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Business Bank Accounts

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  • It’s quick and easy

    See accounts at a glance with key features such as monthly fees and overdraft charges

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    We’ll show you business accounts from our 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. If you’re self-employed, opening a business bank account is an easy way to keep your business dealings separate from your own personal finances.

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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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. 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...

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    Proof of ID

    A valid passport or driving licence for all company directors

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    Proof of address

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

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    Registered business address

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

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    Business contact details

     Including registered business name and number and date of incorporation

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

  • Deposit protection

    FSCS rules mean you’ll be covered up to £85,000 in the account should the bank go bust

  • 24/7 customer support

    This could be direct messaging through the app or a dedicated phone number to call

  • Switch guarantee

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

  • Low/no fees for overseas use

    If you travel abroad for work look out for accounts that can keep travel expenses down

  • App cheque deposit

    Allows you to scan in cheques digitally so you never have to visit a branch

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

What do I need to get a quote?

Just as every business is different, there are different types of account 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 monthly 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 website or app. If you regularly pay in cash and cheques consider if the account is right

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    Business support

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

How do I switch my business bank account?

The current account switch service allows you to transfer all your payments from your existing current account to your new business account within seven working days. This includes any working payments such as salary, rental or pension income, and expenditures such as direct debits and standing orders.

The majority of the UK’s bank account providers are signed up to the switch service which should ensure the move goes smoothly.

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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.

  • 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.

You can generally open a business bank account online or in your local branch. How you open your account will depend on the type of bank you choose. Some high street banks may prefer you to open an account in person; digital banks operate solely online, so the application process is online too.

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.