Guide
How to switch business bank account
What the Current Account Switch Service covers, how long it takes and what to prepare.
Read guideCompare business current accounts
Everyday banking for your company's income and outgoings — fees, transaction limits and integrations compared
Compare accounts now TrustpilotTrustScore 4.7 | reviews
Ready to compare business current accounts?
Run a full market comparison before you commit. It takes about five minutes and there's no obligation to apply.
What is a business current account?
A business current account is the everyday account used to receive customer payments, pay suppliers and staff, and manage the day-to-day cash flow of a limited company, partnership or sole trader business.
UK law requires limited companies and LLPs to keep business finances separate from personal money, so a dedicated business account isn't optional once you incorporate, even if sole traders can technically use a personal account.
Providers range from the traditional high-street banks to app-based challengers built specifically for small businesses, each with very different fee structures, transaction limits and accounting integrations.
You apply with your company registration details, proof of identity for directors, and evidence of the business address, then set up incoming payments, direct debits and card readers to run through the account.
Most providers charge either a flat monthly fee, a per-transaction fee, or a combination — some digital challengers offer free accounts for very low transaction volumes, then charge as you scale.
What are the risks with business current accounts?
- Not every business banking provider holds a full UK banking licence. E-money institutions protect your funds through safeguarding arrangements rather than FSCS deposit protection, and the two work differently if the firm fails.
- Fees that look small per transaction can add up quickly at volume — always model a typical month's activity against the fee schedule before switching.
- If something goes wrong, UK-regulated providers must run an internal complaints process, and eligible small businesses can escalate unresolved disputes to the Financial Ombudsman Service free of charge.
Why compare business current accounts with us
You're just starting out
A free digital account with unlimited card payments and no monthly fee keeps costs down while you're finding your feet.
You handle cash regularly
A high-street account with branch or Post Office deposit access avoids high per-deposit charges from digital-only providers.
You're scaling quickly
Look for an account with strong integrations and room to add team cards, expense controls and multi-user access as you hire.
Business current account plans compared
Indicative UK pricing for popular small business accounts. Always check the current tariff before applying.
| Account | Monthly fee | Free electronic payments | Cash deposits |
|---|---|---|---|
| Digital free plan | £0 | Unlimited | £1 per £100 at Post Office |
| Digital paid plan | £9 – £35 | Unlimited | Fee-free allowance, then per £100 |
| High-street starter | £0 for 12–24 months | Unlimited during offer | Branch and Post Office |
| High-street standard | £6.50 – £12.50 | Per-item charges apply | £0.60 – £0.90 per £100 |
What does a business account cost to run?
A worked example based on 60 electronic payments and £3,000 of cash paid in each month.
| Cost line | Digital account | High-street account |
|---|---|---|
| Monthly account fee | £0 – £12 | £6.50 – £12.50 |
| 60 electronic payments | Included | £0 – £21 |
| £3,000 cash deposited | £30 | £18 – £27 |
| Estimated annual cost | £360 – £504 | £294 – £618 |
Expert advice
Most small firms pick an account on the sign-up offer and never revisit it, even though pricing changes and volumes grow.
“Model a typical month against the tariff sheet — free banking periods end, and per-item charges are where the real cost sits.”
business current accounts: pros and cons
Pros
- Free options widely available for low transaction volumes
- Fast digital onboarding, often same day
- Strong integrations with accounting software
- Keeps business and personal finances legally separate
Cons
- Per-transaction fees can add up at higher volumes
- Cash deposits are expensive or unavailable with digital-only providers
- Overdraft facilities are harder to secure than for personal accounts
- Switching business accounts is less automated than personal switching
How to compare business current accounts
Look past the headline offer and check these five things:
- 1
Monthly and transaction fees
Some providers bundle a fixed number of free transactions each month, then charge per payment or cash deposit above that — model your real volumes before you commit.
- 2
Integrations
Check native links to Xero, QuickBooks or Sage, since manual reconciliation quickly eats into any time saved by switching provider.
- 3
Cash and cheque handling
Digital-only providers are usually cheapest but can charge heavily, or refuse outright, to pay in cash or cheques through the Post Office or a partner network.
- 4
Customer support
Compare whether you get a dedicated relationship manager, phone support, or app-only chat — this matters far more once something goes wrong with a payment.
- 5
FSCS or safeguarding protection
Confirm whether the provider holds a full UK banking licence (FSCS protection up to £85,000) or is an e-money institution using client-money safeguarding rules instead.
