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BUSINESS BANK ACCOUNTS

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Compare Business Current Accounts

Sponsored Provider

Limited offer

Receive £150 cashback when you open a business bank account & spend £500 within the first 60 days. Enter promo code 150BOOST when applying on Tide's website. New Tide customers only. Offer ends 28/02/25. T&Cs apply

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Tide

Business Current Account

  • Interest

    0% AER interest on in-credit balances

  • Monthly fee

    No monthly fee

  • Overdraft

    No overdraft facility


Great for

  • Sole Traders, SMEs and Limited Companies. Apply online in minutes with easy set up all in one place. No credit checks or paperwork needed. Up to £85,000 of your eligible deposits protected by the FSCS. Tide Business Current Account – provided by ClearBank
  • Register your business for £14.99 through Tide with Companies House, Get a Free instant saver account which gives you 3.81% AER when you sign up for your Tide business bank account.
  • All your business finance admin needs in one secure app. Set up direct debits, categorise your transactions and create and manage invoices all via the app. Seamless integration with Sage, QuickBooks, Xero and more for easy reporting

But be aware that

  • To apply for a registered business account you need to be registered with Companies House as a director of that company
  • Bank transfers in or out via UK Faster Payments/BACS/CHAPS are charged at 20p each
  • Cash deposits via the Post Office cost £2.50 for deposits up to £500 or 0.5% of the total deposit amount for deposits over £500

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Zempler Bank (formerly Cashplus)

Business Bank Account

  • Interest

    0% AER interest on in-credit balances

  • Monthly fee

    No monthly fee

  • Overdraft

    Upon invitation


Great for

  • Fast sign up - apply in minutes. No monthly or annual fee. FSCS protected up to £85,000 on eligible deposits.
  • Manage your account 24/7 in-app and online tools. Helpful UK telephone customer service.
  • Made for small businesses. In-app and online tools that take the effort out of money admin like cashflow tracking and integrated accounting.

But be aware that

  • Eligibility criteria apply, for UK businesses only, 18+ and UK resident.
  • First 3 payments sent each month are FREE & £0.35 for every transfer thereafter. Card transactions in the UK are FREE.
  • Overdraft available subject to approval.

Access to discounted services via key partners, worth over £5,000** T&Cs apply

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Barclays

Business Current Account

  • Interest

    0% AER interest on in-credit balances

  • Monthly fee

    £8.50*

  • Overdraft

    Subject to application & financial circumstances


Great for

  • No monthly account fee for the first 12 months* plus access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
  • Access free support from Barclays Eagle Labs to help you connect, innovate, and grow. T&Cs apply

But be aware that

  • *Businesses with existing Barclays business current accounts aren’t eligible for 12 months no monthly fee.
  • *After 12 months, you’ll pay £8.50 per month. Fees and charges will apply in line with the business account tariff which may be subject to change.
  • **T&Cs apply per partner. See partner website for details.

What features could I expect from a business bank account?

Business accounts come with an array of different features. Many will be the same as you’ll find with a personal current account. Features differ from bank to bank, but those you could expect include:

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    Overdraft facility

    Allowing you to go overdrawn from time to time if cashflow is tight

  • A business debit card

    A business debit card can minimise administration when reconciling cash and personal card expenses

  • Icon-Switch-50

    Switch guarantee

    Move your balance and direct debits seamlessly to your new account provider

How to choose the best bank account for a small business? 

Even if your company is small, you can still reap big benefits from a bank account. Here’s what you should look out for: 

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    Account fees

    Some banks may charge you a fee for having a business current account with them. There are also providers who offer a free banking period which can vary from 12 months to 30 months. The account’s price tag could be worth it if the bank account matches your needs. So, pay close attention to the account’s features and if they’ll be useful for you

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    Accounting software

    A perk you can get with your business bank account is accounting software, this can help with managing your company’s finances and save you money, as you won’t have to buy it separately

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    Turnover eligibility

    Some providers may require your business to make a certain amount of profit. It’s important to make sure your company’s earnings meet what the provider is asking for 

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    International payments

    If your business has many customers abroad then being able to make international payments is essential, make sure the current account you get will support this

What are the pros and cons of business bank accounts?

It’s worth weighing up the benefits and downsides of a business account before making your final decision.

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    Advantages

    • Keeps business income and expenditure separate from personal finances 

    • Can help prevent you from personal legal liability 

    • Can build a credit rating for your business – helpful if you need a business loan

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    Disadvantages

    • There can be fees for having a business account

    • It’ll be in addition to your personal account so more admin

    • It may not pay interest on in-credit balances

How to choose the best business bank account?

