Best Business Bank Accounts for Startups UK
Starting a business is expensive enough without paying for banking features you do not need. We compare the strongest startup business accounts for UK sole traders and new limited companies, including free plans, introductory offers, accounting tools, cash-deposit costs and international payments.
Our top startup business account picks
There is no universal winner. A freelancer receiving a few bank transfers needs something very different from a shop paying in cash or a startup billing customers overseas.
Tide
Best for many sole traders and new limited companies.
- £0 monthly fee on Tide Free
- 5 bank transfers included each month
- 20p per transfer after the allowance
- Account provided by ClearBank
Starling Bank
Best for startups wanting a full UK bank account without a monthly fee.
- No monthly business account fee
- No fees on standard UK bank transfers
- Free ATM withdrawals
- Accounting integrations available
NatWest Start-up
Best for new businesses wanting a mainstream bank and accounting software.
- 2 years of free everyday banking for eligible startups
- FreeAgent included while you retain the account
- Branch and Post Office access
- Startup support through NatWest’s business ecosystem
Revolut Business
Best for startups expecting international payments or multi-currency operations.
- Basic plan from £10 per month
- 25+ currencies supported
- Built for cross-border transfers and team spend
- Revolut became a UK bank in March 2026
Compare startup business bank accounts
Use this table as a shortlist, then check the transaction charges and eligibility that matter to your particular business.
| Provider | Starting cost | Best for | Startup advantage | Watch out for |
|---|---|---|---|---|
| Tide ClearBank current account |
£0/month | Sole traders and small limited companies | Low fixed cost and simple digital setup | Usage charges can add up if you make many transfers or deposit cash regularly |
| Starling Bank UK bank |
£0/month | Startups wanting a free full bank account | No monthly fee and free UK bank transfers | Cash deposits currently cost £3 or 0.7%, whichever is higher |
| Monzo Business UK bank |
Lite £0/month | App-first founders and sole traders | Free Lite plan with upgrade path to more admin tools | Pro costs £9/month and Team starts at £25/month |
| Mettle NatWest account |
£0/month | Self-employed people who want accounting included | FreeAgent can be included when you make at least one transaction per month | Eligibility and account-access structure may not suit larger or multi-owner companies |
| NatWest Start-up UK bank |
Free everyday banking for 2 years | New businesses wanting mainstream banking support | Long introductory period plus FreeAgent | International payments and additional services are outside the free-banking offer |
| Lloyds Start Up UK bank |
No monthly fee for 12 months, then £10/month | Startups wanting high-street banking and borrowing options | First-year monthly fee waiver and wider business-banking relationship | Cash and some specialist payments carry separate charges |
| Revolut Business UK bank / transition applies |
From £10/month | International startups | Strong multi-currency and global-payment tools | Paid from day one and allowances differ by plan |
| Wise Business E-money/payment account |
Free to register; £50 to unlock account details | Startups paid by international clients | Local account details and low-cost currency conversion | Not a conventional UK bank account; standard balances use safeguarding rather than FSCS deposit protection |
Which account fits your startup?
Your first business account does not need every possible feature. It needs to fit the way you expect to get paid and run the company over the next 12 to 24 months.
Freelancer or consultant
Start by comparing Tide, Starling, Monzo Lite and Mettle. Low fixed fees and easy bookkeeping usually matter more than branch access if clients pay you by bank transfer.
New limited company
Compare Tide and Starling against NatWest and Lloyds. A high-street bank can become more useful later if you expect to need lending, cash handling or a broader business relationship.
Shop, café or cash business
Pay close attention to cash-deposit fees. A £0 monthly account can still be expensive if you pay in takings several times a week.
International startup
Revolut Business and Wise Business are strong places to start if you invoice customers overseas, pay international suppliers or need to hold several currencies.
Founder wanting accounting included
Mettle and NatWest stand out because of FreeAgent. Monzo, Starling and Tide also offer accounting tools or integrations, but the charging structure differs.
Startup planning to hire
Consider team access, employee cards, spending controls and approval workflows early. Revolut Business, Monzo Team and Tide’s paid plans become more relevant as headcount grows.
Do startups need a business bank account?
For a limited company, keeping company finances separate from your personal money is essential because the company is a separate legal entity. Using an account in the company name creates a cleaner financial record and makes bookkeeping, expenses and tax administration far easier.
