Looking for the best UK business bank account in 2024?
We’ve looked at real customer reviews from 63 different UK banks and Electronic Money Institutions (EMI) to see what people actually say about their bank.
Plus we’ve compared fees, features and savings rates to further help you find the best bank account your business.
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11 Best Bank Accounts Based On UK User Reviews
We looked at the customer review scores from Trustpilot users to figure out which bank had the best reviews.
Please note, for these rankings we only looked at banks and not other EMIs.
| Bank Name | Trustpilot Review Score | Number of Trustpilot Reviews | Percent of 5 Star Reviews | Percent 1 Star Reviews |
|---|---|---|---|---|
| OakNorth | 4.8 | 8,904 | 84% | 3% |
| Shawbrook Bank | 4.7 | 10,747 | 85% | 7% |
| Mettle | 4.6 | 3,418 | 81% | 8% |
| Aldermore | 4.6 | 4,424 | 80% | 9% |
| United Trust Bank | 4.6 | 1372 | 78% | 3% |
| Recognise Bank | 4.6 | 539 | 77% | 5% |
| Allica | 4.5 | 815 | 76% | 6% |
| Hampshire Trust Bank | 4.5 | 1,591 | 75% | 7% |
| Starling Bank | 4.3 | 38,869 | 76% | 11% |
| Tide | 4.2 | 18,595 | 73% | 17% |
| TSB | 4.2 | 21,942 | 56% | 27% |
1. OakNorth
Business Current Account: Yes
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: No
Trustpilot Review Score: 4.8
Number of Trustpilot Reviews: 8,904
Percent of 5 Star Reviews: 84%
Percent 1 Star Reviews: 3%
Website: Learn More About OakNorth
2. Shawbrook Bank
Business Current Account: No
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: No
In person/Branch Banking: No
Trustpilot Review Score: 4.7
Number of Trustpilot Reviews: 10,747
Percent of 5 Star Reviews: 85%
Percent 1 Star Reviews: 7%
Website: Learn More About Shawbrook Bank
3. Mettle
Business Current Account: Yes
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: No
Trustpilot Review Score: 4.6
Number of Trustpilot Reviews: 3,418
Percent of 5 Star Reviews: 81%
Percent 1 Star Reviews: 8%
Website: Learn More About Mettle
4. Aldermore
Business Current Account: No
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: No
In person/Branch Banking: No
Trustpilot Review Score: 4.6
Number of Trustpilot Reviews: 4,424
Percent of 5 Star Reviews: 80%
Percent 1 Star Reviews: 9%
Website: Learn More About Aldermore
5. United Trust Bank
Business Current Account: No
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: No
In person/Branch Banking: No
Trustpilot Review Score: 4.6
Number of Trustpilot Reviews: 1,372
Percent of 5 Star Reviews: 78%
Percent 1 Star Reviews: 3%
Website: Learn More About United Trust Bank
6. Recognise Bank
Business Current Account: No
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: No
In person/Branch Banking: No
Trustpilot Review Score: 4.6
Number of Trustpilot Reviews: 539
Percent of 5 Star Reviews: 77%
Percent 1 Star Reviews: 5%
Website: Learn More About Recognise Bank
7. Allica
Business Current Account: Yes
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: Yes
Trustpilot Review Score: 4.5
Number of Trustpilot Reviews: 815
Percent of 5 Star Reviews: 76%
Percent 1 Star Reviews: 6%
Website: Learn More About Allica
8. Hampshire Trust Bank
Business Current Account: No
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: No
In person/Branch Banking: No
Trustpilot Review Score: 4.5
Number of Trustpilot Reviews: 1,591
Percent of 5 Star Reviews: 75%
Percent 1 Star Reviews: 7%
Website: Learn More About Hampshire Trust Bank
9. Starling Bank
Business Current Account: Yes
Business Savings Account: No
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: Yes (via Post Office)
Trustpilot Review Score: 4.3
Number of Trustpilot Reviews: 38,869
Percent of 5 Star Reviews: 76%
Percent 1 Star Reviews: 11%
Website: Learn More About Starling Bank
10. Tide
Business Current Account: Yes
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: No
Trustpilot Review Score: 4.2
Number of Trustpilot Reviews: 18,595
Percent of 5 Star Reviews: 73%
Percent 1 Star Reviews: 17%
Website: Learn More About Tide Business Banking
11. TSB
Business Current Account: Yes
Business Savings Account: Yes
Online Banking: Yes
Mobile Banking: Yes
In person/Branch Banking: Yes
Trustpilot Review Score: 4.2
Number of Trustpilot Reviews: 21,942
Percent of 5 Star Reviews: 56%
Percent 1 Star Reviews: 27%
Website: Learn More About TSB
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How Do I Open A UK Business Bank Account?
