A good business bank account keeps your finances organised, makes tax easier, and can save you money on fees. Here’s how the best UK business accounts compare in 2026.
Part of the Business Banking hub — including a full Business Bank Account Guide covering what to look for, fees, and how to open an account.
Do You Need a Business Bank Account?
| Business Type | Legally Required? | Recommended? |
|---|
| Sole trader | No | Yes — easier bookkeeping |
| Partnership | No | Yes — separates business funds |
| Limited company | Yes | Required by law |
| LLP | Yes | Required by law |
Even when not legally required, mixing personal and business finances creates headaches at tax time.
Best Business Bank Accounts at a Glance
| Bank | Monthly Fee | Free Transfers | Best For |
|---|
| Starling | £0 | Unlimited | Freelancers, sole traders |
| Mettle | £0 | Unlimited | NatWest backing, invoicing |
| Tide | £0–£49.99 | 20 free/month | Expense management |
| Monzo Business | £0–£25 | Varies | Personal Monzo users |
| Revolut Business | £10–£125 (no free tier) | Varies by plan | Multi-currency |
| HSBC Kinetic | £0 (18 months) | Varies | High street access |
| Lloyds | £0 (12 months) | 50/month | Traditional banking |
| Barclays | £0 (12 months) | Varies | In-branch support |
Best Free Business Bank Accounts
Starling Bank Business
| Feature | Details |
|---|
| Monthly fee | £0 |
| UK payments | Unlimited free |
| Cash deposits | £3 fee at Post Office |
| Accounting integration | Xero, QuickBooks, FreeAgent |
| Multi-user access | Available on paid plan |
Pros: Genuinely free, excellent app, quick setup
Cons: No high street branches, cash deposits cost £3
Mettle by NatWest
| Feature | Details |
|---|
| Monthly fee | £0 |
| UK payments | Unlimited free |
| Cash deposits | Not available |
| Invoicing | Built-in free tool |
| Backing | Part of NatWest Group |
Pros: Completely free, NatWest backing, good invoicing
Cons: No cash deposits, limited features vs competitors
Tide (Free Plan)
| Feature | Details |
|---|
| Monthly fee | £0 |
| UK transfers | 20 free/month |
| Additional transfers | £0.20 each |
| Expense categorisation | Automatic |
| Integrations | Major accounting software |
Pros: Good expense tracking, multiple card options
Cons: Only 20 free transfers, paid features add up
Best Premium Business Accounts
Premium accounts suit businesses with higher transaction volumes or needing extra features.
Tide Plus (£9.99/month)
| Feature | Free Plan | Plus Plan |
|---|
| Free transfers | 20/month | 150/month |
| Team cards | 1 | 2 |
| Cashback | None | 0.5% on spending |
| Support | Standard | Priority |
Monzo Business Pro (£25/month)
| Feature | Lite (Free) | Pro (£25) |
|---|
| UK transfers | Limited | Unlimited |
| Multi-user access | No | Yes |
| Invoicing | No | Yes |
| Tax pots | Yes | Yes |
Revolut Business (from £10/month — no free tier)
Revolut Business dropped its free tier; as of 2026 all UK plans carry a monthly fee.
| Feature | Basic (£10/mo) | Grow (£35/mo, or £30/mo paid annually) | Scale (£125/mo, or £90/mo paid annually) |
|---|
| Local transfers | 10/month free | 100/month free | 1,000/month free |
| International transfers | £5 each | 5/month free | 25/month free |
| FX allowance before fee | £1,000/month | £15,000/month | £60,000/month |
| Multi-currency | 25+ currencies | 25+ currencies | 25+ currencies |
Enterprise is available above Scale with custom pricing. Best for businesses sending/receiving international payments — but confirm current prices and allowances at revolut.com/business, as Revolut Business pricing has changed more than once.
High Street Banks
Traditional banks charge more but offer branch access and relationship managers.
HSBC Kinetic
| Feature | Details |
|---|
| Monthly fee | £0 for 18 months, then £8-£12 |
| Introductory offer | Fee-free banking period |
| Branch access | Yes |
| Overdraft | Available |
Lloyds Bank Business
| Feature | Details |
|---|
| Monthly fee | £0 for 12 months, then £8 |
| Free transactions | 50/month in intro period |
| Branch access | Yes |
| Business support | Dedicated managers |
Barclays Business
| Feature | Details |
|---|
| Monthly fee | £0 for 12 months, then varies |
| Cashback | Up to £50 for switching |
| Branch access | Yes |
| Payment terminals | Available |
What to Consider When Choosing
Transaction Fees
| Bank Type | Typical Fees |
|---|
| Digital banks (free tier) | £0–£0.20 per transfer |
| Digital banks (premium) | Usually free up to limit |
| High street (after intro) | £0.35–£0.65 per transaction |
| Cash deposits | £0.70–£1.00 per £100 |
Features Checklist
| Feature | Important For |
|---|
| Accounting integration | Bookkeeping efficiency |
| Multi-user access | Businesses with employees |
| Invoicing | Freelancers, service providers |
| Multi-currency | International trade |
| Overdraft/credit | Cash flow management |
| Cash deposits | Cash-heavy businesses |
Best Business Account by Business Type
| Business Type | Recommended Account | Why |
|---|
| Freelancer | Starling or Mettle | Free, simple, good apps |
| Sole trader (low volume) | Tide Free or Starling | No monthly fees |
| Sole trader (high volume) | Tide Plus or Monzo Pro | More free transactions |
| Limited company (small) | Starling or Monzo | Free accounting integration |
| Limited company (growing) | Tide Plus or Revolut | Team features, scaling |
| International business | Revolut Business | Multi-currency, low FX fees |
| Cash-based business | Lloyds or HSBC | Branch deposits |
How to Open a Business Bank Account
For a full walkthrough of the application process, required documents, and what to expect, see our Business Bank Account Guide.
What You’ll Need
| Document | Sole Trader | Limited Company |
|---|
| Photo ID | Yes | Yes |
| Proof of address | Yes | Yes |
| Company registration number | No | Yes |
| Articles of association | No | Sometimes |
| Shareholder details | No | Yes |
Application Process
- Choose your bank — Compare fees and features
- Gather documents — ID, address proof, company details
- Apply online — Most banks have digital applications
- Verify identity — Photo/video verification or branch visit
- Wait for approval — Minutes (digital) to weeks (traditional)
- Receive card and details — Start banking
Switching Business Bank Accounts
Unlike personal current accounts (which have the 7-day Current Account Switch Service), business accounts, business accounts have no automatic switching service. You’ll need to handle it manually:
- Open the new account
- Update payment details with clients
- Move standing orders and Direct Debits manually
- Transfer your balance
- Close the old account
Allow 4-6 weeks for a smooth transition.
Summary
For most small businesses and freelancers, Starling or Mettle offer the best value — completely free with good features. Growing businesses may benefit from Tide Plus or Revolut for team features and higher transaction limits. If you need branch access or cash deposits, consider HSBC Kinetic or Lloyds during their fee-free introductory periods.
Business Banking
Useful for Business Owners