Business bank accounts
Compare bank accounts for your business
An easier way to open a business bank account
Compare accounts from leading UK providers.
Find the right fit for your business, free of charge.
Open an account in as little as one working day.
Providers you can count on
Compare interest rates and fees across top UK business bank accounts.
of UK SMEs would consider switching their business bank account if a better fit were available. [1]
Compare our best business bank accounts for September 2026
Whether you’re looking for a free account or one with extra benefits, we can help you find the right fit. Compare fees and features at a glance to choose the best business bank account for you.
Tide Business Bank Account
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- Fast and easy account setup - open an account within minutes which saves time and gets your business up and running quickly
- No monthly fees - only pay for what you need, then upgrade as your business grows
- Free MTD tool included.
- Expense management and invoice tools - you can easily track your business expenses and create invoices in the app for faster invoicing
- Access a competitive savings account - get more for your money by earning up to 4% AER (variable) with the Tide Instant Saver and access funds at any time
| Availability | Limited companies & sole traders |
| Registration | Business registered & trading in UK |
| Max. annual turnover | Unlimited |
| UK Resident |
Tide Business and Savings Account
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- Easy account set up – open both a Tide Business Bank Account and Tide Instant Saver to get £200 cashback (T&Cs apply)
- Make your money work harder – earn up to 4% AER (variable) with no cap on deposits and instant access to your savings
- Only pay for what you need – no monthly fees on your business account
- Manage your money from anywhere – track expenses, create invoices, and oversee finances easily in the Tide app
| Availability | Limited companies & sole traders |
| Max. annual turnover | Unlimited |
| UK Resident |
Revolut Business Basic Account
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- Issue physical and virtual cards – manage cards for you and your team to control spending and improve security
- Account integrations with Clear Books, FreeAgent, QuickBooks, Sage and Xero - helps to streamline accounting and reduces human error
- Hold and exchange 25+ currencies with multi-currency wallets and smart debit cards - useful if you’re involved in international trade or working with global clients
- Automate exports and integrations – automatically export transactions to accounting software and use integrations like Slack and Zapier to reduce admin
| Availability | Limited companies & partnerships |
| Max. annual turnover | Unlimited |
| UK Resident |
Virgin Money M Account for Business
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- No monthly fees – manage your business finances without any hidden charges, helping you keep banking costs low
- 0.25% cashback on debit card purchases – reward your everyday spending and reinvest savings back into your business
- Seamless integration with QuickBooks, Xero, and Sage – automate accounting tasks and streamline your bookkeeping process
- Compatible with Apple Pay and Google Pay - make contactless payments easily from your phone
| Availability | Limited companies, partnerships & sole traders |
| Max. annual turnover | £1,000,000 |
| UK Resident |
Virgin Money Business Current Account
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- Created for you - this account is for start-ups, sole traders and limited companies with an annual turnover of less than £6.5m
- Integration with Sage, Xero and Quickbooks - helps to streamline accounting and reduces human error, plus there’s automated business spending categorisation
- No fees - 25 months’ fee-free day-to-day banking for start-ups and switchers which helps to reduce costs (excludes CHAPS and international payments)
- Compatible with Apple Pay and Google Pay - make contactless payments easily from your phone
| Availability | Limited companies, partnerships & sole traders |
| Max. annual turnover | £6,500,000 |
| UK Resident |
Starling Bank Business Account
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- Fully online application - apply for an account from your phone, with no branch visits required
- 24/7 UK support – chat to a fully UK-based team anytime via the app or phone.
- No hidden fees – no monthly charges, UK transfer or ATM fees, and clear fees abroad.
- Stay organised – capture receipts, categorise expenses, and separate money into Spaces for overheads or tax.
| Availability | Limited companies, partnerships & sole traders |
| Maximum balance | Unlimited |
| UK Resident |
Lloyds Business Account
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- No monthly account fee for first 12 months – keep your banking costs down while you establish your business
- Instant credit decisions of up to £5,000 – with options for a business credit card or business overdraft to support growth
- Free MTD software for sole traders – access HMRC-recognised accounting software to manage tax reporting and stay compliant.
