Our best business current accounts

Find the best business bank accounts

Keep personal and business finances separate and simple with built-in tools for invoicing, accounting and expenses.

Business bank accounts

Find business bank accounts from leading providers
ZemplerBarclaysThe Co-operative BankCardOneMoneyRevolutVirgin MoneyAllica BankMonzoAnnaTideZemplerBarclaysThe Co-operative BankCardOneMoneyRevolutVirgin MoneyAllica BankMonzoAnnaTide
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Last updated
July 2nd, 2024

Our best business bank accounts

Our editors pick these deals by weighing up several factors such as the set up time, software integration, fees and more for each product.

Editor’s pick
Our best business bank account
Card
Tide Business Bank Account
Account Fee
No account fee
FSCS Protection
Yes
Account Management
App, Online, Phone
Set-up time
Instant decision
Show Details
Eligibility
Max. annual turnover
Unlimited
UK Resident
YES

A great business bank account for SMEs. It’s quick to setup and offers everything you’d expect to manage your business' finances, such as accounting software integration. Plus you can manage it with their handy smartphone app.

Author image
Senior Personal Finance Editor
Editor’s pick
Our best business bank account
Card
Zempler Bank (formally Cashplus) Business Account
Account Fee
No account fee
FSCS Protection
Yes
Account Management
App, Online, Phone
Set-up time
Instant decision
Show Details
Eligibility
Max. annual turnover
Unlimited
UK Resident
YES

Another great option for businesses, especially if your business has a less than perfect credit history, because they don't require credit checks. It's quick to setup and offers a number of software integrations.

Author image
Senior Personal Finance Editor
Editor’s pick
Our best business bank account
Card
Revolut Business Basic Account
Account Fee
No account fee
FSCS Protection
No
Account Management
App, Online, Phone
Set-up time
Instant decision
Show Details
Eligibility
Max. annual turnover
Unlimited
UK Resident
YES

If you open a bank account for your business with Revolut then you have the flexibility to change it or cancel at any time. It’s also completely free and it can be managed online with 24/7 support.

Author image
savings expert

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What is a business bank account?

A business bank account is a type of bank account specifically designed for businesses to manage their finances, keeping business transactions separate from personal ones.

It provides essential banking services and makes life easier when it comes to tax returns, audits and cash flow management. Specific business banking statements can also be helpful in business plans if you're looking to grow and need to quickly evidence your business' performance.

How does a business current account work?

business current account works like a personal current account but with additional features tailored to meet the needs of businesses. It allows you to deposit and withdraw funds, write and cash cheques, make electronic payments, receive payments from customers, access banking services online or through mobile apps and, subject to checks, have a business overdraft facility.

A business bank account is a must if you want to appear professional to your clients and customers. And with many accounts allowing the integration of time-saving tools such as accounting and payroll software, you can make tax returns and day-to-day finance management much easier.

Do I need to have a business bank account?

While it is not a legal requirement to have a business current account for most businesses, it is highly recommended for several reasons:

  • Keeping personal and professional finances separate makes accounting and tax reporting significantly more straightforward.

  • It lets customers and suppliers know that you're professional and credible. They prefer dealing with businesses that have dedicated business accounts, so by having one you can show you mean business.

  • Features such as overdraft facilities and the integration of things like accounting and payroll software can make time consuming tasks much more straightforward.

  • Many business banking services are specifically designed to improve efficiencies around financial management.

By not having a business bank account you could run the risk of filing an incorrect tax return. If you use an accountant, they could miss important transaction history.

And if you run a limited company - then you are required by law to keep your company finances separate due to the fact that its a separate legal entity.

No. of UK’s 5.7m microbusinesses that primarily use personal current accounts for business banking[1]
43%

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How to compare business current accounts

When comparing business current accounts, consider the following factors:

Fees and charges

Look for any monthly account fees, transaction fees, overdraft fees, and charges for additional services.

Transaction limits

Check if there are any limits on the number of transactions or cash deposits you can make without incurring extra charges.

Overdraft facility

If you anticipate needing an overdraft, compare the terms, interest rates, and fees associated with overdraft facilities.

Online banking features

Evaluate the quality and functionality of online banking platforms, mobile apps, and other digital services offered.

Additional services

Consider any additional services provided, such as invoicing tools, integration with accounting software, or foreign currency services.

How to open a business bank account

To open a business current account in the UK, you will typically need to provide the following:

  • Proof of identity: This can include your passport, driver's license, or national ID card.

  • Proof of address: Utility bills, bank statements, or official letters showing your name and address.

