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Promoted
Virgin Money M Account for Business
  • 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
GET DEAL
*excluding CHAPS and international payments

33 Products Compared

Get £150 cashback when you open a Tide business bank account*
Tide Business Bank Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free for one year*
  • Overdraft:
    No
  • GET DEAL
Great For:

  • Apply online in minutes with no credit checks or paperwork needed
  • This account comes with no monthly maintenance fees
To Consider:

  • 20p per bank transfer
  • Single director access only
fscs protected logocurrent account switch guarantee logo
Features:

  • Create and send invoices for free
  • Multi-business – hold up to 5 business accounts
  • Automated 30-day cash flow forecasts
Criteria:

  • 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
GET DEAL
*Complete the application and spend £500 within 60 days of opening your account to receive a £150 cashback from TIDE. Enter code 150BOOST when you sign up. T&C apply. FSCS-Protected Bank Account by ClearBank.

Free day-to-day online business banking*
Virgin Money M Account for Business
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • Free online business banking (excluding CHAPS & international)
  • 0.25% cashback on debit card purchases. Terms apply
To Consider:

  • For businesses with less than £1m annual turnover
  • Virgin Money offers 24/7 self-service but not 24/7 customer support
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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
GET DEAL
*excluding CHAPS and international payments

Free Invoicing & Accounting Software. T&Cs Apply**
Lloyds Bank Business Account For Start Ups
  • Monthly Fee:
    £8.50
  • Monthly Fee Offer:
    12 Months Free
  • Bank Transfers:
    100 electronic payments out free per month***
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • Full access; online, via the app, phone, or at a branch.
  • No monthly fee for 12 months if its your first Lloyds Business Account.
To Consider:

  • £8.50 monthly fee after 12 months. Some transaction fees still apply.
  • You must have a turnover of less than £25m.
fscs protected logocurrent account switch guarantee logo
Features:

  • Digital banking with no account fee for 12 months*
  • Free invoicing and accounting software available to business account holders. T&Cs Apply**
  • Bank in whatever way suits your business – online, with our mobile app, over the phone or in branch
  • Support from our UK-based relationship team
Criteria:

  • To qualify for this account you need to be a sole trader, partner or company director
  • You must have a turnover of less than £25m
  • Must be 18 years old or over
  • Must not already have a Lloyds Bank business account for this business
  • Overdraft: Debit interest is charged monthly and monthly usage or annual fees will apply depending on your credit limit. Where you exceed your Overdraft limit, unauthorised interest and charges will apply
  • All lending is subject to status. Security may be required. A guarantee may be required for Limited Companies and Limited Liability Partnerships
GET DEAL
*After 12 months, there’s a monthly fee of £8.50. Some fees and transaction charges will apply as soon as the account is open. This offer only applies to the business’s first current account **You must be registered for Online for Business or Commercial Banking Online. UK based businesses only ***100 electronic payments out free per month, 20p thereafter
No monthly account fee and free UK digital banking*
HSBC UK Small Business Banking Account
  • Monthly Fee:
    £0
  • Monthly Fee Offer:
    None
  • Bank Transfers:
    Free*
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • No monthly account fee and free UK digital banking*
  • Comprehensive features: A full range of business banking services.
To Consider:

  • *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.
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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.
GET DEAL
*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.
Get £200 Cashback with a Tide business bank account and savings account*
Tide Savings Business Bank Account & Savings Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free for one year*
  • Overdraft:
    No
  • GET DEAL
Great For:

  • Apply online in minutes with no credit checks or paperwork needed
  • This account comes with no monthly maintenance fees
To Consider:

  • 20p per bank transfer
  • Single director access only
fscs protected logocurrent account switch guarantee logo
Features:

  • Create and send invoices for free
  • Multi-business – hold up to 5 business accounts
  • Automated 30-day cash flow forecasts
Criteria:

  • 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
GET DEAL
*To be eligible for the £200 Cashback offer, open both a Tide Instant Saver and Tide Business Bank Account. Ts&Cs Apply. New customers receive up to 4.22% AER free for 6 months. For full offer T&Cs visit tide.co/savings. FSCS-Protected Bank Account by ClearBank.
Revolut Basic Business Account
  • Monthly Fee:
    £10
  • Monthly Fee Offer:
    None
  • Bank Transfers:
    10 Free per month
  • Overdraft:
    No
  • GET DEAL
Great For:

  • No monthly fee with 10 free local bank transfers per month
  • Compatible with accounting software and create invoices in app
To Consider:

  • Only 5 free local transfers and no free international transfers
  • An e-money product with no branch access
current account switch guarantee logo
Features:

  • 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
Criteria:

  • 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
GET DEAL
Revolut is not a fully licensed bank in the UK. Your money is held in a safeguarded account with a regulated bank or high quality liquid assets. Your savings are deposited with partner banks and eligible deposits are protected up to £85k per bank.

Earn 10% cashback on your first $1,000 USD of international transactions with Airwallex*
Airwallex Explore Business Account
  • Monthly Fee:
    Free*
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    No
  • GET DEAL
Great For:

  • Open local currency accounts in 60+ countries
  • Make international transfers to 150+ countries at interbank rates
To Consider:

  • 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
Features:

  • 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
Criteria:

  • 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.
GET DEAL
*10% cashback on your first $1,000 USD equivalent in eligible international card spend.

Get your first month of Pro or Team completely free*
Monzo Business Lite
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • 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
To Consider:

  • Online account management only, no phone or branch access.
  • Not currently available for charities or partnerships.
fscs protected logocurrent account switch guarantee logo
Features:

  • Free, instant UK bank transfers
  • 24/7 customer support
  • Mobile and web access
  • The Monzo banking essentials
Criteria:

  • Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
GET DEAL
*Your first month of Pro or Team is free, after that Pro is £9/month and Team starts from £25/month. Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.

Get Your First 12 Months Free*
Barclays Start-up Business Bank Account
  • Monthly Fee:
    £8.50
  • Monthly Fee Offer:
    12 months free
  • Bank Transfers:
    Free
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • Free digital banking and no monthly account fee for the first 12 months*
  • Access to discounted services via key partners, worth over £5,000**
To Consider:

  • After 12 months, the monthly account fee is £8.50 per month*
  • **T&Cs apply to each partner service, see partner website for details.
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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.
GET DEAL
*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. **Terms and conditions apply per partner, see partner website for details

Zempler Bank Business Bank Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    3 free per month
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • There are no credit checks to open an account
  • Accounting integrations Inc. Xero, Quickbooks & Sage
To Consider:

  • A one-off £9.95 card issuing fee applies
  • ATM withdrawal fees apply in UK and abroad
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • Available to UK registered companies or UK-based sole traders
  • Application made by UK Director
  • UK Director 18 years old plus
GET DEAL
12 months fee free and interest earned on every penny – up to 3.50% AER variable*
Cynergy Bank Business Current Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    No
  • GET DEAL
Great For:

  • International payments in 7 major currencies, including EUR and USD
  • Online application for businesses with up to 10 directors
To Consider:

  • £5 per month after the 12 month free period
  • Fees apply for cash, CHAPS, SWIFT and SEPA transactions
fscs protected logo
Features:

  • 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.
Criteria:

  • 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
GET DEAL
*The £5 monthly fee is waived for 12 months for new Business Current Account openings. The offer is available for a limited time only. Cynergy Bank reserves the right to withdraw the offer at any time. T&Cs apply.
Get up to 4.33% AER* (variable) on savings & up to 1.5% cashback. T&Cs apply.
Allica Bank Business Current Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    No
  • GET DEAL
Great For:

  • Access to competitive savings interest rates
  • Earn up to 1.5% cashback on eligible card spending
To Consider:

  • Businesses must be trading for at least 6 months
  • Must have a min balance of £50k or have an Allica loan product
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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.
GET DEAL
*Rate includes standard rate of 3.33% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month, and a 0.5% boost for six months if you complete a switch with CASS. Eligibility criteria and T&Cs apply.
Equals Money Start Up Business Account
  • Monthly Fee:
    £25*
  • Monthly Fee Offer:
    None
  • Bank Transfers:
    Free
  • Overdraft:
    No
  • GET DEAL
Great For:

