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Compare Business Bank Accounts

Compare business bank accounts online to find our best deal for you in just a few minutes.

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How to get a business bank account

Work out what your business needs

Some businesses are legally required to hold a business account.

Find the type of business account you need

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

Check the terms and conditions

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

Business account deals

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What is a business bank account?

Florist owner

A business bank account is used for the income and outgoings connected with the business you run. It can be used by anyone who wants to keep their business finances separate from their personal current account bank account.

As well as:

  • Claiming business expenses

  • Filling in a tax return

  • Ensuring that no one uses the business account for personal outgoings

  • Most businesses need a business bank account if they have more than one employee

  • Important for start-up businesses, small business owners (SME), registered limited companies and partnerships, sports clubs or charities

Limited companies are required to have a business bank account by law.

Sports clubs, charities and other group organisations often find it more convenient to have a business bank account, so that all money and spending is kept separate from members' personal finances.

Sole trader business banking

You don’t have to have a business bank account if you're If you're self-employed or a sole trader. But you may find it useful to keep all your business income and outgoings in one account, for ease of reference and accounting.

If you set up a limited company you are legally obliged to have a separate business bank account.

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Why do I need a business bank account?

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If you're a small business with one or two employees, then you will have different business banking requirements compared to a large limited company with hundreds of staff, and a complicated payroll.

Consider how you will use your business bank account:

  • Will you need a business overdraft?

  • Will you need to pay in large amounts of cash - in which case you may need to choose a bank that has a branch close by

  • Or are you able to run your business bank account remotely?

  • In which case you could opt for an online business bank account

Some business bank accounts offer free bank for accounts in credit, subject to certain terms and conditions.

Your funds are also protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.

The more complicated your banking needs, the more likely you'll to have to pay a business banking fee, or to be charged for additional services on top of the basic account offering.

Choosing the business bank account that's right for you

Think about the business you run and how you will use your business bank account.

The more sophisticated business bank accounts offer services to help you organise your invoices, receipts, and keep track of all the income and expenditure for your business.

You can also use specialist accounting software to help you with this.

Advantages of a business bank account

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You can use your business bank account to build up a good business banking credit history.

In return this will enable you to borrow more cheaply in the future should you want to expand your business or acquire another company.

You can also arrange for invoices to be paid directly into your business bank account and the account may also come with business advice, support, and help to enable you to grow your company and make it a success.

The common features of a business bank account include:

  • An overdraft so you can borrow money to help manage cash flow – but look out for fees.

  • Debit cards for you and your employees.

  • Online banking so you have 24/7 access to your account via the web or an app.

  • A fee usually paid annually or monthly to cover the cost of maintaining your account.

As technology has advanced, many banks have developed their online and app features and services, to include more business-specific features. Also, since COVID-19, many businesses are manage their paperwork and banking almost exclusively online.

Read more:Business InsuranceBusiness LoansBusiness credit cards 

What are the benefits of a business bank account?

There are many benefits to opening a business bank account:

  • Get invoices paid direct to your business account.

  • Track transactions easily with categorised spending.

  • With separate personal and business accounts your tax returns are simpler.

  • Forecast future revenues with detailed spending and income data.

  • Build a credit history for your business that can help with future financing.

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How much does a business bank account cost?

Most business bank accounts charge a monthly or annual fee.

You may be charged an additional fee for ATM withdrawals, using an overdraft and receiving card payments, in particular from overseas.

It may be cheaper in the long run to pay a monthly fee for a business bank account, which includes a number of useful features and services.

The useful features of a business bank account

  • Accounting software integration that makes it easy for customers and their accountants to manage their business accounts. 

  • Receipt capture so customers can add notes and tag photos of receipts to transactions.

  • Spending insights with customisable categories for customers to keep track of  all spending, including their employees. 

How do I open a business bank account online?

With digital banks it only takes a few minutes to apply for a business bank account.

Through the power of technology banks can offer an immediate decision (unless any specific checks are needed) an account number and sort code in minutes, and within three to five working days you’ll receive your card in the mail.

In some cases, you may also be asked for specific documentation to confirm your identity but this is decided on a case by case basis. The types of documents you could be asked for include:

  • A valid identity document such as your passport or driving licence

  • A valid proof of address for both you and your business – if this is something like a utility bill it will need to be less than three months old

  • Companies House registration documents for your business

Business bank accounts - FAQs

Online Banking Explained

Understand how online banking works, and how to keep safe and secure whilst accessing your accounts.

Are there any risks in opening a joint account?

A joint account is a rite of passage for many couples. Rather than quibbling over every shopping bill you just put your money into the same account.

Switching your current account: step by step

Changing bank accounts is quick and simple. Find out how to change a current account and switch from one bank account to a new one. Get a better deal on your new current account bank account.

Premium Bank Accounts

What do you get with a premium bank account and is a premium bank account worth the money? We look at the different types of premium bank accounts and how they compare with ordinary current bank accounts.