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Compare business bank accounts

Compare business bank accounts

Choosing the right business bank account is essential for managing your finances effectively. By understanding account basics, identifying your business needs, exploring offers, and assessing digital features, you can make an informed choice. Comparing accounts can be time-consuming, so this guide simplifies the process to help you find the best option for your business.

Things to consider when choosing a bank account

When selecting a business bank account, it's essential to consider the unique needs of your business. Think about the types of transactions you'll be conducting, the frequency of these transactions, and the level of customer support you might need.

Compare monthly fees and charges after any introductory offer periods.

Some banks may have monthly fees, while others have fee-free banking, charging only for additional services. Typical monthly charges range from £5 to £25. Reviewing these costs upfront can help you avoid unnecessary expenses.

Some banks offer fee-free banking periods for new business customers. However, keep in mind some possible conditions such as minimum balances or transaction limits, which could lead to unexpected charges after the introductory period.

Banks can place limits on cash deposits and transactions within a specific period. If you need to process a high volume of transactions, choose an account that gives you this without additional fees.

Consider the level of support you need, from digital to in-person help.

If you value in-person support, choose a bank with a local branch. You should also check they have good phone or online customer service, so you can can quickly fix any issues.

Digital support options are important too, and you should select a bank that has accountancy software integration, if you need this service.

When you open a new business bank account, choose a bank that aligns with your business goals. This means you can find a bank that can grow with your business.

Explore business savings accounts

When considering your choice of bank, refer to those that offer business savings accounts, so you can maximise the returns on your surplus funds. Options include instant access savings for flexibility, restricted withdrawals in exchange for higher interest rates, and fixed-term savings so you can lock your money away for a bigger benefit.

Take advantage of perks and rewards

Some banks offer cashback on bills, high interest on in-credit balances, travel insurance, or cash bonuses. These perks can provide additional financial benefits, making certain accounts more attractive for long-term use.

An overdraft can help support you with short-term cash flow challenges.

Business accounts overview

We also offer specialist accounts for registered charities and community groups, as well as members of the Federation of Small Businesses.

Business Bank Account

Designed for start ups and businesses that bank digitally and rarely deposit cash or cheques.

Business Bank Account Plus

Created for established and growing businesses that are looking for additional benefits with their bank account.

Business Directplus

Ideal for businesses of all sizes that can maintain a minimum balance of £1,000 to benefit from the preferential tariff.

Compare our accounts

We have excluded our Charity and Community Bank Account and Federation of Small Businesses account from this table as they have additional eligibility requirements. When considering the most suitable account, in addition to the tariff, you should review the full range of benefits and whether they meet your needs based on your expected usage. More information can be found in our FAQs.

Account feature Business Bank Account Business Bank Account Plus Business Directplus
Monthly Fee No monthly fee £10 Free for the first 30 months, then £7 thereafter
Automated Debits & Credits Free Free Free
Cash paid in or out at branch 
£1.50 per £100 
75p per £100 £1,000 free per charging period and 80p per £100 thereafter
Cheques paid in/issued £1.50 each 75p each 25 free per charging period and 75p each thereafter
Savings accounts 
Optional Business Plus Instant Access savings account with an exclusive interest rate 
Optional
Overdraft Optional Optional, no arrangement fee for overdrafts up to £25,000 Optional
Business Insurance Optional Optional. Up to £70 Love2Shop voucher when purchasing an eligible insurance policy through our preferred insurance provider (eligibility and T&Cs apply) Optional
View account View Business Bank Account View Business Bank Account Plus View Business Directplus

  • Banking limits and minimum balance apply for Business Directplus accounts

  • Overdrafts are subject to status and availability

FAQs

If you’re a limited company registered with Companies House you need a business bank account.

If you’re not a limited company, a business bank account can still help you to manage your business finances by keeping them separate to personal finances.