  • 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
To Consider:

  • No overdrafts, loans, or credit facilities, which start-ups might eventually need as they grow
  • An e-money account with no branch access
fscs protected logocurrent account switch guarantee logo
Features:

  • Budgeting tools
  • Manage multiple currencies
  • Make tax preparation easy
Criteria:

  • Available to Limited Companies, Sole Traders and Partnerships
  • You must be 18+ and a UK resident.
GET DEAL

Business expense and corporate financial management account
Wallester Business Expense Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    No
  • Overdraft:
    No
  • GET DEAL
Great For:

  • 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
To Consider:

  • 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
Features:

  • 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
Criteria:

  • 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
GET DEAL
Free package of 300 virtual cards with zero fees or limitations
Make and Receive International Payments
Card One Money Business Account
  • Monthly Fee:
    £12.50
  • Monthly Fee Offer:
    None
  • Bank Transfers:
    From 30p
  • Overdraft:
    No
  • GET DEAL
Great For:

  • No credit checks or signatures required
  • Supports integration with platforms like Xero, Sage, and FreeAgent
To Consider:

  • One-off £55 application fee which is refundable if the application is unsuccessful
  • £12.50 per month with no free monthly period
fscs protected logocurrent account switch guarantee logo
Features:

  • Up to 4 additional cards for business use
  • UK-based customer support
  • International payments in a range of currencies
Criteria:

  • 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
GET DEAL
Open an account on the same day you apply with no credit checks.
Wide Range of Expense Managements Tools
Anna Money Pay As You Go
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    From 20p
  • Overdraft:
    No
  • GET DEAL
Great For:

  • You can obtain a UK business account and sort code in 3 mins with ID
  • One free debit card included (£3 per extra card)
To Consider:

  • No joint account access
  • An e-money product with no branch access
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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
GET DEAL
ANNA Business comes with invoice generator tools, HMRC recognised Tax calculator and filing. Automate your bookkeeping with ANNA.

The Co-operative Business Bank Account
  • Monthly Fee:
    Free
  • Monthly Fee Offer:
    Ongoing
  • Bank Transfers:
    Free
  • Overdraft:
    Yes
  • GET DEAL
Great For:

  • Ideal for start ups and growing businesses who bank digitally
  • No charges for all automated credits, cash withdrawals and debit card purchases
To Consider:

  • Charges apply for cash and cheque transactions
  • An overdraft arrangement fee applies and where security is required, additional security fees may apply
fscs protected logocurrent account switch guarantee logo
Features:

  • 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
Criteria:

  • 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
GET DEAL
Charges apply for cash and cheque transactions and other special services e.g. foreign and CHAPS payments. You can deposit cash in branch and in the Post Office for £1.50 per cheque or £1.50 per £100 of cash deposited. An overdraft arrangement fee applies and where security is required, additional security fees may apply. Application subject to status (including credit checks and an assessment of your financial circumstances), eligibility and T&Cs. Mobile banking is subject to eligibility.
Get Your First 3 Months Free + Free Accounting Software
Counting Up Business Current Account
  • Monthly Fee:
    £3
  • Monthly Fee Offer:
    3 months free
  • Bank Transfers:
    30p
  • Overdraft:
    No
  • GET DEAL
Great For:

  • 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
To Consider:

  • The price increases with account usage
  • An e-money product with no branch access
Features:

  • 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
Criteria:

  • Available to sole traders and limited companies
  • You must be 18+ and a UK resident
GET DEAL
Pay no subscription fees during your trial. Other transaction charges may apply.

How to Compare Business Bank Accounts

1

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?

2

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.

3

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.

Understanding Joint Business Bank Accounts

A joint business bank account is a type of account designed specifically for business partnerships, where two or more individuals co-own and run a company. Rather than being held in a single person’s name, the account is in the name of the business partnership, with all partners having access. This is the financial cornerstone of a partnership, providing a transparent and unified way to manage the company’s money.

