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Compare business bank accounts

Find the best business bank account to suit your needs

Open a business bank account and simplify your finances

  • Compare deals from award-winning providers

  • Consider key features and costs involved

  • Choose the best business bank account tailored to your small business

  • Compare deals from award-winning providers

  • Consider key features and costs involved

  • Choose the best business bank account tailored to your small business

BCA - Steve-Focused

Our best business bank account deals 2025

8 results found, sorted by affiliated products first. Commission earned affects the table's sort order.
Scale and save with global payments, multi-currency accounts, and smarter spending

Revolut Business Basic Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Business account with multi-currency wallets and smart debit cards. Track expenses, set up teams and permissions and accept online card payments easily. Integrated with your accounting software of choice. No monthly fees, hold and exchange 25+ currencies.
Revolut Business is not a fully licensed bank in the UK. Instead, your funds are safeguarded by licensed banks. T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Get your first 3 months of Pro or Team completely free!

Monzo Business Lite Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Monzo Business customers get free UK bank transfers, effortless accounting via receipt uploads, 24/7 customer support and money management with Pots. They can receive payments through a single link. Earn 1.60% AER (variable) on money in your Instant Access Pots. Interest paid monthly. T&Cs apply.
Must be UK Resident and a limited company or sole trader.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Free day-to-day online business banking

Virgin Money M Account for Business

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Free online day-to-day business banking (excludes CHAPS and international payments). For business with annual turnover less than £1 million.
Please allow up to 72 hours from registering your business with Companies House, before starting an application.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Best Business Banking Provider – British Bank Awards 2023 Finalist

Zempler Bank Business Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Zempler Bank, formerly Cashplus, for sole traders, those just starting out & small businesses. Instant payment notifications, UK telephone support, cashflow tracking & integrated accounting, FSCS protection up to 85,000 on eligible deposits.
Eligibility criteria apply, other fees and charges may apply, for UK businesses only, 18+ and UK resident, T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Maximum balance£500,000
Permanent UK Resident
Moneyfacts Business Current Account 2023 5 Star Rating

Virgin Money Business Current Account

Account fee
£6.50per month
Free Banking Duration
25months free, then£6.50per month
Interest rate
0%AER
25 months' fee free day-to-day banking for start-ups and switchers (excludes CHAPS and international payments).. Includes free MasterCard business savings, debit card cashback, plus digital money management tools.
This account is available for eligible businesses with a turnover of less than 6.5m. Please allow up to 72 hours from registering your business with Companies House, before starting an application. Virgin Money is a trading name of Clydesdale Bank PLC
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Earn up to 4.58% AER (variable)* on your company’s spare cash

Allica Bank Business Current Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
*Rate includes standard rate of 3.58% 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
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Get £150 cashback when you open a Tide business bank account

Tide Business Bank Account

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
Register your business for £14.99 through Tide with Companies House, Get a Free instant saver account which gives you 3.81% AER when you sign up for your Tide business bank account. Eligibility and T&Cs apply.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Permanent UK Resident
Free business account with free corporate card

MyGuava Business

Account fee
No account fee
Free Banking Duration
Free
Interest rate
0%AER
The platform is designed for businesses registered in the UK and Canada, particularly those who are typically underserved by traditional banks. Businesses of any size from a wide range of sectors can work with us to overcome the challenges they face.
Using a single platform, businesses can manage payment operations, issue corporate cards, track transactions, hold and manage funds in 20+ currencies, transfer internationally and exchange in 90+ currencies. It is free to set up with no monthly fees.
More Information
Rate Tiers
Gross rateGross rateAER rateAER rate
Excluding bonusIncluding bonusExcluding bonusIncluding bonus
£10%0%0%0%
Eligibility
Area Restrictions
Fact checker
Last updated
February 14th, 2025
Florist owner

What is a business bank account? 

A business bank account is specifically designed for managing business finances, so you can keep your personal finances separate. This is important for accounting and tax purposes, plus it helps businesses pay expenses, receive payments and manage cash flow.


Do I need a business bank account? 

A business bank account works in a similar way to a personal bank account, but it’s tailored to meet the needs of businesses including startups, sole traders and other types of organisations such as sports clubs and charities. 

Limited companies are required to have a business bank to comply with the legal duties of running a limited company. This is because a limited company is a separate legal entity, so the money belongs to the business rather than a personal individual. This means it must be separated.

Sole traders aren’t required to have a business bank account, but it’s always worth exploring if you’re struggling to manage your finances. It also promotes professionalism and builds your business credit history.


Woman taking notes - (Image collection)

Why open a business bank account? 

Here are some reasons why getting a business bank account is important:

Separation of personal and business finances: It simplifies accounting, bookkeeping and tax reporting. This makes it easier to track business expenses, income, and profits.

Legal and liability protection: In the event of legal issues, having a distinct business bank account can help as your personal assets are separate. 

Access to business-specific banking services: Business bank accounts often come with business overdrafts, lines of credit, payroll processing, accounting software and cash management tools. 

Compliance with financial regulations: Accounts typically come with features such as account statements, transaction tracking and integration with accounting software. This simplifies regulatory compliance and auditing processes.