Compare business current accounts
See what's available for your business today. It takes just minutes.
Am I eligible for a business current account?
Most UK providers will ask for:
1. UK-registered business
A limited company registered with Companies House, an LLP, a registered partnership, or a sole trader with a UK business address.
2. Director and shareholder ID
Proof of identity and address for all directors and anyone owning 25% or more of the business, in line with anti-money-laundering rules.
3. Business activity details
A description of what the business does, expected turnover and how the account will be used, to satisfy the provider's risk checks.
4. Credit check
Some providers run a soft credit check on the business or its directors, mainly to assess overdraft or lending eligibility rather than to refuse the account outright.
Meet Priya, opening her first business account
Priya has just incorporated a small design studio and is taking on her first three clients.
She opens a free digital business account that integrates directly with her accounting software, avoiding a monthly fee while her transaction volumes are still low.
As her invoicing grows to twenty transactions a month, she reviews the fee schedule and finds a mid-tier plan with unlimited transfers works out cheaper than paying per payment.
One business account or several?
Many growing businesses hold a main current account for day-to-day trading alongside a separate savings or 'pot' account for tax and VAT money, so cash set aside for HMRC isn't accidentally spent.
Some also open a second current account with a different provider purely as a backup, in case the primary provider suffers downtime during a critical payment run.
The trade-off is more logins and reconciliation work, so this is usually only worth it once monthly transaction volumes justify the extra admin.
How to compare and apply for business current accounts
1
Tell us about your business
Share your trading history, turnover and what you need the product to do. It takes a couple of minutes.
2
We search the market
We compare providers across the UK on cost, features and eligibility so you only see options you can actually get.
3
Review your options
Fees, rates and terms side by side in plain English, with no jargon and no pressure to proceed.
4
Apply with confidence
Pick the provider that fits and complete the application online. We'll tell you exactly what documents you need.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad range of UK providers so you can find the option that actually fits how your business operates.
Exclusive offers
We work hard to bring you exclusive deals, switching incentives and cashback where they're available.
Simple and fast
It takes just a few minutes to compare with us — and the deal you find could be well below what you pay today.
What types of business current account are there?
There are more options available than ever, so it pays to match the product to how your business actually operates.
High-street bank account
Offered by the major UK banks, often with a free introductory period followed by a monthly fee. Best if you need in-branch cash and cheque deposits or a long-standing relationship for future lending.
Digital-only business account
App-based accounts with fast onboarding, real-time notifications and strong accounting integrations. Best for freelancers, contractors and small companies with low cash-handling needs.
Free transaction-limited account
No monthly fee up to a set number of transactions, then a per-payment charge above that. Suits very early-stage businesses with light banking activity.
Relationship-managed account
A named business banker and priority phone support, usually reserved for higher-turnover businesses. Useful if you expect to need lending, trade finance or complex international payments.
Providers we compare
From the big high-street names to app-based challengers built for small businesses.
Starling Bank
Tide
Monzo Business
Revolut Business
ANNA Money
Zempler Bank
NatWest
Lloyds Bank
Barclays
HSBC UK
Santander
Metro BankComparing with us is a no-brainer
“We moved our account in an afternoon and cut about £40 a month in payment charges — the switch service moved every direct debit for us.”
Dan, Leeds
Business banking guides
Guide
Cutting your business banking fees
Where monthly fees, cash deposit charges and FX mark-ups quietly eat into margin.
Read guide
Guide
Funding options for growing firms
Overdrafts, invoice finance and asset finance compared for cash-flow gaps.
Read guidebusiness current accounts FAQs
Do I legally need a business bank account?
Limited companies and LLPs must keep business money separate from personal finances, so a business account is effectively required. Sole traders aren't legally required to have one but it makes bookkeeping far simpler.
How long does it take to open a business current account?
Digital providers can open an account within minutes to a day once ID and Companies House details are verified; high-street banks typically take one to three weeks.
Can I switch business current accounts easily?
There's no equivalent to the personal Current Account Switch Service guarantee for most business accounts, so you'll need to manually redirect payments and direct debits, though some providers offer switching support.
Is my business banking protected?
Deposits with FCA-authorised UK banks are protected by the FSCS up to £85,000 per business, per institution; e-money providers instead use safeguarding rules.
Can I have more than one business bank account?
Yes, there's no limit, and many businesses use a second account for tax savings, backup access, or a specific currency.
Written by the Grow Your Business editorial team · Updated 26 July 2026