Best Business Bank Accounts UK 2026: Compare Fees, Features & Providers
Quick Answer
The best business bank account in the UK depends on how your business actually uses its account.
Do not compare business accounts using the monthly fee alone.
A £0/month account can still become expensive if you:
- make lots of bank transfers
- deposit cash regularly
- send international payments
- need several cards or users
- use an overdraft
As of September 2026, businesses can choose from:
- £0/month app-first business accounts
- paid digital accounts with more transfers and team features
- high-street accounts with lending and cash services
- international and multi-currency business accounts
| If you need… |
Accounts to compare |
| No monthly account fee |
Starling, Monzo Lite, Tide Free, HSBC Small Business |
| Simple app-based banking |
Starling, Monzo, Tide |
| A startup account |
RBS, Lloyds, Tide, Starling, Monzo |
| Cash deposits |
Compare Starling, Tide and high-street banks carefully |
| Business borrowing |
Lloyds, Barclays, HSBC, RBS and other high-street banks |
| International banking |
HSBC, Starling and specialist multi-currency providers |
| Multiple users / teams |
Monzo Team, Tide paid plans and high-street business accounts |
| Branch-based banking |
Compare major high-street banks |
Our view: the right business account is the one whose fee structure matches the way your business receives, holds and spends money.
Compare UK Business Bank Accounts
Compare fees, features and business banking options based on how your company trades.
How Do We Work?
Our comparisons are researched and reviewed by the Compare Your Business Costs editorial team using provider information, official UK guidance and business buying criteria. See how Compare Your Business Costs works.
Business banking prices, offers and eligibility criteria can change. We check current provider information when updating our comparisons, but you should confirm the latest tariff and terms directly before opening or switching an account.
Authored by: Ally Cox – Business Technology & B2B Services Specialist, 10+ years’ experience.
Last Updated: September 2026
Contents:
Key Takeaways
- Several UK business accounts have no monthly account fee.
- £0/month does not necessarily mean £0 banking costs.
- Transfer charges, cash deposits and international payments can be more important than the monthly fee.
- Starling currently charges no monthly fee for its standard business account.
- Monzo Business Lite is currently free, with Pro at £9/month and Team from £25/month.
- Tide has a £0 Free plan plus paid Smart, Pro and Max plans.
- HSBC’s Small Business Banking Account currently has no monthly account fee.
- Lloyds currently gives eligible start-ups 12 months without an account fee, followed by £10/month.
- RBS currently offers eligible start-ups two years of free everyday banking.
- Eligible deposits with UK-authorised banks can be protected by the FSCS up to £120,000.
- Many eligible small businesses can switch current accounts using the Current Account Switch Service in seven working days.
Business Bank Accounts Compared at a Glance
| Provider |
Current entry pricing |
Good fit for |
What to check |
| Starling |
£0/month standard business account |
App-first banking, UK transfers, sole traders and SMEs |
Cash deposit and international account charges |
| Tide |
Free; paid plans from £12.49/month |
Startups, freelancers, growing teams |
Transfer allowances, cash deposits and FX |
| Monzo Business |
Lite £0; Pro £9; Team from £25/month |
Sole traders, digital businesses and teams |
Which features require a paid plan |
| HSBC |
£0 monthly fee on Small Business Banking Account |
Small businesses wanting a major bank and broader banking services |
Cash, international and additional-service charges |
| Lloyds |
Eligible start-ups: £0 account fee for 12 months, then £10/month |
Startups and SMEs wanting a high-street banking relationship |
Charges after introductory period |
| RBS |
Eligible start-ups: two years’ free everyday banking |
New businesses wanting a longer introductory period |
Standard tariff after free period |
| Barclays |
Tariff depends on business banking plan and usage |
Businesses wanting branch, lending and broader banking services |
Choose the correct transaction tariff |
Business banking fees and offers change. Check current eligibility and full tariffs before applying.
Not Sure Which Account Is Cheapest for You?
The lowest monthly fee does not always mean the lowest overall cost. Compare accounts based on transfers, cash deposits, international payments and account features.
How to Choose the Best Business Bank Account
Start with the transactions your business makes every month.
Ask:
- How many bank transfers do we send and receive?
- How much cash do we deposit?
- Do customers pay us internationally?
- Do we pay overseas suppliers?
- How many people need account access?
- Do we need an overdraft or business loan?
- Do we need branches?
- Which accounting system do we use?
- Do we need separate pots or accounts for tax and payroll?
- How much money could sit in the account?
Then compare the accounts against those requirements.
Our View: Free Business Banking Is Not Always the Cheapest
This is one of the most important points when comparing business bank accounts.
