Open a Business Bank Account: Compare Options for UK Small Businesses
Need a separate account for your business without spending hours comparing tariffs? We have narrowed down four practical options for sole traders, freelancers and small companies, with the costs and catches explained in plain English.
Four business accounts worth comparing
You do not need the account with the longest feature list. You need one that fits how your business gets paid, how often you make transfers and whether you deal with customers or suppliers overseas.
Best everyday starting point
Tide Business Account
Best for: sole traders, freelancers and small limited companies wanting low fixed costs.
- Free plan with £0 monthly fee
- 5 bank transfers included per month, then 20p each
- £1 cash withdrawals on the Free plan
- New Tide business current accounts are provided by ClearBank
- Eligible deposits can receive FSCS protection up to £120,000
Eligibility and transaction fees apply.
Best for global companies
Revolut Business
Best for: UK limited companies that make international payments or use several currencies.
- Basic plan from £10 per month
- 25+ supported currencies
- Bank account, cards and team-spend controls
- Revolut Bank UK Ltd is a fully licensed UK bank
- Eligible deposits can receive FSCS protection up to £120,000
Revolut Business is not currently available to sole traders.
Best for admin support
ANNA Business Account
Best for: sole traders and small firms that want banking-style tools, invoices and admin in one app.
- £0 pay-as-you-go plan available
- Unlimited outgoing transfers on the Free plan
- First £1,000 of incoming payments each month included, then 0.95%
- Built-in invoicing, receipt capture and tax tools
- ANNA is an e-money account, not a bank account
Main-account funds are safeguarded rather than FSCS deposit protected.
Best for international payments
Wise Business
Best for: businesses paid by overseas clients or regularly paying suppliers in other currencies.
- Free to register
- £50 one-off fee to unlock business account details and full features
- Currency conversion from 0.24%, depending on currency
- Receive money using account details in multiple currencies
- Wise is an e-money institution, not a bank
Standard Wise balances are safeguarded rather than FSCS deposit protected.
Which account looks closest to what your business needs?
Use this as a shortlist, then check the provider’s current terms before applying.
| Account | Starting cost | Sole traders? | Best suited to | Protection of main balance |
|---|---|---|---|---|
| Tide | £0/month Free plan | Yes | Everyday UK small-business banking | FSCS eligible via ClearBank |
| Revolut Business | From £10/month | No, use Revolut Pro instead | Incorporated businesses trading internationally | FSCS eligible deposits |
| ANNA | £0 pay-as-you-go | Yes | Small businesses wanting admin and tax tools | Safeguarded e-money |
| Wise Business | £50 one-off fee for full account details/features | Yes, subject to eligibility | International transfers and multi-currency payments | Safeguarded e-money |
What you will usually need before you apply
Having the basics ready can make the application much less frustrating. Providers carry out identity, business and anti-money-laundering checks, so approval is never guaranteed just because an application is completed online.
Your personal details
Expect to verify your identity and home address. A provider may ask for photo ID, a selfie or video check and supporting address information.
Your business details
Have your trading name, registered company details where applicable, business address, industry and an explanation of what the business actually does.
How the account will be used
You may be asked about expected turnover, where payments come from, countries you trade with and the people who own or control the business.
Opening a business bank account should make running your business easier
If you are self-employed, running a side business or setting up your first limited company, business banking can look unnecessarily complicated. Providers talk about transfer allowances, multi-currency wallets, integrations, savings pots and expense cards when what you really want to know is simple: can I get paid, pay my bills and keep my business money organised without being stung by fees?
That is the way we think small-business owners should compare accounts. Start with the day-to-day jobs the account needs to do, then look at the clever extras. A free plan is useful only if the transactions you make most often are also cheap. An account with excellent currency tools is valuable only if you actually trade overseas.
Do sole traders need a separate business account?
A sole trader is not a separate legal entity from the individual running the business, so the position is different from a limited company. There is no blanket rule forcing every sole trader to open a business account, but your personal bank may restrict business use in its terms. Keeping business income and spending separate also makes bookkeeping, Self Assessment and expense tracking considerably easier.
