Opening or managing a small business requires careful financial planning, and one key decision is selecting the right business bank account.
Whether you’re launching your first business or considering a switch to a better provider, choosing the best business bank account can make a massive difference when it comes to your company’s operations, savings, and efficiency. That’s why, like anything else, and especially when you’re starting out, an affordable but effective business bank account can be a great way to limit your overheads.
In this article, we’ll guide you through the best business bank accounts available in the UK for 2025, comparing features and benefits to help you make the best choice for your business needs.
The 11 best business bank accounts for small businesses in 2025
Our top 11 small business bank accounts are:
- Tide
- HSBC
- Wallestar
- Card One Money
- Airwallex
- ANNA Money
- Countingup
- Zempler
- Virgin Money
- Monzo
- Starling
Tide Business Current Account
Tide offers a free business bank account tailored for UK small businesses, including limited companies, sole traders, and freelancers. With no monthly fees, the account features simple payment solutions, built-in accounting tools, and a savings account with 4.07% AER variable interest.
The account is easy to open online within minutes, offering seamless integration with accounting software, personalised invoicing, and international payment capabilities. Supported by 24/7 in-app assistance and robust security, Tide is a smart choice for businesses seeking a cost-effective, efficient banking solution.
Pros
- You’ll never pay monthly account fees, making it highly cost-effective
- Quick and simple account setup completed in minutes
- Interest-earning savings account with competitive rates
Cons
- Limited access for additional team members
- Transaction fees for ATM withdrawals and foreign currency card transactions
- Limited customer support options on the free plan
Key Features
- No monthly fees: Only pay for specific transactions and services
- 4.07% AER savings: Earn interest with the Tide Instant Saver Account
- Personalised invoicing: Create, send, and track invoices within the app
- Seamless accounting integration: Connect to popular accounting software
- 24/7 support: In-app customer assistance every day of the year
- International payments: Send and receive global transactions using IBAN
- Apple and Google Pay: Easily manage digital transactions
- Payment links: Request payments online with secure links
- Expense cards: Add cards for team members at £5/month
- Direct debit management: View and manage all Direct Debits via the app
HSBC
HSBC’s Small Business Banking Account offers 12 months of free banking for UK start-ups and switchers with a turnover under £6.5 million. During this introductory period, businesses enjoy no monthly maintenance fees, free standard transactions, and a wide range of digital and physical banking features.
Designed to support small businesses, the account includes access to overdrafts, commercial cards, and secure digital banking tools such as mobile cheque deposits and cashflow management. After the first year, the account transitions to an £8 monthly fee with other charges applied. HSBC also offers effortless switching and access to international payments, making it a strong contender for businesses starting or growing their financial operations.
Pros
- Free banking for the first year helps new businesses save on costs
- Multiple access methods, including digital and in-person options
- Comprehensive range of tools for cashflow and payment management
Cons
- Free banking ends after 12 months, with a monthly fee of £8 thereafter
- Charges apply for cash deposits (1.50%) and cheque deposits (50p each) after the free period
- Overdrafts and loans are subject to status and application
Key Features
- 12 months of free banking: For eligible businesses
- No maintenance fees or standard transaction charges: During the free period
- Visa debit and commercial cards: With no annual fee for the first year
- Overdrafts and small business loans available: Subject to status
- Bank 24/7 via online, app, or telephone banking: Flexible access to your account
- Mobile cheque deposits: Up to £5,000 per day via the app
- International payments in over 60 currencies: Starting at £17
- Cash services: Available at branches and 11,500+ Post Offices
- Simplified account switching: Includes the Current Account Switch Guarantee
- Specialist support: Via live chat, secure messaging, and telephone
Wallestar
Wallester’s free business bank account provides lifetime access with no monthly fees, making it a cost-effective solution for businesses of all sizes. Tailored for modern financial management, it offers features like unlimited users, flexible expense management, and seamless integrations.
Businesses can issue unlimited physical and virtual Visa cards linked to an IBAN account, set individual spending limits, and manage detailed analytics. The account is accessible through an intuitive mobile app, enabling real-time control over corporate finances. With robust tools for accounting and expense reporting, Wallester is ideal for companies looking to streamline financial operations without hidden costs.
