Compare Business Bank Accounts

Starting your business banking on the right foot

Choosing a business bank account should feel straightforward, not stressful. The right account helps you manage cash flow, keep tax tidy, and access tools that save time. In the UK you can pick from digital challengers that get you set up quickly with low fees, and established high street banks that offer in-branch support and relationship managers. Many providers include free banking periods to reduce costs early on, and most integrate with popular accounting software to simplify bookkeeping. We will walk through what to look for, how accounts differ, and where protections like the FSCS fit in so you can make a confident, informed choice.

Good banking is quiet - it lets you focus on building your business.

Who will find this most useful

If you are a UK startup, sole trader, or small limited company weighing up your first business account or considering a switch, this guide is for you. It is written in plain English, with a balanced look at digital and high street options so you can match features and fees to how you actually trade.

What a modern UK business account offers

A business account keeps company money separate, which makes tax and record-keeping cleaner. Beyond that, features vary. Digital banks such as Tide, Revolut Business, Starling, and ANNA are popular for quick setup, lower fees, and smart tools. High street names like Barclays, Lloyds, HSBC, NatWest, and Santander provide branch access, cash handling, and relationship management that some businesses value. Many leading options for startups in 2026 - including HSBC, ANNA, NatWest, Airwallex, Santander, Revolut Business, Starling Bank, and Barclays - advertise free banking for around 12 months, sometimes longer. After introductory periods, typical monthly fees range from about £5 to £12.50, while some digital providers such as Tide and Zempler keep a free plan with no annual fee. If you trade internationally, multi-currency support from providers like Airwallex, Revolut Business, and Barclays can cut costs and friction.

How to compare accounts - a clear checklist

Start with the basics: set-up requirements, fees after any free period, and the tools you need. Opening usually means providing ID, proof of address, and company registration details. Sole traders typically supply personal ID and proof of trading, such as HMRC registration or invoices. Look closely at payment fees, card charges, and cash deposit costs if you handle notes and coins. For bookkeeping, check integrations with Xero or FreeAgent to reduce admin and error risk. If you sell overseas or get paid in other currencies, check multi-currency wallets and international payment fees by plan.

Here is a quick snapshot to frame your options:

*Customer satisfaction scores vary by provider and time. Always check current ratings.

Next steps you can take today:

• List your must-have features: cash deposits, multi-currency, accounting links.
• Compare total cost after any free period, not just headline offers.
• Check FSCS eligibility and per-licence limits that apply to your business type.

Why the details really matter

Free banking periods help in the first year when every pound counts, but your long-term costs kick in once the offer ends. Planning for monthly fees of around £5 to £12.50 means fewer surprises. FSCS protection up to £85,000 per banking licence is a cornerstone of safety for eligible UK businesses. Sole traders share a combined £85,000 limit across personal and business accounts with the same licence, while limited companies typically have a separate £85,000 limit per licence. If you hold larger balances or spread risk, consider using multiple providers with different licences. Cash-heavy traders should review deposit limits and charges, which often run from about £0.60 to £1.50 per £100 deposited. Finally, if you invoice overseas or pay suppliers abroad, multi-currency accounts and fair FX pricing can meaningfully reduce costs and admin.

Safety, cost, and fit-for-purpose tools - get those right and the rest follows.

The upsides and trade-offs at a glance

Key watchouts before you apply

Focus first on the small print. Promotional free periods can mask higher ongoing charges, so model your likely transaction volumes and see the total monthly cost beyond month 12. Confirm whether the provider is a bank with FSCS cover or an e-money institution that safeguards funds but is not FSCS protected. If you take cash, check daily and annual cash deposit limits and per-£100 fees, which can add up quickly. For international trading, compare FX mark-ups and transfer fees by currency and corridor. Review eligibility criteria and documentation early to avoid delays, and check for any limits on high-risk sectors. Finally, test the app experience and support channels - real-time chat or UK phone support can be invaluable when something needs fixing fast.

Other routes you could take

1. Keep your personal account for very light trading while you set up a proper business account - note this is often against terms for continued business use.
2. Use an e-money account for speed, then add an FSCS-protected bank for larger balances.
3. Open multiple accounts to separate income streams and spread risk across licences.
4. Work with an accountant to align banking tools with your bookkeeping and VAT processes.
5. Choose a provider that bundles software discounts, merchant services, or invoicing tools to lower total costs.

FAQs

Q: Do I need a business bank account as a sole trader? A: It is not a legal requirement, but it keeps business finances separate, simplifies bookkeeping, and can make tax time easier. Many providers offer sole trader plans.

Q: What documents will I need to open an account? A: Typically a valid photo ID, proof of address, and company details. Sole traders may provide HMRC registration or recent invoices as proof of trading.

Q: What is FSCS protection and does it apply to me? A: FSCS protects eligible deposits up to £85,000 per banking licence. Sole traders share this limit with personal funds at the same licence. Limited companies usually have a separate £85,000 limit.

Q: Are digital banks safe for business funds? A: Regulated digital banks with UK licences are FSCS protected. E-money institutions are regulated for safeguarding but are not FSCS protected. Check the provider’s status before depositing.

Q: How much will I pay after any free period? A: Many accounts move to monthly fees of roughly £5 to £12.50. Also factor in transaction charges, cash deposit fees, and any international transfer or FX costs.

How Switcha supports your decision

Switcha will connect you with the best options for what you are looking for, based on your business type, budget, and preferred features. We compare providers side by side, highlight key differences, and keep the guidance impartial so you can choose with confidence.

Important information

This guide is for general information only and is not financial advice. Product details, fees, and eligibility can change. Always check the latest terms and consider speaking to a qualified adviser before making decisions.