With so many to choose from, picking the business bank account that best suits your needs can be quite the challenge. That’s where MoneySuperMarket can help. We list business accounts from across the market, giving you the facts to make an informed decision.
The table below will help you find the best account for your business by comparing offerings from a number of providers. You can see the main pros and cons of each account, and compare features such as free business banking, interest on in-credit balances, overdraft facilities and free account transactions.
Compare Business Start current accounts - Ordered by interest rate (AER)
Account opening criteria
High Interest, Package, Reward & Standard current accounts
- You must be 18 years of age or older
- You must not have been declared Bankrupt or have registered for an Individual Voluntary Agreement within the last six years or be in the process of doing so (Does not apply to M&S Bank)
- You are a UK resident
Student accounts
- You’re aged 18 years or over
- You’ve been accepted onto a full-time UCAS course at a UK institution for at least 2 years
- You don’t already have a student account with another Banking institution
Children’s accounts
- You must be aged between 11 and 18 years old
- You must be living permanently in the UK
Credit building
- You must be aged 18 or over to apply
- You must have a residential address in the UK
Before applying, please always check each banks specific opening criteria on their website.
Customer Service
This is based on a scoring system we developed using data from MoneySavingExpert’s twice-yearly Current Account customer service polls.
An easy switching process
We guarantee a smooth switch.
All you need to do is:
- Open your new current account
- Pick a switch date
- Let your new bank or building society do the rest
A smooth switch for you
The Current Account Switch Service makes switching your current account simple, reliable and stress-free. Over 4 million current accounts have been switched so far.
The Current Account Switch Guarantee means that your new bank takes care of closing your old account, moving your balance and switching your payments.
So you don't need to worry.
Start using your new account
On your agreed switch date your new account will be ready to use and your old account will be closed. Your new bank will have transferred all of your regular incoming payments (such as your salary or benefits) and outgoing payments (such as Direct Debits, standing orders, future dated payments and bill payments) to your new account, along with any remaining credit balance. Your saved Payee details will also be transferred over.
Note: future dated payments set up within 7 working days of your switch date cannot be transferred across to your new account.
Need to knows
- 1. Check you're able to switch
The Current Account Switch Service covers 99% of UK current accounts. The process is the same everywhere so you can feel confident when you switch, no matter which participating bank or building society you choose.
- HOWEVER YOU CAN'T SWITCH WITH:
- A joint account without the permission of both parties
- Saving accounts
- ISAs
- Non-sterling payment accounts.
- 2. Check you're eligible
Common eligibility examples include having a minimum number of Direct Debits, and a set amount entering the account each month. You'll also need to agree any overdraft facilities you require with them before initiating the switch (subject to eligibility status).
Just in case if anything has gone wrong
In the unlikely event that anything goes wrong, your new bank or building society guarantees to refund any interest and charges you incur as a result of a delayed or incorrect switch. It's all part of the Current Account Switch Guarantee.
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- Debit Card Cashback - automatically earn up to £500 per calendar year when using your Debit Card for purchases. Some exclusions apply
- MasterCard Business Savings - get discounts when you use your Debit Card at participating retailers. Terms apply
- Digital Money Management Tools - helping you manage cash flow, budgets and invoices
- You must have a turnover of less than £6.5m per annum
- Must be based and operate in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
HSBC's new service is simple so you can keep your business moving forward. Apply in-app on your iPhone and Android device.
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- More than just a bank account – HSBC Kinetic is a banking service that will transform the way you do business. This account could be right for you, if you’re a limited company with one director and one shareholder or a sole trader.
- Subject to eligibility requirements and application. For all eligibility requirements and FAQs see HSBC's website
- You can deposit money and cheques at any HSBC branch or Post Office. During the early access period deposits are fee free.
- You cannot apply for a HSBC Kinetic Business Current Account if the sole purpose of opening the account is to access a Bounce Back Loan (BBL)
- Applications subject to eligibility and credit check
- HSBC are building the Android app to make HSBC Kinetic available to more business owners in 2021. It's open for early access so you can put their Android service to the test. The app is still in development, so Android features are limited.