Two accounts can both advertise a £0 monthly fee but produce very different bills.
One might offer free UK transfers but charge more for cash and another might include only a limited number of free transfers.
A third might have free digital transactions but charge separately for branch services.
Always compare the cost of your actual banking activity rather than simply choosing the lowest account fee.
Starling Business Account
Starling currently offers its standard business and sole-trader accounts with £0 monthly account fee.
It also advertises:
- zero UK transfer fees on its standard account
- 24/7 support
- accounting integrations
- cash deposits
- in-app cheque deposits
Cash Deposits
Cash deposits currently cost:
0.7% or £3, whichever is higher.
International Accounts
Starling also offers optional currency accounts and their business euro account currently costs £2/month
and moving money between relevant Starling currency accounts currently carries a 0.4% conversion fee.
Our View
Starling is worth comparing where your priorities include:
- £0 monthly banking
- app-based account management
- UK transfers
- accounting integrations
Cash-heavy businesses should model the 0.7% deposit charge before deciding – read more about Starling here.
Tide Business Account
Tide currently offers four main business account plans:
| Tide plan |
Monthly fee |
UK transfer allowance |
| Free |
£0.00 |
5/month |
| Smart |
£12.49 |
30/month |
| Pro |
£27 |
Unlimited* |
| Max |
£70 |
Unlimited* |
*Subject to Tide’s current plan terms.
Tide Free Transaction Costs
After the included transfer allowance, Tide currently lists a standard 20p bank-transfer charge.
Its current Free plan cash-deposit pricing includes:
- Post Office deposits up to £500: £2.50
- Post Office deposits over £500: 0.99%
- PayPoint deposits: 3%
Our View
Tide is a good example of why “free account” and “free banking” are not the same thing – read more about Tide here.
Monzo Business
Monzo currently offers:
| Plan |
Current monthly cost |
| Lite |
£0 |
| Pro |
£9/month |
| Team |
From £25/month |
Its business accounts include free UK bank transfers, while paid plans add more business-management functionality.
Monzo Pro
Pro adds tools such as:
- invoicing
- tax pots
- accounting integrations
- additional business features
Monzo Team
Team is aimed at businesses needing features such as:
- employee cards
- team access
- payment approvals
- bulk payments
Our View
Monzo deserves consideration for businesses that value app-based banking but need more sophisticated team controls as they grow – read about Monzo more here.
HSBC Small Business Banking Account
HSBC’s current Small Business Banking Account has £0 monthly account fee.
Standard domestic digital transactions made through Business Internet Banking are also currently free.
Cash services are charged separately.
At the time of writing, HSBC’s current pricing includes:
- branch/Post Office counter cash credit or withdrawal: £1.50 per transaction
- cash deposited or withdrawn: percentage-based charges
- mobile cheque deposit: 50p per cheque
HSBC has announced further changes to some business charges from December 2026, so businesses should check the latest tariff before applying.
Our View
HSBC’s current £0 monthly fee means digital-first businesses should not automatically assume high-street banking costs more than fintech banking.
The comparison changes if you frequently use cash, branches or international services.
See our HSBC Business Banking review.
Lloyds Business Account
Lloyds currently offers eligible startup businesses no account fee for the first 12 months.
After that, the current account fee is £10/month.
Lloyds also provides:
- business lending options
- international payments
- additional-user controls
- business support
Our View
The important comparison is not £0 vs £10.
It is whether the broader account, borrowing options and transaction costs justify the fee once the introductory period ends.
See our Lloyds Business Banking review.
RBS Startup Business Account
RBS currently offers eligible startups two years of free everyday banking.
The current offer is aimed at eligible businesses that:
- have been trading for less than one year
- meet the relevant turnover and eligibility criteria
After the introductory period, customers move onto RBS’s standard tariff.
Our View
A two-year fee-free period can be valuable, but always compare what the account will cost in year three.
Startup offers should not be assessed purely on the introductory period.
See our RBS Business Banking review.
Barclays Business Banking
Barclays offers business current accounts with different tariff structures depending on how a business banks.
Businesses should compare areas including:
- electronic payments
- cash transactions
- turnover
- branch use
- borrowing
Barclays provides a pricing-plan selector to help businesses compare its available tariff structures.
Our View
This is particularly relevant for businesses whose banking is more complicated than “we receive bank transfers and make card payments.”
See our Barclays Business Banking review.
Best Business Bank Accounts by Use Case
For £0 Monthly Account Fees
Accounts to compare include:
- Starling Business
- Monzo Business Lite
- Tide Free
- HSBC Small Business Banking Account
Do not assume they cost the same simply because the monthly fee is £0. Find a Business Account That Matches How You Trade
Whether you are a sole trader, startup, cash-heavy business or growing SME, compare accounts based on your actual banking needs.
