Best Business Bank Account

Best Business Bank Account UK
Here's the best business bank account UK top 5 for 2022. Compare pros & cons to find what's best for your business.

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To successfully manage your business accounts, it is advisable to open a separate business bank account. This allows you to keep your business finances separate from your personal funds. It is also important for managing payments and keeping your accounts up to date. In this guide, we have found the best business bank account and 4 other suitable options for your consideration.

Best Business Bank Account – Top 5

1. Co-operative Bank Business Directplus Current Account

The Co-operative Bank Business Directplus Current Account is a great choice and our top pick. This account is perfect for small businesses and startups due to its range of tools, easy management, and fee structure.

For the first 30 months, there are no monthly service charges for this account providing you keep your credit balance above £1000. After this introductory period, there is a flat monthly charge of £7. This is only slightly more expensive than other bank accounts as most average at £5 per month.

For this service fee, you get free automated credits, free manual credits, free cash paid in, and free cheques paid in. You can also make cash deposits into your business account of up to £2000 without any charges.

Aside from the fees, we also like the quick and smooth application process. You can apply for a business account online, and the approval can take less than 5 business days. Account management is also a strong feature of this Co-operative account. There is a mobile banking app available for Android and iOS devices that lets you make payments, manage your business finances, and also create things like schedule repeat payments.

Features

  • 24/7 account management via the website or mobile app
  • Overdraft available
  • Grants access to a range of HR and legal assistance
  • Can easily manage scheduled payments

Pros

  • No charges for automated cash and credit withdrawals
  • Can also deposit up to £2000 in cash and 100 cheques for free per period
  • Fast online application process with approval within 5 days
  • Includes the first 30 months free

Cons

  • You have to keep your credit balance over £1000 to avoid charges and the monthly service charge

2. TSB Businesss Plus Account

TSB is another well-known UK bank and benefits from having over 300 branches nationwide. This means that aside from digital banking, you can also get in-branch help relatively easily. This could be a better choice, therefore, for people who prefer that one to on service.

The Business Plus Account from TSB has an introductory offer of 25-months. For this initial period, everything is free and there are no charges. After this, there is a monthly fee of £5 per month. Included in this £5 fee, you get free electronic payments, standing orders, and faster payments. Also, you get free internet banking, mobile banking, and telephone banking payments.

With this account, you also get the TSB Business Debit Card. This is incredibly useful and all cash transactions including withdrawals using this card are free.

The TSB Business Plus Account also comes with a Square Reader. This is an electronic device that allows you to accept card payments from customers including contactless payments. As a result, this business account could be ideal if you require a point of sale support.

Features

  • Easy management via desktop, app, or in-branch
  • The business debit card allows for free ATM withdrawals
  • No fees for any business debit card transactions
  • Can accept payments using the included Square Reader

Pros

  • Includes 3-months of free access to the Revenu financial management app
  • Can also deposit cheques and make payments at select Post Offices
  • The first 25-months are tariff-free
  • The business debit card is highly useful with no fees

Cons

  • After the introductory free period, the price is £6 per month
  • Overdrafts are available but may not be the best value

3. Virgin Money Business Current Account

Virgin Money has a range of business accounts and one of the best is the Business Current Account. This offers various benefits for businesses including direct savings for purchases with various merchants. Virgin partners with a range of online merchants and thus you could make excellent savings on repeat purchases and supplies for your business.

On application, you can also qualify for the introductory offer of 25-months of free day-to-day banking. After this, there is a range of fees that should be considered. Firstly, there is a monthly service fee of £6.50. Also, there are small charges for auto credits and debits – £0.30 per debit, and £0.30 per credit. ATM cash deposits have no fees, however.

With this business account, you can also apply for overdrafts and loans on negotiable terms.

One of the best features of this business account is the access to Virgin’s digital money management tools. These tools can help organise your business finances and there is also a mobile banking app too.

Features

  • 0% AER interest on in-credit balances.
  • Overdraft rates are negotiable
  • Has a range of digital money management tools
  • Various savings and discounts are available

Pros

  • Can earn up to £500 in debit card cashback automatically
  • The digital tools are great for business finance management
  • 25 month’s free banking before the monthly charge applies
  • Discounts for a range of merchant transactions

Cons

  • Has a £6.50 per month fee after the free 25-month period
  • Only available for businesses with a turnover of less than £6.5 million

4. Starling Bank Business Current Account

Starling Bank is surging in popularity and its Business Current Account is a great option. In particular, this is great for businesses that also want accounting integration. This is because the Starling Bank Business Current Account can integrate with QuickBooks, Xero, and FreeAgent. As a result, you can manage your online banking and business accounts from one source.

Starling Bank also has the benefit of zero fees. There are no monthly fees ever, unlike the other accounts in this list. Despite this, you still get a reasonable fee structure for payments. For example, there are no fees for UK ATM withdrawals, and no charges for card payments made abroad.

Starling Bank also offers excellent account management features. For example, you can segment your finances into sections for different payments. There is also a range of analytical tools so you can easily keep track of your spending.

The only drawback for the Starling Bank Business Current Account is that there is no overdraft facility. Other than that, this is definitely one of the best options for small businesses and sole traders available.

Features

  • Access to spending analytical tools
  • Instant notifications for payments and invoices
  • Can create separate spaces to segment different payments
  • Integrates with third-party accounting software like QuickBooks and Xero
  • Eligible deposits are covered up to £85,000 by the FSCS

Pros

  • No monthly fees regardless of the account balance
  • Optional Starling Bank Bookkeeping toolkit for £7 per month
  • Sole Traders can also benefit from HMRC tax estimations
  • 24/7 UK customer support

Cons

  • Does not have any overdraft facility

5. HSBC Kinetic Current Account

If you need to open a business account quickly or switch, the HSBC Kinetic Current Account is a top choice. The online application process is simple, and most applications are approved the same working day.

This is also one of the best accounts for payment management due to the easy-to-use mobile and desktop banking apps. It also includes a Kinetic debit card that you have great control over. For example, you can freeze and unfreeze it using your mobile banking app.

For new accounts, there is an introductory offer that lasts for 18 months. During this period, there are no charges. After this, the monthly service charge is £6.50 per month. This includes a range of free features such as free automated credits, free internal transfers, free direct debits, free standing orders, and free bill payments.

The only downside to the HSBC Kinetic Current Account is that it has limited support for international payments so is best-suited for UK-only businesses.

Features

  • Supports an in-app overdraft application feature
  • Transactions are automatically categorised for spending tracking
  • Access your account via desktop or mobile apps
  • Supports making payments of up to £25,000 via the mobile app
  • Available for businesses or sole traders with a turnover of up to £2 million

Pros

  • Includes an introductory free period of 18 months for new accounts
  • The Kinetic banking app is easy to use
  • Option to apply for both a savings account and credit card
  • Fast application process and most accounts are opened on the same day

Cons

  • Does not support international payments
  • No support for checkbooks

The Best Business Bank Account – Our Verdict

Any of the above five business accounts are of great value and have suitable features for small businesses. However, our pick for the best business bank account is the Co-operative Bank Business DirectPlus Current Account. This account has a great introductory offer that lasts for longer than other banks. After this, the fees are minimum, and you have online banking excellent access via a mobile app.

If this guide to the best business bank account helped you, please recommend DigitalSupermarket.

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