Compare business bank accounts online to find our best deal for you in just a few minutes.
Some businesses are legally required to hold a business account.
It's important to know which type of account is best suited for you.
Make sure you are happy with all the details of your account before you apply.
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Maximum balance | £500,000 |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
Gross rate | Gross rate | AER rate | AER rate | |
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Excluding bonus | Including bonus | Excluding bonus | Including bonus | |
£1 | 0% | 0% | 0% | 0% |
Permanent UK Resident |
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.
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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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.
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.
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 Insurance • Business Loans • Business credit cards
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.
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.
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.
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
You’re not legally required to have a business bank account if you’re self-employed or a sole trader but many people choose to, as it helps keep business and personal finances completely separate and easier to manage.
On the one hand, it will be easier to separate personal and business transactions when it comes to filling in your tax return. However, you are unlikely to find a free business bank account, so you will need to factor in the cost of the monthly fees.
How much you can pay into your business bank account depends on the bank and the account you have with them, but almost all will have a set minimum and maximum balances. If you need to increase your balance you can often apply to your bank to do this.
Yes, although you may be charged a handling fee and sometimes a surcharge over and above the base currency exchange rate – and those charges will vary depending on the bank so you should check first.
For international transactions you’ll need your bank’s Business Identifier Code (BIC) and your unique International Bank Account Number (IBAN), which come with every business bank account.
Yes, although if you want more than one account you’ll have to apply for each separately.
Although you can use your personal current account for business transactions if you are a sole trader, it is much better to keep your personal and work finances separate. You cannot use a personal current account if you are running a limited company.
Having a business bank account will make it much easier when you come to fill in the tax return from HMRC, whether it is a self-assessment form because you are self-employed, or you are filing a company report.
It is better not to use your business bank account for personal items. Under HMRC tax rules, some business expenses can be offset again tax when you file your tax return.
By keeping your personal and business finances separate, you will be able to demonstrate that the spending in your business bank account is for work purposes only, and therefore qualifies for tax relief.
It’s possible to open a business account with bad credit but it may be difficult, especially if you’ve been declared bankrupt or had a County Court judgement (CCJ) against you in the last five years.
Fraud and financial crime are happening more often, with fraudsters and scammer tactics getting more sophisticated by the day. A responsible bank account provider will have the security of your funds as their top priority, however there are also things you should do to protect yourself.
Make sure you keep your contact details up to date so your bank account provider can reach you if suspicious activity is seen on your account.
Never share your Online banking username or password with anyone over the phone, by text or email, even if the caller claims to be from your bank or the police.
Never share the answers to your memorable questions linked to your bank account
Never share any unique verification codes or your one time passcode with anyone
Create passwords that are difficult to guess and don’t use personal information. It pays to use a mix of upper and lowercase letters, numbers and symbols
Always use different passwords for your online accounts
If you’re ever contacted by your bank via the phone, SMS or email and you’re not sure it is them, don’t hesitate to stop and call them back on their official customer service phone line to ensure the communication is genuine.
Business bank accounts in our table can be ranked by popularity, which we have judged according to how many clicks they got over the past 30 days. Those with the most clicks are at the top of the table, and those with the least at the bottom.
However, the most popular account might not be the account for you. You should still take time to filter and search the accounts listed to see if there’s one that better fits your needs.
Understand how online banking works, and how to keep safe and secure whilst accessing your accounts.
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.
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.
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