Best Business Bank Accounts UK December 2024

Virgin Money’s four business bank accounts include the free M Account for Business. This account includes free basic transactions, such as standing orders and direct debits. Cash deposits cost 90p per £100, but cheques can be paid in for free via the app.

Overdrafts of up to £25,000 are available, with Virgin Money charging an establishment fee of 2.5% (minimum £120) and representative EAR of 14.1%.

Virgin Money business accounts can be integrated with QuickBooks or Xero accounting software, and opening an account will give you a free three-month trial with either. All accounts feature FSCS protection on deposits of up to £85,000.

Eligibility criteria: Applicants must have a turnover of less than £1 million. Businesses should be based in the UK (excluding Northern Ireland, the Channel Islands and the Isle of Man) and have owners, directors, senior management and account signatories above 18 years old.

For further details, read NerdWallet’s Virgin Money Business Account Review.

Virgin Money key features:

• Account perks: There are a number of account perks, such as cashback when using your business debit card and discounts with selected retailers and merchants. 
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
• Charities: The bank has dedicated current accounts for charities and does not charge fees for every day banking if the charity has less than £1 million turnover a year.

Pros:

• No monthly fee
• Free basic transactions
• A third of Virgin Money business accounts open the same day

Cons:

• Free account only for businesses with annual turnover under £1 million
• No branches in the South of England, Wales or Northern Ireland

Monzo’s free Lite account charges no monthly fees and includes free basic UK bank transfers. Cash and cheque deposits are possible, but cash deposits cost £1 and are limited to £1,000 per six-month period.

Overdrafts of £2,000 are available for eligible sole traders, though interest rates as high as 39% EAR apply. Monzo accounts can be managed online, or via its well-received mobile app. Monzo shines with additional features, including an instant access savings pot, fee-free spending abroad and 24/7 customer service.

On the downside, accounting software cannot be integrated with Monzo’s Lite account. However, Xero, FreeAgent and QuickBooks are compatible with Monzo’s Pro account, which costs £5 per month. This paid account also includes a six-month free trial of Xero for new users.

Eligibility criteria: Monzo applicants must be sole traders or limited companies by shares. They also need to be based and registered in the UK. 

For further details, read NerdWallet’s Monzo Business Account Review.

Monzo key features:

• Quick set-up: Most customers get an account on the same day, applying via the app.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
• 24/7 customer support: You can contact Monzo’s in-app customer support around the clock with urgent concerns. 

Pros:

• No monthly fee
• Open account on the day you apply for 91% of customers
• Free basic transactions

Cons:

• No phone or branch banking
• Business accounts not available to charities or partnerships
• Cash deposits £1 at the Post Office and PayPoint
• No accounting software integration with the Lite account

Starling offers one business bank account, which is free of monthly fees. However, business owners can pay for add-ons such as the £7 per month Business Toolkit, the £2 per month Euro business account or the £5 per month Dollar business account.

Basic UK transactions are free. Cash deposits can be made at the Post Office for a 0.7% or £3 minimum fee, while cheques can be deposited for free via its app or Freepost.

Business overdrafts of up to £50,000 are available, with a 1.75% arrangement fee (recurring annually) and a rate subject to credit assessment.

Xero, QuickBooks and FreeAgent accounting software can be integrated.

Eligibility criteria: Starling applicants must be sole traders, limited companies or limited liability partnerships. All persons of significant control (PSCs) must be individuals who are UK residents.

Starling key features:

• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 
• Lending options: Businesses can apply for an overdraft, as well as a business loan of up to £250,000.

Pros:

• No monthly fee
• Free UK basic transactions
• Starling business bank accounts open in one day

Cons:

• Some account features only accessed via its £7-a-month Business Toolkit
• No banking via phone or branch
• Cash deposits at the Post Office for a £3 minimum fee

The Co-Operative Bank offers six different business bank accounts, including free options like the Business Current Account and the Community DirectPlus account for charities and community groups. Basic UK transactions are free with the Business Current Account account, though cheque deposits cost £1.50 and cash deposits are charged at £1.50 per £100.

Overdrafts are available up to £250,000, though an arrangement fee of 1.5% or £50 (whichever is higher) applies. The Co-Operative Bank advertises representative EAR of 11.30% on overdrafts up to £25,000.

Accounting software, including Xero and QuickBooks, can be integrated with a Co-Operative Bank business account.

Eligibility criteria: This account is for sole traders and limited companies with one director and a business address in the UK. Applicants and key people must be 18 or over and a UK resident.

For further details, read NerdWallet’s The Co-operative Bank Business Account Review.