FREE business banking for the first 30 months, for new customers maintaining balance £1,000+. £7 / month thereafter. Bank with the original ethical bank & support local communities. Plus award winning service by Business Moneyfacts in 2017-2020
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- Perfect for start ups and switchers, sole traders & single directors can apply in minutes through the improved digital application process and get a decision within 5 working days. Manage your account 24/7 via Mobile app & online banking
- Regardless of the balance, there are no charges for automated credits & cash withdrawals, and you can deposit £2,000 in cash & 100 cheques per charging period for free. But charges apply for special services e.g. foreign and CHAPS payments
- Overdraft available (subject to status and Co-operative Bank's lending policy)
- Free for first 30 months (subject to monthly limits), £7 monthly fee thereafter. For new Co-operative Bank customers maintaining a credit balance of £1000+
- If you maintain a credit balance of £1,000+ there is no monthly service charge, and all automated debits including; standing orders, Direct Debits, Faster Payments, debit card payments and writing up to 30 cheques per charging period are Free
- Charges apply for exceeding these monthly limits. Applications subject to status & eligibility. T&C's apply
Best Business Banking Provider 2019 & 2020 at The British Bank Awards - Built to help you run your business. Apply for a free account in minutes and join over 300,000 UK businesses who have changed the way they bank
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- No monthly fees. No fees for ATM withdrawals in the UK and overseas. You won’t get charged for card payments abroad and you get Mastercard's globally accepted exchange rate
- SMEs, Limited Companies and Sole Traders. Apply for a free digital business account in minutes and rest easy, knowing your eligible deposits are protected up to £85,000 by the FSCS
- Free QuickBooks, Xero & FreeAgent integrations. Add Starling’s Bookkeeping Toolkit for £7pm, the first month is free - organise receipts, automatically categorise transactions, keep track of tax and invoices. Sole Traders get HMRC Tax estimates
- You can deposit cash at the Post Office for a 0.3% fee (minimum £3). Cheques up to £500 can be deposited digitally in-app, cheques above that amount can be deposited via post, both options are free
- All Directors with access to the account must be UK residents and your business must be based in the UK
- You will need to provide evidence of your trading activities so your business can be easily verified
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- No monthly or annual account fees
- No credit check required. Simple instant online application, with account opened within 5 minutes
- Mobile App and Online Banking available. Cash deposits available via the Post Office
- First 3 payments sent each month are FREE & £0.30 for every transfer thereafter. Card transactions in the UK are free
- A £9.95 one off card issue fee applies
- Overdraft available subject to approval
Tide Business Bank Account – provided by Clearbank
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- 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
- Control and simplify team spend with Expense Cards. Apply for up to 35 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
- 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 withdrawals and cash deposits via the Post Office cost £1 each. Cash deposits made through PayPoint cost 3% of the total transaction value
Compare Business switcher current accounts - Ordered by interest rate (AER)
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- Debit Card Cashback - automatically earn up to £500 per calendar year when using your Debit Card for purchases. Some exclusions apply
- MasterCard Business Savings - get discounts when you use your Debit Card at participating retailers. Terms apply
- Digital Money Management Tools - helping you manage cash flow, budgets and invoices
- You must have a turnover of less than £6.5m per annum
- Must be based and operate in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
HSBC's new service is simple so you can keep your business moving forward. Apply in-app on your iPhone and Android device.
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- More than just a bank account – HSBC Kinetic is a banking service that will transform the way you do business. This account could be right for you, if you’re a limited company with one director and one shareholder or a sole trader.
- Subject to eligibility requirements and application. For all eligibility requirements and FAQs see HSBC's website
- You can deposit money and cheques at any HSBC branch or Post Office. During the early access period deposits are fee free.
- You cannot apply for a HSBC Kinetic Business Current Account if the sole purpose of opening the account is to access a Bounce Back Loan (BBL)
- Applications subject to eligibility and credit check
- HSBC are building the Android app to make HSBC Kinetic available to more business owners in 2021. It's open for early access so you can put their Android service to the test. The app is still in development, so Android features are limited.
