What is a business bank account?

A business bank account is a current account in your business's name, used for business income and costs. It works much like a personal current account: you get a sort code and account number, a debit card, and an app or online banking. The difference is that it's built for business use, with tools such as invoicing, multiple users and links to accounting software.

Not every business bank account is strictly a bank account in the legal sense. Some popular providers are e-money institutions rather than banks, which changes how your money is protected. We explain the difference below.

Do you need one?

Six things to compare

When you compare business bank accounts, these six factors decide what a business bank account really costs you and whether it fits:

How your money is protected: bank or e-money

Of the eight business bank accounts in our comparison, five hold your money with a UK bank, so eligible deposits are protected by the FSCS up to £120,000. Two are e-money accounts, where money is safeguarded instead. For one, it depends on which company in the group provides your account.

• Held with a UK bank (FSCS): Tide (through ClearBank), Zempler Bank, Mettle (NatWest), Monzo Business and Starling.
• E-money, safeguarded: Wise Business and ANNA Money's main account. ANNA's savings account is with Griffin Bank and is FSCS-protected.
• Moving to a bank: Revolut Business. Revolut is now a UK bank (Revolut Bank UK Ltd) and is moving business accounts from e-money to the bank. Once your account has moved, eligible deposits are FSCS-protected; until then, money is safeguarded. Check which applies in the app.

One detail many comparisons miss: the £120,000 limit applies per banking licence, not per brand. Brands that share a licence share one limit, and some app-based accounts hold your money with a partner bank, such as Tide with ClearBank. If you hold large balances, check which bank holds them and spread them across separate licences. Read our guide to bank accounts versus e-money accounts, or see how Tide protects your money.

Fees explained: what you'll actually pay

"£0 a month" rarely means everything is free. When you compare business bank accounts, look past the headline price of each business bank account at the charges you'll actually trigger:

Work out what a month would cost you

The cheapest business bank account on paper isn't always the cheapest for you. A quick sum using your own numbers settles it:

1. 1

   Count your payments

   Look at a typical month: how many transfers do you send? If it's more than a free plan includes, multiply the extra by the per-transfer fee.

2. 2

   Add your cash

   How often do you pay in cash, and how much? A flat fee per deposit suits large deposits; a percentage suits small ones.

3. 3

   Add foreign spending

   If you pay suppliers abroad by card, a 2.75% fee on £1,000 is £27.50. A paid plan with no fee can be cheaper.

4. 4

   Compare the totals

   Add the monthly fee. The business bank account with the lowest total, not the lowest headline price, is the cheapest for you.

For example, a business sending 10 transfers a month would use its 5 included transfers on Tide Free and pay for the rest, or could choose a plan with a bigger allowance. Our Tide review shows worked examples for Tide's plans.

App-based or high-street bank?

Many businesses use two: an app-based business bank account for day-to-day spending and invoicing, and a second business bank account for cash, cheques or borrowing. Neither type is better in general; it depends on how you're paid.

Features worth paying for

Most small businesses can start with a free business bank account. A paid plan or a monthly fee can be worth it when it replaces something you'd pay for anyway:

• Included payments, if you'd otherwise pay per transfer every month.
• Cheaper cash handling, if your customers pay in cash.
• No foreign-exchange fee, if you regularly pay suppliers abroad by card.
• Accounting software included, if it replaces a separate subscription.
• Extra cards and users, if staff need to spend on the business's behalf.

Do the sum before you upgrade: a £12.49 plan is good value only if it saves you more than £12.49 a month.

Mistakes to avoid

1. Choosing on the bonus alone. A £200 reward is worth less than a business bank account that costs you £20 a month more than you need*. *T&Cs apply
2. Not rechecking each year. Fees and allowances change, and so does your business. Put a yearly reminder in your calendar.
3. Ignoring transfer limits. A free plan with 3 or 5 transfers can become expensive if you pay many suppliers.
4. Forgetting cash. If customers pay in cash, deposit fees add up quickly.
5. Not checking protection. Know whether your money is held with a bank (FSCS) or as e-money (safeguarded).
6. Relying on one account. Any business bank account can be restricted during checks. A second business bank account keeps you trading.

Which account suits which business?

There's no single best business bank account. These are starting points based on the features in our table, not recommendations for your circumstances:

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Sign-up offers

A sign-up offer is a bonus, not a reason on its own to choose a business bank account. On the date we checked:

• Tide: up to £200 cashback with Tide promo code STARTUP200, subject to card spending and savings conditions*. *T&Cs apply
• Mettle: a £50 reward through its Refer a Business scheme, using a code from an existing Mettle customer, entered in the app after your first card payment.
• ANNA Money: merchant cashback of up to 40% on selected products and services, under ANNA's terms.
• Zempler Bank, Wise Business and Starling: no sign-up bonus found.

Always read the provider's terms: most rewards depend on spending, deposits or deadlines. Our guide to using a Tide referral code shows how these conditions work in practice.

How to open a business bank account

1. 1

   Check eligibility

   Confirm the business bank account accepts your business type, turnover and time trading, and that you meet its residency and age rules.

2. 2

   Gather documents

   Photo ID, proof of address and business details. Limited companies also need their Companies House registration number.

3. 3

   Apply in the app or online

   Every account we compare is opened online or in an app. Enter any promo or referral code at this stage.

4. 4

   Verify your identity

   Expect an ID check and, for many apps, a selfie. Providers don't usually guarantee an opening time, so allow a few days.

5. 5

   Start using it

   Move income and costs to your new business bank account, connect your accounting software, and meet any sign-up offer deadlines.

How to switch

Small businesses can often move their business bank account using the Current Account Switch Service, which moves your payments across and closes the old account for you, usually in seven working days. Not every provider takes part, so check before you apply. If you're switching to claim a sign-up offer, read the terms carefully, as some offers are for brand-new customers only.

Need credit too?

A business bank account is for day-to-day money. If you also need a credit line, a business credit card is a separate product.

Before you apply: checklist

• the provider accepts your business type (sole trader, limited company, partnership) and turnover
• the monthly fee, and when any free period ends
• the cost of the payments you'll make each month
• how you'll pay in cash or cheques, and what it costs
• whether your money is FSCS-protected or safeguarded
• the tools you need: invoicing, accounting links, team cards
• any sign-up offer, and its conditions and deadlines

Glossary

FSCS

The Financial Services Compensation Scheme. It protects eligible deposits with UK banks up to £120,000 per depositor, per banking licence.

Safeguarding

How e-money institutions protect customers' money: keeping it separate from their own funds.

E-money institution

A firm authorised by the FCA to issue electronic money. It isn't a bank and can't pay interest on e-money.

Price plan

A provider's price list for a business bank account: the monthly fee plus charges for individual transactions.

Faster Payments

The UK system for near-instant bank transfers, used for most everyday business payments.

CHAPS

A same-day payment system used for large or time-critical payments, often charged separately.

CASS

The Current Account Switch Service, which moves payments to a new account and closes the old one.

How we keep this comparison up to date

We check each provider's pricing page and terms before we update this business bank account comparison, and the date at the top of the table shows when the figures were last checked. Spotted something out of date? Email hello@startupdeals.co.uk.

Frequently asked questions

Sources

All provider figures checked on 25 October 2026 from each provider's own pages:

• Tide pricing · ANNA pricing · Zempler Business Go · Mettle fees
• Monzo Business fees · Revolut Business plans · Starling business account · Wise Business pricing
• FSCS · FCA register · Current Account Switch Service