  • Monthly fees
  • Transactional fees and charges
  • Service
  • Support
  • Additional services
  • Overdraft

As outlined in the key considerations, you should think about your businesses specific needs and transactional behaviour, as well as considering the account features, fees and servicing. You should also consider your long-term business needs in terms of scalability and additional services.

Once you’ve decided which account you’d like to apply for, simply visit the relevant product page and click “Apply”.

The Business Bank Account Plus gives you access to a range of additional benefits designed to add value if they meet your business needs. Before applying, it’s important to make sure these features are relevant to your business and offer good value for the monthly fee.

These features include:

  • An instant access savings account with a preferential interest rate
  • No arrangement fee for overdrafts up to £25,000
  • A Love2Shop voucher when you take out an eligible insurance policy through AXA

Business Plus Instant Access: An instant access savings account is opened alongside your current account, with a preferential rate and interest paid monthly. Based on the current interest rate of 1.46% gross, 1.47% AER (variable), and starting balance of £20,000, you could earn £294 in interest over 12 months. Compared to our Business Instant Access account at a current interest rate of 1.15% gross/AER (variable) where £230 interest would be earned. We have worked this out assuming you haven’t made any additional deposits or withdrawals during the 12 month period and we haven’t made any changes to interest rates during the 12 month period. Please also note this example is intended to illustrate the interest that would be earned after 12 months. The balance shown does not take account of the fact that interest is paid on the 5th of each month, rather than 12 months after account opening.

We will pay interest without deducting tax. If you earn more interest than the amount permitted as tax free income, you will have to pay tax on the interest earned directly to HM Revenue & Customs. If you are not sure whether you will have to pay tax, we recommend that you contact your local tax office or HM Revenue & Customs.

Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on your individual financial circumstances

Overdraft Arrangement Fee: There is a saving from £50 up to £375 based on our current charging structure for business overdrafts. For example, on an £8,000 overdraft there would be a saving of £120. Please note, an arrangement fee is a one-off fee that is charged when setting up your overdraft. You can view more information on business overdrafts here.

AXA Insurance: You can receive up to £70 Love2Shop vouchers when purchasing an eligible business insurance policy through AXA. Please note, this is a one-off benefit.

If you don’t expect to use some or all these benefits, another type of business account may be a better fit for you. We want to help you get the most from your account, so please review the features carefully to make sure Business Bank Account Plus is the right choice for your business.

In the first 12 months, if you deposited £10,000 into your Business Plus Instant Access account, took an overdraft with a limit of £5,000 and purchased a qualifying business insurance policy with AXA for £200 you could see the following benefits:

£147 interest payable on your savings, based on current interest rate of 1.46% gross, 1.47% AER (variable). We have worked this out assuming you haven’t made any additional deposits or withdrawals during the 12 month period and we haven’t made any changes to interest rates during the 12 month period. Please also note this example is intended to illustrate the interest that would be earned after 12 months. The balance shown does not take account of the fact that interest is paid on the 5th of each month, rather than 12 months after account opening.

£75 saving on an overdraft arrangement fee

£20 Love2Shop voucher for the qualifying insurance with AXA

This illustration shows a benefit of £242 however, if you remove the total you would pay in monthly fees for 12 months (£10 per month) for this product, the total benefit would be £122.

In comparison, if you opened a Business Bank Account and chose to also open a Business Instant Access savings account and completed the above you could see the following benefits and charges:

£115 interest payable on your savings, based on current interest rate of 1.15% gross/AER (variable) We have worked this out assuming you haven’t made any additional deposits or withdrawals during the 12 month period and we haven’t made any changes to interest rates during the 12 month period. Please note, we have not taken into account that interest is paid on 5 April and 5 October, rather than 12 months after opening.

£75 overdraft arrangement fee payable

No Love2Shop voucher applicable for insurance

This illustration shows a benefit of £40 when the overdraft arrangement fee is deducted from the interest payable, there is no monthly fee for the Business Bank Account.

We will pay interest without deducting tax. If you earn more interest than the amount permitted as tax free income, you will have to pay tax on the interest earned directly to HM Revenue & Customs. If you are not sure whether you will have to pay tax, we recommend that you contact your local tax office or HM Revenue & Customs.

