Whatever the size of your business, a business bank account is an efficient way of keeping track of your company's finances.

The best business bank account for you will depend on your business banking needs and the features offered from the business accounts available to you.

The features of business current accounts include:

  • An overdraft, which lets you borrow money through your account but can include expensive fees

  • Debit cards, which let you and other employees spend in person, online or by phone

  • Online banking, which lets you manage your account and make payments through your bank's website or app

  • Post Office banking service, which you may need so that you can pay cash into your account at any UK branch

  • A cheque book, which comes with most basic business accounts and lets you pay bills to other companies or make one off payments to customers

  • Banking in a branch, which lets you pay in cash or cheques, or change notes into coins

  • Interest, which you can earn when your account has a positive balance

  • Accounting software integration, which makes it easier to run your business

They may also include other features that only businesses can get like paying in other currencies or receiving card payments from customers.

Check the cost

Most business accounts charge an annual or monthly fee. Some offer free business banking, but usually only for a set period after you open the account, like the first two years.

Some banks also charge a set fee every time you:

  • Withdraw cash

  • Write a cheque

  • Pay money in

  • Send money by bank transfer

  • Use your overdraft

  • Receive a payment by card

Checking the fees for the transactions your business uses most can help you pick the cheapest account.

Compare business accounts

Use this comparison to find a bank account for your business. It includes details of each account's limits on your company's annual turnover and what types of companies can open them.

Banks usually offer different business bank accounts, depending on your company's type:

  • Startups

  • Sole traders or partnerships

  • Small and medium sized enterprises (SMEs)

  • Large companies and corporations

Once you have worked out which accounts you are eligible for, find one that offers the features you need. You can then choose the best by checking the fees and if it pays interest on your balance.

Can I get a free business bank account?

If you are a startup or small business, you may be eligible for free business banking.

A free business bank account is one that does not come with monthly fees. Many banks offer free business banking to small businesses so that this extra cost can be avoided.

A small business is defined in the UK's Companies Act 2006 as one that meets at least two of the following conditions:

  • An annual turnover of not more than 5.6 million

  • An annual balance sheet total of not more than 2.8 million

  • 50 or less employees

If your company qualifies you can use our table to compare small business current accounts

Can I open an account online?

Yes. All the business current accounts in our comparison accept online applications.

To avoid delay, it is worth making sure you have as much information as possible to help your application before you begin.

Some key documents you may need include:

  • One document to prove your identity

  • One document to prove your address in the UK

  • Further documentation to prove your company address

  • Companies House registration documents

  • Registration forms

An online business bank account ensures you can manage your business account and make payments 24 hours a day through your computer, tablet or phone.

An important feature of online banking is accounting software integration. This is where you can connect your bank account with accounting software you already use, or one you prefer.

This can help reduce or eliminate the need to manually upload transactions more than once.

Some examples of popular accounting software often integrated with business accounts include:

Each account software has different features so once you have chosen the one that works best for your business, you can choose a business account it is compatible with.

Some will allow you to trial the software first which can help with your decision.

Online banking is a free feature with most banks and building societies but if you know you will definitely need it, make sure you check this is available when you choose a business account.

What else does your business need?

There are several other products you might need for your business once you have a bank account, including:

Business bank account FAQs

Q

How long does it take to get a business account?

A

You could open one in minutes if you apply online or in a branch, but it could take longer if the bank needs more documents or have to run any checks.

Q

How do I switch my business account?

A

Businesses with less than fifty employees can use the Current Account Switch Service. Large businesses can ask their new bank to arrange it.

Q

Can I send and receive international payments from my business current account?

A

Yes. Your current account can be identified by a unique International Bank Account Number (IBAN) and banks and financial institutions have a Business Identifier Code (BIC). You will need to give this information to the person sending you money and you will need these details of the bank account you are paying into. Most banks will charge a fee for the transfer so you will need to check this first.

Q

Can I have more than one business current account?

A

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.

Q

Can I use my personal account instead?

A

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.

Q

How much can I pay into my business account?

A

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.

About our current accounts comparison

Q

Who do we include in this comparison?

A

We include business current accounts from our panel of UK banks and building societies. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

Q

How do we make money from our comparison?

A

We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.

You do not pay any extra and the deal you get is not affected.