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.
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 separate your business and personal finances, but there's more to it than that. Here are some additional benefits of a business bank account:
Plug-in accounting software: Integrating FreeAgent, Xero or Quick Books into your bank account means that transactions are fed in automatically
Automatically save for tax: You can set up rules so that a percentage of each transaction is set aside for future tax payments
Benefit from multi-user access: This feature means that several users can operate the accounts
Track your invoices: Stay on top of your invoicing with automated tools
Get an overview of your budget and spending: Business accounts let you create budgets and automatically categorise transactions
Enjoy instant UK bank transfers: This lets you send and receive money instantly within the UK
Access personalised help when you need it: Many accounts offer 24/7 customer support
Ensures you meet legal obligations: Limited companies must have business bank accounts¹
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 and personal finances separate. Although it is possible to use the same account to make business and personal transactions if you're a sole trader or small business, it complicates things. Differentiating your mortgage, credit card payments, or food shopping from business transactions is a challenge, especially as your business starts to grow. It's better to keep things separate from the start so that you don't have to untangle things in the future.
Make use of introductory offers. Banks often try to attract new customers by giving them free business banking for a set period of time after they open a new account. Typically, this period lasts between three and 18 months. If you're starting a new business, introductory offers are a great way to keep costs down while you're getting established.
Look into app-based banks. A more recent addition to the banking landscape, app-based banks (aka challenger banks) do not have physical branches but operate instead as apps on a smartphone. Many of these banks offer a slew of innovative features for businesses.
Check for an easy switch
If your company has fewer than 50 employees, you're eligible to use the Current Account Switch Service. This quick, hassle-free service is available to smaller businesses for free.
Talk to your bank
If your business has more than 50 employees, you will need to speak to your current bank to find out how you can switch to a different business bank account provider.
Enjoy your new account!
Business bank accounts are often ready to use within minutes, so you can benefit from new features straight away. With others, you may need to provide additional documentation.
It's possible to open a business bank account in minutes if you apply online or in a branch, but it may take longer if the bank needs more documentation or has to run any checks.
Yes, you can have more than one business current account.
If you are a sole trader or your business is a partnership, your bank may let you use your personal account for business transactions.
Incorporated and limited companies must 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. You can get a business bank account if you have a poor credit history, but your options may be limited. You may also find that you're restricted to a more basic business account.
Yes although in some cases, you may be charged for non-sterling transactions. These fees vary depending on which bank you use, so it's worth shopping around if you regularly deal with foreign currency in your business.
Premium business bank accounts - those with a high monthly fee - often include international payments as part of their service, but check to make sure.
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 shared banking license e.g. Halifax and Bank of Scotland, which 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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