- Manage everything in-app – open your account, apply for credit, and track finances in one place
| Availability | Limited companies, partnerships & sole traders |
| Registration | Business registered & trading in UK |
| Max. annual turnover | £25,000,000 |
| UK Resident |
Tide Business Bank Account (CASS Switch)
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- Switch your account easily with CASS – move payments, Direct Debits, and Standing Orders to Tide with the Current Account Switch Service
- No monthly fees - only pay for what you need, then upgrade as your business grows
- Expense management and invoice tools - you can easily track your business expenses and create invoices in the app for faster invoicing
- Access a competitive savings account - get more for your money by earning up to 4% AER (variable) with the Tide Instant Saver and access funds at any time
| Availability | Limited companies & sole traders |
| Registration | Business registered & trading in UK |
| Max. annual turnover | Unlimited |
| UK Resident |
Monzo Business Lite Account
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- Free UK bank transfers - these fees can add up quickly, so it helps to keep costs down
- 24/7 customer support - if you have any issues there’s a team ready to help which means you can focus on running your business
- Money management - separate money with Pots, receive payments through a single link and effortless accounting via receipt uploads to support your business
- Unlock interest - earn 1.30% AER (variable) on funds in your Instant Access Pots and interest is paid monthly so you can easily see your money grow
| Availability | Limited companies & sole traders |
| UK Resident |
Allica Bank Business Rewards Account - for over £250,000 turnover
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- Dedicated support – get a UK-based relationship manager who knows your business inside out.
- No hidden fees – no monthly charges and up to 150 free Faster Payments each month.
- Smart tools – connect your account to Sage, Xero, QuickBooks or FreeAgent for easier bookkeeping.
- Access anywhere – manage your account online or via iOS and Android apps.
| Availability | Limited companies |
| Min. annual turnover | £500,000 |
| Max. annual turnover | Unlimited |
| UK Resident |
Business bank accounts at a glance
Free or paid account?
Some business bank accounts are free, while others charge a monthly fee. Paid accounts may offer additional features such as accounting integrations, overdrafts or cashback. Compare the fees and features to find an account that suits your business.
What’s needed to apply?
Requirements vary between providers, but you’ll usually need your business details, personal information and proof of identity. You may also need to provide information about your business activities, turnover or expected account usage.
How long will it take?
The time it takes to open a business bank account varies by provider. Online applications can sometimes be completed quickly, but you may need to provide additional information or documents before your account is approved.
What is a business bank account?
A business bank account is designed to help you manage your company's finances. Like a personal current account, you can use it to send and receive payments, pay bills, withdraw cash and manage your money online or through an app.
It gives your business a dedicated place to receive income and make payments, which can make it easier to keep track of your business finances, monitor cash flow and prepare your tax returns.
Why open a business bank account?
A business bank account can help you keep your business finances organised and make it easier to manage your money. Key benefits include:
Keep business and personal finances separate: Make it easier to see what you're spending and earning through your business.
Manage cash flow: Get a clearer picture of the money coming into and going out of your business.
Simplify accounting and tax reporting: Keep your business transactions in one place, making it easier to maintain accurate records.
Stay within your bank's terms: Some personal bank accounts don't allow you to use them for business transactions.
Build your business's financial history: A dedicated account can help establish a clear record of your business finances, which may be useful when applying for business finance.
Look more professional: Give customers and suppliers a dedicated account for making and receiving business payments.
Prepare for growth: A separate account can make managing your finances easier as your business's income and expenses increase.
Do I need a business bank account?
If you run a limited company, you must have a separate business bank account because the company is a separate legal entity from you.
Sole traders and partnerships don't have to have a business bank account, although having one can make it easier to keep business and personal finances separate, track expenses and manage your cash flow.
“Keeping personal and business finances separate is essential for tax compliance. Look for an account with built-in invoicing and accounting integrations to simplify your bookkeeping.”
What features do business current accounts offer?
Business current accounts are designed to help you manage your business finances. The features available vary between providers and accounts, but may include:
Multiple user access: Give employees or business partners access to the account, with permissions to control what they can do.
