Top 10 Best Business Bank Accounts in UK for Startups

Top 10 Best Business Bank Accounts in UK with powerful tools for managing business funds. Expert rankings on The Finance Bulls. Good banking makes business life calmer. Late payment alerts, easy invoicing and low fees all start with the account you pick.

A recent wave of digital banks and new online tools means small firms now have far more choice than a simple high street branch. Many providers also offer free periods or no monthly fees, which matters when cash feels tight.

This guide walks through business bank accounts in UK in plain language. You will see what a business account is, how to judge the main features and a clear list of ten strong options that work well for freelancers and limited companies.

What Is a Business Bank Account and Why Do You Need One?

A business bank account is a current account used only for company money. That includes income, supplier payments, tax bills and staff costs. In most cases your limited company must use a separate business account because the company is a legal person on its own.

Sole traders are not always forced by law to open one, yet many advisers still suggest it for tidy records and easier tax work. A dedicated account keeps personal spending away from business cash. This highly helps during Self Assessment and any HMRC checks. It also looks more professional to clients when invoices show a business name rather than a personal account. So what is a business bank account in simple terms? It is the clean money home for your trade.

How to Choose the Best Business Bank Account in the UK

Start with your stage and style. New freelancers may value no monthly fees and quick digital sign up. Growing limited companies may care more about overdrafts, card machines and relationship managers. When you ask how to choose a business bank account, look at four things.

First, check core costs such as monthly fees, payment charges and cash handling. Second, test the app and online banking tools to see how simple they feel. Third, confirm that deposits sit under the Financial Services Compensation Scheme, usually up to £85,000 for eligible firms. Last, look at extras like accounting software links or invoice tools. The best fit is the one that matches your habits, not a bank name alone.

Top 10 Best Business Bank Accounts in UK for Small Business Owners

These ten providers appear often on 2025 comparison tables for business bank accounts in the UK. Details may change, so always check terms before you switch or apply.

1. Starling Bank Business Account

Starling offers a popular digital business account with no monthly fee and unlimited free UK transfers. That mix suits startups that want banking without a monthly drain. Sign up happens through the app and usually completes in a short time once checks finish.

Money in Starling sits in a fully regulated UK bank with FSCS cover up to £85,000 per eligible business. Extra paid add ons include a Toolkit for invoicing and VAT insights, yet the base account already covers pay-ins, card use and digital support. If you want low cost and strong apps rather than a local branch, Starling often sits near the top of best business bank accounts in UK lists.

2. Tide Business Current Account

Tide runs as a business-only provider, with a free account tier that charges no monthly fee and instead charges small amounts per transfer and some card uses. That “pay for usage” model helps tiny firms with light transaction volumes.

Tide leans on fast digital onboarding and in-app tools. Users can raise invoices, connect to accounting software and open extra “pots” to set tax money aside. FSCS cover applies through a partner bank with protection on eligible deposits. Higher paid tiers cut transfer fees and foreign currency costs. For online-first founders with simple needs, this account keeps costs transparent and flexible.

3. Monzo Business (Lite and Pro)

Monzo offers two main business plans. Lite has no monthly fee and covers everyday banking. Pro adds features like integrated invoicing, digital tax pots and accounting links at a clear monthly price.

All plans include free UK bank transfers and real time spend alerts. The app also lets you create separate pots to ring fence VAT or future bills. For many small companies, Lite feels enough. Those that send many invoices or need deeper bookkeeping tools may justify Pro. Funds sit with a fully licensed bank that falls under FSCS protection. Monzo suits owners who enjoy bright, simple app design and quick support rather than detailed branch contact.

4. Mettle by NatWest

Mettle is a free digital business account backed by NatWest. It targets sole traders and small limited companies with up to two owners. Mettle charges no monthly fee and no fees on UK payments. Clients who use the account regularly can also get Free Agent accounting software at no extra cost.

Because NatWest stands behind the account, eligible balances benefit from FSCS cover. The catch is that Mettle does not yet handle international payments, so it suits domestic trade best. If you are self employed, take payments mainly in the UK and want a genuinely fee free option, Mettle is worth testing.