To open a business bank account in the UK, you generally need to follow these steps:
- Choose a Bank: Start by researching and selecting a bank that suits your business needs. Consider factors such as fees, interest rates, services provided, online banking capabilities, and the convenience of branch locations.
- Prepare Your Documents: You will need to gather certain documents and information to open your account. Commonly required documents include:
- Registration documents, proving your business is registered in the UK. For a limited company, this would be your Certificate of Incorporation. Sole traders may need to provide their Unique Taxpayer Reference (UTR) from HMRC.
- Personal identification for the business owners and directors (such as a passport or driver’s license).
- Proof of address for the business owners and directors (such as a utility bill or council tax bill).
- Business details, including your business address and contact information.
- Estimated business turnover and funding information.
- Sometimes you may need to provide a detailed business plan to help the bank understand your business activities.
- Apply Online or In-Person: Many banks now offer the convenience of online applications, while others might require you to make an appointment and visit a branch in person. Choose the method that works best for you based on the bank’s offerings.
- Undergo a Credit Check: The bank will conduct a credit check on the business and possibly the directors, depending on the structure of your business. However many online banks such as Revolut and Cashplus do not require one.
- Wait for Account Opening Confirmation: Once your application is submitted, the bank will review your documents and run necessary checks. This process can take anywhere from a few minutes to a few weeks, depending on the bank and the complexity of your business.
- Set Up Your Account: After your account is opened, you will receive your account details, including sort code and account number. You may also receive a debit card, chequebook, and online banking details, depending on your bank and account type.
Each bank may have its specific requirements and processes, so it’s essential to check with the bank you’re interested in for their precise requirements. Additionally, for non-UK residents looking to open a business account, the process may involve additional steps or documentation.
How Can I Switch Business Bank Accounts?
Switching business bank accounts is relatively straightforward because of the Current Account Switch Service (CASS), which is offered by many banks to ensure a smooth and swift transition.
However, it’s worth noting that not all business accounts are eligible for CASS, so you might need to check with your current bank and new bank to see whether they can use this service for your switch.
Here’s a general step-by-step guide on how to switch your business bank account:
- Choose Your New Bank: Research and decide on the new bank that best suits your business needs. Consider factors like fees, overdraft facilities, interest rates, online banking services, and customer support.
- Check Eligibility for the Current Account Switch Service (CASS): If your business is eligible for CASS (typically small businesses, charities, and trusts), the switch can be completed in 7 working days, and the process will be handled by your new bank.
- Gather Required Documents: Be prepared with all necessary documents for opening a new business account. This typically includes personal identification, proof of address, business registration documents, and details about your business’s financial status and directors.
- Apply for the New Account: Approach the new bank to start the application process for opening your business account. You may be able to do this online, over the phone, or in person at a branch. (see above)
- Agree to the Switch: Once your application is approved, and you’ve decided to proceed with the switch, agree on a switch date with your new bank. If you’re using the CASS, ensure you have agreed to the CASS terms and conditions.
- Notify Your Stakeholders: It’s a good practice to inform your clients, suppliers, and anyone who makes regular payments to your account (or whom you pay regularly) about your new bank details. Although the CASS guarantees that incoming and outgoing payments will be automatically redirected to your new account for a certain period, it’s wise to update your details where necessary to ensure a seamless transition.
- Transfer Over Direct Debits and Standing Orders: If you’re not using CASS, you’ll need to manually transfer any direct debits, standing orders, and incoming payments to your new account. For those using CASS, this will be done automatically.