For Sole Traders
Sole traders should prioritise:
- low fixed fees
- simple bookkeeping
- tax categorisation
- invoicing
- accounting integrations
Accounts worth comparing include:
See our Small Business Accounts guide.
Find a Business Account That Matches How You Trade
Whether you are a sole trader, startup, cash-heavy business or growing SME, compare accounts based on your actual banking needs.
See Suitable Business Accounts
For Startups
Startups should compare:
- RBS’s two-year introductory offer
- Lloyds’ 12-month account-fee offer
- £0 digital accounts
- business support
- borrowing options
Consider what happens when any introductory period ends.
For Cash-Handling Businesses
If you run a:
- shop
- pub
- restaurant
- café
- salon
- other cash-heavy business
cash-deposit charges can matter far more than the monthly account fee.
Compare:
- deposit percentage
- minimum deposit charge
- Post Office availability
- PayPoint costs
- branch access
- cash limits
For International Businesses
Businesses paying overseas suppliers or receiving foreign currency should compare:
- FX margin
- transfer fee
- receiving fee
- supported currencies
- multi-currency accounts
A £0 domestic business account can become expensive if your main cost is foreign exchange.
For Businesses That Need Lending
If an overdraft, loan or working-capital facility is important, compare the banking relationship as well as the current account.
Relevant high-street providers include:
Lending remains subject to:
- eligibility
- credit assessment
- business circumstances
Digital Business Bank vs High-Street Bank
|
Digital-first account |
High-street bank |
| Monthly fee |
Often £0 entry option |
Can be £0, introductory or tariff-based |
| Mobile app |
Core proposition |
Widely available |
| Branches |
Usually limited / none |
Often available |
| Cash |
Often Post Office / PayPoint |
Branch / Post Office options may be available |
| Loans / overdrafts |
Varies |
Often wider range |
| Team banking |
Often available on paid tiers |
Usually available |
| International |
Varies significantly |
Often available but check charges |
Our View
The old idea that digital bank = cheap
and high-street bank = expensive
is now too simplistic.
Some major banks offer £0 monthly accounts, while some fintech plans cost £20, £30 or £60+ per month.
Business Bank Account Fees Explained
Compare every account across these costs:
| Fee |
Why it matters |
| Monthly fee |
Fixed recurring cost |
| Bank transfers |
Can add up for invoice-heavy businesses |
| Cash deposits |
Critical for cash-heavy businesses |
| ATM withdrawals |
Relevant if cash is used operationally |
| International payments |
Transfer charges can vary significantly |
| FX margin |
Potentially one of the largest international costs |
| Cheque deposits |
Still relevant to some businesses |
| Additional users/cards |
Important for growing teams |
| Overdraft |
Interest and arrangement costs may apply |
Example: £0 Account With Regular Transfers
Imagine a free account includes five transfers each month, then charges 20p per additional transfer.
If the business makes 100 chargeable transfers 100 × £0.20 = £20/month.
A paid account including unlimited transfers could potentially cost less.
Illustrative example based on transaction-fee principles, not a recommendation.
Example: Why Cash Deposit Fees Matter
Suppose a business deposits £10,000 cash per month.
At 0.7% £70/month
or £840/year.
A business handling large amounts of cash should therefore compare:
cash costs before monthly account fees.
What Is a Business Bank Account?
A business bank account is a current account used to manage business money separately from personal finances and can be used to:
- receive customer payments
- pay suppliers
- pay employees
- run Direct Debits
- use business debit cards
- track expenses
- connect accounting software
- manage cash flow
Do Limited Companies Need a Business Bank Account?
A limited company is a separate legal entity from its directors.
Company money should therefore be kept separate from directors’ personal money.
In practice, a dedicated account in the company’s name is normally the appropriate way to manage company transactions.
The important distinction is that the legal requirement is to maintain the company’s separate financial identity, rather than a law specifically requiring a product labelled “business bank account”.
Do Sole Traders Need a Business Bank Account?
Sole traders are not separate legal entities from their businesses in the same way limited companies are.
A dedicated business account is therefore not generally a legal requirement solely because you are self-employed.
However, check your personal bank’s terms because some personal accounts restrict business use.
