Best business bank accounts in the UK for 2024

Best high street business bank account: TSB

Finder Score 3.8★★★★★

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Account fee	£5 per month (waived if balance stays in credit and averages over £10,000)
Arranged overdraft
Requires credit check

30 months’ fee-free monthly and transactional business banking for switchers.

TSB’s Business Plus account comes with 30 months free day to day banking as well as a free Square Reader. TSB also has an exclusive app, Revenu, which is designed to help you keep track of customer payments and send digital payment requests by SMS, email or QR codes. If you’re looking to grow your business, TSB offers 12 months of free specialist support and advice through Enterprise Nation. This includes expert podcasts, videos and weekly masterclasses. To qualify you must be aged 18 or over, a sole trader, partner or director and your business must be registered in the UK.

• Pros and cons

  Pros

  • Free everyday business banking for 30 months
  • Free Square Reader
  • Access to payments app
  • Advice service

  Cons

  • Monthly service charge applies after 30 months
  • Fees apply to certain transactions

• More details

  Accounting integrations	FreeAgent, QuickBooks, Sage, Xero

Account fee	£5 per month (waived if balance stays in credit and averages over £10,000)
Arranged overdraft
Requires credit check

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How to choose the best business bank account for your business

There are many factors to consider when choosing a business account, many of which apply whether you are a foreigner or a UK resident. It’s important to do your research and think about the following:

• Cost. Pricing structures can be complicated for business bank accounts. Some have monthly fees, some have transaction fees and many have both. Think about how you’ll use your account and what works out to be your cheapest option.
• Your type of business. It’s a good idea to look for something that’s as tailored to your business as possible. Some banks offer both startup accounts and ones designed for more established businesses.
• Cash. If you take a lot of cash payments and need to deposit this cash into your business account, make sure you have a bank branch or pay-in point nearby.
• Ways to bank. Some business owners prefer to discuss banking in person, while others would rather have a great mobile app that makes banking slicker on the go. Not all banks will provide both.
• Accepting payments. Do you need to set up card payment terminals as well as a business account?
• Accounting software integration. If you’re managing a small business, being able to do banking and accounting from the same place makes life easier. Popular integrations include Xero, QuickBooks and FreeAgent.
• Related financial products. Do you also need a savings account, insurance or a business loan, and does your chosen bank provide these?
• International banking. Do you trade abroad or need to make a lot of international payments? Check if you can do this with the business account or if you can open an accompanying account in a different currency.
• Bad credit. If you have a poor credit history, you might be more likely to have your business account application rejected, but some banking providers specialise in accounts for these types of customers.
• Address checks. Some of the digital-only banking providers don’t ask for proof of address. This is particularly relevant if you have bad credit or are a foreigner without a UK address and are looking to open a business account here.

Our expert says: The best business bank account for you

"There’s a range of factors to consider when looking for the business bank account that will suit you best, depending on the size and nature of your business.

If you’re a small business, it’s worth considering Revolut Business. It doesn’t charge a monthly or annual fee for its Basic plan and allows you to create and manage invoices. You can also hold and exchange over 25 different currencies fee-free. However, this won’t work for you if you’re a freelancer or sole trader as your business has to be incorporated to be eligible (Revolut Pro is for freelancers and sole traders).

Your options may be limited if you have a poor credit history, as most banks perform a credit check before giving you an account. However, some will offer you an account without credit-checking you, such as Zempler, which offers the best business bank account for people with bad credit. Its Business Go account has no monthly fees, and you can bank online or through an app.

If customer satisfaction is your priority, digital-only bank Mettle comes top for this, according to our survey of business banking customers. It gets the highest rating for overall satisfaction, and 97% of its customers said they would recommend it. HSBC is the second best for overall satisfaction, with 97.2% of its customers saying they would recommend it."

Cathy Hudson

Money expert

Frequently asked questions

• Can a foreigner open a business bank account in the UK?

  UK banks are allowed to offer business accounts to non-UK residents, although the application process may be longer because of the extra checks they have to undertake.

