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Revolut has 4 different pricing plans to choose from, one of which has no monthly fee. Paid-for plans offer a set number of fee-free international transfers each month, along with access to a savings account. But all plans let you hold and exchange funds in more than 25 currencies and spend in more than 150 currencies. You can get physical and virtual cards, control spending and create and track business invoices in the app. Further benefits include the option to sync your transactions and expenses with accounting software like Xero, QuickBook and Sage, and 24/7 customer support.
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
Open a Tide account and earn 4.33% AER each month on your business savings.
Tide is an FSCS registered bank and offers a business bank account with no monthly fee which can be opened online. The account lets you create, send and track invoices from the Tide app, plus you can connect your accounting software and bank account for easy reporting. You can also upload receipts to manage expenses, export your transactions in multiple formats or share them with your accountant, and get automated forecasts of incomings and outgoings to help you predict cash flow. In addition, there’s the option to upgrade to the Plus, Pro or Cashback plan for a monthly fee as your business grows.
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
This business account from Monzo has no monthly fee and is easy to open online. Once approved, your card should arrive within a couple of days and your account will be up and running. Benefits of the account include 24/7 customer support, free UK bank transfers and an instant access savings pot. You’ll also be able to use different savings pots to separate money for different purposes, and spend abroad on your card fee-free. You can pay cash and cheques into the account via PayPoint and you’ll benefit from FSCS protection. Loans and overdrafts are available.
Pros
Fee-free spending abroad.
Custom payment links.
Pots to separate money.
FSCS protected.
Cons
No branches.
Charge to deposit cash.
Accounting software only available with Pro account.
Earn 4.33% AER* (variable) interest rate on a linked savings pot.
There are no monthly fees with the Allica business bank account and you can earn cashback on all eligible card spend. What’s more, you’ll have a dedicated relationship manager to help with your business finances and you can take advantage of interest-paying savings pots to help you set aside cash for different purposes. You won’t be able to deposit cash or cheques into your account, but funds will be protected under the FSCS. You can also connect your account with accounting software Sage and Xero. You can apply for the account online but you must keep at least £50,000 or more in your account to qualify.
Earn 10% cashback on your first $1,000 of international transactions with Airwallex (T&Cs apply).
This is a global account that can be opened in minutes via the app. Through the account, you can make payments in more than 60 currencies and most international transfers arrive the same day. You can open local currency accounts in more than 60 countries, plus create cards to spend in multiple currencies globally with no foreign transaction fees. There are no monthly account fees and you’ll have a dedicated account manager to support you with any queries. The account can be synced with your accounting system and it's easy to track, spend and manage expenses approvals, with virtual and physical Airwallex cards.
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
Wise is a multi-currency account that lets you hold and send funds in more than 40 currencies. What’s more, you can make international payments to more than 70 countries, with no hidden fees or exchange rate markups. Further benefits of the account include the option to connect to accounting software such as Xero, QuickBooks and FreeAgent, and hold money in different Jars for different purposes. Plus the account offers advanced security measures to keep your money safe. You’ll need to pay a one-off fee when registering for the account.
Pros
No monthly fees.
FCA regulated.
Integration with accounting software, including Xero and Quickbooks.
Up to £50,000 subject to eligibility and application
Requires credit check
It’s quick and easy to open a business account with Starling online. There are no monthly fees to worry about, and you can integrate your account with QuickBooks, FreeAgent and Xero. In addition, there are no fees for using your card overseas, customer support is available 24/7, and you can set up savings spaces to help you set aside money for different purposes. ATM withdrawals and UK bank transfers are free, but you can also carry out international payments to more than 34 countries. It’s possible to pay in cash at Post Office branches too, while cheques of £1,000 or less can be paid in through your mobile phone and cheques of more than £1,000 can be sent through the post.
Pros
Add the new Business Toolkit onto your free Starling account and get the first month free of charge (RRP £7pcm)
Completely free UK current account opened and ready to use in 20 minutes
Safe and secure
Fully licensed by the FCA and PRA
Free to use your card abroad including ATM withdrawals, splitting the bill made easy with "settle up" feature, competitive and comprehensible overdraft fees
Decent interest rate paid on current account balances
Efficient app offering a range of good features such as budgeting tools and saving features
Has a marketplace offering competitive pensions
Mortgages and insurance from other growing fintech companies
Teen account options
24/7 customer support (for all types of enquiries)
Cons
Relatively new so does not offer every feature, e.g. mortgages
No bank branches, all done via the web
Only available to UK residents
Accounting integrations
FreeAgent, QuickBooks, Xero
Account fee
Free
Arranged overdraft
Up to £50,000 subject to eligibility and application
Earn 1% cashback for paying with your ANNA card in selected categories.
