Compare business bank accounts
Monthly fees, transaction charges, cash deposit limits and integrations vary enormously. Compare UK business current accounts and find one that fits how your business actually operates.
Compare business accounts
Free banking periods are shrinking
Introductory free banking has dropped from 24 to as little as 12 months at some banks. Check when yours ends so you're not moved onto a standard tariff by surprise.
Should I switch business bank?
Switching is far easier than most owners expect, thanks to the Current Account Switch Service.
Your free banking period is ending
Standard tariffs typically start at £6.50–£12.50 a month plus per-transaction charges. Compare before you roll onto one.
You deposit a lot of cash
Cash handling fees of 0.5–0.8% add up quickly. Some banks include a monthly cash allowance that could save hundreds a year.
You need better software integration
Accounts with native Xero, QuickBooks or Sage feeds save hours of reconciliation every month.
You want a lending relationship
If you'll need finance soon, a bank that already sees your transaction data can often decide faster.
How business banking charges work
- Most accounts combine a monthly account fee with per-transaction charges for payments in and out.
- Electronic payments are usually cheapest; cheques, cash deposits and branch transactions cost the most.
- Digital-only banks often have no monthly fee but charge for cash deposits through the Post Office.
- Overdraft arrangement fees and interest are charged separately from your everyday account tariff.
- The Current Account Switch Service moves payments and direct debits automatically within seven working days.
What does a business bank account cost?
Indicative UK pricing. Fees depend on your account tier and transaction volumes.
| High street bank | Digital challenger | |
|---|---|---|
| Monthly account fee | £0 – £12.50 | £0 – £9 |
| Electronic payments | £0.25 – £0.35 each | Often free |
| Cash deposits | 0.5% – 0.8% of value | £1 – £3 per deposit |
| Free banking period | 12 – 24 months | Ongoing free tier |
How to compare business bank accounts
Three quick steps to a shortlist that actually fits your business.
Describe how you bank
Monthly turnover, cash usage, number of payments and which accounting software you use.
Compare accounts side by side
See monthly fees, transaction pricing, cash allowances, integrations and switching incentives together.
Open and switch
Apply online, and use the Current Account Switch Service to move everything across within seven working days.
Expert advice
Headline free banking is the most oversold feature in business banking. What matters is the tariff after the offer ends, because that's what you'll pay for years.
“Model your real monthly transaction pattern against each tariff. Cash-heavy businesses often pay ten times more than digital-first ones on the same account.”
Types of business account
Different structures suit different stages of growth.
Standard business current accounts
Full-service accounts from established banks, with branch access, overdrafts and dedicated relationship support.
Digital-only business accounts
App-first accounts opened in minutes, with low or no monthly fees, strong integrations and instant notifications.
Startup accounts
Extended free banking and mentoring for businesses in their first two years of trading.
Multi-currency accounts
Hold and pay in several currencies at close to interbank rates — essential if you import or export.
Business savings accounts
Park surplus cash in instant-access or notice accounts and earn interest without tying up working capital.
Client and escrow accounts
Segregated accounts for firms holding client money, with the ring-fencing regulators expect.
3 things to do before switching bank
A little preparation prevents disruption to your payments.
List your standing orders and direct debits
The switch service moves them automatically, but a checklist helps you confirm nothing is missed.
Check card machine settlement details
Your acquirer needs the new account details, or settlements can bounce for a day or two.
Keep the old account open briefly
Running both for a month catches any payer who hasn't updated your details.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad panel of UK banking providers, so you can weigh price, service and contract terms side by side.
Exclusive offers
We negotiate exclusive rates, cashback and switching incentives you won't always find by going direct.
Simple and fast
One short form, one call from a specialist, and quotes tailored to your business — usually within 24 hours.
We compare these business banks
Established banks and digital challengers serving UK businesses.
NatWest
Lloyds Bank
Barclays
HSBC
Santander
Starling Bank
Monzo
Tide
Revolut
Metro Bank
TSB
CashplusComparing with us is a no-brainer
“Our old tariff was costing £180 a month once the free period ended. The new account with a cash allowance and Xero feed costs £9 and saves our bookkeeper a full day each month.”
Rachel, wholesaler in Bristol
Latest from our experts
How the Current Account Switch Service works
What moves automatically, what doesn't, and how long it takes.
Best business accounts for cash-heavy businesses
Cash deposit allowances compared across UK banks.
Do I legally need a business bank account?
What limited companies and sole traders each need to know.
Frequently asked questions
Do I need a business bank account?
Limited companies must keep company money separate, so yes. Sole traders can legally use a personal account, but most banks' terms prohibit business use.
How long does switching take?
Seven working days using the Current Account Switch Service, with payments redirected automatically.
Can I open an account with bad credit?
Yes. Several digital providers run limited credit checks and focus on identity and business verification instead.
Will switching affect my overdraft?
Overdrafts don't transfer automatically. You'd need to apply to the new bank, ideally before you switch.
Are digital banks safe?
Check whether the provider holds a full banking licence with FSCS protection, or is an e-money institution that safeguards funds instead.
Is comparing free?
Yes, and there's no obligation to open an account.
Written by the Grow Your Business editorial team · Updated 25 July 2026