  The big high-street banks may also be more likely to offer a non-UK resident an international bank account rather than a business account. As a minimum requirement, you'll need ID and proof of address for the country you reside in.

  But if you're happy to run your business account online or through your mobile phone, there are now many digital-only business accounts available in the UK, thanks to the new digital challenger banks and other fintech providers entering this market.

  The advantage of this for foreign applicants is that some (not all) of these digital banking providers do not require a proof of address, so you can easily open the account from abroad. Learn more about opening a UK bank account as a non-UK resident.

• Can I open a business bank account online?

  Yes, it is possible. The digital banking era brought the possibility of setting things up without having to go into an actual bank. Even though most banks allow account set-up online, some may require your attendance, so make sure you're familiar with all the terms of applying.

• How long does it take to open a business bank account?

  Although the application may take minutes, the actual account setup might take a bit longer. The bank you sign up to usually needs to review your documents and check your eligibility. Your account may be ready for use within minutes, days or weeks, depending on the institution you apply to.

• Is there any free business bank account?

  Being able to open a bank account that is totally free of charge is more common if you only need it for personal use. Business bank accounts can be pretty expensive, whether because of transaction or account management fees. However, some are a lot cheaper than others, so read the terms carefully and estimate the costs of opening an account before you decide. Also, if your company is a startup or you plan to change banks, you may be offered a free banking period.

• Can I open a business bank account if I have bad credit?

  Yes, you can. Most business bank account providers carry out some kind of credit check on you, which will highlight a poor credit score. But a few providers let you open an account without any credit checks (but be aware that these products tend to come with higher usage fees). For more information on opening a business account without a credit check, read our guide to opening a business account with a bad credit score.

• Can I just use my personal account for business purposes?

  Generally not. Some banks might allow it if you're a sole trader, though it's usually a good idea to separate your personal and business finances. If you own a limited company, you will have to use a business bank account. Check your terms and conditions before doing it. You can learn about the benefits of opening a business account.

• How does switching business accounts work?

  You'll need to contact the new financial institution you plan on switching to, and it will take care of that for you. If it's signed up to the Current Account Switch Guarantee, it will transfer your funds, direct debits and standing orders, redirect your incoming payments and, if you want to, close your old account – for free.

  You can switch your account within 7 days if the bank you're switching to is signed up to the Current Account Switch Service. Learn more about the process and find a provider that can help with the switching process.

• Can you have a joint business account?

  Yes, this is possible. Some providers allow you to register with a partner during the application process, while others allow you to add extra users to your account after its creation. Compare joint business bank accounts here.

• What kind of bank accounts are available for clubs and societies?

  Clubs, societies and other community organisations can open dedicated current accounts, which tend to be cheaper than regular business accounts. Most traditional high-street banks offer these "community" accounts.

  In most cases, your organisation won't need to be a registered charity, but it should be able to prove that it has a charitable purpose, a definition that covers a broad range of organisations – from community groups to sports clubs. Read our guide to opening a bank account for a club, community or society.

• Which banks offering business accounts have branches?

  While there are some great accounts from the newer digital-only banks, these won't be ideal if you need in-branch services. Banks with business accounts that let you do branch banking include Barclays, the Co-operative Bank, HSBC, Metro Bank, the Royal Bank of Scotland, TSB and Virgin Money.

• What are the downsides of business bank accounts?

  Business accounts don't usually pay good rates of interest on the money in your account, and you'll have to pay a monthly fee for most of them. There may also be fees for specific transactions.

Customer satisfaction scores methodology

We asked business account holders to rate their satisfaction with the service they had received from their banking provider and also whether they would recommend that provider to a friend. Our independent survey of 400 business banking customers was carried out in December 2023 – read full details of our methodology here.

We have crunched the numbers and shown the results for the 13 banking providers listed in the table above. We used these ratings to decide the winners of our awards (if there was a draw on the star ratings score, we used the “would recommend” percentage as a tie-breaker).