Best Business Bank Accounts for New Businesses

Getting set up with the right business account

Opening a business bank account is one of the first money decisions a new UK company makes. The right choice can save fees, simplify bookkeeping, and give you tools that support growth. The wrong one can add friction and cost. This guide walks through trusted UK options for startups, from mobile-first fintechs to high street banks, and explains how to weigh fees, features, and support. We keep it practical and transparent so you can feel confident about your next step.

Keep fees low, keep options open.

Who will find this useful

If you are launching a UK startup, sole tradership, or limited company and need a reliable, compliant place to manage income and expenses, this is for you. It suits founders who want digital speed, as well as those who prefer in-branch support.

What a strong startup account actually offers

A good business account should make day-to-day money management easier, not harder. For new businesses, that means fast onboarding, simple pricing, dependable UK payments, and integrations that prevent admin pile-ups. Digital-first providers like Tide and Starling prioritise quick account opening, built-in invoicing, and accounting sync to help you get moving. If you sell or buy internationally, options like Wise Business and Revolut Business provide multi-currency accounts and low-cost international transfers using real exchange rates. For traditional banking needs and credit access, high street names such as NatWest, Barclays, Lloyds, and TSB offer free-banking periods and branch support.

The choice depends on your model: a freelancer sending invoices won’t need the same features as a growing e-commerce scale-up with overseas suppliers. Start with your must-haves: low fees, integrations, or in-person guidance. Then compare.

How to choose with confidence

Begin with your core activity and cashflow. If you expect frequent international payments, prioritise providers with multi-currency accounts and transparent FX pricing such as Wise Business or Revolut Business. If you want zero monthly fees and UK payment charges, Starling is attractive for lean cost control. For instant access and quick setup with handy tools like invoicing and accounting integrations, Tide and ANNA Money can reduce admin and keep you focused on sales. If you value branch support, relationship managers, and access to overdrafts or loans, investigate NatWest, Barclays, Lloyds, and TSB. Their free-banking windows help keep early costs down.

Check the finer points: card fees, ATM costs, international transfer rates, and whether user permissions and expense controls fit your team. Ensure your provider is regulated and supports standard UK protections. Finally, test the app or online banking experience. A smooth interface saves hours every month.

Why this matters for your first two years

Your early months are about cash discipline and simplicity. Avoiding unnecessary monthly fees helps you reinvest in growth. Integrated invoicing, expense tracking, and real-time notifications make it easier to stay tax-ready and spot cashflow gaps before they bite. If you trade globally, getting the right FX solution can protect margins. And when you need support, responsive service - whether chat-based or in-branch - reduces downtime.

Choose the account that removes friction from the way you actually trade, not the one with the longest feature list.

Quick comparison: standout options for UK startups

Risks and fine print to check

Free-banking periods are valuable but temporary. Know exactly when charges begin and what they include. Review card and transfer fees, especially for international payments, to avoid erosion of margins. If you take cash or cheques, confirm deposit options and charges. For multi-user teams, ensure you can set spending limits and permissions. Check compatibility with your accounting software to prevent manual reconciliations. Finally, read service level details. Some providers excel at chat-based support, while others offer branch appointments. Pick the model that matches how you prefer to resolve issues.

Other good options to consider

1. Monzo Business - digital-first with integrated invoicing and pots for budgeting.
2. HSBC Kinetic - app-led with lending options and high street presence.
3. Santander Business Current Account - strong for merchant services and cashback offers at times.
4. Metro Bank - extended opening hours and in-branch support.
5. Cashplus Business - quick setup, helpful for credit building.
6. Virgin Money M Account for Business - free everyday banking on some tiers.

FAQs

Q: Do I legally need a business account as a sole trader? A: It is not a legal requirement, but keeping business and personal finances separate makes tax returns easier and looks more professional to clients and lenders.

Q: Will opening a business account affect my credit score? A: The provider may run checks. Hard searches can appear on your file. Managing the account responsibly can help when you later apply for credit.

Q: Which account is best for international invoices? A: Wise Business and Revolut Business offer multi-currency accounts with transparent FX pricing. They are well suited to receiving and paying in multiple currencies.

Q: How quickly can I open an account? A: Digital providers like Tide, Starling, and ANNA often approve accounts quickly with in-app verification. High street banks may take longer due to additional checks.

Q: Can I switch later without hassle? A: Yes. Many providers support the Current Account Switch Service, which moves payments and balances for you on an agreed date, minimising disruption.

Next steps to make a confident choice

• List your top three must-haves: fees, FX, or branch support.
• Compare total costs based on your expected transactions.
• Test the app experience and accounting integrations.
• Confirm free-banking end dates and what fees start after.
• Start with the provider that best fits your first 12 months, then review.

How Switcha fits in

Switcha will connect you with the best options for what you are looking for, based on how you trade today and where you plan to grow. We keep comparisons clear, surface the real fees, and help you shortlist providers that match your needs without pressure.

Important note

Information in this guide is for general guidance only and is not financial advice. Always check the latest fees, eligibility, and terms on the provider’s site and consider independent advice for your situation.