When starting or running a business you need a business bank account that works for you. Depending on where you are in your journey, you might consider business bank accounts for entrepreneurs or with no fees.
If you’re looking for a current business account that offers great value and many features, HSBC is worth considering. One of the main benefits of HSBC business banking is that it’s available 24/7 online and via mobile, so you can manage your account anytime, anywhere. Plus, different accounts are available for new businesses, more established businesses, and community organisations. The standard monthly fee is just £6.50, and most account transactions are free for the first 24 months. You’ll also get a standard commercial and debit card and 18 months of free banking if you’re a new customer.
You’ll get 12 months of free banking if you switch to HSBC. And if that’s not enough, HSBC has also been awarded a Moneyfacts 5-star rating for Business Current Account in 2017. Plus, with the Best Tariff Promise, you can be confident that you’re always getting the best deal on your account. And if you ever need to get in touch with customer service, they’re available daily from 8am to 10 pm.
2. Lloyds Bank
Lloyds bank provides 24/7 online and mobile banking services for businesses of all sizes, from start-ups to established enterprises. It offers a range of account options, as well as plugins and integrations with popular software such as Xero and QuickBooks. In addition, Lloyds provides award-winning customer service and a choice of electronic or mixed transaction tariffs. For businesses needing extra support, the bank offers access to borrowing products and a UK-based business management team. With its comprehensive services and competitive pricing suite, Lloyds is an excellent option for businesses looking for a reliable banking partner.
Anna is a mobile business account that helps startups, freelancers, and creatives manage their finances. The account is accessible on their app 24/7, with several features that make it easy to keep track of expenses, invoices, and payments. Accounts are free while your monthly income is below £500—after that, the account fee is linked to your income. Debit cards are available, and you can earn 1% cashback on specific purchases. You can also set up reminders for tax payments and calculate how much tax you owe. Anna is an easy-to-use, affordable solution for managing your business finances.
Launched in 2015, Revolut is a mobile business account that offers users a convenient way to manage their finances on the go. The account is accessible online and on a desktop, and users can trade in 30+ currencies with no fees. In addition, Revolut offers a virtual debit card that can be used for online purchases and company cards with spending controls. The free version of the app provides limited access, but users can upgrade to the paid version for £7-£100 per month. With the paid subscription, users can oversee their spending in real-time and receive notifications when transactions are made. In addition, the paid subscription integrates with accounting software such as Xero and QuickBooks. Finally, Revolut also offers payroll, loans, and overdraft services.
Countingup is a business current account that includes accounting features, bookkeeping and invoicing features, and contactless MasterCard access. The app is suitable for freelancers and limited companies. With Countingup you can manage your account 24/7, open an account in 5 minutes, and enjoy all the usual current account features such as Direct Debits, standing orders, payments, and transfers. The monthly fee for the account is £4.95-£9.95 depending on how much you deposit each month, and there is also a free account available for businesses depositing £500 or less each month. Countingup has received 4.5 stars on Trustpilot.
6. Virgin Money
The Yorkshire and Clydesdale Banks have recently merged with Virgin Money, creating a new combined offering for businesses. As part of this merger, Virgin Money is now offering 25 months free to new or existing businesses who switch to them. The £6.50 per month account fee includes automated credits and debits at £0.30, as well as cash payments at £0.65 per £100. In addition, there are no transaction fees for businesses within the EU. Furthermore, business owners can enjoy 0.35% cash back on debit card transactions and discounts at selected Virgin Money merchants. Finally, the Business Current Account – Business Tariff 2021 has been given a five-star rating by Virgin Money. To switch, simply fill out an online form and provide your current bank details. The whole process takes just seven days. Once you’re switched over, you’ll have access to intelligent Money Management digital tools to help you manage your finances more effectively.