Pros
- No hidden account, minimum balance, or card issuance fees
- Unlimited users, making it ideal for scaling businesses
- Advanced card and expense management features
Cons
- Limited to businesses operating within the EEA, UK, United Arab Emirates (UAE), Singapore, the USA, and Canada (though you can get in touch if you are outside these regions)
- Virtual cards beyond the included 300 require additional fees
- Not a traditional bank account; relies on IBAN-based transfers
Key Features
- Lifetime free access: No hidden fees or monthly charges
- Unlimited users and sub-accounts: Supports scalability for growing businesses
- Card issuance: Unlimited physical cards and 300 virtual cards included
- Fast setup: Open an account in just 24 hours with basic details
- Advanced expense management: Set individual and card-level spending limits
- Accounting integration: Automated expense reports and seamless system compatibility
- Real-time spending control: Notifications, analytics, and detailed reports
- Custom integrations: Open Developer API for tailored business needs
- Dedicated support: Access to a dedicated account manager and real-time assistance
Card One Money
Card One Money’s Business account offers a practical business banking solution designed for companies with an annual turnover of less than £2 million. While not covered by the Financial Services Compensation Scheme (FSCS), it simplifies financial management with features like faster payments, Direct Debit setup, and team expense cards.
Opening an account is straightforward, with no credit checks required and same-day activation. For a small monthly fee, businesses gain access to online and mobile banking, four additional cards for expense management, and 24/7 account access. This account is ideal for small businesses seeking quick setup and comprehensive payment tools.
Pros
- No credit checks make it accessible to businesses with limited credit history
- Same-day account activation means you can get set up quickly
- Offers expense cards to streamline team spending
Cons
- Not covered by the Financial Services Compensation Scheme (FSCS)
- Monthly and application fees may be costly for smaller businesses
- Limited to four additional team cards
Key Features
- Quick setup: Open an account online in under 10 minutes
- No credit checks: Approval based on ID and residency verification
- Expense cards: Order up to four additional team cards
- Online and mobile banking: Manage finances 24/7 from anywhere
- Faster payments: Instant payments in and out of the account
- Direct Debit and standing orders: Automate recurring payments
- Pay in cash and cheques: Flexible deposit options for businesses
- Manage wages and invoices: Streamlined payment management tools
- 14 years of experience: A reliable banking partner for businesses
- Fixed fees: £12.50 per month and a one-off £55 application fee
Airwallex
Airwallex’s Explore account is a robust, fee-free business account tailored for international businesses. With multi-currency accounts, zero-fee international corporate cards, and real-time expense management, Airwallex simplifies global transactions. Businesses can open local currency accounts in over 60 countries, make international transfers to 150+ countries at interbank rates, and accept payments from 180+ countries.
Features like integration with platforms like Xero, Shopify, and Amazon, combined with award-winning customer support, make Airwallex an excellent choice for businesses operating across borders. Bear in mind that the Explore account is only free if you maintain or deposit £10,000 every month, otherwise the monthly fee is £19 per month.
Pros
- Comprehensive global banking tools with no fees for qualifying accounts
- Multi-currency accounts and interbank FX rates for cost-effective international business
- Seamless integration with accounting and e-commerce platforms
Cons
- Requires a £10k monthly deposit or balance to maintain £0 fee status
- Some features, such as advanced integrations, may require technical setup
- May be over-featured for businesses without significant international operations
Key Features
- £0 monthly fee: For accounts meeting deposit or balance requirements (£10k minimum; otherwise £19
- Multi-currency accounts: Open local currency accounts in 20+ currencies
- Interbank FX rates: Save on international currency conversions
- International transfers: To 150+ countries, with 90% arriving same day
- Zero international fees: On corporate cards and employee cards
- Expense management: Issue and manage up to 10 company cards and 5 employee cards for free
- Free local transfers: To over 120 countries and domestic transfers
- Global payment acceptance: Accept funds from 180+ countries
- Software integration: Sync transactions with Xero, Shopify, and more
- Centralized fund management: Streamline operations without additional entities
ANNA Money
ANNA’s Pay As You Go account is a flexible option for small businesses seeking a no-commitment banking solution. With no monthly fees, you only pay for the services you use, making it ideal for those with fluctuating needs.
Transaction fees are straightforward, including 20p for local bank transfers and £1 for ATM withdrawals. ANNA offers integrated tax and bookkeeping tools, one expense card, invoicing functionality, and up to 40% cashback on select purchases.
Additional features include receipt capture, accountant sharing, and optional extras like pots and multi-user cards. ANNA simplifies banking and financial admin, providing tools to keep your business finances in check while keeping costs manageable.