Any reference to tax is based on our understanding of current tax regulations which may change in the future and depends on your individual financial circumstances

You can convert your account to another account with us by phoning us on the general enquires number.

If you are looking to convert your account to our Business Bank Account Plus and already have an account but do not have a linked instant access savings account, you can complete our digital conversion form.

You can find the full tariff details for the Business Bank Account, Business Bank Account Plus and Business Directplus accounts below:

Business Bank Account

Business Bank Account tariff (PDF)

Business Bank Account Plus

Business Bank Account Plus tariff (PDF)

Business Directplus

Business Directplus tariff (PDF)

How much will I pay in fees and charges over a 12-month period?

We understand that each business is unique in their needs and circumstances, this is why we’ve developed a range of current accounts with varying features and pricing structures.

The illustrations below show what you may be charged based on the described usage across our Business Bank Account, Business Bank Account Plus and Business Directplus over a 12 month period (you can view the relevant charges in the comparison table).

Please note: these are illustrative examples only and will vary based on your actual usage.

Scenario 1

A business that predominantly transacts digitally using debit card or faster payments (little or no cash & cheque transactions)

Annual fees below, based on 50 automated credits, 1 manual credit, 2 cheques paid in, 50 automated debits, 50 debit cards purchases & no cash transactions - per monthly transaction period.

Account name Monthly fee Transactional Charges Annual Total Charges
Business Bank Account £0 £36 £36
^Business Bank Account Plus £120 £18 £138
Business Directplus

Balance above £1,000 (within 30 months free offer)

 £0 £0 *£0
Business Directplus

Balance above £1,000 (after 30 months free offer)

 £84 £420 *£504
Business Directplus

Balance below £1,000 (during and after 30 months free offer)

 £84 £840 £924

Scenario 2

A businesses that both banks digitally and uses cash/cheques.

Annual fees below, based on 100 automated credits, 20 manual credits, £1,500 cash & 50 cheques paid in, 100 automated debits, 20 cheques issued, 100 debit card purchases, £500 cash withdrawn in branch - per monthly transaction period.

Account name Monthly fee Transactional Charges Annual Total Charges
Business Bank Account £0 £1,620 £1,620
^Business Bank Account Plus £120 £810 £930
Business Directplus

Balance above £1,000 (within 30 months free offer)

 £0 £333 *£333
Business Directplus

Balance above £1,000 (after 30 months free offer)

 £84 £1,233 *£1,317
Business Directplus

Balance below £1,000 (during and after 30 months free offer)

 £84 £2,121 £2,205

Scenario 3

A business that mainly transacts using cash and cheques (small volumes of automated credits/debits)

Annual fee below, based on 20 automated credits, 5 manual credits, £5,000 cash & 50 cheques paid in, 20 cheques issued, 10 debit card purchases, £500 cash withdrawn in branch and 10 credits at Post Office - per monthly transaction period

Account name Monthly fee Transactional charges Annual total charges
Business Bank Account £0 £2,250 £2,250
^Business Bank Account Plus £120 £1,125 £1,245
Business Directplus

Balance above £1,000 (within 30 months free offer)

 £0 £669 *£669
Business Directplus

Balance above £1,000 (after 30 months free offer)

 £84 £792 *£876
Business Directplus

Balance below £1,000 (both within and after 30 months free offer)

 £84 £903 £987

*minimum £1,000 balance required at all times

^The Business Bank Account Plus also comes with other benefits that are not included within the tables. Before applying, it’s important to make sure these features are relevant to your business. Please review the FAQs or Business Bank Account Plus product page for more information.

Savings terms explained

AER stands for Annual Equivalent Rate. It shows what the interest rate would be if interest were paid and added to your account each year.

Business day is usually Monday to Friday excluding bank holidays.

Gross is the rate of interest payable before any tax is taken off.

Variable interest means that it could go up or down.

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