Compare the Best Business Bank Accounts (2026)

By: Money Navigator Research Team

Last Reviewed: 04/12/2025

Finding the right business bank account is critical. The wrong choice can cost you hundreds of pounds in hidden fees and hours of admin time every year. The right choice can automate your taxes, save you money on transfers, and integrate seamlessly with your accounting software.

This guide is designed for

This guide is designed for UK business owners who want to compare business bank accounts objectively before opening or switching an account, including:

  • Sole traders, freelancers, and self-employed individuals

  • Limited companies (Ltd), including startups and established businesses

  • Directors comparing digital challenger banks with high-street banks

  • Businesses opening their first business bank account

  • Business owners considering switching accounts to reduce fees or improve features

If you are unsure which type of account fits your business structure or usage, this guide helps explain the differences so you can make an informed choice.

When comparing business bank accounts, we assessed providers based on factors that typically matter most to UK businesses, including:

  • Fees & charges: Monthly fees, transaction costs, and common extras

  • Features: Online banking tools, invoicing, integrations, and card options

  • Eligibility: Business type support, onboarding requirements, and checks

  • Ease of opening: Application process, verification steps, and setup time

  • FSCS protection & safeguarding: How customer funds are protected

  • Support & access: App usability, customer support, and branch availability

Features, fees, and eligibility can vary by provider and may change over time. Always review the bank’s full terms before opening an account.

This guide focuses on UK business bank accounts and does not compare personal bank accounts or international-only banking products.

Also Compare: 

At Money Navigator, we have compared the UK’s leading providers from established high-street giants to the agile fintech challengers to help you find the perfect match for your company.

Important: This information is general and not a recommendation. Account features, eligibility, fees, and FSCS protection vary by provider and can change over time. Always review the bank’s full terms before opening an account.

  • Business bank account features and charges can vary depending on business type and usage.
  • Information is reviewed regularly to reflect changes to fees, features, and eligibility.

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Also Compare: 

Best Business Bank Accounts at a Glance

Compare ratings, monthly fees, and current introductory offers below. 

Provider
 Our Rating
Monthly Fee
Free Transfers
Action
Tide Bank
Best for startups
4.6 / 5
£0
Limited
Revolut
Best for international
4.4 / 5
£0
Yes
Starling Bank
Best for UK support
4.5 / 5
From £0
Limited
Starling Bank
Best for Bad Credit
4.2 / 5
£0
Limited

⭐ Ratings are editorial and reviewed regularly.

Why these accounts appear: Accounts are selected based on suitability for common business use cases. This information is general and not a recommendation.

How to use this comparison table:

  • This table provides a high-level comparison of leading UK business bank accounts based on the factors most small businesses care about.
  • Ratings reflect our editorial assessment of overall value, usability, fees, features, and eligibility – not any single metric in isolation.
  • Accounts are ordered to help you quickly narrow down options, but the “best” account will depend on your business type, transaction volume, and how you plan to use the account.
  • We do not accept payment to influence rankings.

Important to know before choosing an account:

  • Eligibility varies: Some accounts are only available to limited companies, UK-resident directors, or businesses with a minimum trading history.

  • Fees and features can change: Providers may update pricing, limits, or incentives – always review the provider’s full terms before applying.

  • Approval is not guaranteed: Passing an initial check does not guarantee account approval.

View Bad Credit Business Accounts

Researched & reviewed by the Money Navigator team

Updated regularly to reflect changes in rates, fees and eligibility.

✅ Independent Comparisons

✅ No paid rankings

✅ No sign-ups

✅ We don’t sell your details

How We Rate Business Bank Accounts

Money Navigator is an independent publisher. We assess and compare UK business bank accounts using a consistent editorial framework designed to reflect what matters most to real businesses in day-to-day use.

Our ratings are based on a combination of publicly available information, provider disclosures, and hands-on feature analysis. We do not offer financial advice.

  • Fees & pricing: Monthly account fees, free allowances, transaction charges, and any introductory offers. We look for clear, transparent pricing with no unexpected costs.

  • Ease of opening & onboarding: How quickly and simply an account can be opened, including digital verification, application friction, and typical approval timelines.

  • Features & functionality: Day-to-day tools such as payments, cards, invoicing, integrations (e.g. Xero, QuickBooks), international payments, and mobile app usability.

  • Support & reliability: Availability of UK-based support, in-app help, account stability, and overall customer experience based on published feedback and service access.

  • Eligibility & accessibility: Who the account is suitable for, including startups, sole traders, limited companies, businesses with limited credit history, or those trading internationally.

Our ratings reflect an overall assessment of value, usability, and suitability for different business types. No provider pays to be ranked higher.

Some links on this page may be affiliate links. If you apply through these links, we may earn a commission. This does not affect how accounts are assessed, compared, or rated.

Bank features, fees, and eligibility criteria can change. Always check the provider’s website for the most up-to-date terms before applying.

