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Compare Business Bank Accounts

Get a business bank account to make business finances simpler and more efficient.

  • Free no-hassle switching with the Current Account Switch Service
  • Find accounts with no monthly or annual fees
  • Compare deals from award-winning providers
Monzo Business Pro Account logo
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Monzo Business Pro Account
Get your first 3 months of Pro or Team completely free!
Revolut Business Basic Account logo
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Revolut Business Basic Account
Sign up today and unlock a 1 month trial of a paid plan.

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

9 results found, sorted by affiliated products first. Commission earned affects the table's sort order.

Revolut Business Basic Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Business account with multi-currency wallets and smart debit cards. Track expenses, set up teams and permissions and accept online card payments easily. Integrated with your accounting software of choice. No monthly fees, hold and exchange 25+ currencies.
Revolut Business is not a fully licensed bank in the UK. Instead, your funds are safeguarded by licensed banks. T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Get your first 3 months of Pro or Team completely free!

Monzo Business Lite Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Monzo Business customers get free UK bank transfers, effortless accounting via receipt uploads, 24/7 customer support and money management with Pots. They can receive payments through a single link. Earn 1.60% AER (variable) on money in your Instant Access Pots. Interest paid monthly. T&Cs apply.
Must be UK Resident and a limited company or sole trader.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Free day-to-day online business banking

Virgin Money M Account for Business

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Free online day-to-day business banking (excludes CHAPS and international payments). For business with annual turnover less than £1 million.
Please allow up to 72 hours from registering your business with Companies House, before starting an application.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Best Business Banking Provider – British Bank Awards 2023 Finalist

Zempler Bank Business Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Zempler Bank, formerly Cashplus, for sole traders, those just starting out & small businesses. Instant payment notifications, UK telephone support, cashflow tracking & integrated accounting, FSCS protection up to 85,000 on eligible deposits.
Eligibility criteria apply, other fees and charges may apply, for UK businesses only, 18+ and UK resident, T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum balance£500,000
Permanent UK Resident
Earn up to 4.83% AER (variable)* on your company’s spare cash

Allica Bank Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
*Rate includes standard rate of 3.83% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS.
Eligibility criteria and T&Cs apply
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Moneyfacts Business Current Account 2023 5 Star Rating

Virgin Money Business Current Account

Account fee
£6.50per month
Free Banking Duration
25months free, then£6.50per month
Interest rate
0%AER
25 months' fee free day-to-day banking for start-ups and switchers (excludes CHAPS and international payments).. Includes free MasterCard business savings, debit card cashback, plus digital money management tools.
This account is available for eligible businesses with a turnover of less than 6.5m. Please allow up to 72 hours from registering your business with Companies House, before starting an application. Virgin Money is a trading name of Clydesdale Bank PLC
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Get £150 cashback when you open a Tide business bank account

Tide Business Bank Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Earn 3.81% AER(variable) with the Tide Instant Saver account (interest paid monthly) and get access to your funds at any time. Eligibility criteria and T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Get £200 when you open a new Business Current Account*

The Co-operative Bank Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
For new customers who register for Online Banking. Min. balance and transactional criteria applies for the first 3 months. Eligibility and T&Cs apply. Offer may be withdrawn at any time
Ideal for start ups and growing businesses who bank digitally. Most get a decision in 3 business days.*Charges apply for cash and cheque transactions and other special services e.g. foreign & CHAPS payments, visit website for details. Subject to status, eligibility & T&Cs.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Free business account with free corporate card

MyGuava Business

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
The platform is designed for businesses registered in the UK and Canada, particularly those who are typically underserved by traditional banks. Businesses of any size from a wide range of sectors can work with us to overcome the challenges they face.
Using a single platform, businesses can manage payment operations, issue corporate cards, track transactions, hold and manage funds in 20+ currencies, transfer internationally and exchange in 90+ currencies. It is free to set up with no monthly fees.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Area Restrictions

What is a business bank account?

Florist owner

A business bank account is specifically designed to help companies, startups, sole traders, and other organisations like charities and sports clubs manage their finances effectively. These accounts can provide features such as expense tracking, invoicing tools, and the ability to handle multiple currencies.

Limited companies are legally required to use a business bank account to separate business funds from personal finances. This separation ensures compliance with financial regulations, simplifies accounting, and helps maintain transparency for tax purposes.

Having a dedicated business account can also improve your professional image and credibility when dealing with suppliers and clients. Additionally, many business bank accounts offer features tailored to support growth, including business loans, overdraft options, and integration with accounting software.

Why get a business bank account?

Woman taking notes - (Image collection)

Here are some reasons why getting a business bank account is important:

  • Separation of personal and business finances: Maintaining separate bank accounts for personal and business finances helps keep financial records clear and organised. It simplifies accounting, bookkeeping, and tax reporting, making it easier to track business expenses, income, and profits.

  • Legal and liability protection: Keeping personal and business finances separate is crucial for legal and liability reasons. In the event of legal issues, having a distinct business bank account can help, but doesn't guarantee protection for personal assets from being affected by business-related liabilities or debts.

  • Access to business-specific banking services: Business bank accounts often come with features and services tailored to the needs of businesses, such as business overdrafts, lines of credit, payroll processing, accounting software and cash management tools.

  • Compliance with financial regulations: Help ensure compliance with financial regulations and reporting requirements. Business bank accounts typically come with features such as account statements, transaction tracking, and integration with accounting software, which can simplify regulatory compliance and auditing processes.

  • Scalability and growth: As your business grows, having a dedicated business bank account makes it easier to manage increasing financial transactions, track cash flow, and access financing options. It provides a foundation for scalability and expansion by offering the necessary financial infrastructure to support business growth.

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

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.

Features of a business bank account

Woman happily typing

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. It may also allow the integration of time saving tools such as accounting and payroll software.

The more 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 offering(s) to include more business-specific features. As a result, many businesses now 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.

  • Access to an overdraft facility - subject to passing credit checks.

  • The ability to integrate time saving tools such as payroll and accounting software

  • 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.

Man measuring a wall

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, as this may wrap up separate fees for useful features and services into one single payment.

How do I open a business bank account online?

Opening a business bank account online can be quick and straightforward, especially with digital banks. Many offer instant decisions and provide account details (such as your sort code and account number) within minutes. Debit cards typically arrive within 3-5 working days.

You may need to provide some documents, including:

  • A valid photo ID (passport or driving licence)

  • Proof of address (recent utility bill or bank statement)

  • Companies House registration documents (for limited companies)

Requirements vary, but digital applications make the process smoother and faster.

FAQs

Do I need a business bank account if I am a sole trader?

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 can I pay into a business bank account?

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.

Can I receive international payments into a business bank account?

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. 

Can I have more than one business bank account?

Yes, although if you want more than one account you’ll have to apply for each separately. 

Can I use my personal bank account for business?

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 as this would not be compliant with the legal expectations of running a limited company.

Having a business bank account will make it much easier when you come to fill in your HMRC tax return, whether it is a self-assessment form because you are self-employed, or you are filing a company report.

Can I use my business bank account for personal items?

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.

Can I get a business bank account with bad credit?

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. If you're struggling it might be worth speaking to a financial advisor.

How do I keep my business account safe from fraud?

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.

Online Banking Explained

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

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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.

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