The best small business bank accounts
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Written by:
Ben Gateley - Charlie CEO
Ben is the CEO and co-founder of CharlieHR, a widely-used HR software for small businesses worldwide. With a history of founding successful ventures since his teenage years, he has a strong entrepreneurial track record and a few tricks up his sleeve for small businesses everywhere.
All small businesses and startups want the best business bank account for their company.
But with so much competition, all claiming to be the best bank business account in the UK, how do you know which one to choose?
To help you out, I’ve put together an up-to-date guide to the best business bank accounts for small businesses in 2024.
I’m Ben, Charlie’s CEO. I’ve set up companies since the start of my career and have a few tips for anyone just starting out on their business journey – I hope they’re useful.
And establishing solid financial foundations is where it all starts and is essential for new business success. Choosing the right business bank account is a big part of that.
How to pick a bank account for your small business?
Consider your current frustrations. Are you concerned about:
-
Overall financial management - you’re not confident that you have a comprehensive overview of your company's financial health. Tasks like tracking expenses and reconciling accounts are inefficient or difficult.
- High transaction fees - you’ve been stung by hidden costs and high fees in the past. So you want transparent and cost-effective transaction options.
- Financial insight - you want to make informed, strategic decisions but don’t feel you have enough insight to do that. You want a business account that comes with built-in reporting and analytics.
- Integration with other financial tools - you already use (and rely on) financial management software, so you need a bank account that integrates.
- Security - in an age of increasing threats to cybersecurity, you want protection against fraud and unauthorised access.
- Inefficiency - you don’t have time for cumbersome and time-consuming banking processes like delays in fund transfers or complicated setups for multiple accounts. Your aim is streamlined and efficient banking.
And what about your business goals? Do you want a business bank account that gives you:
-
Cost optimisation - i.e. fewer hidden charges, lower transaction fees, and overall cost-effectiveness of financial transactions.
- Enhanced visibility - better decision making and strategic planning through real-time access to financial data and analytics.
- Efficient financial management - streamlined financial management that is more efficient and less prone to errors. This includes automated reconciliation, seamless integration with other financial tools, and improved financial workflow.
- Better productivity - fewer administrative burdens related to banking processes.
- Enhanced security - a business account with robust security measures to mitigate the risks of fraud and other cyber threats.
- Scalability and flexibility - a bank account that can scale with the growth of your company. Flexibility and adaptability are crucial.
When you’ve identified an account that allays most of your frustrations and delivers on your goals, it’s likely you’ve found the best small bank account for your business.
And to help you make that decision faster and more confidently, I’ve narrowed down the options to five of the best small business bank accounts in the UK.
Let’s take a look…
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Compare best bank business accounts UK
- UK businesses with little or no banking budget
- Business Lite account for free, or Business Pro for £5 a month
- UK-based businesses that operate internationally
- Basic plan is £0 a month for core features, Grow is £19 a month, and Scale is from £79 a month
Enterprise is a custom plan for larger businesses and POA
- UK small businesses
- Go business plan is £0 a month, and the Extra plan with more features is £9 a month
- UK businesses with turnover over £1m
- The Established plan is for businesses with turnover above £1m - you get free banking on everyday transactions for 2 years if you make a full switch using the Current Account Switch Service
- UK businesses with turnover under £1m
- M Account for Business has no monthly fee and free day-to-day digital banking
The top 5 Small Business Bank Accounts
Best bank business account for UK businesses with little or no banking budget
With Monzo, sole traders or limited company directors can apply for a business bank account straight from a phone.
Monzo’s business bank accounts start at no monthly fees, and the bank was voted the 2022 Best Business Banking Provider at the British Bank Awards.
Fully regulated UK Bank
Starting from No Monthly Fee
Free UK bank transfers
👍
You want free UK bank transfers
❌
You prefer a traditional high street bank
👍
You’re a sole trader or limited company director
👍
You do a lot of your work from your phone
Hansen Salim, Trustpilot review
“I have been using Monzo for over 5 years now and am very happy with the service they provide. I used them for both personal and business uses. Their mobile app is very convenient to use…”
Pricing
Choose from a Business Lite account for free, or Business Pro for £5 a month.
Best bank business account for UK-based businesses that operate internationally
Revolut Business supports international businesses, with multi-currency accounts and global payments. In Revolut’s Multicurrency Business Account, you can store over 25 currencies.
Multicurrency accounts and currency exchange
Integrates with accounting software like Xero, QuickBooks and Sage and many other business apps
Anti-fraud system
👍
You work internationally or travel overseas a lot for work
❌
You don’t work outside of the UK
👍
You accept global payments
❌
You’re a startup
Nada Issa, Trustpilot review
“Just opened a business account and the process has been really easy. The best would be their customer support. Revolut already assigned us an account manager to assist us in anything we need, couldn’t ask for better client support.”
Pricing
The Basic business plan is £0 a month for core features. The Grow and Scale plans are £19 a month, and from £79 a month respectively, and Enterprise is a custom plan tailored for larger businesses and POA.
Best bank business account for UK small businesses
Starling Bank’s Cashplus Business accounts are designed for freelancers, sole traders and small and growing businesses.
It takes minutes to open an account and every one comes with 24 hour fraud monitoring. Starling Bank’s customer service team is based in the UK.
No monthly fees on the Go plan
Integrates with accounting apps like QuickBooks, Xero, FreeAgent
Fully regulated British bank
👍
You’re a small business
❌
You’re a medium to large business
👍
You’re looking for no monthly fees initially
Pinnacle Protection, Trustpilot review
“Great bank. The app makes accounting smoother and gives a constant overview of how the business is running from and financial standpoint.”
Pricing
The Go business plan is £0 a month and the Extra business plan with more features is £9 a month.
Best bank business account for UK businesses with turnover over £1m
The Business bank account is NatWest’s offering for businesses with a turnover of above £1m, or businesses with a turnover below £1m who have been trading for over a year.
If you’re a business with an annual turnover of up to £2m, switching to NatWest through their full Current Account Switch Service will give you two years of free banking on everyday transactions.
No minimum monthly charge - pay for what you use
Dedicated Relationship Manager
Free accounting software from FreeAgent included
👍
You want free everyday transactions
❌
You want fixed fees
👍
Your turnover is over £1m
👍
You’re a sole trader
Pricing
NatWest offers different bank accounts for different levels of business, each with their own pricing structure.
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Mettle by NatWest is for sole traders or limited companies with up to two owners who have a balance of less than £1m. This account is 100% free with no hidden charges or transaction fees.
- Startup businesses is for businesses trading less than a year with turnover of less than £1m. You get free banking on everyday transactions for the first two years. (After two years, you’ll automatically move to the Standard Tariff.)
- Established businesses is the NatWest account for businesses with turnover above £1m, or those with turnover below £1m who have been trading for over a year. You get free banking on everyday transactions for two years if you make a full switch using the Current Account Switch Service, otherwise the Standard Tariff applies.
Best bank business account for UK businesses with turnover under £1m
The M Account for Business is NatWest’s online business bank account that provides free day-to-day online banking for businesses with a turnover of less than £1 million.
No monthly account fee
Free day-to-day online business banking
Hassle-free switching, with the current account switch guarantee
👍
Your turnover is under £1m
❌
Your turnover is over £1m
👍
You want free online banking
Treasured Properties Ltd, Trustpilot review
“I’m starting a new business and needed a business and client bank account. Virgin were helpful right from the start and the communication was great to keep me updated on the progress of my application.”
Reviews
Pricing
The M Account for Business has no monthly fee and free day-to-day digital banking.
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