Editor’s Top Picks: Best Business Accounts by Category

There is no “one size fits all” in business banking. A freelancer needing simple invoices has different needs than a Limited Company trading in USD and EUR. We have categorised the market leaders to help you find your specific fit.

 🏆 BEST FOR SOLE TRADERS  

1. Best for Sole Traders & New Startups: Tide

Tide has revolutionized business banking for the self-employed. It is technically an e-money institution rather than a bank, which makes it incredibly fast and focused on admin automation.

  • The Verdict: Perfect if you want a free account opened in minutes.
  • Key Pros:
    • No monthly fees: The standard account is free forever.
    • Soft Credit Check: They do not perform a hard credit check, making it excellent for new founders or those with thin credit files.
    • Admin Tools: Auto-categorises expenses for your Self Assessment tax return.
  • Watch Out For: 20p fee per bank transfer (in or out) on the free plan.
  • Not ideal if: You regularly deposit cash or cheques, or you want in-branch support for day-to-day banking.
tide business bank
Visit Tide Website

Read our full Tide Business Review
Read our comparison of Starling vs. Tide

 🏆 BEST FOR LIMITED COMPANIES  

2. Best for Limited Companies (Ltd): Starling Bank

Starling Bank is frequently voted “Best British Bank.” It offers the security of a traditional bank (FSCS protection) with the app experience of a fintech.

  • The Verdict: The best “all-rounder” for limited companies who want full banking features without the fees.
  • Key Pros:
    • Totally Free: No monthly fees and no fees for electronic payments.
    • Full Integration: Connects seamlessly with Xero, QuickBooks, and FreeAgent.
    • Safety: Fully regulated UK bank with FSCS protection up to £85,000.
  • Watch Out For: Cash deposits must be done at the Post Office (charges apply).
  • Not ideal if: You need multi-currency accounts for frequent international payments or advanced FX tools.
starling business bank
Visit Starling Bank Website

Read our full Starling Business Review
Read our comparison of Starling vs. Tide

 🏆 BEST FOR INTERNATIONAL TRADE  

3. Best for International Trade: Revolut Business

If your business buys stock from China, pays freelancers in the US, or sells to Europe, high-street FX fees will destroy your margins. Revolut solves this.

  • The Verdict: Essential for e-commerce brands and consultants with international clients.
  • Key Pros:
    • Multi-Currency: Hold and exchange 25+ currencies at the real interbank exchange rate.
    • Speed: Instant transfers to other Revolut accounts globally.
    • Team Cards: Issue physical and virtual cards to staff instantly.
  • Watch Out For: It is an e-money institution (funds are “safeguarded” but not FSCS protected).
  • Not ideal if: You prefer a fully regulated UK high-street bank with FSCS protection on all balances.
revolut business bank
Visit Revolut Website

 🏆 BEST FOR “BAD CREDIT” HISTORY  

4. Best for “Bad Credit” History: Zempler or Tide

A poor personal credit score can often lead to rejection from high-street banks like HSBC or Lloyds. However, you still have options.

  • The Solution: Look for providers that perform a “Soft Credit Check” (an ID check) rather than a “Hard Credit Check.”
  • Top Picks: Tide and Zempler are known for high acceptance rates because they do not offer overdrafts, reducing their risk. This allows you to get a functioning Sort Code and Account Number to start trading immediately.
  • Not ideal if: You need overdraft facilities or access to larger lending products as your business grows.
tide business bank
Visit Tide Website
zempler bank formerly cashplus
Visit Zempler Website

High Street vs. Challenger Banks: Which is Right for You?

We often get asked: “Should I trust a bank with no branches?” Here is the honest comparison to help you decide.

Challenger Banks (Tide, Starling, Monzo, Revolut)

  • Pros: Account opening in minutes (via app), better app interfaces, instant notifications, and often zero monthly fees.
  • Cons: No physical branches to visit. Cash deposits can be harder (usually via Post Office or PayPoint). Cheques must be scanned in-app or posted.
  • Best For: 90% of modern small businesses, digital agencies, freelancers, and e-commerce.
tide business bank
starling business bank
revolut business bank
monzo bank

High Street Banks (Barclays, HSBC, Lloyds, NatWest)

  • Pros: Physical branches for support, ability to deposit large amounts of cash easily, and access to complex lending products (overdrafts, large business loans).
  • Cons: Application process can take weeks. Monthly fees are common after the first 12 months. Apps are often clunkier.
  • Best For: Cash-heavy businesses (retail/hospitality) or complex corporate structures requiring bespoke relationship management.
natwest bank
barclays bank
lloyds bank
hsbc bank

Important: Is My Money Safe? (FSCS vs. Safeguarding)

Understanding how your The level of protection depends on how and where client funds are held.

