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Business bank accounts

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  • Click through to see our accounts in seconds

  • Compare interest rates and overdraft limits at a glance

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Compare Business Current Accounts

No monthly fees for the first 12 months, for new customers, then £8.50 per month. T&Cs apply.

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 fees for the first 12 months, then pay £8.50 each month after that with one simple tariff. Businesses with existing Barclays business current accounts aren't eligible for this offer. T&Cs apply
  • Free invoice and accounting software provided by FreshBooks, worth over £260 per year, with your Barclays business account. T&Cs apply

But be aware that

  • Charges apply for some cash and cheque transactions and for international and CHAPS payments

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
  • Control and simplify team spend with Expense Cards. Apply for up to 50 cards per business, view itemised transactions and attach receipts all in the app. Syncs with your accounting software
  • 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

FREE for the first 30 months, £5 monthly fee thereafter. Waived if account balance kept above £10,000

TSB

Business Plus Account

  • Interest

    0% AER interest on in-credit balances

  • Monthly fee

    £5

  • Overdraft

    Upon invitation


Great for

  • 30 months Free Banking and no fee thereafter if £10,000 average monthly balance maintained (else £5 monthly fee). Manage your money 24/7 via Mobile App/Online/In-Branch. Plus, cash deposits also available at the Post Office
  • Get paid faster. Contactless payments with free Square Reader, no transaction fees on your first £1,000 sales. Generate invoices and get paid quicker with Revenu App, with the first 12 months of transactions free
  • Business Debit Card that allows purchases and free withdrawals from ATMs. With multiple cards available

But be aware that

  • When applying you’ll need to share a form of identification, proof of your business and home address
  • Eligibility criteria: Sole Trader, Partnership and Limited, UK Businesses 18+

Why compare business bank accounts with MoneySuperMarket?

  • It’s quick and easy

    See accounts and key features, such as interest rates on in-credit balances and overdraft limits, at a glance

  • Compare a wide range of accounts

    We’ll show you business accounts from a range of leading providers in the UK

  • Apply for your account today

    Once you’ve made your decision, you can click through and apply straightaway

What is a business bank account?

A business bank account is similar to a personal bank account, but it is meant for business transactions by sole traders, partnerships, companies, clubs, societies or charities. Business bank accounts are a legal requirement if you want to set up a limited company in the UK. 

Having a business bank account also lets you apply for a business credit card, and should make it easier to apply for business loans. 

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How do business bank accounts work in the UK?

If you’re used to using a personal account there shouldn't be many surprises in how a business account operates.

  • Send and receive money

    You can perform bank transfers and receive funds from sales invoices, for example

  • Set up standing orders and direct debits

    You can schedule regular payments, so you don’t miss paying staff wages or monthly bills, for example

  • Link with accounting software

    Business accounts should sync with your accounting software to help stay on top of invoices and expenses and simplify tax returns

What is 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: 

  • Plus

    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

  • Plus

    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

  • Plus

    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 

  • Plus

    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 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:

  • 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

  • Switch guarantee

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

What do I need to open a business bank account?

You will have to provide different documents depending on the type of company you’re running in the UK. But you’ll always have to provide your business details, as well as personal details for anybody included in the application. You’ll be asked for...

  • 1

    Proof of ID

    A valid passport or driving licence for all company directors

  • 2

    Proof of address

    You’ll have to provide your address to prove you are a UK resident

  • 3

    Registered business address

    If different from your home address. More common with limited companies

  • 4

    Business contact details

     Including registered business name and number and date of incorporation

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.

  • Tick

    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

  • Cross

    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:

  • Tick

    Account fees

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

  • Tick

    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

  • Tick

    Transaction limit

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

  • Tick

    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

  • Tick

    Convenience

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

  • Tick

    Business support

    Some accounts offer access to business and tax advisers or can be linked to accountancy platforms

How do I open a business bank account?

Opening a business account in the UK is straightforward. Just take the following steps.

  • Check you’re eligible

    Make sure you can meet the account provider’s conditions. These can vary but might include a minimum turnover, for example

  • Make an application

    Either online or in-branch. You'll probably need to provide photo ID and proof of address for company directors

  • Wait for approval

    You’ll need to pass a credit check. Some new business accounts can be opened the same day but others may take longer

  • Start using your account

    Once approved you’ll be able to start using the account and its features for your business

How do I switch my business bank account? 

Switching your business bank account is similar to switching your personal current account. Most banks and building societies are part of the Current Account Switch Service.  

Here’s what to expect: 

  1. Starting the switch: First you need to close your old account. Make sure your new provider is signed up to the Current Account Switch Service, then you can begin switching your business account 

  2. Your new account is set up: Seven working days before your switch date, your provider will start setting up your new business bank account. You shouldn’t set up new payments while this happening, as they won’t be moved over 

  3. Redirect upcoming payments: You need to make sure future payments will go to your new business account. You may have to redirect payments for a specific timeframe depending on your provider’s terms and conditions 

Emma Lunn

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 up to you 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 accounting software to make invoicing, expenses and tax returns much easier.

"
- Emma Lunn, Personal finance expert

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.

  • Browse business accounts

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

  • 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

  • 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

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

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.