Best Business Bank Accounts for UK Small Businesses
Compare business current accounts for sole traders, startups and established UK companies. We look beyond headline fees to help you compare everyday banking costs, cash deposits, accounting tools, international payments and the type of protection that applies to your money.
Our editors’ business account picks
These four options stand out for different types of UK small business. The right choice depends on how you get paid, how much admin you want handled for you, and whether you trade internationally.
Tide Business Account
A strong starting point for sole traders and small limited companies.
- £0 monthly fee on the Free plan
- 5 bank transfers included each month, then 20p each
- Business current account provided by ClearBank
- Eligible deposits can be FSCS protected up to £120,000
Revolut Business
Best suited to businesses working across currencies and countries.
- Basic plan from £10 per month
- 25+ currencies supported
- Local and global account details
- Revolut became a fully licensed UK bank in March 2026
ANNA Business Account
Useful if invoicing, tax and admin tools matter as much as the account itself.
- Free pay-as-you-go plan available
- Built-in invoicing and admin tools
- MTD ITSA filing included on current plans
- ANNA is not a bank; funds use safeguarding rather than FSCS deposit protection
Wise Business
A strong option for businesses receiving, holding or sending multiple currencies.
- £50 one-off fee to unlock business account details
- No monthly subscription for the core account
- Currency conversion fees from 0.24%
- Wise is not a bank; standard balances are safeguarded rather than FSCS protected
Compare 10 leading UK business accounts
There is no single “best” account for every business. This comparison highlights the cost structure and the type of business each provider is likely to suit best.
| Provider | Type | Starting monthly fee | Best for | Key point |
|---|---|---|---|---|
| Tide | Bank account via ClearBank | £0 | Sole traders and small businesses | Simple free starting plan; pay attention to transfer and cash-deposit charges. |
| Starling Bank | UK bank | £0 | Businesses wanting a full free bank account | No monthly fee; cash deposits currently cost £3 or 0.7%, whichever is higher. |
| Monzo Business | UK bank | £0 Lite | App-first businesses and sole traders | Lite is free; Pro is £9/month and Team starts from £25/month. |
| Revolut Business | UK bank | From £10 | International and multi-currency businesses | Basic, Grow and Scale plans with different transfer and FX allowances. |
| Mettle by NatWest | UK bank account | £0 | Self-employed people wanting accounting support | FreeAgent can be included when account activity requirements are met. |
| NatWest | UK bank | Startup offer: free everyday banking | New businesses wanting branch access | Eligible startups can get 2 years of free everyday banking and FreeAgent. |
| Lloyds Bank | UK bank | £0 for first 12 months, then £10 | Businesses wanting a major high-street bank | Electronic payments are included at no extra cost on the standard account. |
| HSBC UK | UK bank | Small Business Banking: £0 | Small businesses wanting digital banking with high-street support | Standard domestic digital transactions are currently free; cash charges apply. |
| ANNA | E-money/business account | £0 pay-as-you-go | Admin-heavy sole traders and small firms | Strong invoicing and tax/admin features; not FSCS deposit protected. |
| Wise Business | Payment/e-money account | No monthly fee; £50 setup for account details | International payments and multiple currencies | Excellent global-payment tools; standard Wise balances are not FSCS deposits. |
Don’t choose on the monthly fee alone
A “free” business account can still be expensive if you pay in cash every week, make hundreds of transfers, use multiple currencies or need several employee cards. For many SMEs, transaction charges and operational fit matter more than whether the headline monthly fee is £0.
Which business account is likely to suit you?
Start with how your business actually operates. These are practical starting points rather than universal recommendations.
Sole traders
Tide, Starling, Monzo and Mettle are all worth comparing if you want low fixed costs and strong app-based banking. Check whether you need cash deposits or more advanced accounting tools.
New limited companies
Compare Tide, Starling and the startup offers from NatWest and Lloyds. Traditional banks can be particularly useful if you expect to need lending, branch services or a wider banking relationship later.
Cash-heavy businesses
Do not pick an account purely because it is free. Compare Post Office and branch cash-deposit fees carefully. Small percentage differences can matter more than the monthly subscription.
