Compare Business Bank Accounts

Compare UK business bank accounts to find one that fits your company. You may be a sole trader, a limited company, or starting out. A good business account will help you get on top of your cash flow, payments, and business expenses. With this comparison, you can see account fees and check the eligibility criteria. It’s also easy to see how to switch accounts. We show you options from UK banks you know, like ANNA Money and more.

Why should UK businesses open a business bank account?

Using a separate business bank account keeps your business finances away from your personal money. If you run a limited company, you must do this for Companies House registration. It is also part of a regulatory requirement. A business bank account helps you keep clear records for HMRC. This way, you can track cash flow. A separate account lets you sort out business transactions and tax returns without any mix-up.

For sole traders, you do not have to open a business bank account by law. But, having a business bank account can help you see where your money goes and what you spend on. It also makes it simple to track card payments. Most banks will give new business owners a business bank account for free or for a small fee. With these accounts, you can use a mobile app and a debit card. They can also work well with tools like Xero or QuickBooks for your accounting.

What features should I look for in a business account?

There are a lot of different kinds of business accounts. Each one serves a certain need. When you look at current account providers, check for these things:

You need to pay a monthly account fee. You will also have to pay some transaction fees.
You get free banking for the first year.
You can do online banking and use the mobile app.
There is customer support. You also get help from relationship managers.
The eligibility criteria are set by the type of your business and your annual turnover.
There are choices to get a business overdraft and a credit card.
You can make international payments and do cash deposits.

The business bank account you choose needs to fit how big your business is. You also need to think about the way you get money. The best business bank account will depend on if you want more help or need things to work on their own. A good business bank gives you and your business what you need.

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Explore UK business account options side by side and see which provider best fits your company’s size, features, and budget.

How to compare UK business bank accounts

Here is an example of the usual features you get from UK business bank account providers. ANNA Money is one UK business bank account provider. It gives business bank accounts to freelancers and small businesses. ANNA Money lets you use digital banking too. You will also see two examples from other providers. This helps you look at what they offer and compare them.

Bank Name	Monthly Fee	Free Transactions	Mobile App	Accounting Software Integration	Overdraft	Current Account Switch Guarantee	FSCS Protected	Apply
ANNA Money	£0 basic / £14.90 Business Plan	Unlimited UK transfers	Yes	Xero, QuickBooks, FreeAgent	No	Yes	Funds held with ClearBank (FSCS up to £85,000)	Apply
Starling Bank	£0	Unlimited UK transfers	Yes	Xero, FreeAgent, QuickBooks	Yes (subject to approval)	Yes	Yes	Apply
Tide	£0 – £14.99 per month (plan dependent)	20 free per month then 20p each	Yes	Xero, Sage, QuickBooks	No	Yes	Yes	Apply

All of the accounts listed above are designed for UK businesses.
Applicants must pass standard identity and credit checks to open a new business account.
The fees and services shown are correct as of 2025 and may vary depending on your business type, annual turnover, and how you use the account.

Who can open a business bank account?

Eligibility depends on what kind of business you have and how it is arranged. Most banks will want:

A business name and address in the UK that is on record
The Companies House registration number if the business is a limited company
Proof that the business owners and directors are really who they claim to be and that they live in the UK
A UK mobile number and email address that both still work
A guess of yearly sales if the business is new, or past financial details if the company is already set up

Some banks will look at your credit before you can get an overdraft or a credit card. If your credit is bad or your business has not been going for long, you can still open a business account. But you will not be able to borrow money with this account.

How does the Current Account Switch Service work?

The Current Account Switch Service helps you move your UK business bank account from an old account to a new account. It only takes seven working days for this process to finish. Most UK business bank account providers offer this service. Using the current account switch is a good way to change to a new business bank easily.

All direct debits, standing orders, and the money coming in are sent to your new bank by themselves when you use the current account switch.
If someone sends money to your old account, it goes to your new account for at least 36 months.
Before you move, you and your new bank set your switch date. You still get to use your old account until everything is done.
If things do not go as expected, your new bank will pay you back for any losses. This is part of the current account switch guarantee.