- Close Your Old Account: If you’re using CASS, your old account will be automatically closed on your switch date. If you’re not using CASS, you’ll need to arrange this yourself once you’ve ensured all payments have been successfully redirected to your new account.
- Final Checks: Once the switch is complete, review your new account to ensure that all expected payments in and out are occurring as they should be and that there are no issues with the services provided.
Keep in mind that while the CASS is designed to make the process as smooth as possible, there might be additional steps or requirements based on your specific business circumstances.
Is my money safe in a UK business bank account?
In the UK, the safety of money held in a business bank account largely depends on the financial institution with which the account is held and the regulatory protections in place.
Here are the key factors that contribute to the safety of your money in a UK business bank account:
Financial Services Compensation Scheme (FSCS)
- Protection Limit: The FSCS protects eligible deposits up to £85,000 per eligible depositor, per bank, building society, or credit union, in the event that the financial institution fails. For joint accounts, the protection is £170,000.
- Eligibility: It’s important to note that this protection applies to individual savers and small businesses, including companies, partnerships, charities, and trusts that meet certain criteria. However, large corporations may not be covered by the FSCS.
- Scope: The scheme covers deposits but does not extend to other financial instruments like investments, insurance, or pensions.
Regulation and Supervision
- Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA): Banks, building societies, and credit unions in the UK are regulated by the FCA and the PRA. These regulatory bodies ensure that financial institutions adhere to strict rules regarding capital adequacy, risk management, and consumer protection, enhancing the overall safety of deposits.
Operational Safeguards
- Safeguarding Measures: For Electronic Money Institutions (EMIs) and payment service providers that are not covered by the FSCS, safeguarding requirements mandate that customer funds are kept separate from the company’s own funds in segregated accounts or protected through insurance or a guarantee. While this is not the same as FSCS protection, it is a mechanism designed to protect customers’ money if the institution fails.
Corporate Structure and Risk Management
- Risk Management: Banks employ sophisticated risk management practices to mitigate the risk of losses that could impact customer deposits. These include diversification of assets, liquidity management, and stress testing.
- Capital Adequacy: Financial institutions are required to hold a certain level of capital reserves as a buffer against losses, ensuring they remain solvent and able to return deposits to customers even in adverse conditions.
Checking the Safety of Your Business Bank Account
To ensure the safety of your money, consider the following steps:
- Check FSCS Eligibility: Confirm whether your business bank account is eligible for FSCS protection and understand the limits of this protection.
- Review Financial Institution: Choose a reputable bank, building society, or EMI regulated by the FCA and PRA. The stability and reputation of the institution can provide additional assurance.
- Diversification: If your business holds significant cash reserves exceeding the FSCS protection limit, consider spreading funds across different financial institutions to maximize protection.
While the UK’s regulatory environment and protection schemes like the FSCS offer significant safeguards for business bank accounts, it’s crucial for businesses to conduct their own due diligence and understand the specific protections and risks associated with their chosen financial institution.
What’s The Difference Between A Business Current Account & A Business Savings Account?
A business current account and a business savings account serve different purposes for a business, and they come with distinct features and benefits. Here’s an overview of the key differences between the two:
Business Current Account
- Purpose: Designed for the day-to-day financial operations of a business. It allows businesses to manage cash flow, receive payments from clients, and pay out expenses such as salaries, suppliers, and overheads.
- Accessibility: Provides high levels of accessibility to funds. You can typically deposit and withdraw money at any time without facing penalties.
- Features: Comes with features like debit cards, check facilities, overdrafts, online banking, and the ability to set up standing orders and direct debits.
- Fees and Charges: May have monthly fees, transaction fees, and charges for using certain features like overdrafts. However, some banks offer free banking periods or accounts with no monthly fees for small businesses.
- Interest: Generally offers little to no interest on the balances maintained in the account.
Business Savings Account
- Purpose: Aimed at helping businesses save surplus cash and earn interest over time. It’s suited for setting aside money that is not required for daily operations, such as for future investments or as a reserve.