Pros
- Flexible pay-as-you-go pricing with no monthly commitment
- Advanced invoicing, tax, and bookkeeping tools included
- Cashback rewards on everyday business purchases
Cons
- Charges can add up quickly for high transaction volumes
- Additional costs for extra cards and pots
- Currency conversion and international payments incur fees
Key Features
- Pay-as-you-go pricing: No monthly fee; charges apply per transaction
- Bank transfers: 20p per local transfer, £5 per CHAPS or SWIFT payment
- 1 expense card included: Additional cards available for £3/month each
- Cashback: Up to 40% cashback on over 150 products and services
- Professional invoicing: Create, send, and chase invoices with QuickPay functionality
- Receipt capture: Snap and auto-categorise receipts on the go
- Direct debits: Free to set up with no extra charges
- Integrated tools: Tax and bookkeeping tools included for one month
- Payment link: Accept payments instantly via a personal payment link
- Accounting integration: Sync with Xero or share access with your accountant
Countingup
Countingup combines a business current account with accounting software, making it a time-saving solution for UK small businesses and sole traders. Features like automated bookkeeping, tax estimates, real-time profit and loss insights, and unlimited invoicing streamline financial management.
The account includes a three-month free trial with no subscription fees. Afterward, pricing adjusts based on monthly deposits, starting at £3/month. Trusted by over 50,000 businesses and rated ‘Excellent’ on Trustpilot, Countingup simplifies running a business with friendly, UK-based support and innovative tools like receipt capture and seamless accountant sharing.
Pros
- Combines business banking and accounting in one easy-to-use app
- Flexible pricing tailored to business activity levels
- Built-in tools for tax planning and financial insights
Cons
- Limited to sole traders and small business owners (partnerships are not eligible)
- Monthly fees increase with higher deposits, adding costs for growing businesses
- Only free for three months
Key Features
- 3-month free trial: No subscription fees for the first three months
- Fast setup: Open an account in minutes with a contactless card, sort code, and account number
- Automated bookkeeping: Categorisation of transactions saves time
- Invoicing & billing: Create and send unlimited invoices for free
- Tax estimates: Helps you budget and avoid surprises
- Real-time insights: Profit and loss reports at your fingertips
- Receipt capture: Digitise and store receipts within the app
- Accountant sharing: Share financial data instantly and securely
- Activity-based pricing: Monthly fees adjust with business performance
- UK-based support: Friendly assistance available seven days a week
Zempler
Zempler’s Business Go account is a free, no-monthly-fee banking solution for UK businesses, designed to get operations off the ground quickly. With FSCS protection up to £85,000, it offers secure, flexible banking accessible both online and via an intuitive app. Features include cashflow tracking, integrated accounting, and digital invoicing tools to streamline financial management.
Customers benefit from real UK-based telephone support and 24/7 fraud protection. While most standard services are free, there are minimal charges for additional features such as cash withdrawals and card issuance. Zempler’s practical tools and affordable services make it an excellent choice for startups and small businesses.
Pros
- No monthly account fee, making it accessible for startups
- Robust tools for managing cashflow, invoicing, and accounting
- FSCS-protected deposits ensure peace of mind
Cons
- £2 UK cash withdrawal fee, higher for non-UK withdrawals (£3)
- Limited free transactions (3 transfers per month; 30p thereafter)
- One-time £9.95 fee for issuing a Business Go card
Key Features
- £0 monthly fee: Cost-effective banking for small businesses
- FSCS protection: Up to £85,000 on eligible deposits
- Fast application process: Apply in minutes and bank online or via the app
- UK-based telephone support: Speak to real humans when needed
- 24/7 fraud protection: Advanced security for your account
- Integrated accounting tools: Sync with Xero, QuickBooks, or Sage
- Digital invoicing: Create and send invoices, with instant payment notifications
- Cashflow tracking: Monitor income and expenses in real time
- Cash deposits: Pay in cash at any of the UK’s 11,500 Post Offices (£3 minimum fee or 0.5%)
- Business Go card: Available for a one-time fee of £9.95
Virgin Money
Virgin Money’s M Account for Business is a free, online bank account tailored for startups, sole traders, and small businesses with turnovers under £1 million. Offering zero monthly fees, free day-to-day banking, and cash back on debit card purchases, it’s designed to simplify money management.
The account integrates seamlessly with tools like QuickBooks and Xero, and includes features like in-app cheque scanning, automated spending categorisation, and real-time payment notifications. With FSCS protection for deposits up to £85,000 and expert guidance through Virgin Startup, this account is ideal for those seeking a cost-effective, feature-packed solution.
