How to get a business account

1

Work out what your business needs

Some businesses are legally required to hold a business account.

2

Decide if a business account will help

The features of business account might help simplify your accounting.

3

Find the type of business account you need

It's important to know which type of account is best suited for you.

4

Calculate the fees and interest rate

You might need to pay a monthly fee, though you might also earn interest.

5

Check the terms and conditions

Make sure you are happy with all the details of your account before you open it.

Business Account Deals

12 results found, sorted by affiliated products first. How we order our comparisons. Commission earned affects the table's sort order.
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British Bank Awards 2022 Finalist: Best Business Banking Provider.
Cashplus Bank Business Bank Account
Account fee
No account fee
Free Banking Duration
-
Interest rate
0% AER
Cashplus Bank Business Bank Account
Instant online decision, no paper forms and no interview required. You will get your account number and sort code within minutes of completing your application.
The account is available to limited companies, partnerships, sole traders and charities. Funds are FSCS protected.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
5 months of free transfers - Use code: MONEY5FREE. T&C's apply
Tide Business Bank Account
Account fee
No account fee
Free Banking Duration
-
Interest rate
0% AER
Tide Business Bank Account
5 months of free transfer, use code: MONEY5FREE. T&C's apply. Your Tide Mastercard is free to use worldwide, in any currency. ATM withdrawals £1. 20p transfers in and out of accounts.
Utilise free inbuilt tools to automate your financial admin. FSCS protected. Multiple business credit options available. This account is available to limited companies and sole traders.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
FREE VAT Filing and invoicing tools
Anna Business Current Account
Account fee
No account fee
Free Banking Duration
-
Interest rate
0% AER
Anna Business Current Account
Receive 1% cashback on purchases, issue multiple debit MasterCards with limits for your employees.
ANNA business account comes with instant invoice generator & HMRC recognized VAT filer. Control expenses & automate bookkeeping.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
Moneyfacts Business Current Account 2022 5 Star Rating
Virgin Money Business Current Account
Account fee
£6.50 per month
Free Banking Duration
25 months
Interest rate
0% AER
Virgin Money Business Current Account
25 months' fee free day-to-day banking for start-ups and switchers. Includes free MasterCard business savings, debit card cashback, plus digital money management tools.
From 15th April 2021, this account is available for eligible businesses with up to £6.5m turnover.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
No monthly fees, hidden costs or transaction fees
Mettle by NatWest - Mobile Business Banking
Account fee
No account fee
Free Banking Duration
-
Interest rate
0% AER
Mettle by NatWest - Mobile Business Banking
Mettle is 100% free, by NatWest and you can apply in minutes. Built for sole traders and limited companies with up to two owners.
Maximum account balance is £100k for limited companies and £50k for sole traders. 18 or over. Built for up to 2 owners (though only one owner can access the account) with UK residency. 
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum balance£50,000
UK Resident
Card One Money Small Business Account
Account fee
£12.50 per month
Free Banking Duration
3 months
Interest rate
0% AER
Card One Money Small Business Account
Provider aims to open your account in a matter of hours with no credit checks or signatures required. Pay in cash and cheques, make and receive international payments and grow your business effortlessly with CardOneMoney.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
Countingup Business Current Account
Account fee
£3 per month
Free Banking Duration
3 months
Interest rate
0% AER
Countingup Business Current Account
Open an account in minutes, get account number, sort code and Mastercard in days. Business account and automated bookkeeping in one to manage business admin. £750 max monthly deposit on this plan. Available to limited companies and sole traders.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum balance£120,000
The Co-operative Bank Business Directplus Current Account
Account fee
£7 per month
Free Banking Duration
30 months
Interest rate
0% AER
The Co-operative Bank Business Directplus Current Account
New Co-operative Bank customers maintaining a credit balance of £1,000+. Monthly limits for cash deposits & cheques. £7 monthly fee applies after 30 months & if balance is below £1,000+.
Charges for special services e.g foreign & CHAPS payments. Subject to status & eligibility.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
The Co-operative Bank Business Current Account
Account fee
£10 per month
Free Banking Duration
30 months
Interest rate
0% AER
The Co-operative Bank Business Current Account
Free everyday banking for the first 30 months. Sole traders or Single Directors only. Apply online, most get a decision within 5 business days. Charges apply for cash and cheque transactions & other special services.
Subject to status, eligibility and T&Cs.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident
Acorn Account Business Account
Account fee
£12.50 per month
Free Banking Duration
-
Interest rate
0% AER
Acorn Account Business Account
You can open a fully online managed business account in as little as 4 hours with no credit checks. Enjoy benefits such as paying in cash and cheques, making and receiving international payments with IBAN and SWIFT and a fully managed online account.
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
UK Resident

Compare another type of current account

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What is a business bank account?

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.

How to find the best business bank account for you

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.

What to look for in a business account

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.

How much do business bank accounts cost?

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 benefits of a business bank account

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."

Our top tips for using business bank accounts

  • 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.

How to switch to a new business bank account

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.

Business bank account FAQs

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About our current accounts comparison

¹You can find out more about the legal accounting responsibilities of running a limited business on the GOV.UK website.

Last updated: 15 July 2022