Choosing the best business bank account in the UK depends on what your business actually needs. A freelancer may prioritise a £0 monthly fee and simple mobile banking, while a growing limited company may need multiple users, accounting integrations, cash deposits, international payments or access to business finance.
There is no single business bank account that is automatically best for every UK business.
For 2026, six accounts worth comparing are Monzo Business, Starling Business, Mettle, Tide, NatWest and Lloyds. They differ significantly in pricing, eligibility, cash-handling options, team features and business services.
Last reviewed: August 2026. Business-account pricing, eligibility, interest rates and introductory offers can change. Always check the provider’s latest terms and tariff before applying.
Best Business Bank Accounts UK 2026: Quick Comparison
| Business bank account | Best suited to | Monthly fee | Main advantage | Important consideration |
|---|---|---|---|---|
| Monzo Business | Digital-first businesses | From £0 | Strong app, invoicing and tax tools | Some advanced features require paid plans |
| Starling Business | Sole traders and small businesses | £0 | No monthly account fee | Cash-deposit charges and limits apply |
| Mettle | Freelancers and small businesses | £0 | Free account with accounting features | Eligibility is more limited |
| Tide | Start-ups and growing businesses | From £0 | Banking plus business-management tools | Free plan has transaction limits |
| NatWest | Start-ups and traditional banking | Account dependent | Branch, digital banking and business services | Check charges after introductory periods |
| Lloyds | Start-ups and established small businesses | £0 initially for eligible new customers | High-street banking and wider services | £10 monthly fee after the introductory period |
Important: A “free” business bank account does not necessarily mean every service is free. Cash deposits, international payments, foreign exchange, additional users, transfers or other services may carry separate charges.
Which Is the Best Business Bank Account in the UK?
The answer depends on your business model.
- Best digital-first option: Monzo Business
- Best no-monthly-fee option: Starling Business
- Best for FreeAgent users: Mettle
- Best for business-management tools: Tide
- Best traditional banking option for start-ups: NatWest
- Best high-street alternative: Lloyds
These are editorial categories rather than universal rankings. Your transaction volume, cash requirements, company structure and need for borrowing can change which account makes the most sense.
1. Monzo Business
Monzo Business is designed for UK sole traders and limited-company directors who want to manage business banking primarily through digital channels.
Monzo currently offers three main plans: Lite at £0 per month, Pro at £9 per month and Team from £25 per month. Only UK sole traders and limited-company directors can apply, subject to the provider’s eligibility requirements.
Key Monzo Business features
Depending on the plan, features include:
- Business current account
- Debit card
- Mobile and web banking
- Invoicing
- Tax budgeting
- Accounting integrations
- Team access
- Expense management
- Payment links
- International payments
- 24/7 customer support
Monzo’s Pro and Team plans include more advanced invoicing, tax and accounting functionality.
Monzo Business pricing
| Plan | Monthly cost |
|---|---|
| Lite | £0 |
| Pro | £9 |
| Team | From £25 |
Monzo says plans and benefits can change, so applicants should confirm the current benefits during the application process.
Who is Monzo Business best for?
Monzo could be a good fit for:
- Freelancers
- Consultants
- Sole traders
- Online businesses
- Small limited companies
- Businesses that prefer app-based banking
- Businesses that want integrated tax and accounting tools
Its Team plan may be more relevant where several people need controlled access to business spending. Monzo supports different team access levels and spending controls.
Monzo and Making Tax Digital
Making Tax Digital for Income Tax is particularly relevant to self-employed businesses.
HMRC’s current timetable means businesses and self-employed individuals with qualifying income above £50,000 enter MTD for Income Tax from 6 April 2026. The threshold is scheduled to fall to £30,000 from April 2027 and £20,000 from April 2028.
That makes accounting and digital record-keeping features increasingly relevant for affected sole traders.
2. Starling Business Account
Starling Business is a strong option for businesses looking for a business current account with no monthly account fee.
Starling currently states that its business accounts have no monthly fees.
Starling Business features
Depending on the account and requirements, Starling offers:
- Business current accounts
- Business debit cards
- Mobile and online banking
- Invoicing
- Accounting integrations
- Business savings
- International banking
- Euro accounts
- Business accounting tools
- 24/7 support
Starling also offers tools aimed at sole traders, including accounting and tax functionality.
Cash deposits with Starling
Cash handling is an important consideration for shops, tradespeople and other cash-based businesses.
Starling currently states that business customers can deposit cash through the Post Office, with a 0.7% charge subject to a £3 minimum. The business-account cash-deposit limit is currently £5,000 per day and £100,000 per calendar year.
However, sole-trader limits can differ. Starling’s current sole-trader information states a £5,000 daily and £20,000 annual cash-deposit limit.
This is a good example of why business owners should check the exact account type rather than relying on a generic comparison.
Who is Starling best for?
Starling may suit:
- Sole traders
- Freelancers
- Small companies
- Online businesses
- Businesses wanting no monthly account fee
- Businesses comfortable with digital banking
If your business regularly handles large amounts of cash, compare the deposit limits and charges carefully before applying.