Pros
- No monthly fees and free day-to-day banking
- Cashback on debit card purchases and Mastercard discounts
- Strong integration with accounting tools like Xero and QuickBooks
Cons
- Only available to businesses with a turnover below £1 million
- Charges for some international transactions
- Not available to businesses based in the Channel Islands, Isle of Man, or Northern Ireland
Key Features
- No monthly fees: Free day-to-day digital banking
- Cashback rewards: Earn 0.25% cashback on debit card purchases
- Business insights platform: Use M-Track for financial data analysis and planning
- Seamless integrations: Compatible with QuickBooks, Xero, and Sage
- In-app cheque scanning: Deposit cheques digitally
- Real-time notifications: Stay updated on account activity
- Scheduled payments: Manage regular payments easily
- Paper-free statements: Digital documents for convenience
- Mastercard perks: Access discounts on purchases
- Expert mentoring: Guidance from Virgin Startup
Monzo
Monzo’s Lite business account offers a simple, efficient way to manage your business finances. Designed for sole traders and small businesses, it provides essential banking tools like free UK bank transfers, contactless card payments, and international payment options.
With features such as instant access savings pots, advanced security, and 24/7 customer support, Monzo Lite is perfect for those looking for a reliable, user-friendly digital banking experience. FSCS protection for deposits up to £85,000 ensures peace of mind, and the fast mobile sign-up process makes getting started a breeze.
Pros
- Completely free, with essential banking features
- Excellent mobile app with user-friendly tools
- FSCS-protected deposits for added security
Cons
- Limited team management features (e.g., no expense cards or team access levels) on Lite plan
- No integrated accounting or invoicing tools on Lite plan
- Bulk payments and tax pots unavailable on the Lite plan
Key Features
- Free UK bank transfers: Instant and easy payments
- Contactless card payments: Accept payments in person
- Payment links: Enable customers to pay online
- Scheduled payments: Automate regular transactions
- Cash and cheque deposits: Manage deposits conveniently
- International payments: Send money globally
- Instant access savings pots: Save and manage funds effectively
- FSCS protection: Coverage up to £85,000 on eligible deposits
- 24/7 customer support: Assistance whenever you need it
- Fast mobile sign-up and switching: Quick and hassle-free setup
Starling
Starling’s free business account offers a powerful, no-fee solution for UK businesses, combining essential banking features with robust money management tools. Ideal for sole traders and limited companies, it includes free UK bank transfers, access to mobile banking, instant payment notifications, and the ability to make international payments.
Starling also provides seamless integrations with accounting software like Xero, QuickBooks, and FreeAgent, making it easy to track finances. Plus, you get FSCS protection for up to £85,000, 24/7 UK-based support, and the convenience of cash deposits via the Post Office. With no monthly fee and added features like Spaces to separate funds, Starling’s free account is designed for business owners looking for a flexible, cost-effective banking experience.
Pros
- Completely free with no monthly charges
- Excellent mobile app and seamless integrations with accounting tools
- 24/7 UK-based support
Cons
- Limited access for additional team members or third parties
- Cash deposits at the Post Office incur a fee
- No invoicing or advanced business management features on the free plan
Key Features
- No monthly fees: Free business banking with no hidden charges
- Free UK bank transfers: Instant, fee-free transfers within the UK
- International payments: Make payments globally at competitive rates
- FSCS protection: Deposits protected up to £85,000
- Mobile banking: Full access through a user-friendly app
- 24/7 customer support: Fast, human assistance via app, phone, or email
- Spaces: Organise your money into separate ‘Spaces’ for tax or bills
- Integrations with accounting tools: Sync with Xero, QuickBooks, and FreeAgent
- Instant payment notifications: Get updates on transactions immediately
- Post Office cash deposits: Deposit cash for a low fee
How Did We Choose the Best Small Business Bank Accounts?
When selecting the best small business bank accounts, we considered the following factors to ensure they meet the diverse needs of small businesses:
- Fees: Accounts were assessed based on their monthly maintenance fees, transaction charges, and additional costs like cash deposits or foreign transfers. We prioritised options with transparent pricing and low fees
- Features: We examined the banking tools offered, including invoicing, multi-currency accounts, integration with accounting software, and mobile app functionality. Accounts tailored with tools for small businesses were favoured
- Customer Support: Providers with accessible and reliable customer service, including phone, email, and live chat options, scored higher
- Ease of Use: User-friendly apps, intuitive online platforms, and quick setup processes were key considerations
- Specialized Tools: Some accounts include features like automated tax calculations, business analytics, or credit facilities designed to support growth and scalability.