A sole trader is not legally separate from the business in the same way, so there is no universal legal requirement to open a dedicated business account. Your personal bank’s terms may still prohibit or restrict business use. In practice, separating business income and spending is usually worth doing from the start because it makes it easier to understand whether the business is actually making money.
If you want a broader comparison beyond startup-specific products, see our best UK business bank accounts guide.
What should a startup compare?
1. What will the account cost after the introductory offer?
A long free-banking period looks attractive when cash is tight, but the account may stay with you for years. Compare both today’s cost and what happens after the promotion ends. NatWest currently offers eligible startups two years of free everyday banking, while Lloyds waives the monthly account fee for 12 months and then charges £10 per month. Starling and Monzo Lite take a different approach by having no monthly fee on their core business accounts.
2. How many transfers will you make?
A startup receiving a few client payments and paying three suppliers each month may barely notice transaction pricing. A recruitment company or agency making dozens of payments can. Tide Free, for example, includes five bank transfers per month and charges 20p each after the allowance. That is still inexpensive for light users, but it means £0 monthly fee does not equal unlimited free banking.
3. Will you pay in cash?
This is one of the biggest reasons not to choose a business account from a headline comparison alone. Starling currently charges £3 or 0.7% of a cash deposit, whichever is higher. Tide’s Post Office and PayPoint charges use a different structure. A tradesperson who is paid almost entirely by bank transfer may not care, while a café or barber could pay meaningful sums over a year.
4. Do you need accounting software?
Startup owners often underestimate how much time bookkeeping can consume. Mettle includes FreeAgent when you make at least one transaction a month from the account, while NatWest’s eligible Start-up account also includes FreeAgent while you retain the account. Monzo Pro includes invoicing, Tax Pots and accounting integrations for £9 per month. Starling has its own accounting tools and integrations with Xero, QuickBooks and FreeAgent.
5. Will you trade internationally?
If overseas customers or suppliers are part of your plan, consider international payments before opening the account rather than bolting them on later. Revolut Business supports more than 25 currencies and offers different transfer and FX allowances by plan. Wise Business charges a one-off £50 fee to unlock business account details and supports receiving money in multiple currencies, with currency conversion fees starting from 0.24% depending on the transaction.
6. Is the provider actually a bank?
This matters because the protection framework can differ. Eligible deposits with UK-authorised banks can generally fall under Financial Services Compensation Scheme protection up to the current £120,000 limit, subject to the scheme’s rules. E-money providers use safeguarding instead. Wise Business is a useful example: it can be excellent for international payments, but it is not a conventional UK bank account.
Startup tip: optimise for the next two years, not just today
Your first month of trading may involve five payments and one debit card. By year two you might have employees, bookkeeping software, VAT, overseas suppliers and finance requirements. Choose an account that is inexpensive now but also has a sensible path as the business becomes more complicated.
Our detailed startup account picks
Tide: our all-round startup pick
Tide remains one of the easiest accounts to put on a startup shortlist because the Free plan has no monthly subscription and is designed specifically around small-business administration. The current Free plan includes five monthly bank transfers, after which standard transfers cost 20p. ATM withdrawals cost £1 and cash-deposit charges vary by method and amount.
The current account itself is provided by ClearBank. Eligible deposits held with ClearBank can fall under FSCS protection up to £120,000, subject to eligibility and aggregation rules.
Starling Bank: best free full UK bank account
Starling’s business account has no monthly fee, no charge for standard UK bank transfers and free ATM withdrawals. That makes it a particularly strong benchmark for a startup that simply wants everyday banking without having to calculate a subscription cost from day one.
Its main weakness for some startups is cash handling. Cash deposits at the Post Office currently cost £3 or 0.7% of the amount deposited, whichever is higher. For a digital consultancy that may be irrelevant. For a cash-heavy local business it can materially alter the economics.
Monzo Business: best app-first option
Monzo Business Lite is free, which makes it a credible startup option in its own right. The paid tiers become interesting as the business requires more automation. Pro currently costs £9 per month and adds features including invoicing, Tax Pots and accounting integrations. Team starts from £25 per month and is aimed at businesses needing employee expense cards, permissions and bulk-payment tools.
That progression makes Monzo useful for a startup that wants to begin on a free account but expects to need more sophisticated admin features later.
NatWest Start-up: best traditional startup package
NatWest currently offers eligible new businesses two years of free everyday banking. The account is aimed at businesses that have been trading for less than one year and have turnover below £1 million. FreeAgent is included while you retain the account, although optional add-ons can cost extra.