Accounting software integration: Connect your account with accounting software such as Xero, QuickBooks, Sage or FreeAgent to keep your financial records up to date.
Bookkeeping and tax tools: Record transactions, organise expenses and prepare information for your tax returns.
Invoicing tools: Create, send and track invoices from your account, with some providers also offering automated payment reminders.
Payment solutions: Make and receive payments using options such as bank transfers, direct debits and card payments.
Overdraft facilities: Access short-term borrowing to help manage temporary cash flow gaps, subject to eligibility.
International payments: Send and receive payments internationally, with some accounts supporting multiple currencies.
Online and mobile banking: Manage your account, make payments and check your balance through online or mobile banking.
Customer support: Get help with your account through channels such as phone, email, live chat or in-app support.
High street banks vs online-only providers
Traditional high street banks
A traditional bank could be a better choice if you:
Handle cash regularly and need access to a branch
Expect to need an overdraft, business loan or other borrowing
Want face-to-face support or a dedicated relationship manager
Have a more complex business structure or need specialist banking services
Opening an account can take longer than with an online-only provider, and some traditional banks may have fewer digital features.
Online-only providers
An online-only provider could be a better choice if you:
Want to open an account quickly online
Run a straightforward business, such as a sole trader or single limited company
Want to connect your account with digital payment, accounting or other business software
Prefer to manage your banking through an app or online
These providers tend to focus on digital banking and automation, but may offer fewer borrowing options and a more limited range of specialist business services.
How to choose the best business bank account
Check the costs involved, including monthly fees, transaction charges and fees for services such as cash withdrawals, international payments or additional cards. Pay particular attention to charges that may apply when you exceed transaction limits or use services outside your account's standard allowance.
A free account isn't necessarily the cheapest if you make lots of transactions or regularly use additional services, so check the full fee schedule before applying.
Check whether the account limits the number or value of transactions you can make each month. This could include deposits, withdrawals, cash deposits or transfers. Make sure the limits are suitable for your usual business activity and check what you'll pay if you exceed them.
If you may need short-term borrowing to manage cash flow, compare the overdraft limit, interest rate and any additional fees. Check the eligibility requirements, too, as not every business bank account will offer an overdraft.
Consider how you'll manage the account day to day. Check whether the online banking platform and mobile app offer the functionality you need, such as setting up payments, managing users, viewing transactions and connecting with accounting software.
Look at any additional services that could be useful to your business, such as invoicing and bookkeeping tools, accounting software integrations, international payments or access to business credit cards and loans. Consider which features you'll actually use rather than paying for extras you don't need.
How to choose the best business bank account
Banking fees
Transaction limits
Overdraft facilities
Online banking
Business services
Do I qualify for a business bank account?
Eligibility requirements vary between providers, but you’ll typically need to meet some basic criteria to open a business bank account:
Age: You’ll usually need to be 18 or over.
UK residency: Most providers require you to be a UK resident, although some may accept applications from businesses or individuals based overseas.
Business type: You’ll generally need to be a sole trader, a director of a limited company or a partner in a partnership.
Business information: You’ll need to provide details about your business, such as its name, address, trading activity and when it started.
Identity checks: Providers will need to verify your identity and may carry out credit checks, depending on the account and features you’re applying for.
What do I need to open a business bank account?
The documents and information you need will depend on your bank and business structure. You’ll typically need to provide:
Proof of identity: Your name, date of birth and a valid form of ID, such as a passport or driving licence.
Proof of address: Your home address and, in some cases, a document confirming it.
Business details: Your business name, address, contact details, trading activity and when you started trading.
Financial information: Details such as your turnover, existing accounts, loans or expected account activity.
Business structure documents: Limited companies may need to provide Companies House registration details, while partnerships may need to provide partnership information or agreements.
Business plan: If your business is new or you're applying for certain accounts, you may need to provide a business plan.
The information required can vary depending on how your business is structured. Find out more about the application requirements for limited companies, sole traders and partnerships.
How to set up a business bank account in 3 steps
Compare providers and account types based on how you run your business. Consider factors such as fees, transaction limits, overdraft facilities, digital banking features and any additional services you need.