For any business partnership, whether it’s formed by two freelancers collaborating on a project or a more formal limited liability partnership (LLP), having a joint account is essential. It separates the business’s finances from the partners’ personal funds, which is crucial for accurate accounting, tax reporting, and maintaining a professional image. It establishes a clear financial record that is owned and managed collectively, reflecting the joint nature of the venture itself.

Why a Partnership Needs a Joint Account

Operating a business with partners without a joint account can lead to confusion and disputes. A dedicated account offers clear benefits.

Financial Transparency and Trust

With all business income and expenditure passing through one central account, every partner can see exactly what is happening with the company’s money. This transparency is fundamental to building and maintaining trust between partners. It simplifies tracking each partner’s contributions, managing shared expenses, and distributing profits according to the terms of your partnership agreement.

Simplified Accounting and Tax

When it’s time to prepare your accounts and file tax returns, a joint account is invaluable. It provides a complete and consolidated record of all business transactions. This makes it much easier for your accountant (or for you) to prepare the partnership’s Self-Assessment tax return and calculate each partner’s share of the profits or losses, ensuring compliance with HMRC regulations.

Professionalism and Legal Clarity

A joint business account reinforces the identity of the partnership as a single, professional entity. It allows you to make and receive payments in the business’s name, which is more credible than using an individual’s personal account. It also provides a clear legal separation between business and personal assets, which is important for liability purposes.

How to Open a Joint Business Account

Opening an account for a partnership is a more involved process than for a sole trader, as the bank needs to verify the identity of all partners. You will typically need to provide:

  • Partnership Details: The business name and address, and the date the partnership was formed.
  • A Partnership Agreement (Recommended): While not always a mandatory requirement for a simple business partnership, having a formal agreement that outlines how the business is run, and how finances are managed is highly advisable and may be requested by the bank.
  • Personal Details for All Partners: Every partner will need to provide proof of their identity (e.g., passport) and proof of their address (e.g., a recent utility bill).

All partners usually need to be part of the application process. With modern banks, this can often be done online, but some may require all partners to visit a branch to finalise the setup.

Key Considerations Before Choosing

When selecting an account, partnerships should pay close attention to the following features:

  • Account Mandate and Access: The account mandate is a crucial document that sets out the rules for how the account will be operated. You’ll need to decide if transactions require the signature of one partner, any two partners, or all partners. This is a key control for managing the business’s money.
  • Joint and Several Liability: Partners in a standard business partnership are ‘jointly and severally’ liable for any debts the business incurs. This means that if the business takes out an overdraft and cannot repay it, the bank can pursue any individual partner for the full amount, not just their ‘share’.
  • Fees and Charges: Compare monthly account fees, transaction costs, and charges for international payments, especially if you work with overseas clients. Many banks offer an initial free banking period for new partnerships.

Joint Business Bank Account FAQs

1. Do we need a formal partnership agreement to open a joint account?

While a verbal agreement is legally binding, a written Partnership Agreement is highly recommended and may be required by some banks. The agreement should outline key aspects of the business, including profit-sharing ratios and responsibilities, which is crucial for setting the account mandate correctly.

2. What happens to the account if a partner leaves or a new one joins?

You will need to inform your bank immediately of any change in the partnership. To add a new partner, they will need to go through the identification process. If a partner leaves, you will need to follow a process to remove them from the account mandate. Your partnership agreement should detail how these situations are handled.

3. Are all partners responsible for the account’s debts?

Yes. For general business partnerships, all partners are jointly and severally liable for any debts, including overdrafts. This means a creditor, including the bank, could pursue any one partner for the full amount owed, regardless of their individual stake in the business.

4. Can we set different levels of access for different partners?

Yes, this is determined by the account mandate. You can set rules requiring the authorisation of multiple partners for large payments, while allowing individual partners to handle smaller, day-to-day transactions. It’s a flexible system that should be tailored to how your partnership operates.

5. Can a Limited Liability Partnership (LLP) use a joint business account?

Yes, an LLP will also require a business bank account. The opening process is similar, but you will need to provide the LLP’s registration documents from Companies House. The key difference is that with an LLP, partners’ liability for debts is generally limited to the money they have invested in the business, which offers more personal financial protection.