The Co-operative Bank key features:

• Range of accounts: The Co-op Bank offers six business accounts, so there is an option suitable for almost every business type, including charities.
• FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
• Access to overdraft and credit facilities: With a Co-op business account, you can apply for an arranged overdraft, a charge card for expenses, a credit card, and a variable rate business loan.
• Customer support options: The account can be managed online, over the phone, via the app and at a branch.

Pros:

• No monthly service fee
• Free basic transactions
• Account management online, by phone, via app or branch
• Arranged business overdraft of up to £25,000

Cons:

• Takes, on average, 12 days to open an account
• No branches in Northern Ireland

HSBC Kinetic is a single account aimed at sole traders and small businesses. It costs £6.50 per month following a 12-month introductory period, though basic UK transactions are permanently free. Cash and cheque deposits are possible, but are subject to 1.5% and 50p fees respectively, in addition to a branch credit fee of £1.50. Customers can also deposit cash and cheques at Post Office branches.

Users can apply via the app for an overdraft of up to £30,000, though a representative EAR of 15.67% and daily fees apply. Accounting software from Sage and Ember can be integrated with this account, with a discounted deal available for the latter.

Eligibility criteria: Applicants must be a sole trader or limited company with a sole director with annual turnover of below £6.5 million. In addition, applicants must be a UK tax resident (not Channel Islands or Guernsey).

HSBC Kinetic key features:

• Access to other banking facilities: Eligible customers can apply for a business overdraft or credit card. Similarly, you can apply for an HSBC Kinetic Small Business Loan worth between £1,000 and £10,000.
• FSCS protection: Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Free basic UK transactions
• Up to £30,000 overdraft
• Most new accounts open within 48 hours

Cons:

• Monthly fee of £6.50
• Annual turnover of below £6.5 million required

Barclays offers accounts for start-ups and more established businesses and we have picked out the latter. It costs £8.50 per month following a year-long introductory period, though simple electronic payments are free. Cash and cheques can be deposited, with cash costing 60p per £100 and cheques at 60p each. 

Customers can get a business overdraft of as much as £50,000 from Barclays, with representative EAR standing as high as 18.01%.

When it comes to accounting software, Barclays accounts can integrate with multiple providers and customers receive access to FreshBooks for free.

Eligibility criteria: Businesses must have been trading for more than 12 months for this account, though Barclays does have a startup account for younger companies. You must be 18 years old or above, have the right to live in the UK and be able to provide a three-year history of UK addresses. The account is for sole traders and limited companies.

For more details, read NerdWallet’s Barclays Business Account review.

Barclays key features:

• Account access: Barclays accounts can be accessed online, via the app, over the phone, or at a branch.
• Credit facilities: Banking with Barclays can offer access to credit facilities, including loans, mortgages and overdrafts.
• FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Tailored accounts for start ups, established businesses, charities and community groups
• Free access to FreshBooks accounting software
• Branches, and at Post Offices, throughout the UK

Cons:

• Monthly fee of £8.50
• Average set-up time of eight days
• Start-up account only for businesses less than a year old

HSBC’s Small Business Banking Account costs £8 per month following the end of a 12-month promotional period. Simple UK transactions are free, though cash deposits cost 1.50% and cheques are 50p apiece.

HSBC does offer business overdrafts, which are subject to an arrangement fee (minimum £25 and annually recurring) and representative EAR 15.67% variable. Users can integrate accounting software products, such as Sage and Ember.

Eligibility criteria: This account is for small and medium-sized businesses, with HSBC pointing sole traders and single directors towards its Kinetic account. However, sole traders, limited companies, unlimited companies, partnerships, limited liability partnerships and non-charitable clubs/associations/societies can all apply. Relevant parties need to be based in the UK (excluding the Channel Islands and the Isle of Man) and aged 18 or above.

HSBC key features:

• Account access: You can benefit from banking at a branch, as well as managing your account on the app, online or over the phone.
• Credit facilities: Business overdrafts, credit cards or loans may be available through HSBC.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.

Pros:

• Free basic UK  transactions
• Account access online, in-app, by phone, at a branch or Post Office
• Potential to access an overdraft

Cons:

• Pay £8 a month for the small business bank account
• Average set-up time of 3.8 days

Mettle offers a single business banking product, which is completely free of monthly charges or transaction fees. 

Cheques cannot be deposited into a Mettle account and cash deposits, which must be made at the Post Office, are limited daily at £500 and annually at £23,000. In addition, Mettle does not offer overdrafts or any other form of lending.

Accounting software can be integrated, with customers getting free access to FreeAgent as long as they make a minimum of one transaction per month from their Mettle account.

Eligibility criteria: Mettle is for UK-registered sole traders and limited companies. Applicants need to be aged 18 and over and only pay tax in the UK. In addition, account balance is capped at £1 million.