Switching your business bank is easy with this method. There is no risk. ANNA Money and most other banks, both big and new, use this guarantee scheme.

View the latest business bank account fees and features

Check monthly charges, free banking periods, and mobile-app integrations from trusted UK providers.

What are typical business bank account fees?

Business banking costs can be different based on the provider, the kind of account you have, and the amount of money you move each month. In the UK, most business banks will ask you to pay a monthly fee or pay extra for every transaction after the first free months are over.

Account Type	Monthly Fee	Transaction Fees	Free Banking Period	Overdraft Availability
Digital account (e.g. ANNA Money)	£0–£14.90	Free UK transfers	N/A	No
High-street bank account	£5–£12.50	£0.30 per transaction	12 months	Yes
Premium or growth business plan	£15–£30	Free up to 100 transactions	6–12 months	Yes

See if the fees include card payments, cash deposits, or sending money to other countries. These things can bring unexpected costs to small businesses.

Is it a legal requirement to have a business bank account?

If you run a limited company or a partnership, you must open a business account. A limited company is not the same as the people working in it. This means it must keep its own money records.

For people working as sole traders in the UK, you do not have to open a separate business bank account by law. But, most UK banks advise business owners to set up a business bank account. This is because using a business bank account helps you keep your personal finances and business transactions apart. A separate business bank account makes it easier to do your accounting. It also stops confusion with HMRC. A business bank can help you build your business credit profile. This is good if you later want a business overdraft or need to borrow money.

What are the benefits of digital and mobile business banking?

Digital banking has now become popular for UK businesses. ANNA Money lets you handle banking from your phone with an app. This helps you:

See transactions and handle invoices right when they happen
Set up direct debits and standing orders, plus check on them anytime
Link your accounting software with this system
Get instant alerts for card payments
Scan receipts and keep an eye on your business expenses
Reach customer support by chat or phone

Online banking and business internet banking are always available. You can use them at any time of the day or night. This is good for small businesses. It also helps freelancers who need more freedom in their work hours.

How do business overdrafts and credit cards work?

A business overdraft helps you get more money fast when your cash flow is low. It is useful if your income goes up and down or you do not get paid at the same time each year. The bank sets a limit for how much you can use and looks at your annual turnover. You also have to go through credit checks. Both the limit and interest will depend on the results of these checks.

Not every digital bank will offer a business overdraft. ANNA Money is one that does not have this service. Some banks talk to other lenders to help you with this.

Business credit cards let you pay for business expenses. They also keep these costs away from your personal account. Many banks give you interest-free time for the first year. The way this offer works may not be the same for every provider.

Managing business expenses and accounting

Modern business bank accounts make it easy for you to handle your money. They use digital tracking and automation, so you can keep up with your finances.

Tag what you spend or get as either expenses or money coming in.
Export your reports and send them to your accounting software.
You get to link several debit cards, so your employees can use them on your account.
Check monthly fees and charges from business transactions easily.
Set up alerts for big business transactions or for direct debits that will happen soon.

This automation is good for companies. It works well if you have many accounts or branches. It also helps if your business handles lots of transactions.

Start your business bank comparison today

Compare ANNA Money, Starling Bank, Tide, and more — all verified UK business accounts with the Current Account Switch Guarantee.

How are business bank deposits protected?

In the UK, almost every bank that offers an authorised bank account is part of the Financial Services Compensation Scheme. This scheme protects your bank account and your money. The FSCS can cover up to £85,000 for each business at each bank. This helps people and businesses feel good about using financial services, knowing their money is safe.

ANNA Money teams up with ClearBank. ClearBank keeps your money safe under FSCS protection. You should check if the bank is watched over by the Financial Conduct Authority. Also, find out if the bank gives you money-back protection before you open an account.

How are business bank deposits protected

What types of business accounts exist?

There are several kinds of business bank accounts in the UK. Each type is there to help with the needs that a business may have.

