We have created this handy guide, to help you understand the different options on the market, and then select the best one for your business.

When choosing a business bank account, you’ll generally come across three main types of providers: high street banks, online banks, and electronic money institutions (EMIs):

- High street banks are traditional, well-established providers with physical branches, offering a full range of services, face-to-face support, and often extras like overdrafts or credit facilities, though they can be slower to set up and carry higher fees.

- Online banks, sometimes called challenger banks, operate entirely through digital platforms, making them quick to open, easy to manage, and often more cost-effective, though their services may be more streamlined compared to traditional banks.

- Electronic money issuers, which are not licensed banks but regulated financial institutions, provide business accounts that focus on convenience, speed, and affordability, but they cannot offer certain protections like the Financial Services Compensation Scheme (FSCS) on deposits, and typically don’t provide lending services.

Top Tip: When setting up a business account, one of the quickest routes is to apply through the bank you already use for your personal banking. Because they’ve already verified your identity and have a history of your banking, the onboarding process is often much faster and smoother.

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High Street Banks

HSBC – Offers Kinetic (sole traders, app-based) and Small Business/Specialist accounts, with fee-free introductory periods (usually 12 months) and in-branch access, lending, international payments, and overdraft options

NatWest – New businesses get up to 2 years of free banking, plus access to the Entrepreneur Accelerator and accounting tools like FreeAgent

Barclays – Provides startup and established-business accounts, free for around 12 months, with perks like FreshBooks accounting software and business support via Eagle Labs

Lloyds Bank – Free for 12 months, UK support, branch access, overdrafts, and accounting software included

RBS (Royal Bank of Scotland) – Offers 24 months free banking for new customers, FSCS protection, and overdraft facilities

Santander – Options typically involve monthly fees (~£7.50–£12.50) after a free period, with cashback benefits on some plans

The Co-operative Bank – Ethical banking, fewer branches, fee-free for 30 months, with sustainable-focused service

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Challenger Banks (Online Banks)

Monzo Business – 97% recommendation rating; app-only interface with budgeting tools and integrations

Starling Business Account – Free, includes real-time notifications, multiple users, invoice tools (via Business Toolkit add-on), and FSCS protection

Tide – Mobile-first, integrates invoicing/bookkeeping, links to accounting software, and allows cash deposits via Post Office/PayPoint

Revolut Business – High customer satisfaction (90–97%), with features like multi-currency, invoicing

Allica Bank – Challenger offering business current & savings accounts, loans, cashback, and a relationship manager; growing fast

Kroo – UK digital bank (licensed since 2022), offers business current accounts via app (no branches)

Atom Bank – App-only, though primarily for consumer services; business offerings are limited

Zempler Bank – Formerly Cashplus, fully licensed; business accounts with tools for invoices, bookkeeping, and accounting integrations

Electronic Money Issuers

These regulated non-bank providers offer digital money services—fast and flexible—but typically lack FSCS deposit protection and lending capabilities.

SumUp Business Account – Free, quick setup, includes POS integration and invoicing tools

ANNA Money – No monthly fee, offers cashback and tax tools; charges for incoming payments and cash deposits

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If you require any advice or support, feel free to email our team on helllo@thecarepartnership.co.uk.