Compare business bank accounts

If you are the owner of a business or a sole trader, a business bank account helps to separate your company finances from your personal finances. Additionally, they’re specifically designed to help you run your business with business-friendly services and features.

So, just like people have personal current accounts, businesses need bank accounts to carry out everyday transaction - from purchasing raw materials to paying employees and contractors.

How to find the best business bank account for you

Use the table above to compare business bank accounts, then click “view deal” next to your chosen option and follow the online application process on the bank’s own website.

It’s possible to have your online business bank account up and running in minutes, but to ensure the process is a smooth one, take the time to collect as much information as possible about your business before you apply. You should also check that your business meets any specific conditions set by the bank – such as its size or turnover.

What to look for in a business account

Your company’s specific banking needs will determine the best business bank account for you, because each bank offers different features. Take the time to compare them all to discover which one fits your business’s needs best.

If you're a sole trader...

As a sole trader, you know the importance of keeping costs to a minimum wherever possible. A business bank account with no monthly fees helps you achieve just that.

Sole traders might also wish to investigate digital or app-based banking. Digital banks don't have physical branches that you can visit but instead use an app on your smartphone. These banks offer a slew of innovative features such as:

Notification of instant payments
Tools to help you analyse your spending
Digital receipts
A way to compartmentalise costs

If you're a small business owner...

Bookkeeping can be a hassle for small business owners, who do not always have staff to handle this type of work. However, some business bank accounts provide services such as instant invoicing, automated expense categorisation and VAT returns.

These solutions may come with a small monthly premium, but it may be worth considering if it reduces the cost of hiring specialists or subscribing to another digital service.

How much do business bank accounts cost?

Business bank account fees vary between providers and according to various factors such as the account type, your account balance, and what kind of transactions are made using it.

Here are some examples of the types of additional fees you may be charged:

Monthly fee: ranges from £3 to £50
Cash withdrawals: charges of 20p to £1 per withdrawal
Cheques: you may be charged from 20p to £1 for each cheque written
Cash deposits: again, a charge of 20p to £1 may be levied for each deposit
Bank transfer: typically, 20p-£1 per transfer

It makes sense to review the transactions most frequently used by your business and see what fees they incur. This will help steer you towards the best business account for your specific needs. Read our guide to find out 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

Salman Haqqi, Senior Personal Finance Editor

"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."

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

How long does it take to get a business account?

In terms of how long it takes to get a business account, it's possible to open a business bank account in minutes if you apply online or in a branch. However, it may take longer if the bank needs more documentation or has to run any checks.

Can I have more than one business current account?

Yes, you can have more than one business current account.

Can I use my personal account instead?

Your bank may let you use your personal account for business transactions if you are a sole trader or your business is a partnership. Incorporated and limited companies must use business accounts.

How much can I pay into my business account?

In regards to how much you can pay into a business account, 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.

Can you get a business bank account with bad credit?

Yes. You can get a business bank account with bad credit, but your options may be limited. You may also find that you're restricted to a more basic business account.

Can you send and receive international payments from my business account?

Yes, you can send and receive international payments from your business acccount, 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.

Are business bank accounts covered by the FSCS?

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.

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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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About our current accounts comparison

Who do we include in this comparison?

Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority (FCA). Here is more information about How our website works.

How do we make money from our comparison?

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.

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

Last updated: June 9, 2023

Compare business bank accounts

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Anna Business Current Account

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