The appeal here is broader than the introductory price. A founder can access a large UK bank’s branches, Post Office services, support ecosystem and wider borrowing products as the business develops.
Revolut Business: best for internationally minded startups
Revolut Business is no longer a free-plan recommendation. Basic currently starts from £10 per month, Grow from £30 and Scale from £90. What you get in return is a business platform centred on international transfers, multiple currencies, employee spending and financial operations.
A major 2026 change is that Revolut Bank UK Ltd became a fully licensed UK bank in March. Revolut has been transitioning eligible Business customers from e-money accounts to bank current accounts. Once an eligible account has transitioned, qualifying deposits can receive FSCS protection up to £120,000. Existing customers should check their own status because the transition has been phased.
What documents do you normally need?
The exact checks vary by provider and business structure, but most applications will ask for information about the owners or directors, proof of identity, contact details and information about what the business does. Limited-company applications can normally be matched against Companies House records. You may also be asked about expected turnover, where customers are based, anticipated payment volumes and the source of funds.
Do not assume “instant decision” means every applicant will be approved immediately. Banks and payment providers have legal identity, fraud and anti-money-laundering checks to complete, and unusual ownership structures or certain industries can take longer to review.
Should you choose a free startup account?
Usually, a free account is a sensible place to begin when it meets the way your startup operates. Fixed costs matter in the early months. The mistake is assuming every £0 account costs the same to use.
For example, one provider may include unlimited UK transfers but charge more for cash deposits. Another may charge 20p per transfer but include better invoicing tools. A third may have a monthly subscription but save an international startup far more through lower foreign-exchange costs.
Work out roughly how many bank transfers, cash deposits, cards and foreign payments you expect to make each month. Even a simple estimate makes the comparison much more useful.
Can you change business bank accounts later?
Yes. Your first business account is not a lifetime decision. If the company’s needs change, you can open another account or switch. Many UK business current accounts participate in the Current Account Switch Service, although eligibility depends on the provider and account.
If you already have an account and are considering moving, our business bank account switching guide explains the main steps and what to check before moving direct debits and incoming payments.
How we selected these startup accounts
We prioritised accounts that are realistically useful to UK startups rather than trying to create the longest possible list. We considered monthly cost, UK transaction fees, cash handling, accounting support, international capabilities, team features, eligibility, whether the provider is a bank or e-money institution, and the protection framework that applies to customer funds.
This is why several banks that appeared in the old 21-provider version of this guide have been removed. A shorter comparison of relevant current products is more useful than retaining obsolete account names, old promotional periods and providers whose propositions have materially changed.
Startup business bank account FAQs
What is the best business bank account for a startup?
Tide is a strong all-round starting point, Starling is particularly compelling for a free full UK bank account, NatWest has one of the strongest dedicated startup packages, and Revolut Business is more suitable for internationally focused startups. The best choice depends on how you receive and spend money.
What is the best free startup business account?
Starling, Tide Free and Monzo Business Lite all start with no monthly fee. Mettle is also free and can include FreeAgent when you meet the account-activity requirement. Compare transaction and cash-handling fees before deciding which is genuinely cheapest for your business.
Can I open a business bank account before I start trading?
Many providers accept newly formed companies and businesses that have not built up a long trading history, but the eligibility rules vary. Traditional startup accounts may define how long the business can have been trading, while app-based providers usually have their own business-type and industry restrictions.
Which startup account is best for accounting?
Mettle and NatWest are particularly strong if FreeAgent is valuable to you. Monzo Pro, Starling and Tide also offer useful bookkeeping tools or accounting integrations. Compare the total cost of banking plus accounting software rather than considering the bank account in isolation.
Which startup account is best for international payments?
Revolut Business and Wise Business are the first two we would compare for a startup dealing regularly in multiple currencies. Revolut is increasingly suitable as a main business bank after becoming a UK bank in 2026, while Wise remains primarily a specialist international payments and multi-currency account.
Is money in a startup business bank account FSCS protected?
Eligible deposits at UK-authorised banks can generally receive FSCS protection up to £120,000, subject to eligibility and how deposits are aggregated. E-money accounts use safeguarding instead. Always check which legal entity actually provides the account because a fintech brand and the underlying bank may not be the same thing.
Continue your business banking research
Once you have narrowed the shortlist, use our provider reviews and broader banking guides to check the details before applying.