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features:

• Business banking app: Mettle’s business banking app has excellent reviews on both iOS and Android devices.
• Sole traders and limited companies: You can only get a Mettle business account if you are a UK-based sole trader or a limited company with up to two owners.
• Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Pros:

• No monthly fees
• Free transactions
• Well-reviewed app
• Mettle customer support via the app, email and by phone daily

Cons:

• No branch access
• No cheque deposits
• No international payments
• No overdrafts, credit cards or loans
• Not for partnerships or charities
• Can take 72 hours to open an account

Allica Bank customers pay no monthly fee and can make basic UK transactions for no charge. However, cash and cheque deposits are not possible with Allica. 

Allica does not offer business overdrafts, though borrowing options such as loans are available. In addition, accounts can be integrated with Xero and Sage accounting software.

Eligibility criteria: Applicants should be businesses that have been incorporated for a minimum of 12 months, and keep a balance of more than £50,000 in their account. In addition, businesses that have a loan product with Allica Bank may be eligible.

For more details, read NerdWallet’s Allica Bank Business Account review.

Allica Bank key features:

• Instant access savings pot: You can earn 4.08% AER on business savings, as well as depositing or withdrawing from these at any time.
• Cashback on eligible purchases: Earn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000. Aggregate purchases are when all the smaller sums you’ve spent are added together.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Free basic UK  transactions
• No monthly fees
• Local relationship managers in England and Scotland
• Access an instant access savings pot with 4.08% AER
• 1% cashback (and 1.5% once you spend £10,000 a month) on eligible purchases

Cons:

• No cash or cheque deposits
• No phone or branch banking
• Set-up time of between three and five days

RBS offers several different business accounts for companies of different sizes, but each account has no monthly fee. Following two years of free banking, transactions do carry a fee. All automated payments coming in or going out of your account (such as direct debits, standing orders and ATM withdrawals) cost 35p each. In addition, cash payments cost 70p per £100 and cheque deposits are 70p each.

RBS also offer business overdrafts of up to £50,000, though set-up fees of between £50 and 1.5% apply. In addition, the representative EAR on a £25,000 overdraft is 14.36%. Free access to FreeAgent accounting software is included with an account.

Eligibility criteria: Applicants must be aged 18 or over and applying on behalf of a business registered in the UK. These businesses must have been trading for less than 12 months and have turnover of less than £1 million. One person on the application must also be a UK resident. Applicants from England and Wales may be directed to open an account with NatWest, while those in Northern Ireland may be directed to apply with Ulster Bank.

For more details, see NerdWallet’s RBS business account review.

RBS key features:

• Transaction fees: Opening a Start-Up Account means you will not have to pay transaction fees for the first 24 months.
• Additional features: You can also apply for a business overdraft, credit card or loan through an RBS business account.
• Charities included: A range of charities and not-for-profit organisations can have access to RBS business accounts.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• No monthly fees
• No transaction fees for 24 months
• Account opening takes an average of one day
• Manage accounts in branch, at the Post Office, by phone, online and via app
• Free FreeAgent accounting software

Cons:

• RBS best-suited to customers in Scotland 
• Fees for all transactions after 24 months

NatWest’s accounts for start ups and more established businesses are both free of monthly fees. However, following a free 24-month period, all transactions carry a cost. For example, basic UK transactions, such as standing orders and direct debits, cost 35p every time they enter or leave an account.

Cash deposits cost 70p per £100 and cheques cost 70p each. 

Meanwhile, overdrafts of up to £50,000 are available, though arrangement fees of between £50 and 1.5% apply. On a £25,000 overdraft there is a representative AER of 14.36%.

Accounting software integration is available with FreeAgent, which is included for free with a NatWest business account. 

Eligibility criteria: Accounts are limited to businesses that have been trading for less than 12 months, have turnover under £1 million and are registered in the UK. Applicants must be 18 or older. One person on the application must be a UK resident. Applicants in Scotland may be directed to apply for an account with RBS, while those in Northern Ireland may be redirected to Ulster Bank.

For more details, see NerdWallet’s NatWest business account review.

NatWest key features:

• In-branch support: Customers across England and Wales can head into NatWest branches for customer service in person.
• Introductory offer: Day-to-day transactions are free for two years and there are no monthly fees.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Manage accounts online,via the app, branch, Post Office or phone
• New accounts typically open in one day
• Free accounting software from FreeAgent

Cons:

• No branches in Scotland or Northern Ireland
• NatWest’s start-up account only open to newer businesses
• Fees for all transactions

Ulster Bank’s business bank accounts cost £8 per quarter, with basic credits and debits to the account (such as direct debits) costing 43p each. In addition, standing orders are 58p each. Cash deposits cost 70p per £100 and cheque deposits are 48p each. These deposits can be made at a branch or the Post Office.

