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5 Best Business Bank Accounts in the UK [2024]

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Whether you are running a company or planning to set one up in the UK, the next step is to open a bank account for your business. Choosing the right business bank account can significantly impact your financial and cash flow management

In this article, we’ll guide you through what features to expect from a business account and what to consider when comparing your options. Most importantly, we’ve gathered the 5 best business bank accounts of 2024, complete with their key features, fees, and eligibility requirements to help you narrow down your choices.

How Do Business Bank Accounts Work?

Business bank accounts function similarly to personal bank accounts. They are where you keep the funds and make transactions under your company’s name, allowing you to separate business and personal finances.

Typically, banks in the UK offer business current accounts for companies of all sizes, including freelancers and self-employed. These accounts are tailored to facilitate day-to-day business banking needs and often have the following features:

  • Overdraft Facility: Allows businesses to withdraw more money than is available in their account for short-term financial needs, helping to manage cash flow.
  • Business Loans: Offer financial support for various business activities, such as expansion, purchasing equipment, or increasing working capital.
  • Debit and Credit Cards: Enable secure and convenient payments on behalf of the business, often with additional perks like cashback rewards.
  • FSCS Protection: Ensures that deposits up to GBP 85,000 are protected per eligible account in the unlikely event of a bank failure under the Financial Services Compensation Scheme (FSCS).
  • Current Account Switch Service: Allows businesses to switch their account to another bank smoothly and quickly, typically within seven working days.

How to Compare Business Bank Account in the UK

When opening a business bank account, it is crucial to shop around and compare options to ensure you find the best fit for your specific needs. Comparing helps you pick the account that offers the best support for your business’s financial activities.
Here are some factors to consider to make an informed decision:

  • Account Features: Evaluate the usefulness of the account features such as online banking, mobile apps, and additional services like invoicing tools and accounting software integration.
  • Account Fees: Compare monthly maintenance fees, transaction fees, and any hidden costs associated with each account.
  • Account Opening Process: Consider the ease and speed of the account setup, including required documentation and potential wait times.
  • Eligibility Criteria: Review requirements like annual turnover, type of business entity, and industry to ensure your business qualifies.
  • Customer Support: Smaller businesses may benefit from dedicated customer support that’s easily accessible.
  • International Payments: Assess the ease, fees, and currency options for making and receiving international payments. This is essential if you’re planning to do business internationally. 
  • Transaction Limits: Check for any restrictions on the number or amount of transactions you can conduct, affecting daily operations.

5 Best Business Bank Accounts in the UK in 2024

Business Bank Account

Key Features

Best For

HSBC Small Business Banking Account

  • Manage your account, standing orders, direct debits, cards, and deposit cheques through the mobile app
  • Visa business debit and credit cards available
  • Business loans and overdrafts
  • Support international payments to over 60 countries (fees apply)

Small businesses that can benefit from an extensive international payment network

Monzo Pro Business Account

  • Free and paid account plans are available
  • Mobile app-based access to financial products and services 
  • Saving Pots to organise your savings
  • Virtual payment cards
  • Accounting software integration

UK-based sole traders and limited companies looking for a digital way to bank and 24/7 customer support

Starling Business Account

  • Optional Business Toolkit and foreign currency account add-ons
  • Integration with Xero, QuickBooks, and FreeAgent
  • Automated business spending categorisation
  • Multi-user access
  • Easy in-app application

UK entrepreneurs and small businesses looking for flexible, mobile-first banking solutions with strong customer support

Bank of Scotland Business Account

  • 24/7 access to your account through the mobile app, online, or by phone
  • Up to GBP 5,000 lending across a Business Overdraft or Business Credit Card
  • Make up to 25 payments in one batch
  • Mastercard® business debit and credit cards available

SMEs and growing businesses mainly operate in the UK, particularly in Scotland

Virgin Money M Account for Business

  • Free UK bank transfers
  • Mastercard® discounts on eligible debit card spending
  • 0.25% cash back on debit card purchases
  • Integration with Sage, Xero, and QuickBooks
  • Compatible with Apple and Google Pay

Sole traders and start-ups looking for business accounts with card cashback benefits

1

HSBC Small Business Banking Account

A screenshot of HSBC UK's website

HSBC UK is a wholly-owned subsidiary of the global HSBC banking and financial group. Headquartered in Birmingham, it is one of the most popular high-street banks in the UK and the largest bank in Europe, with a market capitalisation of over GBP 125 billion. 