For a busy tradesperson, consultant, driver, freelancer or local service business, that separation can be valuable on its own. Instead of searching through your personal spending at year end, you have a cleaner record of what came into the business and what went out.
If you are a sole trader, check eligibility before anything else
Do not assume every business account on the market accepts sole traders. Tide and ANNA do. Wise Business supports eligible sole traders and freelancers. Revolut Business is currently aimed at incorporated businesses, while Revolut directs sole traders to Revolut Pro.
What matters most when choosing an account?
1. What does “free” actually mean?
Some accounts have no monthly subscription but charge for activity. Tide’s Free plan, for example, currently includes five bank transfers a month before the standard 20p transfer fee applies. Cash withdrawals on that plan are £1. Cash deposits have separate charges.
That could be excellent value for a consultant receiving a few client payments each month. A business making dozens of transfers or banking cash every week should calculate the total cost instead of stopping at “£0 per month”.
2. Do you take cash?
This is one of the easiest things for a small business to overlook. If you run a barber shop, café, market business, garage or another cash-taking operation, check exactly where deposits can be made and what they cost. A digital account can still work well, but the cash-deposit charge may change which provider is cheapest for you.
3. Do you invoice customers?
Built-in invoicing can remove another piece of software from your working day. ANNA puts invoicing, receipt capture and tax/admin tools close to the account itself. Tide also includes business-management and accounting features. If you already have a bookkeeping system you like, check whether the account integrates with it rather than paying twice for similar tools.
4. Do you deal with other currencies?
If most of your customers and suppliers are in the UK and pay in pounds, international banking features probably should not drive your decision. If you regularly receive dollars or euros, pay overseas contractors or buy stock from abroad, they can become one of the biggest cost differences between providers.
Revolut Business and Wise Business are the two obvious options on this page for international activity. Revolut Business combines banking with multi-currency management for incorporated companies. Wise Business is particularly focused on receiving, converting and sending money internationally and may work either as your main business payment account or alongside a conventional UK business bank account.
5. Is your money FSCS protected or safeguarded?
This sounds technical, but it is worth understanding. The standard FSCS deposit-protection limit increased to £120,000 on 1 December 2025. Eligible deposits at UK-authorised banks can be protected up to that limit, subject to scheme rules and whether accounts share the same banking licence.
For sole traders, the FSCS generally treats the individual and the sole-trader business as the same depositor. That means personal and sole-trader balances with the same authorised banking group can count together towards the £120,000 limit. A separate legal entity such as an eligible limited company can have its own protection.
ANNA and Wise are not banks for their main e-money accounts. They use safeguarding, where relevant customer funds are kept separate under e-money rules. Safeguarding and FSCS protection are different arrangements, so we do not think comparison pages should describe them as though they were identical.
Our four options in more detail
Tide: the easiest place to start for many small UK businesses
Tide’s Free plan is attractive because you can open a business current account without committing to a monthly subscription. It currently includes five transfers each month, with additional transfers charged at 20p. If your business grows, Tide offers paid Smart, Pro and Max plans with larger transfer allowances and additional tools.
New Tide Business Current Accounts are provided by ClearBank. Eligible deposits held through ClearBank can qualify for FSCS protection up to £120,000, subject to the normal scheme rules.
Revolut Business: strongest here for incorporated international businesses
Revolut Business is now offered by a fully licensed UK bank. The Basic plan currently starts at £10 a month and includes the core banking, card and multi-currency features. Revolut says its Business account supports more than 25 currencies, with allowances varying by plan.
The key eligibility point for this page is that Revolut Business is not currently the account for sole traders. UK sole traders are directed towards Revolut Pro instead. For an incorporated agency, importer, software business or other company paying and receiving internationally, Revolut Business becomes much more relevant.
ANNA: useful when admin is stealing too much of your time
ANNA’s proposition is broader than a basic account. Its Free plan is £0 per month on a pay-as-you-go basis and currently includes unlimited outgoing transfers, one card and the first £1,000 of incoming payments each month before a 0.95% incoming-payment charge applies.
Where ANNA stands out is the surrounding admin: invoices, payment links, receipt capture, tax tools and accounting features. For a sole trader who would rather spend an evening working, quoting or seeing family than sorting receipts, that can be more important than having a traditional branch.