  • Business documentation: This may include your business registration certificate, partnership agreement, or articles of association.

  • Personal and business financial information: You may need to provide details of your personal and business income, assets, and liabilities.

Things to consider if you're a small business

Whether you're a sole trader working alone or have employees, there are many benefits of having a business bank account. But there are things to bear in mind too.

Eligibility

Some account providers may need your business to make a certain amount of money. Be sure to check that your turnover meets any account requirements before applying.

International transactions

If your business often makes or receives payments with other countries, then be sure to check the account you choose allows them and if they do whether there's a fee.

Features

Different accounts may come with different features, such as accounting software. This can be a helpful addition that could save you needing to purchase it separately.

Fees

Some providers may charge a monthly or annual fee. This might be fine if the features of the account suit your needs. But if not, it might be worth looking around for accounts that offer fee-free periods.

Can I switch business bank accounts?

Switching bank accounts is certainly an option available to you, just as it is if you want to switch your personal bank account.

With a business account, the reasons for switching may differ though. Some reasons you might choose to switch to a different business bank account include:

Fees - you might be coming to the end of a fee-free period with your existing bank account, so switching to a new account that offers a fee-free period might be attractive.

Overdraft - many businesses rely on their business overdraft. As this is typically a feature of your business bank account, it's always worth keeping an eye on overdraft rates with different account providers. You might be paying more than you need to.

Integrated features - some business bank accounts allow you to integrate helpful and time-saving features. These might be accounting software to help make tax returns and financial planning easier. It could also be payroll software, speeding up a typically time consuming activity.

How to switch to a new business bank account

Switching your business bank account can seem daunting. But if you're unhappy with your existing bank account, there's no reason not to look for a better option. Many banks and providers offer incentives for switching your business bank account.

The Current Account Switch Service (CASS) is a free service that allows you to switch your business bank account to a new bank quickly and easily. The service is backed by the Current Account Switch Guarantee, which means that your old bank will be responsible for any payments that are missed during the switch.

But before you use the CASS, do your research and compare different business current accounts. Make sure that the new bank offers the features and benefits that you need and make sure to read the terms and conditions carefully before you sign up for a new account.

Once you've found an account you like, just follow these simple steps.

  • Apply for a business account with the new bank.

  • When applying for the account, tell the new bank that you want to use the CASS.

  • The new bank will then contact your old bank to initiate the switch.

  • The switch should take place within 7 working days.

By following these tips, you can make the process of switching business bank accounts as smooth and stress-free as possible.

No. of account switches from Jan to Aug '23[2]
16,077

FAQs

Can I have a business current account if I'm a sole trader?

Yes, business current accounts are available for sole traders as well as partnerships and limited companies.

Can I use a personal current account for my business transactions?

It's generally not advisable to use a personal current account for business transactions, as it can lead to complications in managing finances and accounting. If you have a limited company, then a business bank account is a legal obligation as your limited company is a separate legal entity.

What fees can I expect with a business current account?

Fees vary depending on the bank and the type of account. Common fees include monthly account fees, transaction fees, and charges for additional services

Can I get a business current account with bad credit?

It can be more challenging to get a business current account with bad credit, but some banks may offer options specifically designed for businesses with poor credit history. Taking steps to improve your credit history and ultimately your credit report can be helpful too.

Can I have multiple business current accounts?

Yes, you can have multiple business current accounts. It can be useful for separating different aspects of your business or if you have multiple businesses.

Do I need to maintain a minimum account balance?

Whether you need to maintain a minimum account balance depends on the specific terms and conditions of the account. As with any bank account you might open, it's important to check specific terms and ask the account provider if you're still unsure.

Are there any limitations on the number of transactions or cash deposits I can make?

Business current accounts may have limitations on the number of free transactions or cash deposits you can make each month. Additional fees may apply if you exceed the limits.

What happens if I close my business, can I close my business current account?

If you close your business, you should inform your bank and close your business current account. The bank will guide you through the process, and any remaining funds will be transferred to another account.

More on opening a new bank account

Our experts explain what you need to know to open a new current account
What Types of Bank Accounts Are Available?
What Types of Bank Accounts Are Available?
How To Switch Bank Accounts
How To Switch Bank Accounts
How To Pay Off Your Overdraft Fast
How To Pay Off Your Overdraft Fast

About the author

Kyle Eaton
Kyle joined the money.co.uk team in 2023 and has a long history both of writing and working in financial services and with small businesses.

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References

1. Nationwide Ipsos MORI research commissioned by Nationwide
2. Pay UK Monthly Current Account Switch Service dashboard for August 2023