The HSBC Small Business Banking Account combines the convenience of an online banking experience with the extensive services of a traditional banking institution. This account offers essential features designed to support the growth of start-ups and small businesses, including loans, international payment services, and specialist support. 

HSBC UK Account Features

  • Mobile Banking: Access your account balance, make payments, manage standing orders, and handle card payments anytime with the HSBC mobile app.
  • Visa Business Cards: Debit and commercial cards are available for your company and employees upon request.
  • Cheque Payments: Easily scan and instantly deposit cheques using the mobile app.
  • Loans and Overdrafts: Apply for small business loans from GBP 1,000 to 25,000.
  • International Payments: Make payments in over 60 currencies with fees starting from GBP 17.
  • Foreign Currency Accounts: Open foreign currency accounts in most international currencies. 
  • Specialist Support: Access live chat and UK-based telephone support tailored to the needs of business account holders.

Fees Charged by HSBC UK

Fees

Amount

Monthly Fee

GBP 8 after the first free 12 months*

Online Payments Via Business Internet Banking

Free

CHAPS Payments Via Business Internet Banking

GBP 17

Mobile Cheque Deposit

GBP 0.50 per cheque

Cash Deposit in Branch and Post Office

GBP 1.50 plus 1.50% of the amount deposited after an initial 12-month free period

Cash Withdrawal in Branch and Post Office

GBP 1.50 plus 1.50% of the amount withdrawn after an initial 12-month free period

*Only new businesses within their first 2 years of operation and businesses switching from other banks are eligible for the initial free 12 months of banking services.

HSBC UK Eligibility

The HSBC Small Business Banking Account is designed for small businesses with up to GBP 100,000 borrowing needs

Start-ups within their first 2 years of operation and without accounts at other banks are also eligible to apply and can benefit from free banking services, including waived monthly fees, for the first 12 months.

You must be able to provide a Companies House registration number (if you are a limited company or partnership) and your estimated turnover when applying for an account. We suggest visiting HSBC’s website for the completed list of required documents

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Tip: HSBC UK also offers other types of business accounts, such as the HSBC Kinetic Account for sole traders and single director shareholder businesses.

Statrys mobile application dashboard showing a total balance in a business account.

2

Monzo Business Pro Account

A screenshot of Monzo's website

Monzo is a London-based challenger bank that provides app-based personal and business banking services. Founded in 2015, it obtained its full banking licence in 2017 and operates entirely online without any physical branches.
With over 400,000 business customers, Monzo offers two account options: Business Lite and Business Pro. While the Lite account covers basic needs, including cheque deposits and debit cards, the Pro account offers advanced features such as integration with accounting software and virtual payment cards.

Monzo Account Features

Here are some of the key features of the Monzo Business Pro Account:

  • Fee-free UK Bank Transfers: Send and receive UK bank transfers instantly and free of charge.
  • Accept Card Payments: Accept contactless, card, Apply Pay, and Google Pay payments via Strips (fees apply).
  • Tax Pot: Automatically set aside a portion of your income for easy tax planning.
  • Instant Access Savings Pot: Deposit up to GBP 100,000 and earn 1.60% AER interest monthly. 
  • Accounting Software Integration: Integrate with Xero, FreeAgent, or QuickBooks accounting tool.
  • Virtual Cards: Create virtual cards to spend from your main account or each Saving Pot, in addition to physical Mastercard® debit cards.
  • Multi-user Access: Add up to two people to access the account.
  • Connect Other Accounts: Connect your other bank accounts or credit cards to streamline your account management.
  • Business Lending: Eligible sole traders can apply for up to GBP 2,000 overdrafts and up to GBP 25,000 loans.
  • 24/7 Customer Support: Chat with the support team anytime using the Monzo app or phone. 
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Tip: Compare the features of Monzo Pro and Lite Accounts in our detailed review.

