What is a business bank account?
A business bank account is simply a bank account designed for business transactions. Business bank accounts work in a similar way to personal bank accounts but they help businesses keep track of business income and expenses.
You can use your business bank account to send and receive money, helping you to pay staff wages and receive client payments. You can also set up standing orders and direct debits to pay your bills. Business bank accounts offer a range of extra features you won’t typically find with a personal account, such as the option to carry out transactions in foreign currencies or the ability to integrate with accounting software.
If you run a limited company, you’ll be required to use a business bank account. If you’re a sole trader, there’s no such requirement, but it can still make a lot of sense to open one and keep your business transactions separate from your own.
How do I compare business bank accounts?
These are some of the key factors you’ll need to consider:
- Fees. Some business bank accounts will charge a monthly fee for using the account. Others will charge for everyday banking transactions. Some might even charge for both, so be sure to check carefully. In some instances, fees will be waived for the first year or so which can be useful if your business is just starting out.
- Transaction limits. Some banks might limit how much money you can transfer in one transaction, so if you’re likely to be regularly transferring large sums, check if the limit is sufficient.
- Overdraft facility. If you’d like to have an overdraft on your business bank account, look for an account that offers one and check how much interest it charges.
- Account management. Consider whether you’re happy to manage your business account online or via an app, or whether you’d prefer to have a bank branch to pop into. You might require this if you need to pay cash into the account, for example.
- Additional features. Some business bank accounts can integrate with accounting software or help you create invoices, so if these features are important to you, make sure they’re included. Some accounts might also pay interest on credit balances or give you cashback.
- International transactions. If you regularly carry out business overseas, look for a business account that charges low fees for doing so. Similarly, check whether your bank card charges for foreign transactions.
- Customer support. Check how you can contact your chosen provider and whether customer support is available 24/7.
- Eligibility. Before applying for a business account, make sure your business is eligible. Your business will usually need to be registered and trading in the UK, but some banks might also require that your business has been trading for a set time or has a minimum annual turnover.
- Related financial services. If you think you might need a business loan or credit card in the future, check whether the provider offers these options.
What do I need to open a business bank account?
Many business bank accounts can be opened online. Otherwise you can pop into your local bank branch (if there is one). You’ll usually need to provide details about your business, including its registered address and contact details. If you’re a limited company, you’ll need to provide details of your company’s registration at Companies House. Incidentally, if you still need to register with Companies House, it hiked up the cost of doing so in May 2024 to more than quadruple the previous price in some cases.
Additionally, you will usually need to provide proof of ID for all company directors, such as a passport, as well as proof of address, such as a utility bill.
Business bank account fees explained
Unlike with most personal current accounts, many business accounts come with costs attached, which can range from a monthly fee simply for having the account, to a charge for paying in a cheque.
We outline the main types of business account costs below – bear these in mind when you’re looking at a bank’s pricing structure or an account’s terms and conditions:
-
This is a flat fee for having and using your business account – it’s usually charged monthly but sometimes it’s an annual fee.
-
This includes things such as direct debits and standing orders, as well as Faster Payments bank transfers made to other individuals or companies (which you might set up or make through online, mobile or telephone banking). Some business accounts don’t charge for these types of payments, while others will give you a set allowance per month or charge you for each one.
-
When you deposit or take out cash at a bank branch (or at a Post Office, if your bank supports that service), you might be charged a flat fee or a percentage fee for any cash and coins you deposit or money you withdraw over the counter. Some banks have a set fee for depositing a cheque and also charge when a cheque you’ve written to someone else is paid into their account.
-
This could include any purchases or cash withdrawals made using your card abroad (non-sterling transactions). But there are also usually fees for making an international payment – such as a SEPA payment or SWIFT payment – from your bank account to one based overseas. Some providers will also charge you for receiving an international payment into your account.
-
There are some services you might use occasionally that incur a special charge, such as making a CHAPS payment (this is a high-value payment that is cleared on the same day) or issuing a banker’s cheque. Some business accounts also offer optional services e.g. a VAT calculation and submission service, which you can expect to pay extra for if you sign up.
Business bank accounts for the self-employed
Whether you’re a freelancer or have a side hustle, it could be a good idea to create a separate bank account to manage your finances. It’s not a legal requirement, but you might find it easier to track your cash flow and calculate your end-of-year taxes. Check out our guide on best business bank accounts for freelancers.
There are lots of business bank accounts designed for the self-employed. Some are free, while others charge a monthly fee. You should also think about what services you might need. For example, do you want your account to link to accounting software such as QuickBooks and Xero, or do you need invoicing support?
Take a look at our guide on the best business bank accounts for the self-employed.
How can I apply for a business account?
Once you’ve researched and chosen which business account you’d like to go for, you’ll need to apply to that banking provider to open it. Many applications can now be done online or through a mobile app (especially given the growing number of digital-only accounts), although some banks with a branch network might ask you to visit in person.
Every business bank account will have a slightly different application process, but here is a general list of information and documents that you should have to hand:
- Your business name and address
- Your own personal details and contact information
- A form of ID
- Proof of address
- Estimated business turnover
- Personal banking/financial statements
- Companies House registration number, if you’re a limited company
Not every banking provider will ask you for all of this documentation, and on the flip side, there may be some who request even more detailed information about your business and its finances.
Most business bank account providers will also carry out some kind of credit check on you, although there are a few that will let you open an account without one (but be aware these products tend to come with higher usage fees). For more information on opening a business account without a credit check, check out our guide to opening a business account with a bad credit score.
