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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

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.
All taxes sorted, try for £3/month

Anna Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
The smartest business account in the UK. All taxes calculated and filed automatically. Invoice managing and receipts scanner. Payment collection link. Up to 35% cashback on selected categories. Set up in under 10 minutes.
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
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
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Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Eligibility: Business 1+ years in age & 50k minimum balance

Allica Bank Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
A business current account with zero monthly fees, 4.33% AER (variable) instant access Savings Pot (interest paid monthly), up to 1.5% cashback on eligible card spend*, UK-based customer support and a dedicated relationship manager.
Eligibility criteria and T&Cs apply. View Business Rewards Account Terms and Conditions on Allica bank website.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident

Tide Business Bank Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Earn 4.33% 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.
*To qualify you must spend £100 within 30 days, T&Cs apply.
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Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
No monthly fees, hold and exchange 25+ currencies

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.
Sign up today and unlock 1 month of a paid plan without subscription fees. 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
Free everyday digital business banking*, plus free access to the Go Get Paid app

The Co-operative Bank Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Sole Trader/Single Director only. 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. Free access to ‘Go Get Paid’ app from BankiFi to help you get paid faster, seamless integration with accounting software providers such as Sage, Xero and Quickbooks
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

Cashplus Bank Business Bank Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
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.
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
Manage your account on their bespoke mobile app

The Co-operative Bank Business Directplus Current Account

Account fee
£7per month
Free Banking Duration
30months free, then£7.00per month
Interest rate
0%AER
Join the original ethical bank & get free everyday business banking for 30 months*. Free access to ‘Go Get Paid’ app from BankiFi to help you get paid faster, seamless integration with accounting software providers such as Sage, Xero and Quickbooks.
*New customers maintaining a balance of £1,000+. Monthly limits for cash deposits & cheques. £7 monthly fee applies if balance falls below £1,000. Charges apply for special services e.g foreign & CHAPS payments. 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

What is a business bank account?

Florist owner

A business bank account is a financial account specifically designed for managing the finances of a business. It functions in a similar wat to a personal bank account but is tailored to meet the needs of businesses, including startups, small businesses, corporations, and other types of organisations such as sports clubs, charities or other group organisations. Businesses which are limited companies are required to have a business bank to ensure compliance with the legal duties of running a limited company. This is because a limited company is a separate legal entity, so the money belongs to the business rather than a personal individual and therefore needs to be kept separate.

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.

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.

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?

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

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

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 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?

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?

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?

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?

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. 

How do I keep my business account safe from fraud?

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

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