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Business Bank Account Review

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Compare Business Bank Accounts

Getting a business bank account in 2020 is crucial if you have an existing business, or if you’re thinking of setting up a small business as a sole trader or start up. Having a secure place to organise your finances will allow you to track the progress of your business and claim back VAT, amongst many other things.

Furthermore, finding the best business bank account for you could give you a preferable set of exclusive perks, or simply provide you with a longer period of paying no monthly fees. The following UK business banks are included in this review:

This will allow you to compare business bank accounts available from UK providers, so you can choose the most appropriate one for you. Whilst your current account provider might do business accounts, it’s always worth comparing to see if another provider could give you a better introductory period, or similar benefits that would assist you as a business owner.

Compare business bank accounts

business bank account comparison table

What is a business bank account?

A business bank account is a secure place to keep any finances associated with a small business, start up business or limited company.

It is usually provided by a bank or building society who can cater for business customers. This might include providing a business manager who can help advise you how to organise your finances, or additional benefits that would to you as a business owner.

There is usually a monthly fee associated with running a business account, though you will often have an introductory period where you won’t have to pay any fees. At the end of this period, it is often a good idea to switch to a different business account so you can receive a new introductory offer and avoid paying fees for longer.

Why should I apply for a business bank account?

As a business owner it can be difficult to keep track of your finances unless you keep them organised in a separate account. Even as a freelancer, having money mixed in with personal expenses can be a nightmare to untangle every month, so on the whole it is far easier to have a business bank account. Have a look at the list to discover the benefits of having a business bank account:

  • Track your profits and losses
  • Keep an eye on your overheads and other expenses
  • Gives you a secure place to get paid and keep your finances safe
  • Claim VAT back on business-related expenses
  • Gives you a sort code and account number you can give out to customers for BACS payments
  • Set up direct debits or standing orders associated with the business
  • Get support from a dedicated business bank manager
  • Monitor your company balance via an app
  • Highlight financial shortfalls or successes
  • Make use of additional features such as an overdraft
  • Access additional credit products such as a business loan or self-employed credit card

Whilst it isn’t necessarily a benefit, having a business bank account is also a requirement for paying tax to HMRC, which you’re required to do on an annual basis through your Self-Assessment Tax Return.

Can I set up a business bank account online?

It’s actually much easier to open a business account online, especially with some providers who are strictly app-based and don’t have any branches to visit. Many business banking providers will either get you to complete an online application, or give you the ability to apply for an account through a native app that you can download to your smartphone or tablet.

The following details will usually be required for opening a business bank account, though each provider will have their own stipulations when you are submitting an application:

  • Proof of ID and personal address
  • Registered business address
  • Companies House registration number
  • Estimated annual turnover
  • Evidence of financial history (in some cases)

Each provider will have their own method for application, so make sure you have as much relevant information to hand if you want to apply or switch to a new business bank account online.

Business Bank Account Review

Before submitting an application, it’s always worth comparing business bank accounts to see what introductory offers are available, along with any perks or benefits that might assist you as a business owner. Have a look at our individual reviews below, giving you a glimpse of what you can expect to get from each provider.

Tide

Tide

Plus Offers app-based business bank account

Plus No monthly or annual fees

 Create invoices from the app

 Access your account online

Plus Accounting software integration

Plus Auto categories to keep finances organised

Plus Multiple accounts to isolate certain expenses

Plus Free Transfers between Tide accounts

Plus Free replacement cards

Minus Transfers between accounts cost £0.20

Minus Cash withdrawals cost £1

Minus Cash deposits cost £1 at the Post Office

Minus Cash deposits have a 3% fee at PayPoints

Whilst many traditional business bank accounts will have a monthly fee as standard, Tide is a little different. With no monthly or annual fees, getting a Tide business bank account is a great way to start off as a sole trader or start up and need to keep additional costs as low as possible.

Since Tide is app-based, you won’t have the option of going into a branch, but you will still be able to access everything through your smartphone, tablet or computer. With innovative features such as accounting software integration and invoice creation, you can easily track your expenses on-the-go, which is ideal for a small business looking to grow.

Read the full review

Revolut for Business

Revolut

Plus Offers app-based business bank account

Plus Receive and send funds in up to 28 currencies

Plus Issue unlimited cards to employees

Plus Innovative app to check your balance

Plus Create multiple accounts to isolate expenses

Plus Export transactions to accounting software

Plus Free instant transfers between Revolut accounts

Plus Schedule monthly payments

Plus Create Virtual cards

Minus Pay at least £7 per month to access key features

Minus Priority support only available through paid accounts

Minus International transfers cost £3 each

Minus Local transfers cost £0.20 each

Minus Loans and overdrafts coming soon

As a modern challenger bank, Revolut is already well known for providing accounts that assist customers make transactions across Europe. If your business is international, then it might make sense to go with a provider who specialises in international transfers and multiple currencies.