Scalability and growth: As your business grows, having a dedicated business bank account provides a foundation for expansion. It offers the necessary financial infrastructure to support growth.


What are the benefits and drawbacks of a business bank account?

Pros

Invoices paid directly to your business account
Transactions can be tracked with categorised spending
Integrated accounting software
Build a credit history for your business
Tax returns are simpler as finances are separate

Cons

Monthly fees and charges
There are sometimes minimum balance requirements
Lower interest rates
Less flexibility than personal accounts e.g. stricter withdrawal limits

How to choose the best bank account for your small business

If you aren’t sure where to begin, then it’s important to consider the following…

Think about your business needs

Every small business is different, so think about your current banking activity and the size of your business. How many deposits and withdrawals are you making on a regular basis? How often are you receiving payments and do you have any international clients? These questions will help to steer you in the right direction.

Compare fees and charges

Banks charge different fees for business bank accounts, so remember to compare the monthly fees as well as any transaction fees and ATM or cash withdrawal fees. There are some providers that offer fee-free business bank accounts, but they might not come with some useful features.

Check minimum balance requirements

Cash flow is a key part of your business, and you’ll need a business bank account that works best for the money coming in and out. Some providers include minimum balance requirements, so you’ll need to maintain this to avoid extra fees.

Consider features and rewards

You’ll want to find a business bank account that is best for your needs, so always check what features are included. This could be integrated accounting software, a high interest rate or cashback offers to give an added boost.

Research customer service

Before making a final decision, take the time to read customer reviews and consider whether there is suitable support for your business. Do they have 24/7 customer support? Can you pick up the phone and speak with someone? Is the online banking app easy to use? These questions can help you to find the right fit.
Gardener checks her laptop.

How to set up a business bank account online

With digital banks it only takes a few minutes to apply for a business bank account, but the steps will differ depending on the provider. Here’s a brief overview of what to expect:

  • Choose the right business bank account for your small business 

  • Get the required documents ready for application, including a valid ID

  • Apply online via the bank’s website 

  • Set up online banking and payment methods

  • Add the minimum deposit if required 

  • Start using your account

What do I need to open a business bank account in the UK? 

In some cases, you may be asked for specific documentation to confirm your identity but this is decided on a case by case basis. The types of documents you could be asked for include:

  • A valid identity document such as your passport or driving licence

  • A valid proof of address for both you and your business – if this is something like a utility bill it will need to be less than three months old

  • Companies House registration documents for your business

Why should I switch business bank accounts?

It’s always a good idea to compare deals and make sure you are getting the best deal. There are many reasons for switching, for example you might be frustrated with your current provider’s customer service or you could have found an account with lower fees and more rewards.

Do I need a business bank account if I’m a sole trader?

You’re not legally required to have a business bank account if you’re self-employed or a sole trader. However, many people choose to, as it helps keep business and personal finances completely separate and easier to manage.

Can I use my personal bank account for business?

Yes, if you’re self-employed or a sole trader. But you cannot use a personal current account if you are running a limited company as this would not be compliant with the legal expectations of running a limited company.

Can I get a business bank account with bad credit?

It’s possible to open a business account with bad credit but it may be difficult, especially if you’ve been declared bankrupt or had a county court judgement (CCJ) against you in the last five years. If you're struggling it might be worth speaking to a financial advisor.

Can I receive international payments into a business bank account?

Yes, although you may be charged a handling fee and sometimes a surcharge over and above the base currency exchange rate – and those charges will vary depending on the bank, so you should check first. 

For international transactions you’ll need your bank’s Business Identifier Code (BIC) and your unique International Bank Account Number (IBAN), which come with every business bank account.

How do I keep my business bank account safe from fraud?

Fraud and financial crime are happening more often, with fraudsters and scammer tactics getting more sophisticated by the day. A responsible bank account provider will have the security of your funds as their top priority, however there are also things you should do to protect yourself:

  • Make sure you keep your contact details up to date so your bank account provider can reach you if suspicious activity is seen on your account

  • Never share your online banking username or password with anyone over the phone, by text or email, even if the caller claims to be from your bank or the police

  • Never share the answers to your memorable questions linked to your bank account 

  • Never share any unique verification codes or your one time passcode with anyone. Create passwords that are difficult to guess and don’t use personal information. It pays to use a mix of upper and lowercase letters, numbers and symbols

  • Always use different passwords for your online accounts

If you’re ever contacted by your bank via the phone, SMS or email and you’re not sure it is them, don’t hesitate to end the interaction and call them back on their official customer service phone line to ensure the communication is genuine.

What is the minimum balance requirement for business bank accounts?

There isn’t a minimum balance requirement for business bank accounts because each provider sets its own eligibility criteria. Always check the terms and conditions before applying for a business bank account.

Can I have more than one business bank account?

Yes, although if you want more than one account you’ll have to apply for each separately.

About the author

Lucinda O'Brien
Lucinda O'Brien has spent the past 10 years writing and editing content for regional and national titles. She applies her industry knowledge to ensure readers can make confident financial decisions.

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