ANNA’s main account is an e-money product rather than a bank account. Main-account funds are safeguarded and are not covered by ordinary FSCS deposit protection.
Wise Business: best suited to cross-border payments
Wise Business is also not a bank. It is an e-money/payment account designed heavily around international money movement. Registration itself is free, while Wise currently charges a £50 one-off fee to unlock its full business account details and receiving features. Currency conversion starts from 0.24%, although the exact charge depends on the currencies and transaction.
If you are a UK freelancer paid by US clients, an importer paying overseas suppliers or a company that regularly holds multiple currencies, Wise can solve a problem a standard domestic business account may handle less efficiently.
Should you switch your existing business account?
Opening a new account is not only for new businesses. If you have been with the same provider for years, it is worth checking whether the account still fits the way you operate. Your business may now make more transfers, employ staff, invoice internationally or use accounting software that did not matter when you first opened the account.
Before switching, download the statements and records you may need, list any Direct Debits and recurring payments, check how customers currently pay you and make sure integrations such as accounting feeds will continue to work. Some banks participate in the Current Account Switch Service, while other business-account providers use their own switching or account-opening processes.
For a dedicated guide, see our business bank account switching guide. If your main priority is avoiding a monthly subscription, also see our guide to free business bank accounts.
A five-minute checklist before you apply
- Monthly fee: is there a free tier and what happens when you outgrow it?
- Transfers: how many do you make in a normal month and what will they cost?
- Cash: do you need to deposit notes or coins regularly?
- Accounting: will it connect to the software you already use?
- International: do you genuinely need foreign currencies or overseas transfers?
- Cards and staff: will other people need cards or account access?
- Protection: is the balance an FSCS-eligible bank deposit or safeguarded e-money?
- Eligibility: does the provider accept your legal structure and industry?
Frequently asked questions
What is the easiest business account to open?
Digital providers such as Tide, ANNA, Wise and Revolut have online application processes, but no provider can guarantee approval or an exact opening time. Verification can take longer if additional identity or business information is required.
Can I open a business account online?
Yes. All four options on this page can be applied for online. You will still need to complete identity and business verification checks and meet the provider’s eligibility requirements.
Can a sole trader open a business bank account?
Yes. Tide and ANNA accept sole traders, while Wise supports eligible sole traders and freelancers. Revolut Business is currently for incorporated businesses and directs sole traders to Revolut Pro.
Can I open a business account with no monthly fee?
Yes. Tide has a £0 Free plan and ANNA has a £0 pay-as-you-go plan. However, both can charge for particular transactions or usage, so compare the cost of how you will actually use the account rather than only the monthly subscription.
How long does it take to open a business bank account?
Some digital providers can complete straightforward applications quickly, but the real answer is that it depends on verification. Your legal structure, industry, owners, trading activity and whether extra documentation is needed can all affect the timeframe.
Is Wise a business bank account?
Wise Business offers many bank-account-like features, including account details, cards and international payments, but Wise Payments Ltd is not a bank. Its standard e-money balances are safeguarded and are not protected as ordinary bank deposits by the FSCS.
Is ANNA a bank?
No. ANNA is a business account provider using an e-money framework for its main account. Customer main-account funds are safeguarded rather than receiving ordinary FSCS bank-deposit protection.
Bottom line
For most sole traders and small companies, the best account is the one that quietly handles everyday money without adding more admin. Tide is a strong all-round starting point if you want a conventional business current account with no monthly fee on its Free plan. ANNA is attractive when invoices, receipts and tax admin are a bigger headache. Wise makes more sense when money regularly crosses borders. Revolut Business is strongest for incorporated businesses that want international banking and team-spend tools.
If none of those descriptions sounds exactly like your business, do not force the fit. Our full UK business bank account comparison covers a wider selection, including traditional banks and other digital options.
How we checked this page
Pricing and product information was checked against official provider information on 31 August 2026. Fees, eligibility and features can change, so confirm the latest terms directly with the provider before applying.
Important: this page provides general comparison information and is not personal financial, legal or tax advice. Business banking products are subject to eligibility, verification and provider terms.