- Accessibility: Accessibility to funds can be more restricted compared to current accounts. Some savings accounts may require notice before withdrawals, or they may limit the number of withdrawals per year without penalty.
- Features: Typically lacks features like check facilities or a debit card. The main feature is the interest rate provided on the balances.
- Fees and Charges: Usually comes with lower fees than current accounts. Some savings accounts may not have any monthly fees, but it’s essential to check for any restrictions or requirements to earn interest.
- Interest: Offers interest on the money saved in the account, with rates typically higher than those offered by current accounts. The interest rate can be fixed or variable, depending on the account type.
Choosing Between Them
Most businesses benefit from having both types of accounts: a current account for everyday banking and managing cash flow, and a savings account for setting aside part of their earnings to earn interest and build up reserves. The choice between these accounts depends on the immediate and future financial needs of the business, and it’s common to use them in tandem to optimize financial management and savings growth.
What’s the difference between a business bank account and a personal bank account?
A business bank account and a personal bank account serve different purposes and are designed for different types of financial activities. Here are the main differences between them:
Purpose and Use
- Business Bank Account: Specifically intended for managing the finances of a business, including transactions like receiving payments from clients, paying suppliers, handling payroll, and managing other business-related expenses.
- Personal Bank Account: Designed for managing an individual’s personal finances, including daily expenses, savings, and receiving income from employment or personal investments.
Features and Services
- Business Bank Account: Offers features tailored to business needs, such as the ability to issue employee debit cards, higher transaction limits, merchant services for accepting customer payments, and sometimes, specialized lending products. They often come with tools for invoicing, accounting integration, and cash flow management.
- Personal Bank Account: Typically includes features like a debit card, online banking, overdraft protection, and possibly savings and investment options. These accounts are generally simpler and focus on basic banking needs.
Fees and Charges
- Business Bank Account: May have higher fees than personal accounts, including monthly maintenance fees, transaction fees, and charges for additional services like wire transfers or cash deposits beyond a certain limit.
- Personal Bank Account: Often has lower fees, and many banks offer fee waivers or no-fee accounts if certain conditions are met, such as maintaining a minimum balance or setting up direct deposit.
Interest Rates
- Business Bank Account: Interest rates for savings or deposits might be lower compared to personal accounts, as these accounts are more focused on transactional capabilities.
- Personal Bank Account: Savings and checking accounts may offer higher interest rates, especially in high-yield accounts designed to attract personal savers.
Legal and Tax Implications
- Business Bank Account: Helps separate personal and business finances, which is crucial for tax reporting, legal liability, and financial management. Using a business account can simplify accounting processes and provide clearer records for tax purposes.
- Personal Bank Account: Mixing personal and business transactions in a personal account can complicate tax filings and might affect the legal separation between the individual and the business, potentially impacting liability.
Opening Requirements
- Business Bank Account: Requires documentation related to the business, such as incorporation documents, business licenses, and tax IDs, in addition to personal identification for the account holders.
- Personal Bank Account: Generally requires less documentation to open, typically just personal identification and proof of address.
Credit and Lending
- Business Bank Account: Banks may offer business-specific lending products, such as business loans, lines of credit, and commercial mortgages, based on the account and business’s creditworthiness.
- Personal Bank Account: Personal lending products like personal loans, credit cards, and mortgages are based on the individual’s credit score and income.
In summary, while both types of accounts offer essential banking services, a business bank account provides functionalities and services tailored to the needs of businesses, ensuring that financial management, legal requirements, and tax reporting are streamlined and separate from personal finances.
What are the differences between banks and building societies for businesses?
Banks and building societies both offer financial services, but they have different structures and focuses, which can affect the products and services available to businesses. Here’s a comparison highlighting the main differences:
Ownership and Structure
- Banks: Typically operate as for-profit corporations owned by shareholders. Their primary goal is to generate profits for these shareholders, which influences their operations and the types of services and products they offer. Banks may offer a wider range of products and services due to their larger scale and international operations.
- Building Societies: Operate as mutual organizations, meaning they are owned by their members (i.e., their customers). Profits are usually reinvested into the society to improve products and services for members or are distributed among members. This member-focused structure can result in more customer-friendly policies and a focus on providing value to members rather than maximizing profits.
