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Best Business Bank Account in UK in 2022

by Biztraction
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which business bank account is best

As a business owner or someone looking to start a business soon, a business bank account lets you conduct your everyday business transactions. You can use your business account for paying staff, buying raw materials, or paying for services.

This ensures that your company’s finances are separate from your personal bank account transactions. Most account usually comes with different services and features depending on the size of your business, or the amount of turnover.

Having a smart and convenient business bank account is essential for businesses. In this article we have compiled a list of banks where you can open an account for your business. Because we know you are asking which business bank account is the best, we would share our opinion on how to choose the best business account for your business.

 

How do you open a business bank account?

Opening an account requires that you go through the bank’s account application process. In today’s world most banks, neo-banks and fintech companies will let you complete the whole account set up online. However, you can talk to a support staff over the phone or in person if you need to confirm details that are particular to your unique business circumstances. 

 

Requirements to open a business bank account?

  1. Companies House registration number.
  2. Fill out the details about your business (tax information, turnover and other capital).
  3. Fill out the details of all directors or partners, including name, date of birth, address and National Insurance numbers and provide identification items.
  4. Existing current account (Some banks will specify if they require this)

 

Read also: How to register a business in the UK

 

How much does maintenance fee cost per month?

In other cases there may be a one-off set-up fee, usually from £10-70. However, neo-banks generally charge a simple fee that covers all of account management, unlike traditional banks which will charge separately for withdrawals, payments between countries, and requesting a new card.

Most business bank accounts charge a monthly fee, and may also charge for selected account transactions (withdrawals, cross border payments e.t.c). Business account monthly fee typically ranges from £5-12.. This fee can be more, so do well to always confirm with the bank.

 

Best Business Bank Account in UK

This list is non exhaustive and the ranking of the banks are done in no particular order.

Natwest business bank account

Website: https://www.natwest.com/business/

  • 24/7 online and mobile banking.
  • No minimum monthly charge.
  • Automated payments (standing orders, bank transfers etc.) are charged at £0.35 each.
  • Cash payments in or out cost £0.70 per £100.
  • New businesses get 18-months’ free business banking.
  • Access free to FreeAgent accounting software.

 

Starling Bank business bank account

Website: https://www.starlingbank.com/campaign/

  • Open and manage your account 24/7 using the app.
  • No monthly fee. 
  • No overseas fees for spending and withdrawals.
  • Your funds are  covered up to £85,000 by the Financial Services Compensation Scheme
  • Overdraft is available up to £150,000 subject to application.
  • Integration with accounting software like Xero and FreeAgent.

 

HSBC business bank account

Website: https://www.business.hsbc.uk/

  • 24/7 online and mobile banking.
  • Account maintenance £6.50 a month.
  • Most account transactions are free for the first 24 months.
  • 18 months’ free banking for new businesses.
  • 12 months’ free if you switch.
  • Phone banking available from 8am to 10pm.

 

Tide business bank account

Website: https://tide.co

Email: [email protected]

  • Online business bank accessible 24/7.
  • Offers a Free account (£0 per month), Plus account (£9.99 per month) and Cashback account (£49.99 per month)
  • Bank transfers cost £0.20 or free as part of the paid plans up to the monthly limit.
  • Spend abroad for free.
  • App can also create and send invoices.
  • Integrate with accountancy software including Xero, QuickBooks and Sage.

 

Lloyds Bank business bank account

Website: https://www.lloydsbank.com/business/

  • 24/7 online and mobile banking.
  • New businesses get 12 months’ free.
  • Up to £20 monthly fee.
  • Electronic payments are free or from £0.37 depending on the tariff, cash payments cost between £0.90-£1.40 per £100.

 

Metro Bank business bank account

Website: https://www.metrobankonline.co.uk/

  • 24/7 phone, online and mobile banking.
  • Telephone support available Monday to Friday 8-6pm.
  • Monthly fee of £6 plus £0.30 transaction fees.
  • Monthly account fee is waived if your balance stays at £6,000+ for the whole month plus 30 free transactions.

 

Bank of Scotland Business bank account

Website: https://business.bankofscotland.co.uk/

  • 24/7 online and mobile banking.
  • 12 months’ free day-to-day business banking for new businesses.
  • £7-20 monthly account fee depending on annual turnover.
  • Free electronic payments on most accounts or £0.37.
  • Cash payments from £0.90 per £100.

 

TSB Business bank account

Website: https://www.tsb.co.uk/business/

  • 24/7 online and mobile banking.
  • £5-£40 monthly fee, depending on tariff.
  • Free for 25 months for new and switching businesses.
  • Deposits can be made at 300 branches or Post Office branches.

 

Santander Business bank account

Website: https://www.santander.co.uk/business

  • 24/7 online and mobile banking.
  • £7.50-12.50 standard monthly fee.
  • New businesses and switchers pay £0-5 a month for 18 months as a startup and 12 months as a switcher on some accounts.
  • Get cashback on your turnover up to £300.

 

Royal Bank of Scotland – RBS – Business bank account

Website: https://www.rbs.co.uk/business.html

  • 24/7 phone, online, and mobile banking.
  • 24-months’ free for new businesses.
  • Free access to FreeAgent accounting software.
  • No minimum monthly fee, only pay for what you use.
  • Get access to the Entrepreneur Accelerator programme and local Business Growth Events.

 

We could not exhaust all the banks we wanted to list but you can read the other part here. Choosing an account that is best for your business has a lot to do with your business goals and the kind of financial systems you indent to put in place. As you go through this list, have your notes on the banks that match your business objectives. You can always confirm any other details directly via the bank’s website.

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