- Scalability: We looked for providers that offer advanced plans or services to accommodate growing businesses
What Is a Business Bank Account?
A business bank account is a financial tool specifically designed for companies, including freelancers, startups, and established businesses. It separates personal and business finances, which is essential for clear accounting, legal compliance, and professional financial management. Key advantages include:
- Simplified Accounting: Clear segregation of personal and business transactions aids in bookkeeping and tax preparation
- Legal Compliance: A separate account ensures compliance with tax regulations and facilitates audits if needed
- Professionalism: Using a business account conveys credibility to clients, vendors, and partners
How Do Business Bank Accounts Work?
Business bank accounts function as centralized hubs for managing a company’s financial activities. They offer services tailored to meet the needs of businesses, such as:
- Daily Transactions: Enable deposits, withdrawals, and transfers with business-focused payment options, such as direct debits and standing orders
- Financial Tools: Many accounts provide invoicing, payroll, and expense tracking features to streamline operations
- Access to Credit: Business accounts often provide access to overdrafts, loans, or lines of credit to support cash flow or growth
- Online and Offline Banking: Digital banking apps allow easy account management, while some providers also maintain physical branches for cash handling
These features simplify financial management and support day-to-day operations, enabling businesses to focus on growth.
How to Open a Business Bank Account
What Do I Need to Open a Business Bank Account?
Opening a business account requires documentation to verify both the individual and the business. Typically, you will need:
- Proof of Identity: A valid government-issued ID, such as a passport or driver’s license
- Proof of Address: Recent utility bills, bank statements, or rental agreements
- Business Registration Documents: For registered businesses, you may need a certificate of incorporation, partnership agreement, or sole proprietorship registration
- Tax Information: Your business tax ID or VAT registration (if applicable)
- Business Activity Details: Some banks may ask for information about your industry, expected turnover, or business plan
How Long Does It Take to Open a Business Bank Account?
The time required to open a business bank account depends on the provider and the type of account:
- Digital-Only Banks: App-based providers can approve accounts within minutes, provided all documentation is submitted correctly
- Traditional Banks: With some traditional providers it may take several days to weeks, as they often involve in-person meetings or more extensive verification processes
- Hybrid Providers: Banks offering both online and offline services fall somewhere in between, typically taking 1–5 business days
Choosing the right provider can help expedite the process, especially if your business needs immediate access to banking services.
FAQs
Do I Need a Business Bank Account?
If you’re a registered business in the UK, having a business bank account is essential for legal and financial clarity. Here’s why:
- Legal Requirement for Incorporated Businesses: If your business is a limited company, UK law requires you to have a separate business bank account to manage its finances. This ensures the company’s money is distinct from your personal funds
- Tax Compliance: A business bank account simplifies tax reporting and compliance by keeping business transactions separate from personal ones. This makes it easier to prepare financial statements and respond to HMRC audits if necessary
- Professional Image: A business account enhances your company’s credibility with clients and partners. Payments made to and from a business account appear more professional than those made to a personal account
- Efficient Financial Management: Dedicated business accounts come with features like invoicing, expense tracking, and cash flow analysis, making it easier to manage your business finances
Is There a Free Business Bank Account?
Yes, many UK providers offer free business banking options or introductory periods. Examples include:
- Digital-Only Banks: Fintech providers like Starling and Tide offer business accounts with no monthly fees for their basic plans, ideal for startups and small businesses
- Introductory Offers: Traditional banks, such as HSBC and Barclays, often provide free banking for a fixed period (e.g., 12 or 18 months) to new customers
- Transaction-Based Free Accounts: Some banks waive fees as long as you stay within certain transaction limits or maintain a minimum account balance
While free accounts save money, it’s important to evaluate additional fees for services like cash deposits, international transfers, or overdrafts.
What Is the Best Business Bank Account?
The best business bank account depends on your business’s unique needs. When evaluating options, consider the following:
- Fees: Look for accounts with low or no monthly fees and minimal transaction costs. For example, Starling Bank offers free business banking, while Tide has transaction-based pricing
- Features: Assess the tools provided, such as invoicing, expense management, multi-currency support, or integrations with accounting software
- Customer Support: Reliable customer service is crucial. Choose a bank with accessible support, whether through phone, live chat, or email
- Scalability: If you plan to grow, ensure your chosen account has options for credit facilities, loans, or advanced features to support larger businesses
Ultimately, the best account aligns with your business size, industry, and financial requirements. Comparing providers based on these factors will help you make an informed decision.
