Earn 10% cashback on your first $1,000 of international transactions with Airwallex (T&Cs apply).
The Airwallex global account can be opened in minutes via the app on both Android and iOS. You can hold and convert multiple currencies in your account, making life easier if you trade abroad. This includes making international payments to more than 150 countries and collecting funds from customers in more than 12 currencies. What’s more, you can create corporate and employee expense cards for your business to use in multiple currencies and avoid foreign exchange fees. There are no monthly account fees and you’ll have a dedicated account manager to support you with any queries.
Pros
Send to 120+ countries
Competitive FX rates
No monthly account fees
Collect, hold & send money in several currencies
No transaction fees for card payments
Cons
Not covered by the Financial Services Compensation Scheme
Transfers can only be made to your Airwallex wallet or to a business bank account
Sign up today and unlock 1 month of a paid plan without subscription fees.
There are 4 different Revolut business plans to choose from. One has no monthly fee, while the others are paid-for accounts. Benefits and perks vary depending on the account, but all offer unlimited team access and the option to add on the expense management tool for £5 a month. All accounts can be integrated with accounting software and invoicing support, but the paid-for plans also come with Revolut BillPay that lets you automatically process, pay and manage all of your business bills, saving you time. You can also create accounts for multiple businesses and instantly switch between them.
Pros
Flexible account options
Mobile app with lots of good features
Ability to issue cards to all employees
Easy to apply
Freeze card if lost or stolen
Safe and secure
Free purchases
Cons
Basic account does not include many free transactions
You can open a Tide business account for free and then order your prepaid Tide Expense card. You can order a card for up to 50 people per account for a fee, as well as set individual spend limits per card to help manage costs. All transactions are itemised per person and per spend category, making it easier to manage company expenses through the app. In addition, you can connect your accounting software and bank account for easy reporting and benefit from free invoicing templates so that you can create, track and send your invoices from the app and get paid faster.
Pros
24/7 customer support
Categorised spending
FCA regulated
Quick set-up
No monthly fees
Easy to manage accounts and track payments within the app
Ability to set up direct debits and standing orders
Earn 4.08% AER* (variable) interest rate on a linked savings pot.
Open a business account with Allica and you can enjoy a range of rewards. These include up to 1.5% cashback on all eligible card spend and access to interest-paying savings pots, where you can stash away funds for different purposes. You can add and withdraw funds from your savings pot whenever you want to. Further benefits of the account include a dedicated relationship manager to help with any account queries and the option to integrate your account with accounting software such as Sage and Xero. There are no monthly fees for the account, but you need to keep at least £50,000 in your account or have a loan with Allica.
How many business bank accounts can a UK business have?
There’s no set rule on the number of business bank accounts a UK business can open. In theory, you can open as many as you like, as long as you meet the eligibility criteria for each account, your provider approves your application, and you pass the credit check (if applicable).
You might find that some providers have their own restrictions on the number of accounts you can hold with them. But there’s nothing to stop you from applying for multiple business bank accounts with a range of different providers.
Why would a business have multiple accounts?
There are several reasons why you might want to open more than one business bank account.
For example, you might want to separate certain expenses, keeping money for salaries, taxes and other expenses in different accounts. Alternatively, you might want to open separate accounts to trade in different currencies and reduce currency exchange fees, or to take advantage of different benefits and features, such as high interest rates, cashback on spending or invoicing tools.
Another reason for splitting balances across multiple accounts is to ensure your business doesn’t exceed the Financial Services Compensation Scheme (FSCS) limit. This protects deposits of up to £85,000 per banking group. If you hold more than £85,000 with one banking group, it’s best to deposit some of these funds into a business account with a provider from a different banking group.
Benefits of having multiple accounts
There’s a range of benefits to opening more than one business bank account:
Better financial organisation:Opening separate business accounts can help you to set aside money for different purposes, ensuring you have sufficient funds to cover tax bills, salaries and so on.
Access to extra perks and benefits:This can include fee-free currency transfers, cashback on spending or interest on balances.
Enhanced fraud protection: Separating your business funds into different accounts gives you extra protection in the event that a criminal gains access to one of your accounts.
Increased financial protection: If you have more than £85,000 with one banking group, transferring the excess into a separate bank account with a provider from another banking group ensures more of your funds are covered under the FSCS.
Downsides of having multiple accounts
As with anything, there are also drawbacks to keep in mind when opening multiple accounts:
Can be harder to manage: Having multiple business accounts to manage and juggle can quickly get confusing.
Additional fees: Some business bank accounts charge monthly or annual fees, so if you have more than one account, you may need to pay multiple charges.
Impact on credit score: Opening multiple bank accounts in a short space of time can have a larger negative impact on your credit score if a credit check is carried out each time. It’s best to space out applications by at least 3 months, preferably 6.
You might need to meet different conditions for each: In some cases, you might need to maintain a minimum balance for each account which can become difficult.
How to manage multiple business bank accounts
If you decide to open more than one business bank account, it’s important to have a plan in place for managing them. Follow the tips below to help you:
Set a purpose for each account
You might have one account for managing transactions in foreign currencies, another for collecting income, another for payroll and a fourth for paying tax bills and other expenses, for example. This can help to ensure that funds are allocated correctly.
Regularly check your accounts
It’s important to monitor your business bank accounts on a regular basis to keep an eye out for fraudulent transactions or payments that might have gone into the wrong account.
Categorise your transactions
You can use accounting software and other automation tools that help you to categorise transactions with ease, saving you time and helping you to gain a better understanding of what is being spent where.
Monitor who has access
Think about which members of your team should have access to which account. Maintain an up-to-date list of individuals and their permissions and review this access regularly.
Bottom line
Opening more than one business bank account can prove hugely beneficial for some companies, but it’s important to take steps to ensure each account is well managed and that transactions don’t get mixed up.
When comparing business accounts, consider which providers are part of which banking group, look at fees and charges, and also consider features such as access, interest rates and other perks.
Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
By switching your business bank account, you may be able to reduce your monthly fees or take advantage of different features like smart bookkeeping tools.
Considering a Revolut Business account? We take a closer look at the features and price plans available with these digital-only accounts.
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