Monzo Fees

Fees

Amount

Monthly Fee

GBP 5

Sending Money Within the UK

Free

Receiving Money in GBP

Free

Receiving Money in EUR

1% currency conversion fee (maximum GBP 1,000) for payments converted to GBP

Cash Withdrawals in GBP

Free

Cash Deposit at Any PayPoint or Post Office

GBP 1 per deposit

Monzo Eligibility

Only UK-based sole traders and registered limited companies can apply for a Monzo Business Account.

Partnerships, public limited companies, charities, and businesses in some industries, such as currency exchanges, telecommunications, and dating and escort services, are not eligible to apply.

You can find the full list of the prohibited industries on Monzo’s eligibility page.

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Useful Resource: Gain detailed insights into opening a Monzo Business Account with our comprehensive guide.

3

Starling Bank Business Account

A screenshot of Starling Bank's website

Starling Bank is an award-winning digital bank that was launched in 2014. It offers personal and business banking services exclusively online through the mobile app, with 3.6 million active users and over 350,000 SME customers

Starling Bank offers a free business current account with customisable add-ons to suit your business needs. You can enhance your account with the accounting and bookkeeping Business Toolkit or opt for a EUR or USD local account to enable multi-currency capabilities.

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Important: Starling Bank has currently paused new applications for the EUR and USD business accounts. However, existing users can still access this feature.

Starling Bank Account Features

  • UK Bank Transfers: Make a fee-free domestic transfer of up to GBP 250,000 per transaction via the Faster Payments network. 
  • International Payments: Transfer up to GBP 10,000 per transaction to bank accounts in 34 countries worldwide.
  • Saving Spaces: Organise your savings into separate spaces, like for tax and overheads. 
  • Software Integration: Connect your account to Xero, QuickBooks, FreeAgent, and other business services. 
  • Multi-director Access: Provide access to all directors (must be registered at Companies House)
  • Optional Business Toolkit: Streamline your bookkeeping and tax returns with an accounting add-on that enables you to manage your invoices, bills, tax, and VAT directly from your business account.
  • Optional EUR and USD accounts: Get local account details to make, receive, and hold money in EUR and USD, or both. 
  • 24/7 Customer Support: Get support from a team of specialists 24/7 via app, phone, or email. 
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Tip: Learn more about Starling Bank Business Account and how the local currency account works in our articles.

Starling Bank Fees

Fee

Amount

Monthly Fee

Free

Business Toolkit

GBP 7/month

EUR and USD Business Accounts

EUR Account: GBP 2/month

USD Account: GBP 5/month

Bulk Payments Service

GBP 7/month (VAT exempt)

Sending Money Within the UK (via Faster Payments, Direct Debits, and Standing Orders)

Free

Receiving Money in GBP

Free

Cash Deposit Through the Post Office Counter Service

GBP 3 or 0.7% of the amount deposited, whichever fee is higher

ATM Withdrawal in GBP

Free

Cash Withdrawal in Foreign Currency Outside the UK

Free

Starling Bank Eligibility

You must be a limited company, or LLP registered at Companies House to apply for a business account with Starling Bank. Moreover, all directors with access to the account must be UK residents.

You are also eligible if you are a sole trader or a business owner with no partnerships.

We recommend checking your eligibility on Starling Bank’s Business Account Eligibility page to ensure you meet the KYC, fraud, and credit checks criteria.

4

Bank of Scotland Business Account

A screenshot of Bank of Scotland's website

Founded in 1695, the Bank of Scotland is one of the oldest banks in the UK. Headquartered in Edinburgh, it has been a part of Lloyds Banking Group since 2009. 

As an established baking institution, the Bank of Scotland offers a range of bank accounts for business purposes, including a standard Business Account, a School Bank Account for state-funded schools, a Credit Union Account, and a Treasurer’s Account for non-profit organisations. 

Bank of Scotland Account Features

  • Introductory Offer: Bank with no monthly account fee for the first 12 months.
  • Business Lending: Borrow up to GBP 5,000 across a business overdraft and credit card
  • Online Payments: Make online payments of up to GBP 250,000 per day from the app.
  • Mobile Cheque Deposits: Deposit cheques up to a daily limit of GBP 10,000 via the mobile app
  • Business Finance Assistant: Connect with the Bank of Scotland’s free accounting software to simplify expense management, digitally submit VAT to HMRC, and more.
  • Branch Access: Get support in over 100 branches across Scotland.