A separate account can make it easier to:
- track income
- record expenses
- prepare tax returns
- manage VAT
- monitor cash flow
- provide records to an accountant
Business Bank Accounts & Making Tax Digital
For many businesses, the value of a modern business account increasingly comes from:
- transaction categorisation
- receipt capture
- accounting integrations
- tax pots
- bookkeeping tools
When comparing accounts, check whether the bank connects directly to:
- Xero
- QuickBooks
- FreeAgent
- your chosen accounting software
Are Business Bank Accounts FSCS Protected?
Eligible deposits with a UK-authorised bank, building society or credit union can currently be protected by the Financial Services Compensation Scheme up to:
£120,000 per eligible depositor, per authorised firm.
The limit increased from £85,000 to £120,000 on 1 December 2025.
Limited Companies & LLPs
If your business is a separate legal entity, such as an eligible limited company or LLP, the business can generally have its own £120,000 protection limit.
This is separate from an eligible director’s personal deposits.
Sole Traders
For sole traders, personal and business deposits with the same authorised banking firm are generally combined for the £120,000 total limit.
Important: Banking Licences Matter
Different brands can share the same banking licence.
If they do, FSCS protection may apply across the combined balance rather than separately to each brand.
Check the FSCS position of the specific account before depositing substantial balances.
What About Fintech Business Accounts?
Do not assume every business money account works in exactly the same way as a UK bank account.
Providers can operate under different structures, so before applying, check:
- who actually holds the money
- whether the account is a bank account or e-money account
- whether eligible deposits receive FSCS protection
- which authorised firm holds the funds
How to Compare Cash Deposit Fees
If your business regularly receives cash, calculate average monthly cash × deposit percentage then add:
- minimum deposit fees
- Post Office fees
- PayPoint charges
- branch charges
This is particularly important for:
- retail
- hospitality
- beauty
- trades
- market businesses
International Business Bank Accounts
Businesses trading internationally should compare more than the cost of sending a transfer.
Check:
- exchange-rate margin
- transfer fee
- receiving fee
- intermediary charges
- supported currencies
- local account details
- multi-currency balances
Our View
The FX rate can matter more than the advertised transfer fee.
A “free international transfer” is not necessarily cheap if the provider uses a wider currency-conversion margin.
Business Bank Accounts With Overdrafts
An overdraft can provide short-term working capital, but availability is subject to:
- eligibility
- credit assessment
- business performance
- provider lending criteria
If access to credit is important, compare:
- overdraft availability
- interest rate
- arrangement fees
- limits
- business loans
- credit cards
rather than comparing the current account in isolation.
Can You Switch Business Bank Accounts?
Yes, many eligible UK businesses can use the Current Account Switch Service.
The service can move:
- your account balance
- Direct Debits
- standing orders
- incoming payments
- other regular payment arrangements
The switch takes seven working days.
Business Eligibility
The Current Account Switch Service currently says businesses can generally use the service if they:
- have annual turnover no greater than £6.5 million
- employ fewer than 50 people
Other eligibility rules apply.
Our View
Do not stay with an unsuitable business account simply because switching feels difficult.
Check your eligibility first, then compare the potential annual saving.
Should You Switch Business Bank Accounts?
Review your account if:
- an introductory offer has ended
- monthly fees have increased
- you now deposit more cash
- international trading has increased
- your team has grown
- you need borrowing
- your existing app or accounting integration is poor
What Documents Do You Need to Open a Business Bank Account?
The exact requirements depend on provider and business structure.
You may be asked for:
- proof of identity
- proof of address
- business details
- Companies House information
- ownership / director information
- expected turnover
- details of your business activity
- source-of-funds information
Banks carry out identity, fraud and anti-money-laundering checks before approving accounts.
Business Bank Account vs Personal Account
|
Business account |
Personal account |
| Business name |
Usually supported |
Personal name |
| Business transactions |
Designed for them |
May be restricted by terms |
| Accounting integrations |
Common |
More limited |
| Business lending |
May be available |
Personal lending only |
| Team access |
Often available |
Usually not |
| Business tools |
Invoicing, tax, expense features may be included |
Usually limited |
Common Business Bank Account Mistakes
- choosing an account purely because it says “free”
- ignoring bank-transfer charges
- not calculating cash-deposit fees
- ignoring the cost after a startup offer ends
- assuming every fintech has identical FSCS protection
- ignoring FX margins
- choosing an account without checking accounting integrations
- not considering future lending needs
- keeping large balances without checking banking licences
- staying with an expensive account because switching feels difficult
Our Business Bank Account Checklist
Before applying, compare:
- Monthly fee
- UK transfers included
- Extra transfer cost
- Cash deposit cost
- Cash withdrawal cost
- International transfers
- FX margin
- Number of cards
- Additional users
- Accounting integrations
- Invoicing tools
- Tax / bookkeeping features
- Overdraft availability
- Business loans
- Branches / Post Office access
- Support
- FSCS protection
- Introductory offer
- Cost after introductory offer
- Switching eligibility
Our View: Which Business Bank Account Should You Choose?