5. HSBC Kinetic Current Account

HSBC Kinetic is a mobile first business current account. It carries no monthly account fee and offers free UK digital banking, including local transfers. Extra tools inside the app show cash flow views and spending categories, useful for owners who like visual dashboards.

Intro offers often give 12 months with no charges for start ups or switchers on wider HSBC business products, after which normal tariffs apply. Kinetic suits sole traders and single director companies that want a strong global bank name with a modern app and possible access to overdraft or lending later.

6. NatWest Business Bank Account

NatWest’s main business account uses a “pay for what you use” model with no fixed monthly charge. You only pay per transaction type, which can be helpful when volumes stay moderate. Customers also gain access to digital banking on phone and web, plus a relationship manager for larger or more established firms.

Businesses that want branch access alongside solid apps may prefer this over a pure challenger bank. NatWest also links accounts with Free Agent software for many small business users. That bundle can save money on accounting subscriptions and make VAT returns less painful.

7. Lloyds Bank Business Account

Lloyds Bank offers accounts aimed at start ups and small businesses, with no monthly account fee in the first 12 months and then £8.50 each month after that. The bank provides 24/7 online and mobile banking, plus optional branch services for cash deposits and advice.

The first block of electronic payments each month is free, with small charges after that. That balance works well for firms with some bank activity but not heavy cash use. For owners who value a long standing high street brand and access to local managers, Lloyds remains a solid, middle ground choice.

8. Barclays Business Current Account

Barclays has served business clients for centuries and still ranks highly for many UK SMEs. Current offers often include up to 12 months free digital banking for new customers, after which an £8.50 monthly fee usually applies.

The bank provides online and mobile banking, international payment options and sector specific support teams. For firms that trade overseas, access to multi currency accounts and a wide branch and ATM network can be useful. Barclays tends to suit owners who expect to grow headcount and need a bank that can scale with them into more complex lending and cash management products.

9. Revolut Business

Revolut Business focuses on companies with cross border needs. It offers business plans that start at £10 a month for the Basic tier and scale up for heavier users. Each plan includes a set allowance of free local transfers, then low fixed fees for extra payments. International transfers usually cost less than traditional banks, which helps if you pay suppliers in other countries regularly.

The downside is that Revolut currently operates under an e-money licence in the UK rather than a full UK bank licence, so FSCS protection does not apply in the same way as a high street bank. You still get strong safeguarding rules, yet some owners prefer to hold large idle balances elsewhere and use Revolut for active payment flows.

10. Metro Bank or other high street options

Metro Bank provides business accounts with extended branch hours and quick in person service. Many plans include a period of free banking for new firms, then clear tariff based fees. For owners who handle a lot of cash or cheques, physical branches seven days a week can save both time and stress.

Other large banks such as Santander also compete, yet recent news shows some older “free forever” business accounts moving to paid models, so terms need careful reading. If your firm wants a branch you can walk into and a known brand on letterheads, a high street bank can still make sense as part of your shortlist.

FAQs – Top 10 Best Business Bank Accounts in UK for New Companies

Which is the best business bank account in the UK for small businesses?

There is no single winner. Digital banks such as Starling, Tide and Monzo rank highly for low fees and easy apps, while Lloyds, Barclays, HSBC and NatWest work well for firms that value branches and wider lending services.

Do I need a business bank account if I am a sole trader in the UK?

Legally, most sole traders do not have to open a business account. HMRC allows them to use a personal account, because profit and personal income sit together for tax. In practice many advisers still suggest a separate account.

Can I open a business bank account in the UK with bad credit?

Many providers accept applications even when credit history is not perfect, especially for basic accounts with no overdraft. Digital banks often focus on identity checks and fraud controls rather than full credit scoring for standard current accounts.

Which UK bank offers the lowest fees for business accounts?

Several providers offer no monthly fee at all. Starling, Tide (on its Free plan), Mettle and HSBC Kinetic all advertise business accounts with no standing monthly charge, though they still apply individual transaction fees or FX charges.

Are there any free business bank accounts in the UK?

Yes. Several challenger providers run free tiers with no ongoing account fee, including Starling Bank, Tide’s Free plan, Monzo Business Lite, Mettle and some HSBC options. These accounts still charge for certain services such as international transfers or cash deposits.