Best business banks for customer satisfaction in 2025
Our customer satisfaction awards are decided by the only votes that really matter – yours. We asked customers of major business banking providers to tell us about their experiences. Now, we can reveal the top rated UK banks – the Customer Satisfaction champions. Learn more about the awards here, including our ratings methodology.
| Brand | Logo | Customers who’d recommend | Review | |
|---|---|---|---|---|
| Monzo Business |  | 97% | Monzo Business is rated highly by its customers for ease of use and the ability to manage accounts through its innovative mobile banking app. | Read our review |
| Airwallex |  | 97% | Airwallex has competitive foreign exchange rates, multi-currency cards and monthly account fees can be waived if certain account conditions are met. | Read our review |
| Revolut Business |  | 97% | A Revolut Business account is slick, smart and easy to use and set up and great for customers who need to make international payments. | Read our review |
| Anna |  | 93% | Anna is a digital-only business account which also comes with invoicing and expense management features. | Read our review |
| Zempler |  | 93% | Zempler is a business bank account designed for small businesses and is FSCS protected. | Read our review |
| Virgin Money |  | 90% | Virgin Money is a great option if you’re happy to do most of your business banking online with a free trial available. | Read our review |
| Lloyds Bank |  | 90% | Long-established Lloyds Bank offers business accounts for new and established businesses as well as one for clubs and charities. | Read our review |
| RBS |  | 90% | Royal Bank of Scotland is loved by business banking customers for its “trustworthiness” and level of service. | Read our review |
| Santander |  | 87% | Santander operate a range of different business accounts, some of which come with discounted fees for startups or customers who are switching. | Read our review |
| Tide |  | 83% | Tide is a digital-only business banking provider, and its customers highlighted its “top notch” customer service and ease of use. | Read our review |
| Allica Bank |  | 83% | Allica Bank provides a business bank account that offers cashback on your spending and no monthly fees, as well as a dedicated relationship manager. | Read our review |
| TSB |  | 83% | TSB‘s business banking services have proved popular with customers due to the bank’s reliability and good level of customer service. | Read our review |
| Mettle |  | 83% | Mettle is a digital-only offshoot from parent company NatWest which is free to open and use, and it has strong mobile banking features. | Read our review |
| HSBC |  | 80% | HSBC offers business banking for startups and new businesses, existing and larger businesses, as well as community organisations. | Read our review |
| Barclays |  | 77% | Another high-street veteran Barclays business accounts cover most business needs and come with all the advantages of a big bank. | Read our review |
| The Co-operative Bank |  | 77% | The Co-operative Bank is known for its ethical business banking, and customers commended it on its helpful service. | Read our review |
| NatWest |  | 73% | NatWest offers a range of business banking options, including specialised accounts for startups and charities. | Read our review |
| Metro Bank |  | 70% | Metro Bank offers different business account types depending on what your business does and how much it earns. | Read our review |
-
We asked people who’d used a business bank account within the previous 12 months to rate their satisfaction with the service they received and whether they’d recommend the provider to a friend. Our independent survey of 540 business banking customers was carried out in January 2025.
We have shown the percentage recommended score in the table above and used these ratings to decide the winners of our awards. Where there was a draw on the “would recommend percentage”, we used the overall rating out of 5 as a tie-breaker.
The customer satisfaction champions were decided by their recommendation scores (the percentage of survey respondents who would recommend the brand to a friend). Any brand which had at least 90% of customers recommend them has been recognised with a customer satisfaction champion award.
Pros and cons of a business bank account
Pros
- Can help you to keep personal and business finances separate, making it easier to file your tax return
- You could benefit from perks such as accounting integrations or cashback
- Some accounts enable you to carry out foreign transactions
- It can help you build a business credit rating
- If your money is held with a UK-authorised bank or building society, it will be protected under the Financial Services Compensation Scheme (FSCS)
Cons
- You might have to pay monthly and/or transaction fees
- Having a business account as well as a personal bank account means twice the banking admin
- If your account comes with a prepaid card, this won’t be protected by the FSCS – it’ll be covered under e-money regulations instead
Bottom line
There are many reasons why it pays to open a business bank account. But when comparing them, it’s important to check the eligibility criteria carefully to be sure you qualify, and also check the fees so you don’t get caught out. On top of this, you’ll want to check what perks come with the account, such as invoicing tools or cashback, so that you can be confident of picking the best account for your business. It’s also important to be aware of the customer service that the bank offers. We have scored a number of business banks on this guide.
Frequently asked questions
-
Many online business bank accounts can be opened within a day or 2. But if you’re opening an account with a high street bank, it could take between 1 and 4 weeks as the bank will need to carry out various identity and business checks.
-
If you have bad credit, your banking options will be more restricted. But the good news is a number of online or app-based providers don’t require a credit check as part of their application process. These include Zempler, Tide and Card One Money.
-
If you’re a sole trader, there’s nothing really stopping you from using your personal bank account for business purposes. However, some banks won’t like this and could close your account, while it can also make it harder to keep your personal and business finances separate.
Limited companies are required to open a business account as the business is a separate legal entity.
If you're setting up a business, a business plan is vital to your success.
Use our free business plan toolkit including a walk-through guide, business plan template and example business plan.
Download toolkit
All the content may be republished with a link to this page
Press enquiries
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 is provided by Defaqto. In other cases, Finder has sourced data directly from providers.
Was this content helpful to you?
Thank you for your feedback!
To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 259 Finder guides across topics including:
- Helping first-time buyers apply for a mortgage
- Comparing bank accounts and highlighting useful features
- Publishing easy-to-understand guides
