Best Business Bank Accounts for Limited Companies

Starting strong with the right business bank

Choosing a business bank account for your limited company is about more than somewhere to park cash. The right account can cut admin, improve cash flow, and give you tools that help you stay compliant. The good news is that several UK providers now offer fee-free everyday banking, generous free periods, and helpful integrations with accounting software.

We have compared trusted UK options that work for directors of Companies House-registered limited companies. You will see familiar high street names alongside highly rated digital banks. Each option has different strengths, from long free periods to multi-currency support. We will walk through what matters, how to decide, and what to watch out for so you can open an account that suits the way you actually run your business.

Good banking should be simple, transparent, and aligned with your company’s growth plans.

Who will find this most useful

If you are a UK-based director of a limited company registered by shares, this guide is for you. It is particularly helpful if you are starting up, switching to find better value, or scaling and need features like accounting integrations, multi-user access, or multi-currency accounts. We keep things clear and practical so you can make a confident, well-informed choice.

What makes an account a top pick

The best business account for a limited company combines low costs with tools that save time. Several providers now offer fee-free everyday banking or long introductory free periods. For example, Monzo Lite gives limited companies fee-free UK card purchases and transfers with no monthly charge. Barclays offers 12 months free day-to-day banking plus a switching bonus for eligible limited companies, while TSB provides an extended 30 months of free everyday banking for small businesses and startups.

User experience also matters. Starling Bank is highly rated for customer satisfaction and offers fee-free everyday banking with optional add-ons like its Business Toolkit. Digital-first providers such as Tide make setup quick and integrate smoothly with popular accounting platforms. If cost is your priority, Virgin Money’s M Account for Business and The Co-operative Bank’s business account offer free basic banking. For international trade, Revolut Business brings multi-currency support and helpful expense tools.

The right choice depends on your turnover, the number of directors, whether you need branch access, and whether you trade internationally. The aim is to minimise costs while gaining features that reduce admin and support growth.

How to choose and open with confidence

Start by listing your must-haves. If you want a physical branch and relationship support, options like Lloyds or Barclays are worth a look. If you value speed and flexible digital tools, consider Starling, Tide, Monzo Lite, or Revolut Business. New companies often benefit from free periods that keep early costs down, such as NatWest’s startup account for businesses trading under a year.

Check eligibility carefully. Most providers require Companies House registration, proof of identity, and clarity over ownership. Some offers target specific turnover ranges or sectors. It is wise to confirm fees that apply after any free period ends, along with costs for cash deposits, international transfers, and CHAPS.

Opening is typically straightforward. Digital banks can approve accounts quickly through in-app verification. High street banks may take longer if you need meetings or complex onboarding. Keep directors’ photo ID, proof of address, company details, and ownership structure ready to speed things up.

Next steps:

• Shortlist 3 accounts that match your must-haves
• Confirm eligibility and post-offer fees
• Apply with documents to hand to avoid delays

Why it pays to switch or start fresh

Keeping banking costs low directly supports cash flow, especially in the first 12 to 24 months of trading. A lengthy free period, such as TSB’s 30 months, can be a meaningful saving. Beyond price, the right account can simplify bookkeeping with real-time feeds into your accounting software, cutting errors and end-of-year stress.

Customer support and reliability matter. A highly rated provider like Starling offers consistent user satisfaction and useful add-ons, while traditional banks provide branch access, relationship managers, and broader lending products as you grow. If you trade overseas or pay international suppliers, Revolut Business’s multi-currency features can reduce friction and fees.

Choosing well means less time wrestling with admin and more time building your business. It is about fit, not hype.

Head-to-head highlights

Standout line: The best account is the one that fits your operations and keeps future fees predictable.

Things to double-check before you apply

Promotions end, and that is where real costs begin. Confirm what you will pay when a free period finishes, including monthly fees and charges for cash deposits, CHAPS, international transfers, and replacement cards. If you handle a lot of cash, check branch or Post Office deposit fees. If you trade in multiple currencies, compare exchange rates and foreign transaction costs.

Eligibility is another common pitfall. Some offers apply only to limited companies within specific turnover bands or to businesses trading under a year. Make sure directors and persons with significant control can complete ID checks smoothly, particularly if you have multiple shareholders or overseas elements. Finally, review service levels: response times, availability of a relationship manager, and any limits on out-of-hours support. A few minutes spent reading the fee schedule and eligibility criteria can prevent unwanted surprises later.

Other routes worth considering

1. Keep your current provider and negotiate fees when your free period ends.
2. Use an e-money business account for speed while a full bank account is being set up.
3. Add a multi-currency wallet alongside a domestic account to cut FX costs.
4. Consider a high street account for cash deposits plus a digital account for daily spend.
5. Explore specialist providers if you operate in higher-risk or regulated sectors.

Common questions, clear answers

• Q: Do I legally need a business account for my limited company? A: Yes. A limited company is a separate legal entity, so you should use a dedicated business account for its transactions.

• Q: Will opening an account affect my credit score? A: The bank may run checks on the company and directors. A soft search is common. Any impact is usually minimal if managed responsibly.

• Q: Can I open an account if I have multiple directors? A: Yes. Most providers support multi-director setups. Be ready to supply ID and ownership details for all relevant individuals.

• Q: What if I need to bank cash regularly? A: Choose a provider with suitable deposit options and clear pricing. High street banks or Post Office deposit partnerships can be more convenient.

• Q: Which account is best for international payments? A: Revolut Business is strong for multi-currency. High street banks also support international transfers but compare fees and exchange rates.

How Switcha fits in

Switcha will connect you with the best options for what you are looking for. We compare costs, features, and eligibility for UK limited companies, then guide you through the next steps so you can open with confidence and avoid unnecessary fees.

Sensible small print

Information here is general guidance, not financial advice. Offers, eligibility, and fees change. Check each provider’s terms and price lists before applying, and consider independent advice if you are unsure about your company’s needs.