International businesses
Revolut Business and Wise Business deserve a close look because both are built around cross-border payments and currency management. Compare FX allowances, transfer fees and account-protection arrangements.
Businesses wanting accounting tools
Mettle, Monzo, Tide and ANNA integrate banking more closely with bookkeeping, invoicing or tax features. The best choice depends on whether you want a bank first or an admin platform first.
Growing teams
Revolut Business, Monzo Team and paid Tide plans offer more sophisticated team access, permissions and expense controls. Compare the cost once you add several users or cards.
Do you actually need a business bank account?
If you run a limited company, the company is a separate legal entity from you personally, so keeping company money separate is fundamental to clean bookkeeping and proper financial administration. In practice, that means using an account in the company’s name rather than mixing company transactions with personal spending.
Sole traders are different. You are not legally separate from the business in the same way, so there is no general legal rule saying every sole trader must have a dedicated business account. However, your personal bank’s terms may restrict business use, and keeping business transactions separate usually makes tax returns, expense tracking and bookkeeping much easier.
What should you compare before opening an account?
1. The real monthly cost
Start with the plan fee, but then add the charges your business will actually trigger. Common costs include bank transfers, cash deposits, ATM withdrawals, CHAPS payments, foreign transfers, currency conversion, extra cards and paid accounting features.
2. How you get paid
A consultant who receives a handful of bank transfers each month has very different requirements from a restaurant paying in cash every day. Likewise, an agency receiving dollars and euros may care far more about FX costs than branch access.
3. Banking licence and protection
Eligible deposits at UK-authorised banks are generally protected by the Financial Services Compensation Scheme up to the current £120,000 limit per eligible depositor, per authorised institution. The exact treatment can differ for sole traders and incorporated businesses, and eligibility rules apply.
E-money institutions use a different protection model called safeguarding. That does not mean they are automatically unsafe, but safeguarding is not the same as FSCS deposit protection. This distinction matters when you are comparing Wise or ANNA with a conventional UK bank account.
4. Accounting and tax integrations
If you already use Xero, QuickBooks or FreeAgent, check whether the account has a direct feed and whether it costs extra. For very small businesses, an account with invoicing, receipt capture or tax pots built in can reduce the amount of separate software you need.
5. Cash and cheque support
Digital-first accounts can be excellent until you need to deposit cash regularly. If your business handles notes and coins, compare the actual percentage or fixed fee charged through branches, Post Offices or PayPoint locations. The cheapest account for an online consultant may be one of the most expensive for a cash-heavy retailer.
6. International payments
For importers, agencies, remote teams and businesses with overseas clients, look at supported currencies, transfer fees, FX mark-ups, allowances and whether you receive local account details. Revolut Business and Wise Business are particularly strong in this area, but their pricing works differently.
Our view on the leading business accounts
Tide: best all-round starting point for many small businesses
Tide’s Free plan has no monthly subscription. The current free tier includes five bank transfers a month, with transfers charged at 20p after the allowance. Cash withdrawals cost £1, while cash-deposit pricing depends on where and how much you deposit.
The important structural point is that Tide Business Current Accounts are provided through ClearBank. Eligible deposits held through ClearBank can qualify for FSCS protection up to £120,000, subject to eligibility and aggregation rules.
Starling Bank: best free full UK bank account
Starling remains one of the strongest straightforward options for SMEs that want a licensed UK bank with no monthly account fee. It combines app-based banking with 24/7 support and business features without requiring a paid monthly plan.
Cash deposits are not free. Starling currently charges £3 or 0.7% of the deposit value, whichever is higher, which is worth factoring in if your business takes significant cash.
Monzo Business: best app-first option with clear upgrade paths
Monzo Business Lite is free. Businesses needing more automation can move to Pro at £9 per month, while Team starts at £25 per month and adds features for businesses with employees and more complex permissions.
Monzo’s paid plans include features such as invoicing, Tax Pots and accounting integrations, making it appealing to business owners who want more financial admin inside the banking app.
Revolut Business: best for multi-currency operations
Revolut Business currently offers Basic from £10 per month, Grow from £30 and Scale from £90, with different allowances for local transfers, international transfers and foreign exchange. It supports more than 25 currencies and is designed around businesses operating across borders.
