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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

34 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.

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.

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.
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
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 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

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

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
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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.

Considering Online Business Bank Accounts

Choosing the right business bank account is a pivotal decision for any company, from a fledgling start-up to an established enterprise. In an increasingly digital world, online business bank accounts have emerged as a compelling alternative to their traditional high-street counterparts. These accounts, managed primarily through web browsers and mobile apps, offer a suite of features designed to streamline financial management and cater to the fast-paced nature of modern business.

The primary appeal of online business bank accounts lies in their convenience and accessibility. The ability to manage your finances from anywhere, at any time, without the need to visit a physical branch, is a significant advantage for busy entrepreneurs. This self-service approach often translates into a more efficient and faster banking experience for everyday tasks.

Key Considerations When Comparing Accounts

When embarking on your comparison journey, it’s essential to look beyond the headline monthly fee. A thorough evaluation of several key features will ensure you select an account that truly aligns with your business’s operational needs and financial habits.

Understanding the Fee Structure

While many online providers offer accounts with no monthly fees, it’s crucial to delve into the specifics of their charging structures. Transaction fees, for instance, can vary for activities such as UK bank transfers, international payments, and ATM withdrawals. Some accounts may offer a certain number of free transactions per month before charges apply. For businesses that handle cash, it’s also important to check the fees and limits associated with cash deposits, which are often facilitated through partnerships with high-street banks or the Post Office.

Functionality and Features

The best online business accounts provide more than just a place to store your money. Look for features that can actively support your business operations. These can include:

  • Accounting Software Integration: Seamless integration with popular accounting platforms like Xero, QuickBooks, and FreeAgent can significantly simplify your bookkeeping and make tax time less of a headache.
  • Multi-currency Capabilities: For businesses that trade internationally, the ability to hold and exchange multiple currencies within the same account can be a game-changer. This feature can help you avoid costly conversion fees and manage international transactions more efficiently.
  • Team Member Access: As your business grows, you may need to grant financial access to other team members. Look for accounts that offer multi-user access with customisable permissions, allowing you to delegate tasks while maintaining control over your finances.
  • Payment and Invoicing Tools: Some online accounts come with built-in tools to create and send invoices, as well as features to manage and schedule payments, helping you to stay on top of your cash flow.

Overdrafts and Borrowing

An overdraft can be a valuable safety net for managing short-term cash flow challenges, providing a buffer to cover unexpected costs or late payments. When comparing accounts, check whether an overdraft facility is available and what the associated interest rates and fees are. Some providers may also offer other forms of business loans or credit cards.

Security and Regulation

Ensuring the safety of your funds is paramount. In the UK, the Financial Services Compensation Scheme (FSCS) protects eligible deposits up to £85,000 per authorised financial institution in the event of a bank’s failure. It’s crucial to verify whether the online account provider you are considering is a fully licensed bank and covered by the FSCS. Some e-money institutions, while regulated, may not offer the same level of protection.

The Switching Process

If you already have a business bank account, the Current Account Switch Service (CASS) makes the process of moving to a new provider straightforward and hassle-free. This service will transfer all your existing payments, such as Direct Debits and standing orders, to your new account within seven working days, and your old account will be closed.

Making an Informed Decision

Ultimately, the best online business bank account is the one that best fits the unique needs of your business. Take the time to assess your transaction habits, your need for specific features, and your long-term growth plans. By carefully comparing the available options, you can find an account that not only simplifies your financial admin but also supports your business’s journey to success.

Online Business Bank Account FAQs

1. What are the main advantages of an online business bank account over a traditional one?

Online business bank accounts offer several key advantages, including 24/7 access to your finances from any location, often lower or no monthly fees, and streamlined online application processes. They also frequently come with innovative features such as integration with accounting software, multi-currency support, and advanced mobile banking apps, which can save businesses significant time and effort.

2. How do I know if my money is safe in an online business bank account?

To ensure your money is protected, you should check if the online provider is a fully authorised bank and part of the Financial Services Compensation Scheme (FSCS). The FSCS protects eligible deposits up to £85,000 per person, per authorised institution, if the bank were to fail. It’s important to distinguish between licensed banks and e-money institutions, as the latter may not offer FSCS protection.

3. What information do I need to open an online business bank account?

The specific requirements can vary between providers, but you will generally need to provide proof of your identity and address, as well as details about your business. For limited companies, this will include your Companies House registration number. The application process for online accounts is typically completed entirely online and is often quicker than opening an account with a traditional bank.

4. Can I get an overdraft with an online business bank account?

Many online business bank account providers do offer overdraft facilities. An overdraft can be a useful tool for managing your business’s cash flow, providing a financial cushion for unexpected expenses or to bridge the gap while waiting for customer payments. The availability and terms of an overdraft, including interest rates and fees, will vary between different providers, so it’s important to compare these when choosing an account.

5. How easy is it to switch my existing business bank account to an online provider?

Switching your business bank account is a straightforward process thanks to the Current Account Switch Service (CASS). This free service is available from most UK banks and building societies and guarantees to move all your incoming and outgoing payments from your old account to your new one within seven working days. The service will also automatically redirect any payments accidentally sent to your old account for a set period.