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- Free day-to-day online business banking*
- Designed for businesses with a turnover of less than £1million
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
28 Products Compared
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free for one year*
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Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only


- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Free online business banking (excluding CHAPS & international)
- 0.25% cashback on debit card purchases. Terms apply
- For businesses with less than £1m annual turnover
- Virgin Money offers 24/7 self-service but not 24/7 customer support


- Free day-to-day online business banking (excluding CHAPS and international payments)
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
- Manage all your business data in one place using Virgin Money’s M-Track insights platform. Link up your business to market leading tools, such as Sage, Xero, Google, Shopify and more, to track them from one simple dashboard
- Available for eligible businesses with up to £1m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
- For limited companies, please allow up to 72 hours from registering your business with Companies House, before starting an application
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Monthly Fee:£0
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Monthly Fee Offer:None
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Bank Transfers:Free*
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Overdraft:Yes
- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services.
- *Free UK digital banking means day-to-day standard electronic transfers made through Business Internet Banking and HSBC UK Business Banking app are free. Other charges apply e.g. cheques and CHAPS. See Business Price List for details. Subject to application, eligibility, credit check and T&Cs.
- **You must be an HSBC Business Banking customer to access free accounting tools through My Business Finance. Once you’ve opened your account, you’ll need to set up Business Internet Banking to get access. This is not available for HSBC Kinetic customers. T&Cs apply. Find out more here.


- No monthly account fee and free UK digital banking*
- Free accounting tools to stay on top of invoices, cashflow and tax.**
- A full list of prices and charges applicable can be found in HSBC UK’s Business Price List at business.hsbc.uk/legal
- Sole traders, limited companies, partnerships, limited liability partnerships and non-charitable clubs/associations/societies can all apply
- Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
- Available to Small Business Banking customers who are typically small enterprises with borrowing needs of up to £100k and whose everyday banking needs don’t need the support of a Relationship Manager. Please note, government lending schemes are subject to different limits.
- Borrowing is subject to application, eligibility, affordability and credit check. T&Cs, fees, charges and rates apply. For loans, you don’t need to open or maintain an HSBC Business Current Account unless a debenture or fixed charge over book and other debts is required.
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Monthly Fee:Free
-
Monthly Fee Offer:Ongoing
-
Bank Transfers:Free for one year*
-
Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only


- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
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Monthly Fee:£10
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Monthly Fee Offer:None
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Bank Transfers:10 Free per month
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Overdraft:No
- No monthly fee with 10 free local bank transfers per month
- Compatible with accounting software and create invoices in app
- Only 5 free local transfers and no free international transfers
- An e-money product with no branch access

- Multi-currency accounts – receive payments and exchange in 25+ currencies
- Control and monitor team spending with multiple debit and virtual cards, manage permissions and levels of access and more
- Various payment facilities including Tap to Pay on iPhone (fees apply)
- International payments – Send and receive money from 150+ countries
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
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Monthly Fee:Free*
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- Open local currency accounts in 60+ countries
- Make international transfers to 150+ countries at interbank rates
- Deposit £10,000 p/month or hold £10,000 to be free, if not £19 p/month
- An e-money product with no branch access
- Open multiple accounts per entity. Collect and hold in 20+ currencies
- Expense management for cards and reimbursements
- Free local transfers to 120+ countries and domestic transfers. Access to interbank FX rates and batch transfers
- Multi-currency and employee cards with zero international fees
- Includes 5 free employee card users and up to 10 company cards
- Online card and local payment method acceptance globally
- Bank feeds sync with Xero. ApprovalMax, WorkflowMax by BlueRock Integrations
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- For sole traders and small businesses wanting a free, simple digital current account
- Get instant notifications for all account activity to stay in control of your cash flow
- Online account management only, no phone or branch access.
- Not currently available for charities or partnerships.


- Free, instant UK bank transfers
- 24/7 customer support
- Mobile and web access
- The Monzo banking essentials
- Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
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Monthly Fee:£8.50
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Monthly Fee Offer:12 months free
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Bank Transfers:Free
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Overdraft:Yes
- Free digital banking and no monthly account fee for the first 12 months*
- Access to discounted services via key partners, worth over £5,000**
- After 12 months, the monthly account fee is £8.50 per month*
- **T&Cs apply to each partner service, see partner website for details.