A major change since the old version of this guide is that Revolut became a fully licensed UK bank in March 2026. Eligible Business accounts transitioned to Revolut Bank UK Ltd can receive FSCS protection up to £120,000. Because customer migration has been happening in stages, existing users should check their own account status.
Mettle: best for self-employed people who want FreeAgent
Mettle is aimed at sole traders and limited companies with up to two owners, although only one owner can access the account. It combines everyday banking with invoicing, tax pots, receipt capture and bookkeeping features.
FreeAgent can be included as long as you meet Mettle’s account-activity requirement of making at least one transaction a month. That can be valuable for a small business that would otherwise pay separately for accounting software.
NatWest: best traditional-bank startup package
NatWest’s Start-up account offers eligible new businesses two years of free everyday banking. It is currently aimed at businesses trading for less than one year with turnover below £1 million, and it includes FreeAgent while the account is retained.
NatWest also gives businesses access to branches, Post Offices, digital banking and broader lending and support services.
Lloyds Bank: strong mainstream option for established SMEs
Lloyds currently waives its monthly account fee for the first 12 months for eligible first business accounts, after which the standard monthly fee is £10. Electronic payments in and out are included at no extra cost, while cash, cheques, BACS, CHAPS and international services have separate charges.
HSBC UK: useful for small businesses wanting international capability
HSBC’s Small Business Banking Account currently has no monthly account fee and no charge for standard domestic digital transactions. Cash handling and some other services carry fees. HSBC has also published further Business Price List changes due from 14 December 2026, so businesses opening an account now should review the latest tariff.
ANNA: best if admin tools are the priority
ANNA’s Free plan has no monthly fee and works on a pay-for-what-you-use basis. It includes unlimited outgoing transfers, with the first £1,000 of incoming payments each month included before a 0.95% charge applies. Paid plans increase transfer and card allowances.
ANNA is not a bank. It operates under an e-money framework and customer money is safeguarded rather than protected as a normal bank deposit under the FSCS.
Wise Business: best specialist account for international payments
Wise Business is not a conventional UK bank account, but it is one of the strongest business payment accounts for cross-border work. Wise currently charges £50 to unlock local account details for receiving payments, while currency conversion starts from 0.24% depending on the currencies and transaction.
Wise Payments Ltd is an FCA-authorised electronic money institution rather than a bank. Standard Wise balances are safeguarded and are not covered by ordinary FSCS bank-deposit protection.
How Quotehunt compares business accounts
We look at the parts of a business account that can materially affect a UK SME: monthly plan fees, everyday transfer charges, cash handling, international payments, team access, accounting tools, eligibility, whether the provider is a bank or e-money institution, and the protection framework that applies to customer funds.
We do not think the cheapest headline price automatically makes an account the best. A £0 account with expensive cash deposits can be a poor choice for a retailer, while a paid international account can save money for a business making frequent foreign-currency payments.
Business bank account FAQs
What is the best free business bank account?
Tide, Starling, Monzo Lite and Mettle all have £0 monthly options. “Free” does not mean every transaction is free, so compare bank-transfer, cash-deposit, ATM and international-payment charges based on how your business actually banks.
Can a sole trader use a personal bank account?
There is no general legal requirement for a sole trader to have a business bank account, but the terms of your personal account may restrict business activity. A separate business account also makes bookkeeping and tax records much easier to manage.
Is a business bank account protected by the FSCS?
Eligible deposits held with UK-authorised banks can be protected by the FSCS up to the current £120,000 limit, subject to eligibility and aggregation rules. E-money providers such as ANNA and Wise use safeguarding instead, which is a different protection framework.
Which business account is best for international payments?
Revolut Business and Wise Business are two of the strongest options to compare if you regularly receive, hold or send foreign currencies. The right choice depends on your transfer volumes, currencies and whether you want the provider to be your main UK bank account.
Which account is best for a new limited company?
Tide, Starling, NatWest and Lloyds are sensible starting points. Tide and Starling keep fixed monthly costs low, while NatWest and Lloyds can offer a broader high-street banking relationship and startup incentives for eligible customers.