Bank of Scotland Fees

Fee

Amount

Monthly Fee

GBP 8.50 after 12 months

Incoming Electronic Payments (including Direct Debits, Standing Orders, Faster Payments Debits, Internet/Phonebank Debits, and Internet Bulk Payments)

Free

Outgoing Electronic Payments

Free 100 transactions per month; otherwise, GBP 0.20 each

CHAPS Payments

GBP 30

Cash Deposits

(through branch counters, ATMs, or Post Offices)

GBP 1.50 for every GBP 100

Cash Withdrawals

At branch counters or Post Offices: GBP 1.50 for every GBP 100
At Lloyds Banking Group Cashpoint: Free

Bank of Scotland Eligibility

To open a new account with the Bank of Scotland, you must:

  • Be a UK resident over 18
  • Be a sole trader, partner, company director
  • Not have an existing bank account with the Bank of Scotland
  • Have an annual turnover of less than GBP 25 million

You can apply for an account through the app if you are all of the above but have an annual turnover of less than GBP 3 million. We suggest checking with the bank’s Business Bank Accounts page for a completed list of the required documents. 

5

Virgin Money M Account for Business

A screenshot of Virgin Money's website

Virgin Money is a full-service banking and financial service provider in the UK. Launched in 1995, it obtained a banking licence in 2010. Virgin Money is currently being acquired by Nationwide Building Society, with the process expected to be completed by the end of 2024.

Virgin Money’s M Account for Business is designed for businesses with a turnover of less than GBP 1 million. The bank also offers a range of business banking products, including standard business current accounts, accounts for registered charities, and credit cards.

Account Features

  • Fee-free UK Bank Transfers: Make domestic bank transfers of up to GBP 30,000 per online transaction for free through the app and Business Internet Banking.
  • 0.25% Cash Back: Earn 0.25% cash back on debit card purchases.
  • Mastercard® Discounts: Get discounts on eligible spending when you use your debit card.
  • In-app Cheque Scanning:  Deposit cheques conveniently and without fees using the mobile app.
  • Mobile Payment Compatibility: Supports Apple and Google Pay for easy and secure mobile transactions. 
  • Accounting Software Integration: Integrates with Xero, QuickBooks, and Sage; includes an offer for 3 months of Xero or QuickBooks without fees.

Virgin Money Fees

Fee

Amount

Monthly Fee

Free

UK Bank Transfers

Free

CHAPS Payments

GBP 17.50 via Business Internet Banking or GBP 25.00 via Store and telephone banking

SWIFT Payments

GBP 17.50 via Business Internet Banking or GBP 25.00 via Store and telephone banking

Debit Card Cash Withdrawal in the UK and EEA

Free for withdrawals in GBP, EUR, SEK, and RON; otherwise, 3.75% of transaction value, minimum GBP 1.50

Cash Paid In

GBP 0.90 per GBP 100

Cash Paid Out

GBP 0.90 per GBP 100

Virgin Money Eligibility

You must be a start-up, sole trader, limited company, limited liability partnership, or partnership with an annual turnover of less than GBP 1 million to open a Virgin Money’s M Account for Business.

Your business must also be based and operated in the UK (excluding the Channel Islands, Isle of Man, and Northern Island) and must not be bankrupt.

You may not be able to open a business account with Virgin Money if you operate in or trade with Crimea, Iran, North Korea, or Syria. You can check your eligibility directly with Virgin Money on their website. 

Final Note

Choosing the best business account involves careful consideration of features, pricing, and their potential to support your business’s growth.

While we have picked the top five business accounts based on common UK business needs, you may also explore additional options from other banks or fintech providers, such as Revolut Business and Tide.

If you plan to expand your business internationally, consider multi-currency accounts like Statrys to streamline your global operations. 

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Tip: Explore our pick for the 5 best banks in the UK and reviews of popular business accounts for more account provider options.

Statrys mobile application dashboard showing a total balance in a business account.

FAQs

Which banks are best for businesses in the UK?

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Our top 5 best banks for business accounts in the UK include HSBC, Monzo, Starling Bank, Bank of Scotland, and Virgin Money.

Which type of bank account is best for business?

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Can foreign companies open a business bank account in the UK?

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Can I open a business bank account online in the UK?

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