- No monthly account fee* plus access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
- A UK-based team of business managers to help you manage and grow your business
- Simple and secure online banking with group payments and cash collection booking tools
- Businesses with existing Barclays business current accounts aren’t eligible for this offer. After 12 months, you’ll pay £8.50 per month. Fees and charges will apply in line with the business account tariff which may be subject to change.
- Must be over 18, a UK resident and a sole trader or the director of a limited company
- Overdrafts are subject to application, financial circumstances and borrowing history.
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:3 free per month
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Overdraft:Yes
- There are no credit checks to open an account
- Accounting integrations Inc. Xero, Quickbooks & Sage
- A one-off £9.95 card issuing fee applies
- ATM withdrawal fees apply in UK and abroad


- 24/7 app & online servicing and UK based customer service team
- FSCS protection – up to £85,000
- Deposit cash into any of the UK’s 11,500 Post Offices.
- Invoicing tools that allow you to create and send invoices easily
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18 years old plus
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- International payments in 7 major currencies, including EUR and USD
- Online application for businesses with up to 10 directors
- £5 per month after the 12 month free period
- Fees apply for cash, CHAPS, SWIFT and SEPA transactions

- 3.50% on balances up to £10k and 0.10% for balances above £10k
- Make international payments in up to seven major currencies, with option to open EUR or USD accounts.
- Customise workflows for account management and transaction approvals requiring more than one account user to sign-off.
- Bulk payment processing.
- Online application for businesses with up to 10 directors.
- Must be a sole trader, partnership, limited liability partnership (LLP) or limited company (LTD)
- Must be registered and eligible to pay tax in the UK
- Have a maximum of 10 directors
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- Access to competitive savings interest rates
- Earn up to 1.5% cashback on eligible card spending
- Businesses must be trading for at least 6 months
- Must have a min balance of £50k or have an Allica loan product


- Up to 4.33% AER (variable) on integrated Instant Access Savings Pot.
- Up to 1.5% cashback on eligible card spend. View Business Rewards Account Terms and Conditions on Allica bank website
- UK based dedicated relationship manager
- Eligible customers are covered by FSCS up to £85,000
- Direct accounting integrations with Sage and Xero
- Businesses must be incorporated for at least 12 months
- Businesses keeping less than £50,000 in their account will earn a reduced rate of interest and may incur fees.
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Monthly Fee:£25*
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Monthly Fee Offer:None
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Bank Transfers:Free
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Overdraft:No
- Simple onboarding with no credit checks, good for businesses without established credit history
- Ability to hold and transact in multiple currencies, useful even for start-ups with international clients or suppliers
- No overdrafts, loans, or credit facilities, which start-ups might eventually need as they grow
- An e-money account with no branch access


- Budgeting tools
- Manage multiple currencies
- Make tax preparation easy
- Available to Limited Companies, Sole Traders and Partnerships
- You must be 18+ and a UK resident.
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:No
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Overdraft:No
- Streamlining company spending with virtual and physical cards, automation, and a real-time dashboard for complete expense control
- Open accounts and issue cards quickly without visiting a bank
- Wallester is not a business bank account, you don’t get traditional banking features like transfers, overdrafts or loans.
- Wallester is a business expense and corporate financial management account
- Free package with 300 free virtual cards and an unlimited number of free physical cards
- Free multifunctional dashboard for tracking and managing expenses
- No top-up fee (in EUR), no transaction fees, no usage fee, no issuance fee, and no fee for adding extra users
- Ten currencies, including GBP, EUR, USD and other European currencies (SEK, NOK, CZK, HUF, RON, PLN, DKK)
- App included and API for integrations with any CRM accounting software
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Must have an eligible business bank account
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Monthly Fee:£12.50
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Monthly Fee Offer:None
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Bank Transfers:From 30p
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Overdraft:No
- No credit checks or signatures required
- Supports integration with platforms like Xero, Sage, and FreeAgent
- One-off £55 application fee which is refundable if the application is unsuccessful
- £12.50 per month with no free monthly period


- Up to 4 additional cards for business use
- UK-based customer support
- International payments in a range of currencies
- Available to Limited Companies, Sole Traders and Partnerships
- Your business must be registered in the UK and have an annual turnover of less than £2m
- You must be 18+ and a UK resident. Card One Money need to be able to verify your identity & residency.
- Card One Money is not covered by the Financial Services Compensation Scheme. See product FAQs for more info
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:From 20p
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Overdraft:No
- You can obtain a UK business account and sort code in 3 mins with ID
- One free debit card included (£3 per extra card)
- No joint account access
- An e-money product with no branch access


- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
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Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Ideal for start ups and growing businesses who bank digitally
- No charges for all automated credits, cash withdrawals and debit card purchases
- Charges apply for cash and cheque transactions
- An overdraft arrangement fee applies and where security is required, additional security fees may apply


