Choose the best business bank account for your company with our comparison service. Find accounts with handy extras, such as invoicing tools, or save money by choosing an account with no set-up fees.
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Work out what your business needs
Some businesses are legally required to hold a business account.
Decide if a business account will help
The features of business account might help simplify your accounting.
Find the type of business account you need
It's important to know which type of account is best suited for you.
Calculate the fees and interest rate
You might need to pay a monthly fee, though you might also earn interest.
Check the terms and conditions
Make sure you are happy with all the details of your account before you open it.
Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.
A business bank account enables you to conduct everyday business transactions, such as paying staff, buying raw materials, or paying for services. It keeps your company's finances separate from your personal bank account – which can be a concern for sole traders – and usually comes with different features and services designed to help you with running your business.
Use our comparison table above to find the right business bank account, then click the "view deal" button alongside your preferred option and fill out the online application on the provider's site.
You can open a business bank account online in minutes, but it's worth gathering as much information as you can before you try to open your business bank account to make the process as smooth as possible. It's also worth noting that some banks set specific conditions on your business bank account depending on the size of your business, or the amount of turnover.
The best business bank accounts differ depending on your banking needs. Different business accounts offer varying features, so pick one that offers what your business needs.
Features like monthly fees and functionality will be important factors in choosing a business bank account. As a sole trader, you will likely want to keep costs down wherever you can, which is why a business bank account with no monthly fees may be an attractive option.
A digital or app-based bank can be a good option for sole traders. These have no physical branches but operate via an app on your smartphone. App-based banks offer a slew of innovative features such as:
Instant payment notifications
Separate spaces for separate costs
As a small business, you may not have the luxury of having extra staff to handle all the bookkeeping involved in running a business. This is why some business bank accounts offer services such as instant invoicing, automated expense categorisation and VAT returns.
You may have to pay a small monthly fee for access to these services, but it may be cheap compared to hiring a dedicated bookkeeper.
If you're a non-profit organisation you could consider a charity bank account. These are available to a range of organisations, including charities, clubs, societies, trusts and religious organisations.
Most business bank accounts of this type offer free banking for a certain period and remain free for basic services, as long as turnover is under a specific threshold. However, they may charge a fee for services such as Direct Debits or standing orders.
Fees for business bank accounts can vary significantly depending on the type of account, its balance and the nature of the transactions.
Many business accounts charge a yearly or monthly fee, although some are free for an introductory period, ranging from three to 18 months. Others are always free for basic banking features, but charge fees for add-on features or facilities.
Some examples of fees you may have to pay:
£3–£50 monthly fee
20p–£1 per cash withdrawal
20p–£1 per cheque written
20p–£1 per cash deposit
20p–£1 per bank transfer
It's a good idea to check the fees for the transactions your business uses the most. Doing this can help you pick the best business account for your needs. Here's more on how much a business bank account costs.
The primary benefit of using a business bank account is that it helps you keep your business finances separate from your personal finances.
But a business bank account offers more than that. Some additional benefits of business bank accounts include:
Business accounts can help you keep track of your professional spending. Just like with personal current accounts, you should compare to find one with the best features for you. Make sure you know what fees and charges will apply to your account before you open it.”Salman Haqqi, Personal Finance Editor
Keep your business transactions separate form your personal finances. Although it is possible to run your business and personal life using the same account if you're a sole trader or small business, it can get complicated quickly. Differentiating your mortgage, credit card payments, or food shopping from business transactions is a challenge, especially if your business starts growing. It's better to keep things separate from the start so you don't have to untangle anything in the future.
Make use of introductory offers. Often banks will list attractive introductory offers of free business banking to draw in customers. Typically, these can range from three to 18 months or more. If you're a new business, these are a great way to keep costs down to a minimum as you get established.
Look into app-based banks. These are a somewhat recent addition to the banking landscape. Also commonly known as challenger banks, app-based banks have no physical locations, but operate as apps on a smartphone. Many of these banks now offer a slew of innovative features for businesses.
Larger businesses should speak to their current bank
If your business has more than 50 employees, speak to your account provider about switching over to a different bank.
Enjoy the features of your new business bank account
Many accounts will be ready to use within minutes, though for others you may need to provide additional documentation.
You can have more than one business current account but you will have to apply for the new account in the same way you did for the first.
If you are a sole trader or your business is a partnership, your bank may let you. Incorporated and limited companies can only use business accounts.
Most accounts have a minimum and maximum balance set by the bank. You may be charged a fee if your balance gets too low or high.
Yes. It's definitely possible to get a business bank account if you have bad credit, the only draw back is that your options may be limited. It may also mean that you'll be likely to be accepted for a more basic business account.
Yes. But it's likely that you'll be charged a fee for non-sterling or foreign currency transactions. These fees can vary depending on which bank you use.
In some cases, if you have premium business bank account with a high monthly fee, international payments can be included as part of your account.
Yes. Just like other accounts, business bank accounts are covered by the FSCS up to £85,000 per banking license. But be aware that sometimes different banks often operate under a single share banking license e.g. Halifax and Bank of Scotland, as they are both owned by the Lloyds Banking Group.
Comparing business accounts could save you money. Our multiple award-winning comparison service makes sure you get the lowest fees and rates possible based on your individual circumstances. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators so to help you make life's most important decisions and take control of your money.
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