Business Bank accounts

Picking the right account for your business can be a process, but we’ve made it easy for you to find the top accounts with lowest fees and the cheapest overdraft charges.

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what is a business bank account?

Like a personal bank account, a business bank account can offer cash and cheque handling, a debit card, and an overdraft facility. if you run an organisation or company, a business bank account is simply a current account for the business.

With a business account you can carryout and keep track of every transactions. Whether it’s buying goods from suppliers, or paying for services. A business bank account is separate from your personal bank account, and usually comes with different features and services. Some banks set specific conditions on your business bank account depending on the size of your business, or the amount of turnover.

Best bank account for student

how to choose a perfect business bank account

From small businesses to big businesses, a business bank account is a good way to keep track of your organisation’s  finances.

The best business bank account differs depending on your banking needs. Different business accounts come with varying features, and you need to see which are available to your business.

Some the features of a business bank account include:

  • An overdraft, which lets you borrow money through your business account – but watch out for expensive fees.

  • Debit cards, so you and your employees can spend money in person, online or by phone.

  • Online banking, so you can manage your business account through the lender’s website or app.

  • Post Office banking service, so you can conveniently pay cash into your account wherever there’s a Post Office.

  • A cheque book, which comes with most business bank accounts and lets you pay bills or one-off payments.

  • Branch banking, so you can pay in cash or cheques and convert notes into coins.

  • Interest, which you earn on a positive balance in your business bank account.

  • Accounting software integration, so it’s easier to run your business.

How to get a business bank account

The right account for your business has details of what companies can open each account, including:

  • The types of company accepted, e.g. limited companies, sole traders and partnerships

  • The maximum annual turnover

  • Any other eligibility criteria like a minimum balance or maximum number of employees

You can also use it to check each account’s annual fee and interest rate. Once you have chosen one, you can apply online by completing the application form on the bank’s website.

What documents do you need for a business bank account

The bank you choose may ask you to provide:

  • Proof of your identity and anyone else who will run the account

  • Proof you are authorised to run the business’ finances

  • Your business’ name, address, annual revenue, company number and total employees

  • Details of your business’ other partners if you are not a sole trader

The bank or building society usually runs a credit check on you and your business, and they may need further details of your business’ finances or plans before they offer an overdraft.

Monthly fee vs per-transaction

Business bank accounts usually come at a cost. Some will offer an initial introductory ‘fee-free’ offer, but at some point, almost all business bank account providers will begin to charge you for services. They do this in two distinct ways and, again, it’s up to you to decide what type of charging model suits you best.

Set monthly or annual fee Some business bank accounts charge a set monthly, or even annual, fee. Many transactions and services are then usually included for ‘free’ as part of the account, although additional fees may be chargeable for certain features. This model of paying for your account might be more suitable for you if you plan to make lots of transactions on your account.

Fee-per-transaction This model is often promoted as ‘no monthly fee’, but you pay for the service through fees for certain transactions, such as withdrawals or transfers, for example. If you are expecting to use your account rarely, you may find this model of payment cheaper than a monthly fee.

Best Business Bank accounts for 2021

Tide Business Bank Accounts

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Bank

Free

Free

20p

Online/App

 £9.99

Free

Free

Online/App

£49.99

Free

Free

Online/App

Anna Business accounts

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

Free

App

X

£4.90

Free

Free

App

X

£9.90

Free

Free

App

X

£19.90

Free

Free

App

X

Cashplus Business Account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

Free

Online/App

Countingup Business Account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

20p

App

Mettle By NatWest Business account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

Free

App

Acorn Business Account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

£12.5

Free

30p

Online/App

CardOneMoney Business Account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

£12.5

Free

30p

Online/App

Starling Business Bank account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

Free

Online/App

Revolut Business Bank Account

monthly Fee

Card Purchases 

Bank transfers

Access

Overdraft

Free

Free

Free

Online/App

£25

Free

Free

Online/App

£100

Free

Free

Online/App

Choosing the right business bank account FAQs

You may find it difficult to open a traditional business bank account with a high street bank if you have a poor credit rating. You are also likely to come up against problems when applying for credit facilities. However, many basic online business current accounts are available to business owners with poor credit ratings. In fact, some will allow you to open an account without being subject to a credit check at all. However, the features and services offered may be limited.

Yes. You are usually able to include bank account charges and interest charges in your chargeable expenses.

 

If you are running a limited company you are obliged to ensure that your business finances don’t get muddled up with your personal finances – though there is no specific law requiring you to open a business bank account. If you are a sole trader, however, you are perfectly within your rights to use your personal account for business income and outgoings, However, if you are struggling to keep your business finances separate, opening a business bank account might make completing your accounting responsibilities easier.

Although many business bank accounts do have strict eligibility criteria, such as minimum turnover or trading history, others ask for very little by way of information from applicants. The minimum criteria, however, tends to be that you can provide evidence of a registered business name and address in the UK.