There is no single account that is cheapest for every UK business.
A sole trader receiving ten bank transfers per month has very different requirements from:
- a restaurant depositing £15,000 cash
- an ecommerce company paying overseas suppliers
- a growing employer making hundreds of monthly payments
- a company preparing to apply for finance
As a starting point:
- simple app-first banking: compare Starling, Monzo and Tide
- £0 monthly banking: compare Starling, Monzo Lite, Tide Free and HSBC Small Business
- startup introductory banking: compare RBS and Lloyds alongside free digital accounts
- cash-heavy businesses: compare deposit charges before anything else
- international businesses: compare FX and transfer costs rather than the monthly fee
- businesses expecting to borrow: compare wider banking and lending relationships
The best account is the one that costs the least for the transactions you actually make while providing the banking tools your business needs.
Compare current business banking options based on your:
- business type
- turnover
- cash usage
- payment volume
- international requirements
- borrowing needs
Frequently Asked Questions
What is the best business bank account in the UK?
The best account depends on your banking activity. Compare monthly fees, transfers, cash deposits, international payments, accounting integrations, lending and support rather than choosing one provider based on a headline fee.
Which business bank accounts have no monthly fee?
Current £0 monthly options include Starling’s standard business account, Tide Free, Monzo Business Lite and HSBC’s Small Business Banking Account, subject to eligibility and other transaction charges.
What is the cheapest business bank account?
The cheapest account depends on how you use it. A £0/month account can still cost more if you make lots of paid transfers, deposit cash or send international payments.
Do sole traders need a business bank account?
A sole trader is not generally legally required to have a separate account solely because they are self-employed. However, a dedicated account can simplify accounting and tax, and personal-account terms may restrict business use.
Does a limited company need a separate bank account?
A limited company is legally separate from its directors, so company finances should be kept separate from personal finances. In practice, companies normally use an account in the company’s name for business transactions.
Are business bank accounts free?
Some have no monthly fee, but other charges can apply for transfers, cash, international payments, borrowing or additional services.
How much does a business bank account cost?
Monthly fees range from £0 for several entry accounts to tens of pounds for plans with additional banking, accounting, team or support features. Transaction charges vary separately.
Are business bank accounts FSCS protected?
Eligible deposits with UK-authorised banks, building societies and credit unions can currently be protected up to £120,000 per eligible depositor, per authorised firm. Check the protection arrangement of the specific account.
What is the FSCS limit for a business account?
The current deposit-protection limit is £120,000. Eligible limited companies and LLPs can generally have their own limit. Sole traders’ business and personal balances with the same authorised firm are generally combined.
Can I switch my business bank account?
Many eligible small businesses can use the Current Account Switch Service. The switch takes seven working days once the new account is open and the switch date has been agreed.
Can I have more than one business bank account?
Yes. Businesses may use different accounts for operating expenses, tax, payroll, savings or other purposes, subject to each provider’s terms.
Which business account is best for cash deposits?
Compare the percentage fee, minimum charge, deposit limits and whether deposits can be made through branches, the Post Office or PayPoint. The cheapest choice depends heavily on how much cash you deposit.
Which business account is best for international payments?
Compare exchange-rate margins, transfer charges, receiving fees and multi-currency functionality. The provider with the lowest monthly fee is not necessarily the cheapest for international trading.
Can a business bank account integrate with Xero or QuickBooks?
Many modern business accounts integrate with accounting software. Availability varies by provider and account tier, so check the specific integration before applying.
Can I get an overdraft with a business bank account?
Some providers offer business overdrafts subject to eligibility and credit assessment. Compare the overdraft rate, fees, limit and wider borrowing options.
How long does opening a business bank account take?
It varies. Digital applications may be completed quickly, but approval can take longer where additional identity, ownership or business checks are required.
What information do I need to open a business bank account?
You will usually need identity and address information plus details about your business, ownership, activities and expected transactions. Requirements vary by provider.
Related Business Banking Guides
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Compare leading UK business banking options based on:
- monthly fees
- UK transfers
- cash deposits
- international payments
- accounting integrations
- borrowing and overdrafts
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James Ward is the CEO & Founder of Compare Your Business Costs — a UK-verified comparison platform helping SMEs save money on business broadband, leased lines, phone systems, mobile telecoms, managed services and IT support. With over 10 years of experience in telecoms and technology procurement, James is a trusted UK business expert featured in national media and verified on Companies House.