Services Offered
- Banks: Offer a comprehensive range of financial services, including business accounts, loans, overdrafts, credit cards, investment services, and more. Banks may have more resources to invest in technology, leading to potentially more advanced online banking services and mobile banking apps.
- Building Societies: Traditionally focused on savings and mortgages, but many now offer a range of services similar to banks, including business banking. However, their offerings may be more limited compared to large banks, especially in terms of business and international services.
Customer Service
- Banks: Customer service experiences can vary widely, with some banks offering excellent service and others falling short. Large banks might have more branches and ATMs, providing convenience but possibly offering a less personalized service.
- Building Societies: Often praised for their customer service and community focus, building societies may offer a more personal touch. Their local focus can mean better tailored services and a greater understanding of local business needs.
Interest Rates and Fees
- Banks: Competitive but can be influenced by their profit motives, leading to higher fees and rates on loans or lower interest rates on savings accounts.
- Building Societies: Might offer more favorable interest rates on savings and loans due to their mutual structure and focus on providing value to members. However, this is not always the case, and specific products should be compared.
Approach to Risk
- Banks: May have a more aggressive approach to risk, reflected in their willingness to invest in various financial products and services. This can benefit businesses looking for a broader range of financial solutions.
- Building Societies: Typically have a more conservative approach to risk, especially in their lending practices. This can be beneficial for businesses seeking stability but might limit the availability of certain financial products.
Accessibility
- Banks: Often have a more extensive network of branches and ATMs, both nationally and internationally, which can be beneficial for businesses with broader banking needs.
- Building Societies: Their branches are often more concentrated in specific areas, which can limit accessibility for some businesses but can benefit those located near a branch.
What are Electronic Money Institutions?
Electronic Money Institutions (EMIs) in the UK are financial entities authorized and regulated by the Financial Conduct Authority (FCA) to issue electronic money (e-money) and provide related payment services.
Examples include many of the companies above such as Revolut, Wise, Paypal, Anna, Airwallax and more.
E-money is digital money stored electronically that represents a claim on the issuer and is used for making electronic payments, similar to cash but in digital form.
EMIs play a crucial role in the financial technology (fintech) sector, offering innovative payment and financial services that complement or compete with traditional banking services.
Key Features of EMIs:
- Issuance of E-Money: EMIs can issue e-money, which can be used for cashless payments and stored on electronic devices like smartphones, prepaid cards, or other digital wallets. E-money can be used for transactions where cash or bank payments might not be possible or convenient.
- Payment Services: Besides issuing e-money, EMIs can offer a range of payment services including direct debits, credit transfers, payment transactions through a mobile phone, and money remittance services. They provide a platform for both consumers and businesses to make and receive payments efficiently.
- Regulation and Authorization: EMIs in the UK are authorized and regulated by the FCA. To obtain authorization, an EMI must meet certain capital requirements, safeguarding measures for customer funds, and governance and operational standards to ensure they operate securely and in the best interest of their customers.
- Safeguarding Customer Funds: EMIs are required to protect customers’ funds through safeguarding measures. This typically involves keeping customers’ funds separate from the company’s own funds in a segregated account or securing an insurance policy or guarantee that covers the amount of e-money issued.
- Innovation and Technology: EMIs are often at the forefront of financial technology innovation, offering services that traditional banks may not provide. This includes faster payment processing, international money transfers with lower fees, and digital wallet services that integrate with various financial ecosystems.
- Access to Payment Systems: Some EMIs have direct access to major payment systems, enabling them to process payments more quickly and efficiently than institutions that rely on third-party banks for such access.
EMIs have become increasingly popular due to their flexibility, the convenience of their services, and their ability to meet the needs of a digital-first customer base.
They are an integral part of the UK’s vibrant fintech ecosystem, driving innovation in payments, remittances, and digital banking solutions.
However, while EMIs offer many benefits, customers should also be aware of the differences between EMIs and traditional banks, especially in terms of deposit protection schemes like the Financial Services Compensation Scheme (FSCS), which may not always apply to funds held with EMIs.