5 Best Business Bank Accounts in the UK [2024]

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.

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.

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.

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. 

• 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.

*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.

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. 

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.

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. 

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.

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.

• 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. 

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.

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. 

• 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.

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. 

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.

• 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.

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. 

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.