Mettle is a digital business account for limited companies and sole traders. You can manage your account on the app 24/7 and put aside money in Pots. You can also create invoices by reconciling them and integrating them with accounting software, including FreeAgent, Xero, and QuickBooks. Mettle also provides insights into monthly spending habits through using your card and adding receipts. There are no monthly costs or transaction fees. (This could change, but Mettle will warn you beforehand.) You can also apply for a maximum balance of £50,000 for sole traders and £100,000 for limited companies.
8. Metro Bank
Metro Bank could be a great option if you’re looking for a business bank account with excellent customer service. They offer telephone support Monday to Friday, 8-6 pm, and their branches are open seven days a week. Plus, with the 7-day Switch Guarantee, switching to Metro Bank is easy and hassle-free. Their accounts are available for startups and more established businesses, and they offer a variety of savings and business finance products. In an independent regulatory survey of the 14 largest business banks, Metro Bank ranked 2nd. And their monthly account fee is waived if your balance stays at £6,000+ for the whole month plus 30 free transactions. So if you’re looking for a convenient, customer-focused bank that offers great value for money, Metro Bank could be a good option.
Tide is a great option for businesses needing a reliable and accessible bank. With three different account options, companies can choose the plan that best fits their needs. The Free account is £0 per month, the Plus account is £9.99 per month and the Cashback account is £49.99 per month. All accounts come with a MasterCard debit card that can be used for contactless payments, and businesses can freeze and unfreeze their card on the app as needed. Additionally, bank transfers cost £0.20 or are free as part of the paid plans up to the monthly limit, making it easy to manage finances. finally, the Tide app also allows businesses to create and send invoices, and it can sync with popular accountancy software like Xero, QuickBooks and Sage. With a 4-star rating on Trustpilot, Tide is a well-reviewed option for businesses looking for an online bank.
10. Starling Bank
If you’re looking for a no-frills, low-cost bank account, Starling Bank is worth considering. There are no monthly fees, and you’re only charged for the services you use. You can also manage your account 24/7 using the app. And if you need any help, there’s 24/7 UK support available. Plus, you’ll get instant notifications whenever you get paid. Starling Bank also provides some great insights into your spending and outgoings. Starling Bank was named the Best British Bank, Best Banking App, Best Current Account Provider, and Best Business Banking Provider at the British Bank Awards 2021. Another plus is that your money is fully protected – up to £85,000 – by the Financial Services Compensation Scheme. You can also deposit cash at the Post Office. And if you need an overdraft, they offer up to £150,000, subject to approval. Lastly, Starling Bank integrates with accounting software like Xero and FreeAgent, so you can easily keep track of your finances. Oh, and one more thing – there are no overseas fees for spending and withdrawals!
Natwest provides 24/7 online and mobile banking for businesses in their first 12 months, established businesses, and not-for-profits. Accounts are available with no minimum monthly charge, only pay for what you use. Automated payments (standing orders, bank transfers, etc.) are charged at £0.35 each. Cash payments in or out cost £0.70 per £100. Debit, credit, and charge cards are available. New businesses get 18 months of free business banking. Access free to FreeAgent accounting software. They were awarded ‘Best Banking App’ at the 2018 British Banking Awards. Savings accounts and borrowing are also available. Natwest is a reliable source for all your business banking needs.
12. Bank Of Scotland
The Bank of Scotland offers a range of business banking services, from startup accounts and switch guarantees to competitive foreign exchange rates for larger businesses. It is ranked 8th in an independent regulatory survey of the 14 largest business banks and offers 12 months of free business banking for new businesses. For existing customers, the Bank of Scotland provides free electronic payments on most accounts and debit, credit, and charge cards. Cash payments are from £0.90 per £100. Foreign exchange, insurance, savings, and finance products are also available. Fees start at £7 per month (depending on the account and annual turnover), with no upper limit.
The Bank of Scotland is committed to providing high customer service, with 24/7 online and mobile banking. This means you can manage your finances at a time and place that suits you. The Bank of Scotland is a trusted name in business banking, and its 7-day Switch Guarantee gives you peace of mind when switching to a new account.