  THE GOLD STANDARD  

FSCS Protection

Banks with a full UK banking licence (like Starling, Monzo, and High Street banks) are covered by the Financial Services Compensation Scheme (FSCS). This protects your deposits up to £85,000 if the bank goes bust.

Visit FSCS Website
fscs - financial services compensation scheme

  THE FINTECH STANDARD  

Safeguarding

E-money institutions (like Tide, Revolut, and Wise) are not banks, so they don't have FSCS coverage. Instead, they use “Safeguarding.” This means 100% of your money is kept in a ring-fenced account at a Tier-1 bank (like Barclays) and cannot be touched by the provider for their own investments. If they go bust, your money is returned to you by the third-party bank/liquidator.

How to Open a Business Bank Account (Step-by-Step)

Gone are the days of wearing a suit to a bank meeting. Here is how to open an account in 2025:

  • Prepare your ID: You will need a valid Passport or Driving Licence.
  • Business Details:
    • Sole Traders: Just your trading name and personal address.
    • Ltd Companies: Your Companies House Registration Number and registered address.
  • Download the App: Click “See Deal” in our table above to go to the provider's official secure page.
  • Verify Identity: You will likely need to record a short video selfie on your phone to prove you are a real person.
  • Approval: Most challenger banks approve applications in under 10 minutes. You will receive your Sort Code and Account Number instantly and can start invoicing clients immediately.

Quick links:

Business Bank Account FAQ's

Still have questions? We know that choosing a business bank account can be confusing, especially with so many new digital providers on the market. Below, we answer the most common questions our readers ask to help you decide with confidence.

Do I strictly need a business bank account as a Sole Trader?

Technically, no. HMRC does not legally require it. However, using a personal account is highly risky. Banks may close your account if they spot business activity, and separating your finances makes filing your tax return significantly faster. It also looks much more professional to clients.

Yes. The Current Account Switch Service (CASS) guarantees a switch within 7 working days, moving all your direct debits and balance automatically.

Note: Not all fintechs (like Revolut) are part of CASS, so check before applying if you need an automated switch.

current account switch service

If you want zero monthly fees, Tide and Starling Bank are the market leaders. Starling is great for free electronic transactions and FSCS protection, while Tide is excellent for admin automation and fast setup.

tide business bank
starling business bank

Yes. Many digital providers (like Tide and Zempler (formerly Cashplus) conduct a “Soft Credit Check” to verify your ID, rather than a “Hard Credit Check” on your financial history. This means you can often open an account even with a poor credit score, though you may not be offered an overdraft immediately.

tide business bank
zempler bank formerly cashplus

Since digital banks don't have branches, you typically deposit cash at the Post Office or PayPoint locations (fees usually apply). For cheques, most apps (like Starling and Monzo) allow you to take a photo of the cheque to deposit it instantly up to a certain limit (usually £500–£1,000).

It depends on the provider. Applying for a full bank account (like Lloyds or Starling) usually involves a hard credit check, which can temporarily dip your score. Applying for an e-money account (like Tide or Revolut) often only involves a soft check for ID verification, which does not impact your credit score.

tide business bank
revolut business bank
lloyds bank
starling business bank

Yes. Any fees you pay for your business bank account (monthly fees, transfer charges, etc.) are considered a legitimate business expense. You can deduct these from your profits when calculating your tax bill.

See the full rules from HMRC

It is rare to get an overdraft immediately upon opening a new account, especially with digital banks. Most providers want to see a few months of trading history and cash flow through the account before offering credit.

Generally, yes. Most UK business banks require the business directors to be UK residents. However, some providers like Wise and Revolut Business are more flexible and can support non-UK residents who have a UK-registered Limited Company.

wise business banking
revolut business bank

A fully licensed “Bank” (like Starling or Monzo) protects your money up to £85,000 via the FSCS. An “E-Money Institution” (like Tide or Revolut) safeguards your money by keeping it in a separate ring-fenced account at a major bank. Both are safe, but FSCS offers a government-backed guarantee.

Money Navigator Research Team

Market Research & Comparison Editors

money navigator

About the Authors We are a team of independent market researchers passionate about helping UK business owners save money. We analyse hundreds of data points from monthly fees to hidden transaction costs to bring you transparent, side-by-side comparisons of the UK's leading financial providers.

Compliance & Disclosure Money Navigator is an independent publisher, not a financial advisor. The content on this site is for information and educational purposes only and does not constitute financial advice.

  • Non-Advised: We do not offer personal financial recommendations. You should always check the specific Terms & Conditions on the provider's website before applying.
  • Affiliate Disclosure: Our service is free to use because we may earn a commission from partners if you sign up through our links. This does not influence our ratings or reviews.
  • Accuracy: While we check rates daily, financial offers can change instantly. Please verify the final deal details with the provider directly.

Sources & Resources

The information on this page is based on publicly available data, provider disclosures, and official UK regulatory guidance, including:

Information is reviewed regularly, but terms, fees, and protections may change. Always check the provider’s website before applying.