FREE business banking for the first 30 months, for new customers maintaining balance £1,000+. £7 / month thereafter. Bank with the original ethical bank & support local communities. Plus award winning service by Business Moneyfacts in 2017-2020
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- Perfect for start ups and switchers, sole traders & single directors can apply in minutes through the improved digital application process and get a decision within 5 working days. Manage your account 24/7 via Mobile app & online banking
- Regardless of the balance, there are no charges for automated credits & cash withdrawals, and you can deposit £2,000 in cash & 100 cheques per charging period for free. But charges apply for special services e.g. foreign and CHAPS payments
- Overdraft available (subject to status and Co-operative Bank's lending policy)
- Free for first 30 months (subject to monthly limits), £7 monthly fee thereafter. For new Co-operative Bank customers maintaining a credit balance of £1000+
- If you maintain a credit balance of £1,000+ there is no monthly service charge, and all automated debits including; standing orders, Direct Debits, Faster Payments, debit card payments and writing up to 30 cheques per charging period are Free
- Charges apply for exceeding these monthly limits. Applications subject to status & eligibility. T&C's apply
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- No monthly or annual account fees
- No credit check required. Simple instant online application, with account opened within 5 minutes
- Mobile App and Online Banking available. Cash deposits available via the Post Office
- First 3 payments sent each month are FREE & £0.30 for every transfer thereafter. Card transactions in the UK are free
- A £9.95 one off card issue fee applies
- Overdraft available subject to approval
Best Business Banking Provider 2019 & 2020 at The British Bank Awards - Built to help you run your business. Apply for a free account in minutes and join over 300,000 UK businesses who have changed the way they bank
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- No monthly fees. No fees for ATM withdrawals in the UK and overseas. You won’t get charged for card payments abroad and you get Mastercard's globally accepted exchange rate
- SMEs, Limited Companies and Sole Traders. Apply for a free digital business account in minutes and rest easy, knowing your eligible deposits are protected up to £85,000 by the FSCS
- Free QuickBooks, Xero & FreeAgent integrations. Add Starling’s Bookkeeping Toolkit for £7pm, the first month is free - organise receipts, automatically categorise transactions, keep track of tax and invoices. Sole Traders get HMRC Tax estimates
- You can deposit cash at the Post Office for a 0.3% fee (minimum £3). Cheques up to £500 can be deposited digitally in-app, cheques above that amount can be deposited via post, both options are free
- All Directors with access to the account must be UK residents and your business must be based in the UK
- You will need to provide evidence of your trading activities so your business can be easily verified
Tide Business Bank Account – provided by Clearbank
Interest
AER interest on in-credit balances between and up to
Monthly fee
annual fee No monthly fee
Overdraft
- 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
- Control and simplify team spend with Expense Cards. Apply for up to 35 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
- 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 withdrawals and cash deposits via the Post Office cost £1 each. Cash deposits made through PayPoint cost 3% of the total transaction value
What is a business bank account?
Business bank accounts work much like personal bank accounts, though they’re available to sole traders, partnerships, companies, clubs, societies and charities alike.
They’re also a legal requirement if you want to set up a limited company, while if you’re self-employed, opening a business bank account is an easy way to keep your business transactions separate from your own personal finances.
Having a business bank account also lets you apply for a business credit card, and will make it easier to apply for business loans such as the government’s Bounce Back Loan or certain other schemes designed to help companies affected by Covid-19.
What are the benefits of a business bank account?
There are numerous advantages to opening a business bank account. The main benefits include:
- Invoices are paid directly into your business account
- Separates your personal finances from your business finances, and making it easier to do your tax returns
- Builds up your business’s credit history so you can apply for other business finance products in the future
- Bespoke features that make paying employees much easier
How do I choose the best business bank account?
Certain business bank accounts come with additional benefits depending on which package you pick, though some may require you to pay a modest monthly fee. These are the benefits that will ultimately determine your choice: just as every business is different, there are different types of account which cater to businesses in different ways.
- Overdraft: An overdraft might be useful if you have tighter cashflow and need the occasional buffer. Check to see how much will it cost before you apply
- 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
- Convenience: Do you prefer to bank digitally or do you need to pay in lots of cash and cheques?
- Business support: Many accounts will offer access to business and tax advisers, which can be very useful to newer businesses, or people who struggle to understand the legislation
- Account fees: Many business current accounts charge monthly fees, while some also impose fees for different types of transactions. Are the benefits you get from the account worth the cost?
Compare business bank accounts
You can compare business bank accounts quickly and easily with MoneySupermarket. Our comparison tables help you to choose the right business account for your needs by showing you the pros and cons of a wide range of accounts.
Once you’ve identified the best business account for your company, just hit ‘Go to site’ to apply. Then simply enter a few details about you and your business. In most cases, the application process will only take a few minutes.
Business banking tips
- Use this account for all your business transactions: Pay your employees, have invoices paid in, receive cash and electronic payments, pay in cash and cheques, draw money out and transfer money electronically, set up business direct debits and standing orders with your business account.
- But not for your personal use: You’ll need to use your account for business purposes only. You won’t be able to use your business account for personal banking.
- Business banking fees: You may have to pay a transaction fee for cash, electronic and cheque payments that are paid both in and out of your business account. Many accounts also have a monthly or annual fee – although some business account providers offer free business banking for an introductory period of say six or 12 months. In this case, it’s important to check how much you’ll end up paying once the introductory period is over.
- Business account rules: If you choose a business bank account that’s fee-free, you should also check the limitations on how much and how you can pay in and withdraw money from your account. If the account has an overdraft facility, it’s also worth checking the limitations.
- Business banking support: Some banks have a dedicated small business advice team, while others offer a telephone helpline, or an online accountancy service. Consider which types of advice or support will be most useful to your business.
- Digital-only banking or high street banking: You can open a business account with your personal high street bank account provider, a different high street bank provider, or, if you’re a sole trader or the owner of a limited company, a digital-only bank. The right choice for you will depend on the type of company you have and how you plan to use your business bank account.