- Free everyday digital business banking. No monthly fee. No charges for all automated credits, cash withdrawals and debit card purchases
- Integrate your accountancy software like Xero, Sage or Quickbooks within your online banking
- Online and in-person banking including mobile, instant secure messaging, UK based contact centre, and in branch. Rated ‘Excellent’ based on over 12,000 reviews on Trustpilot
- Most receive their account details within three days
- Co-operative Bank business customers get free, unlimited access to the Go Get Paid app – the fast, simple, secure way to get paid. Plus access selected Clover payment terminals for £1 a month for the first 12 months (fees apply)
- The original ethical bank with a customer-led Ethical Policy
- Must be a UK resident with a business address in the UK
- Must be 18 or over
- You or your organisation must be one of the following: “a Sole Trader, Partnership, Limited Liability Partnership or Limited Company
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Monthly Fee:£3
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Monthly Fee Offer:3 months free
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Bank Transfers:30p
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Overdraft:No
- Perfect for start-ups: Pay a low monthly fee depending on how much your business earns
- Automated taxes calculates what you owe in real time
- The price increases with account usage
- An e-money product with no branch access
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
How to Compare Business Bank Accounts
Understand Your Requirements
How you do business will affect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Check Eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Compare The Latest Deals
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends.
Why Your Small Business Needs a Dedicated Account
When you launch a small business, one of the first and important financial steps is to open a dedicated business bank account. While it might seem easier to use your personal account, especially if you’re a sole trader, doing so can create multiple unnecessary challenges. For limited companies, having a separate bank account is a legal requirement because the business is a separate legal entity from its owners.
Beyond any legal necessity, a dedicated account is the foundation of good financial management for any small business. It creates a clear separation between your business finances and your personal spending, which is vital for accurate bookkeeping, managing cash flow, and filing tax returns correctly. It also presents a more professional image to clients, suppliers, and potential investors, signalling that you are a serious and organised enterprise.
Types of Accounts Available
The UK banking market offers a wide range of accounts tailored to small businesses. They generally fall into two main categories:
- Traditional High Street Banks: Providers like Barclays, Lloyds, and HSBC offer the benefits of large established organisations. They can bring services and facilities that suit almost any size business, alongside your personal financial needs. The link between your finances can provide you with better access to higher credit, face to face interactions, account management and support. They are all regulated by the Financial Conduct Authority.
- Challenger Banks: These are online first providers, offering technology driven banking services, like Starling, Monzo, and Tide who have become increasingly popular. They are known for their user-friendly apps, quick setup times and simple, effective add-on solutions such as accounting, invoicing, payment services. They design accounts around specific needs so you can match your banking profile to more cost effective solutions. You might hear terms such as Neobanks, Fintech, Digital to describe his category of providers. Not all are licensed as ‘banks’ and might not offer the same protections as high street banks.
How to Choose the Right Account
Selecting the best account depends entirely on the specific needs of your business. Here are the key factors to compare:
- Fee Structure: Look beyond the monthly account fee. Check the costs for everyday transactions like bank transfers, ATM withdrawals, depositing cash or cheques. A ‘free’ account might become expensive if you have to pay high fees for the services you use the most.
- Cash Handling: If your business regularly accepts cash payments, the ability to deposit it easily and affordably is going to be paramount. Check how this would be handled by a potential new business account provider, as some are just not suitable for this type of banking.
- Accounting Software Integration: To save time on administration, ensure the bank account integrates seamlessly with your accounting software (e.g., Xero, QuickBooks). This automates the process of recording transactions and makes bookkeeping far more efficient.
- Access to Credit: Consider your future needs. Does the bank offer business overdrafts, loans, or credit cards? Establishing a relationship with a bank now could make it easier to access finance later on.
- International Business: If you have customers or suppliers overseas, compare the bank’s fees and exchange rates for sending and receiving international payments. Specialist accounts can offer significant savings in this area.
The Application Process
Opening a small business account is usually straightforward. The documents you need will depend on your business structure but for starters you’ll need.:
- For Sole Traders: You’ll mainly need proof of your personal identity (e.g., passport) and proof of your address (e.g., a recent utility bill).
- For Limited Companies: You will need to provide the above for all directors, plus your Companies House registration number and Certificate of Incorporation.
Many applications, especially with digital banks, can be completed online in a short space of time.
Small Business Bank Account FAQs
1. Is a business bank account a legal requirement for a small business?
It is a legal requirement if your business is structured as a limited company or a limited liability partnership (LLP). For sole traders, it is not legally required, but it is highly recommended for financial management and tax purposes.
2. Can I get a business account if I have bad credit?
It is possible. While most will perform a credit check, there are providers that offer basic business accounts without a hard credit check. These accounts will not offer credit facilities like an overdraft but will provide the essential payment services you need to run your business.
3. What is the main difference between an account for a sole trader and a limited company?
A sole trader account is in your name (e.g., ‘John Smith t/a Smith’s Plumbing’), and you are personally liable for the business’s finances. A limited company account is in the company’s registered name (e.g., ‘Smith’s Plumbing Ltd’), as the company is a separate legal entity.
4. How important is a bank branch for a modern small business?
This depends entirely on your business model. Many small businesses can completely operate their banking via online first providers. . However, there are some types of businesses or industries that need branch services. The importance is entirely bespoke to your business.
5. What happens when a free banking period ends?
When an introductory free banking period ends, the account will be charged each month or annually a fee. Depending on the offer you initially received, this may apply to other chargeable aspects of the account transactions. Make sure you are clear from the start what changes to expect at the end of any offer period, although the provider should also notify you before they begin to take any fees.