3. Mettle Business Account
Mettle is a digital business account from NatWest aimed at self-employed people and small businesses.
The standard Mettle account has no account-maintenance fee, and NatWest describes it as a free digital business account for eligible sole traders and limited companies with up to two owners.
Mettle Business features
Mettle offers features such as:
- Business current account
- Mobile banking
- Debit card
- Invoicing
- Transaction categorisation
- Receipt management
- Accounting integration
- FreeAgent connection
- In-app support
Mettle says FreeAgent can be included where the account holder makes at least one transaction a month, subject to its terms.
Mettle+ pricing
Mettle’s optional Mettle+ service currently costs £4 per month.
It adds features such as:
- Creating quotes
- Converting quotes into invoices
- Invoice reminders
- Custom invoice messaging
- Saved message templates
Mettle eligibility
Mettle’s eligibility is narrower than some alternatives.
The current information indicates that it is aimed at:
- Sole traders
- Limited companies with up to two owners
- UK-based businesses
- UK tax-resident owners
- Businesses meeting its balance and other eligibility requirements
Only one owner currently has access under the relevant account structure.
Mettle cash charges
Mettle currently lists:
- £2.75 per cash deposit through the Post Office
- £1 per cash withdrawal using the card
Who is Mettle best for?
Mettle may be particularly useful for:
- Freelancers
- Contractors
- Consultants
- Sole traders
- Small businesses
- Businesses already using FreeAgent
4. Tide Business Account
Tide takes a slightly different approach from traditional banks by combining business-account functionality with administration and financial-management tools.
Importantly, Tide says it is not a bank. Tide is a business financial platform, while its business current accounts are powered by ClearBank.
Tide pricing in 2026
Tide currently lists:
| Plan | Monthly price |
|---|---|
| Free | £0 |
| Smart | £12.49 |
| Pro | £27.49 |
| Max | £69.99 |
The free plan has a limited number of included transfers, while higher plans provide larger allowances and additional features.
Tide’s current pricing page shows five free UK transfers per month on the Free plan, 30 on Smart and unlimited transfers on Pro and Max.
Tide features
Depending on the plan, Tide can provide:
- Business current account
- Business debit card
- Invoicing
- Payment links
- Expense management
- Team access
- Accounting integrations
- International payments
- Making Tax Digital tools
- Business savings
- Additional business services
Tide also provides cash-deposit options through Post Office and PayPoint locations.
Who is Tide best for?
Tide may suit:
- Freelancers
- Sole traders
- Start-ups
- Small companies
- Growing businesses
- Businesses that want banking and administration tools together
The free plan may be sufficient for a business with relatively light banking activity. A business making frequent transfers may find a paid plan more appropriate.
5. NatWest Business Banking
NatWest is a useful option for businesses that want a combination of traditional banking and digital services.
It offers business banking through online and mobile channels, as well as branch and Post Office access for relevant services.
NatWest Start-up Account
NatWest’s current Start-up account is available to eligible businesses that:
- Have been trading for less than one year
- Have turnover below £1 million
- Meet the other eligibility requirements
The current offer provides two years of free banking on everyday transactions.
However, “free banking” does not mean every possible service is free. NatWest specifically excludes items such as international payments, Bankline, unarranged borrowing and additional services from the free-banking offer.
NatWest features
Depending on the account, businesses can access:
- Business current accounts
- Mobile banking
- Online banking
- Branch banking
- Post Office banking
- Business savings
- Business loans
- Overdraft facilities
- FreeAgent
- More advanced payment-management services
Who is NatWest best for?
NatWest may suit:
- Start-ups
- Growing businesses
- Businesses that prefer high-street banking
- Businesses that may need lending
- Businesses that want access to branch services
- Businesses with more complex banking requirements
NatWest also currently advertises a two-year free-banking offer for eligible businesses switching via the Current Account Switch Service, subject to its conditions.
6. Lloyds Business Bank Account
Lloyds is another established UK high-street option for small and growing businesses.
Its current Business Account offer provides no monthly account fee for the first 12 months for eligible first-time business-account customers, followed by £10 per month.
Lloyds Business features
Depending on the account, businesses can access:
- Online banking
- Mobile banking
- Business support
- Accounting integrations
- Business savings
- Lending
- Overdrafts
- International payments
- Multiple-user access
- Digital statements
- Payment alerts
Lloyds also currently advertises six months of Xero Business Edition for eligible new customers, subject to terms.
Cash and transaction charges
The monthly fee is only one part of the cost.
Lloyds currently lists separate charges for some cash payments, cheques, BACS and CHAPS transactions. For example, its published tariff lists a £30 CHAPS charge and separate charges for certain cash and cheque services.
This illustrates why comparing only monthly account fees can give a misleading picture of the total cost.
Who is Lloyds best for?