TSB 24/7 online and mobile banking is available for businesses and charities. The account has a £5-£40 monthly fee, depending on the tariff. Free electronic payments are available. The account comes with a free card payment reader from Square. Debit and credit cards are available. Deposits can be made at 300 branches or Post Office branches. The account is ranked 11th in an independent regulatory survey of the 14 largest business banks. As benefit for small businesses is that the account is backed by the Current Account Switch Service guarantee.
Santander is a well-established bank that offers a variety of accounts for both small and large businesses. One of the main attractions of Santander is the low monthly fee, which can be as low as £0-5 a month for 18 months for new businesses and 12 months for switchers. In addition, Santander offers cashback on your turnover of up to £300, making it an attractive option for businesses of all sizes. Credit and debit cards are also available, and Santander has been awarded Moneyfacts Best Business Current Account Provider of the Year 19 years in a row. 24/7 online and mobile banking is another feature that makes Santander a popular choice among business owners. Finally, Santander offers a 7-day Switch Guarantee, which gives you peace of mind when switching to a new account.
15. Royal Bank of Scotland
Royal Bank of Scotland offers a number of different accounts for businesses of all sizes, including start-ups and established businesses. All new businesses can benefit from 24 months of free banking, and there is no minimum monthly fee, so you only pay for what you use. Larger businesses have access to a dedicated Relationship Manager, and all businesses can take advantage of the bank’s Entrepreneur Accelerator programme and local Business Growth Events. In addition, the bank offers a wide range of other products and services, including foreign exchange, insurance, savings, and finance. And with the 7-day Switch Guarantee, switching to Royal Bank of Scotland is easy and hassle-free.
Barclays offers two simple price plans for businesses – one for accepting cash and cheques and one for online payments. It offers 12 months of free banking for businesses in their first 12 months of trading. UK-based phone support is available 7 am-8 pm, Monday to Friday. Monthly account fees are up to £8.50, but free cash machine withdrawals are available. Cash payments cost up to £1.50 per £100. Extra support is provided for businesses exporting goods and working abroad. Barclays also offers payment-taking services with Barclaycard.
How Do I Open A Business Bank Account?
Before starting the account setup process, gathering everything you need in one place is a good idea. This should include your business’s registration documents, such as your Certificate of Incorporation or Partnership Agreement, and your ID, like your passport or driving licence. Once you have all of this to hand, you can begin filling out the online application form.
Most banks will ask for similar information, but it’s worth checking their requirements in advance to avoid delays. When you’ve completed the form, you should hear back within a few days to a week with a decision on whether or not your account has been approved. Sometimes, they may require additional information or documents before making a final decision.
Once your account has been opened, you’ll be able to start using it straight away. This usually includes setting up online banking so you can manage your account from anywhere in the world. Many banks also offer a mobile app for added convenience. If you have questions about how to use your account, most banks have 24/7 customer support teams that will be happy to help.
What Documents Do I Need To Open A Business Bank Account?
When you’re ready to open a business account, you’ll need to provide your company’s registration number from Companies House. You’ll also need to provide detailed information about your business, such as tax information, turnover, and other capital. In addition, you’ll need to provide identification items for all directors or partners, including name, date of birth, address, and National Insurance numbers. Some banks may require that you already have a current account with them before you can open a business account. By gathering all of this information in advance, you can make the process of opening a business account much smoother.
How Quickly Can I Get A Business Bank Account?
Applying for a business bank account is a relatively simple process but it can take a few days to complete. If you’re applying for a traditional bank account, you’ll need to visit a branch and fill out an application. Once your application is approved, your card will be mailed to you within a week. The process is usually much faster if you’re applying for a neo-bank or an online-only account. In most cases, you can complete the application process in just a few minutes. However, it may take a day or two for your account to be activated. So, if you need access to your account immediately, it’s best to plan ahead. But overall, opening a business bank account is fairly straightforward, and shouldn’t take more than a few days.