Just as every business is different, there are different types of accounts which cater to businesses in different ways. Look out for the following features when making your choice:

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    Account fees

    Many business current accounts charge fees, while some also impose fees for different types of transactions


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    Overdraft

    Can be useful if you have tight cashflow and need the occasional buffer. Check to see how much an overdraft might cost before applying

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    Transaction limit

    If you are regularly transferring large sums, you’ll need an account that won’t cap the limit below your needs

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    In-credit interest

    Some accounts let you earn interest on the money that sits in your business account balance, which is good if you’re always in the black

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    Convenience

    Most banking is done digitally, so make sure you’re happy with the online banking website or app. If you regularly pay in cash and cheques consider if the account is

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    Business support

    Some accounts offer access to business and tax advisers or can be linked to accountancy platforms. Ensure you're happy with the service quality

What are the alternatives to business bank accounts?

A business bank account isn’t the only option for managing business finances. Here are some alternatives to consider:

While you can use a personal account for business, it’s not recommended due to the potential confusion between personal and business finances. This can complicate tax returns and financial tracking.

Platforms like PayPal or Stripe allow you to receive and manage business payments without a traditional business account, though fees may apply.

A prepaid card can help manage business expenses without opening a full business account. You can load funds and use it for transactions, helping to separate business spending from personal.

Our expert says…

If you’re self-employed a business bank account keeps your business and personal finances separate. You’ll be required to open a business bank account if you run a limited company – but it’s not mandatory if you’re a freelancer or sole trader. Business bank accounts work a lot like normal current accounts, but you can also connect them to online accounting software to make invoicing, expenses and tax returns much easier.

Kara Gammell Personal Finance Expert

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Compare business bank accounts with MoneySuperMarket

We can take the hard work out of finding a business account to suit you by comparing a range of accounts all in one place.

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    Browse business accounts

    We’ll search the market to find the best business account for your needs, including any incentives to switch

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    Filter and sort

    Use our handy filters to narrow down your options based on the type of business account you need, such as interest paid, overdraft costs or monthly fees

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    Click through to provider

    When you find the deal you want, click straight through to the provider to complete your application. Sit back while your new bank takes care of the switch

Learn more about business financing

You are legally obliged to have a business bank account if you have a limited company. That’s because a limited company, or a Limited Liability Partnership, is a separate legal entity from you as an individual, and as such it needs a separate business account.

As a sole trader, or self-employed person, you’re not legally obliged to have a business bank account. Your business and personal income are treated in the same way by the tax office, so you can use your personal bank account for business transactions. Partnerships, which are effectively two or more sole traders, may also choose to operate through a joint personal account.

However, many sole traders and partnerships prefer to keep their business finances separate by opening a business bank account. Advantages can include being able to deposit money under your trading name and having access to more detailed transactional data.

A personal bank account allows you to receive and pay out money in your name. Many personal bank accounts therefore offer features to help you manage your personal finances.

A business bank account allows you to receive and pay out money in your company’s name. The account features will be designed with business use in mind – such as payroll and invoicing – and will often have fees attached. Many business current accounts also have monthly fees.

If you have a bad credit history then you’ll probably find it more difficult to open a business bank account, especially if you’ve been bankrupt in the past five years or have a County Court Judgement (CCJ). If this is the case, you might find it easier to open a business account with your current account provider. 

Taking steps such as paying back any credit you owe on time and making sure you’re registered on the electoral roll can help to improve your credit score, which can increase your chances of being approved for a business account in the future.

Yes, depending on the account you choose you could pay a:

Monthly fee

Cash withdrawal charge

Transaction fee

Cash deposit charge

Bank transfer fee

It will depend on your provider’s terms and conditions.

It normally takes one to four weeks to open a business bank account. You can quicken the process by:

  • Being already registered at the bank with a regular current account

  • If you’re a sole trader as opposed to an incorporated company

  • Seek out banks that say they provide a quick service – some banks provide their estimated processing periods online

The Financial Services Compensation Scheme (FSCS) does indeed cover business bank accounts, in much the same way as personal accounts. But the rules are notably different and somewhat more complex. And one of the critical things to note is that the sort of protection you'll get hinges on whether you're a sole trader or a limited company.

Sole traders, who hold a business bank account with the same bank where they hold a personal bank account, you're covered for a total of £85,000 for both accounts. The reason for this is that you're deemed to be a single entity from a legal and financial perspective.

Conversely, if you have a limited company you and your business are considered to be two separate entities. So from an FSCS perspective, this means that if you and your business hold accounts with the same institution you'll be covered for £85,000 for your personal account and a further £85,000 for your business account.

Switching current accounts to take advantage of better interest rates and rewards is easy with MoneySuperMarket, where you can compare online accounts by the interest rates they pay, the overdraft rates they charge, the rewards they offer, and level of customer service they provide.

Just use our comparison service to find the right bank account for you, then fill in the information required by the account provider (name, date of birth, etc.) and supply the necessary documents to confirm your identity and address.

The switching process should take no more than seven working days with the Current Account Switch Service, and all the fiddly bits like switching across your direct debits should be taken care of by your new account provider.

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