The exact information and documents required will depend on your business structure and provider. Check the requirements before applying and make sure everything is up to date to avoid unnecessary delays.
Complete the application with your personal and business details. Once your account is approved, follow the provider's instructions to activate it, set up online or mobile banking and connect any accounting or payment tools you use.
How to set up a business bank account in 3 steps
1. Choose a business bank account
2. Gather your documents
3. Apply and start using your account
Pros and cons of having a business bank account
Pros
Cons
Switching business bank accounts
You may want to switch business bank accounts if your current account no longer meets your needs, or if you've found another account with features, fees or services that work better for your business.
Switching doesn't have to be complicated. If you're eligible for the Current Account Switching Service (CASS), your new bank can handle much of the process for you.
Things to consider
What you'll gain: A different account may offer features or services that better suit your business, or lower fees for the way you use your account.
What you'll need to do: You may need to update your account details with customers, suppliers and other services.
For more information, see our guide to switching business bank accounts.
FAQs
You can usually apply for a business bank account before you start trading, so you don't necessarily need to wait until you've made your first sale. If you're setting up a limited company, you'll generally need to register it with Companies House before applying.
If you're already using a personal account for business, you can switch to a business bank account whenever you're ready. Just check the provider's eligibility requirements, as some accounts are only available to businesses that have been trading for a certain period.
Opening a business current account can take anywhere from the same day to several weeks, depending on the provider, your business type and the checks required.
Online applications are often quicker, with some providers offering same-day account opening. More complex applications may take longer if the provider needs additional information or checks. Make sure you have everything ready before applying to help avoid delays.
Business bank accounts can be free or charge a monthly fee, depending on the provider and account. You may also pay for certain services, so check the full fee schedule before applying.
Common charges to look out for include:
Monthly maintenance fees: A fixed charge for maintaining your account.
Transaction fees: Costs for making payments, deposits or withdrawals, particularly if you exceed your account's free allowance.
Cash deposit fees: Charges for paying cash into your account, which can be important if your business handles cash regularly.
Overdraft interest and fees: The cost of using an overdraft, including interest and any additional charges.
International payment fees: Charges for sending or receiving money abroad, which may include foreign exchange costs.
Debit card fees: Charges for additional cards or certain card transactions, particularly abroad.
Some accounts offer free banking for an introductory period, so check when the offer ends and what you'll pay afterwards.
Most business bank accounts are protected by the Financial Services Compensation Scheme (FSCS), which can compensate eligible businesses for up to £120,000 if the bank fails. The limit applies across accounts held with the same banking group.
If you're a sole trader, your personal and business accounts with the same banking group share the £120,000 limit. If your business is a separate legal entity, such as a limited company, it can have its own £120,000 protection in addition to your personal allowance.
Check whether your provider is authorised using the FCA Financial Services Register.
Some business bank accounts offer overdrafts, although approval isn't guaranteed. Your provider may carry out a credit check and assess your business's financial circumstances before deciding whether to offer one and how much you can borrow.
If you think your business might need an overdraft, it's worth discussing your options with your provider before you need to use one. You can also compare the interest rates, fees and terms of different overdrafts before applying.
For more information, see our guide to business overdrafts.
Some business bank accounts have limits on free transactions or cash deposits, and you may be charged if you exceed them. Some providers also set limits on how much cash you can deposit at a time. Check the account's limits and fees to make sure they suit how your business operates.
Yes, you can have more than one business bank account, provided the providers allow it. Having multiple accounts can help you separate different areas of your business finances, such as day-to-day spending and money set aside for tax, but it’s important to consider the potential costs, administration and whether multiple accounts are right for your business.
Read our guide to find out whether having more than one business bank account could be useful and what to consider.
Yes, you may still be able to open a business bank account with bad credit. Banks may carry out credit checks as part of their application process, but having a poor credit history doesn't automatically mean your application will be rejected.
However, you may have fewer accounts to choose from, and some providers may not offer features such as an overdraft. Depending on the account, you may also face higher fees or charges.
If you're struggling to find an account, compare providers to find one that accepts businesses with your circumstances.
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