Customers can get a business overdraft of up to £50,000, though an arrangement fee of 1% (with a £150 minimum) applies. A £25,000 overdraft from Ulster Bank has a representative AER of 12.28%.

Free accounting software from FreeAgent is bundled in with accounts from Ulster Bank. 

Eligibility criteria: This account is for sole traders, limited companies and partnerships where all members reside in the UK. Applicants must be 18 or older and their business should have been trading for less than a year with turnover below £1 million.

For more information, read NerdWallet’s Ulster Bank Business Account review.

Ulster Bank key features:

• FSCS Protection: Accounts at Ulster Bank are protected by the FSCS for deposits up to £85,000 as part of the NatWest group.
• Lending Facilities: Customers have access to a number of different loans and finance options, as well as business overdrafts and a credit card.

Pros:

• Manage accounts via phone, app, branch or online
• Business accounts, on average, open in one day 
• Free accounting software from FreeAgent
• Overdraft of up to £50,000 available

Cons:

• Ulster Bank best serves customers in Northern Ireland
• Maintenance fee of £8 per quarter
• Charges for all basic UK transactions

Tide has three business current accounts, including a free account with no monthly fees. Basic transactions entering or leaving your account cost 20p each with this account, while cash deposits at the Post Office cost 0.5% of the amount deposited or a £2.50 minimum. 

Cheque deposits can be done via the Tide app, but are only possible for sole traders at the moment. In addition, Tide does not offer a business overdraft facility.

Tide customers can integrate their accounts with accounting software providers, such as Sage, QuickBooks, Xero, FreeAgent, ClearBooks and more. 

Eligibility criteria: Applicants must be aged 18 plus and have a UK-based business.

For more details, read NerdWallet’s Tide Business Account Review.

Tide key features:

• Protected: Eligible deposits of up to £85,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
• Free and paid accounts: Tide customers can enjoy free basic accounts, or more comprehensive paid packages.
• Business lending: Tide offers business lending options, as well as a business credit builder feature.

Pros:

• Well-reviewed mobile app
• No monthly fee
• More than half of new business accounts open within 10 minutes

Cons:

• No cheque deposits for limited companies
• Basic UK transfers cost 20p each
• No branches

Zempler Bank, which has rebranded from Cashplus, offers two accounts. Its Business Go account has no monthly fee, though basic payments cost 30p each after using up a monthly allowance of three free transactions.

Cash deposits at a Post Office are subject to a £3 minimum fee or 0.5% of the total amount paid in. Cheque deposits are not possible with a Zempler account. 

Zempler does offer a business overdraft of up to £2,000, with customers paying an annual fee of £50 for access. The first £5 of the overdraft is interest free, with interest rates detailed upon application. 

Xero, QuickBooks and Sage accounting software can all be integrated with a Zempler business bank account.

Eligibility criteria: This account is open to sole traders, limited companies, partnerships and charities.

For more details, check out NerdWallet’s Zempler Bank Business Account review.

Zempler Bank key features:

• Credit and overdraft facilities: You can get a business overdraft or business credit builder tools with Zempler Bank.
• FSCS protection: Zempler Bank is a fully licensed bank, so your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• No monthly fee
• No credit check
• Same-day account opening for 99.9% of customers
• Overdraft available

Cons:

• No cheque deposits
• No international payments
• No branches
• Transfers out of 30p each after monthly allowance used up
• Overdraft limited to £2,000 and fees apply

SumUp’s business account has no monthly fee and includes free basic UK transactions, such as transfers, direct debits and Faster Payments. Cash and cheque deposits are not possible with a SumUp account. In addition, no overdraft is available from SumUp.

However, you can link your account with accounting software providers including FreeAgent, Xero and QuickBooks.

Eligibility criteria: Freelancers, sole traders, limited companies, partnerships and charities can open a SumUp account. However, applicants must be at least 18 years old.

For more details, check out NerdWallet’s SumUp Business Account Review.

SumUp key features:

• Not protected: SumUp’s business account is an emoney account and does not include protection from the Financial Services Compensation Scheme (FSCS).
• Point of sale: SumUp provides point of sale (POS) technology, allowing you to take payments via a terminal and have the money in your account in just one day. 
• Business tools: Invoice management and online store creation tools are available through the SumUp app.

Pros:

• No maintenance fees
• No fees for direct debits and Faster Payments
• Open an account in minutes online

Cons:

• No cheque or cash deposits
• No overdraft available
• No branches
• Not FSCS protected