Account Type	Best For	Example Features
Basic Business Account	Sole traders and start ups	Free UK transfers, debit card, no overdraft
Standard Current Account	SMEs and limited companies	Overdraft, cash deposits, accounting integration
Multi-Currency Account	International traders	Payments in USD, EUR, GBP with competitive FX
High-Turnover Account	Large businesses	Dedicated relationship manager, cash handling
Digital-Only Account	Freelancers and modern start ups	App-based banking, invoice tracking, no branch visits

How to open a business bank account online

Starting a business account is simple now. Most banks let you do the setup online. This means you do not have to go to a branch. You can do it all from your home or where you work. It is quick and will save you time. A business account will help you keep your work money and your own money separate.

Type in your business name, address, and Companies House registration number into the online form.
Upload documents to prove who all the owners or directors are.
Say what your business does and tell them what you think your yearly sales will be.
Type in your business email and phone number.
After you are approved, you get your debit card and can use online banking in just a few days.

Your new bank might reach out to you for more information. This often takes place if you are getting a business overdraft or asking for a credit facility.

How do banks handle bad credit or new business applications?

If you do not have a long history with business or personal credit, you can still open a basic account. There are many online banks that will let you get new business accounts very fast. These accounts do not give credit right away. They help how the view of customers gets better as the months go by. When your money history gets better, you can make the account larger and add ways to borrow or get credit.

Banks like ANNA Money give financial services that are easy to use for freelancers, start ups, and small businesses. They know some people have bad credit. Some may have just started their business. ANNA Money helps these people so they can get the services they need.

What counts as a business expense?

A business expense is any money you spend to keep your business going. This covers things like travel, supplies, ads, software, insurance, or bills for electricity and water. If you use a separate business account, you can:

Keep records of the money you spend so you can claim it with HMRC.
Make sure the money for work does not get mixed in with your own money.
Do not use your own bank account to pay for work expenses.
See how much money your business gets and spends as time goes on.

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What to check before switching your business account

Before you use the current account switch service, check for these things:

Your new bank gives you all you need. You get card payments, international payments, and accounting that connects with your system.
The monthly fee is clear. It matches how many transactions you make.
The new account has FSCS protection.
People from your old account now get the right access on your new account.
The switch date matches your billing cycle so you do not miss any payments.

The switch guarantee helps to make sure that you do not miss any direct debits or standing orders if you change banks. This can help you feel good about moving your account.

How do banks support larger or multi-site businesses?

The largest business banks, such as HSBC Business, Barclays, and Lloyds, work with companies that have a higher income every year. These banks give special services to such businesses.

When you open a business bank account with them, you get the support that fits your needs. The staff help you with your account. They also give advice on money matters, especially when your company grows bigger. The largest business banks make it easy to use your business bank account for the day-to-day work of your company.

There be dedicated relationship managers for you.
The team have expert knowledge in foreign exchange and handling international payments.
The service offers tools for managing treasury work.
You can get business credit cards that have higher limits.
The service works well with enterprise-level accounting systems.

These tools support UK businesses that manage lots of accounts in different money types. UK businesses can use them to make sure they follow the rules from the FCA and Companies House. These options help UK companies work better and stay on the right side of the law.

FAQs about Business Bank Accounts

A business bank account is opened using the name of your company. You use this bank account for business transactions only. A personal account is made for one person to use. A personal account does not give you the business bank features or protections that come with a business bank account.

Many companies, like ANNA Money, give you free business accounts. You might not have to pay a monthly fee for the first year. After that time, most of them start charging every month. The fee is usually from £5 to £15. The cost can be different, based on the features you need.

Yes. Most UK business bank accounts, like ANNA Money, are safe up to £85,000 for each business. ANNA Money uses ClearBank. The FSCS protects the money in these accounts.

Yes, companies can have more than one business account. They might open one to save money. There can be another account for payroll. A company can also get one for international payments. This will help them keep everything in order for each thing they need.

It takes seven working days to switch your account with the current account switch guarantee. Your new bank will take care of all the transfers for you. They will also make sure your payments go to the right place by themselves.

Yes, you can, but it is not the best idea. A separate business bank account helps you stay on top of things. It makes doing your taxes easier. A business bank account also helps build your profile with banks and other financial groups.