It’s easy to open an account with ANNA online - simply enter your email address and provide a few details about yourself and your business and be ready to verify your ID. There are 4 different price plans to choose from and you can complete your application in less than 10 minutes. ANNA can also help you officially register your company with Companies House and help you sort your taxes. In addition, you can create pots in your business account to help you save for taxes, salaries and other expenses, as well as earn cashback when you use your debit card to pay for business expenses.
Pros
24/7 in-app support.
Invoice and expenses services in the app.
Pay-as-you-go option means you only pay for features that use.
The difference between online vs in-branch business accounts
Both online and in-branch business accounts let you carry out everyday banking transactions, such as sending and receiving payments. But, as their names suggest, the key difference between online and in-branch business accounts is that one can be opened and managed online and the other can be opened and managed in a bank branch.
This means that if you’re thinking about opening an online account, you must be happy carrying out all your business transactions online or through the app as there will be no face-to-face support.
It also means that it won’t always be possible to pay in cash or cheques, although some online accounts allow you to pay in cash through Post Office branches or PayPoint stores (a fee may apply) and cheques can sometimes be sent in by post.
Online business bank accounts can usually be set up much faster – sometimes on the same day as your application. By contrast, with an in-branch account, you might need to arrange an appointment to open the account and it could take a few days, or sometimes longer, before the account is up and running.
What’s more, online business bank accounts can often be cheaper, and you might have access to 24/7 customer support. Online bank accounts might also offer a greater range of banking features, such as budgeting tools, expenses support and invoicing tools – although many in-branch accounts offer similar services too.
Lastly, be aware that not all online business accounts are protected under the Financial Services Compensation Scheme (FSCS), as all high street bank business accounts are. However, if your account is with an e-money provider, it must keep your money in a separate account from its own funds, under Financial Conduct Authority (FCA) rules.
What features should you look for?
When comparing online business bank accounts, some of the key features to consider are outlined below:
Monthly fees. Check whether there are any monthly account fees, keeping in mind that some online business accounts have more than one account type.
Transaction fees. Also check whether you’ll be charged for certain banking transactions, or whether they are free up to a monthly limit.
Cash/cheque deposits. If you need to pay in cheques or cash, look for an account that allows this and check whether there’s a fee.
App features. Look at what features and services are offered through the app, such as invoice support and financial management tools.
Accounting software integration. Similarly, find out whether you can link your account to accounting software – and which ones.
Overdraft options. Would an overdraft be beneficial, especially if you’re just starting out? How much interest would you be charged? Learn more about business accounts with overdrafts.
International payments. If you need to carry out international transactions, look for an account with low fees and one that supports multiple currencies.
Customer support. How can you contact customer support if you need help? Is support available 24/7?
FSCS protection. Also check whether your account offers FSCS protection as this covers deposits of up to £85,000 if your bank goes bust.
Pros and cons of online business accounts
Pros
Easy to open. The application process for an online business bank account is straightforward and accounts can be up and running the same day.
Innovative features. You can often link to accounting software and make use of invoicing and other financial management tools through your provider’s app.
Low cost. Some online business accounts have no or low fees, partly thanks to their lower operational costs.
Around-the-clock support. Some online accounts offer 24/7 customer support.
Cons
Limited cash and cheque payments. Not all online accounts allow you to deposit cash or cheques into your account.
Limited range of services. Not all online business accounts offer overdrafts, business credit cards or loans, whereas many high street bank accounts do.
No branches. You won’t be able to carry out banking transactions face-to-face.
Online security concerns. You might have concerns about security issues like cyber threats, although most online banks take extra security steps to reduce this risk.
Bottom line
Online business bank accounts can be opened quickly and easily and can be a great option if you’re happy to carry out all your business banking online. Many accounts come with innovative features to make your life easier, and they can also be a lower cost option.
However, keep in mind that not all online accounts offer cash and cheque deposits, and you might not have access to such a wide range of services compared to a traditional high street bank account. So you’ll need to weigh up what’s most important to you.
Frequently asked questions
This depends on the provider and the account. Some online accounts offer several different plans, one of which usually has no monthly fee but features and transactions can be limited. Other plans might incur a monthly fee but give you access to more features and benefits.
Other fees to consider include cash or cheque deposit fees and international transaction fees.
If you’re a sole trader, you don’t legally need a business bank account. However, opening one can help you to keep your personal and business finances separate which can be beneficial when it comes to filing your tax return.
If you’re a limited company, you must open a business bank account as your company is legally separate from you.
When comparing accounts, consider factors such as fees, app features, international transactions, eligibility requirements, overdraft options and so on. It’s only when you compare the different features of different accounts that you can confidently pick the best account for your business.
Banking scores
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★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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
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