Whilst it hasn’t got any branches to visit, you can still get plenty of online support, and manage your business finances on-the-go as a small business owner, sole trader or freelancer. The smartphone app is a great way to check your account 24/7 and you can switch to a paid account at any time to unlock more features.

Read the full review

TSB

TSB

Plus Offers free business banking for 25 months

Plus Local branches available

Plus Access through Mobile app or Internet Banking

Plus Deposit cash in-branch or through Post Offices

Plus Free replacement cards

Plus Free cash and cheque deposits

Plus Accounting software integration

Plus Free Square reader

Plus Credit cards and Loans also available

Minus £5 monthly fee after free banking period finishes

Minus Cheques cost 70p per transaction after free banking

Minus Cash deposits cost 70p after free banking

As an established bank, TSB not only provides access to your business bank account through your smartphone and desktop computer, but also through local branches, unlike many challenger competitors. Alongside a free banking period, TSB is a great option for start up business owners and those looking to switch their business account.

TSB have been through many different guises over the years, but have been actively providing consumer and business credit products since 1985. In that time, they were taken over by Lloyds Bank and have subsequently separated, but still continue to provide business banking options for those looking to grow their small business into a larger enterprise.

Read the full review

Anna

ANNA

Plus Offers an app-based business bank account

Plus Get your new account within 10 mins

Plus Free account usage for 3 months

Plus Create invoices in-app

Plus If you don’t use your account, it’s free for that month

Plus Sends reminders on your behalf

Plus Instant notifications to your device

Plus Innovative app to manage your finances on-the-go

Plus Free direct debits

Plus Earn 1 % cashback on business expenses

Plus Open Banking integration available

Plus No hidden fees

Plus 10-min response time on chat support

Minus Introductory period only 3 months

Minus Debit card takes 5 working days to arrive

Minus Pay a minimum of £5 after 3 months

Minus No accounting software integration

Minus Limited free local transfers

ANNA stands for Absolutely No-Nonsense Admin, which makes it ideal for those sole traders, freelancers or start ups who haven’t got the time to be chasing invoices. The intuitive features of the Anna business bank account mean that small businesses can get on with the important stuff, saving time and money in the process.

As a digital-only business account, you can access your account using a smartphone or tablet, create invoices on the fly and get reminders for late invoices. All so you can concentrate on making your business a success.

Read the full review

CardOneMoney

Card One Money

Plus Offers online business bank account

Plus No credit check required

Plus Access your account online 24/7

Plus Pay bills using faster payments

Plus Free direct debits

Plus Free text alerts

Plus Support provided by UK call centre

Plus Get up to 4 additional prepaid corporate Mastercards

Plus Ideal for business customers with poor credit score

Minus Application fee is £55

Minus No option of free introductory period

Minus Account costs a minimum of £12.50 per month

Minus Fees for cash withdrawal and transfers

Minus Additional cards cost £5 each

Business owners looking for a hassle-free way of organising their finances and keeping track of expenses should look no further than CardOneMoney’s business bank account. They are a good option for those who may have struggled with borrowing previously and have a poor credit score, or those with a thin credit file.

Ensure you’re kept up to date with free text alerts for each transaction, as well as easy-access to your account through a smart phone, tablet or computer. Additionally, you can use their automated telephone service, or SMS service to check your balance on-the-go.

Read the full review

Cashplus Business

Cashplus

Plus Offers an app-based business bank account

Plus Application takes under 4 mins

Plus No credit check required

Plus Innovative smartphone app to access your money

Plus Accounting software integration as standard

Plus Business iDraft available

Plus Free direct debits

Plus Business Mastercard for expenses

Plus Pay in cash at the Post Office

Minus Annual fee of £69

Minus Additional cards cost £5.95

Minus Cash withdrawals cost £2

Minus Only 3 free transfers per month

The Cashplus Business bank account is a great way to manage your business finances as a sole trader, freelancer, start up or small business, with an innovative app to manage your finances without missing a beat.

Rather than spend time having to trawl through terms and conditions, the Cashplus account is clear and simple. No credit check when you apply and a standard £69 annual fee to pay up front. After that you can get on with managing your overheads and growing your business from the ground up.

Read the full review

Which is the best business bank account for me?

Are you ready to apply for a business bank account to help you organise your finances? Head over to our business banking tables using the link below and start comparing providers today.

Robert Bester

Updated on 9th September 2020