Lloyds may suit:
- Start-ups
- Sole traders
- Small businesses
- Established companies
- Businesses wanting high-street banking
- Businesses that want access to wider financial services
Best Business Bank Account by Business Type
| Business type | Accounts worth comparing | What to prioritise |
|---|---|---|
| Freelancer | Monzo, Starling, Mettle | Low fees, invoicing, mobile banking |
| Sole trader | Starling, Monzo, Mettle, Tide | Tax tools, accounting, payments |
| New start-up | NatWest, Tide, Monzo | Introductory fees, support, scalability |
| Small limited company | Monzo, Starling, NatWest, Lloyds | Team access, payments and accounting |
| Growing company | NatWest, Lloyds, Tide | Multiple users, lending and controls |
| Digital business | Monzo, Starling, Tide | Mobile tools and integrations |
| FreeAgent user | Mettle, NatWest | FreeAgent integration |
| Team business | Monzo Team, Tide paid plans, Lloyds | User permissions and spending controls |
| Cash-heavy business | Starling, NatWest, Lloyds | Deposit limits, charges and branch access |
| Traditional banking preference | NatWest, Lloyds | Branches and broader banking services |
This table is a starting point rather than personalised financial advice.
How to Choose the Best Business Bank Account
A low monthly fee is useful, but it should not be the only deciding factor.
1. Check your business structure
First establish whether you are:
- A sole trader
- A limited company
- A partnership
- An LLP
- Another type of organisation
Eligibility varies between providers.
For example, Monzo’s current eligibility is aimed at UK sole traders and UK limited-company directors, while Starling has separate eligibility requirements for limited companies, LLPs and sole traders.
2. Estimate your monthly transactions
Look at:
- Payments received
- Supplier payments
- Standing orders
- Direct Debits
- Cash deposits
- International transfers
- Card transactions
A £0 monthly account can become less attractive if you regularly pay for additional services or exceed included transaction allowances.
Simple example
Suppose Account A costs £0 per month but charges for certain additional transactions, while Account B costs £10 per month but includes more of the services your business uses.
The cheaper headline price is not necessarily the cheaper overall account.
Calculate:
Annual account cost = monthly fees + transaction charges + cash charges + international/FX charges + paid extras
That gives you a more realistic comparison.
3. Decide whether you need cash deposits
If customers pay you in cash, check:
- Where cash can be deposited
- Daily limits
- Annual limits
- Minimum charges
- Percentage charges
- Whether your business type is eligible
For example, Starling currently charges 0.7% on business cash deposits with a £3 minimum.
A business handling substantial cash should compare these costs carefully.
4. Check accounting software
Accounting integration can save time by reducing manual data entry.
Look for compatibility with software such as:
- Xero
- FreeAgent
- QuickBooks
- Sage
Mettle, for example, provides a FreeAgent connection under its current terms, while Monzo supports connections with several accounting platforms on eligible plans.
5. Consider Making Tax Digital
If you are a sole trader or landlord affected by Making Tax Digital for Income Tax, digital record-keeping and compatible software become increasingly important.
HMRC’s current rollout is:
| Start date | Qualifying income threshold |
|---|---|
| 6 April 2026 | Over £50,000 |
| 6 April 2027 | Over £30,000 |
| 6 April 2028 | Over £20,000 |
HMRC says affected taxpayers will need recognised software to keep records and send quarterly updates.
6. Check international payments
If you buy from overseas suppliers or receive money from international customers, compare:
- Incoming-payment fees
- Outgoing-payment fees
- FX mark-ups
- Currency availability
- Transfer limits
- International payment support
Do not assume an account with no monthly fee is automatically the cheapest option for international banking.
7. Consider team access
A growing business may need to give access to:
- Directors
- Employees
- Bookkeepers
- Accountants
- Finance managers
Check whether additional users are free and whether you can set different permission levels.
Monzo, for example, offers different team access levels and spending controls on eligible plans.
8. Check borrowing options separately
A business bank account does not guarantee access to:
- Loans
- Overdrafts
- Credit cards
- Business finance
Where a provider advertises lending, approval is generally subject to eligibility, credit assessment and status.
Do not choose an account solely because a provider advertises potential borrowing.
9. Check deposit protection
Deposit protection is another important consideration.
Eligible deposits held with authorised UK banking institutions can be protected by the Financial Services Compensation Scheme (FSCS), subject to the applicable rules and limits.
For example, NatWest and Lloyds currently state protection of eligible deposits up to £120,000 under the current FSCS limit.
Always check the protection arrangements for the specific provider and account structure.
How to Open a Business Bank Account
The exact application process varies, but most providers will want information about you and your business.
Step 1: Prepare your business details
You may need:
- Business name
- Trading address
- Business activity
- Expected turnover
- Contact information
- Tax information
Step 2: Prepare identification
The provider may request identification and information about the people connected to the business.
Step 3: Prepare company information
Limited companies may need information such as:
- Companies House details
- Directors
- People with significant control
- Registered address
Step 4: Explain what the business does
Banks and financial providers need to understand the nature of the business as part of their application and compliance checks.
Be clear and accurate.
Step 5: Provide financial information
Depending on the business and provider, you may be asked about:
- Expected turnover
- Source of funds
- Expected transaction volume
- Customers and suppliers
- International activity
Step 6: Complete verification
You may need to complete identity and business checks before the account can be opened.
Step 7: Wait for approval
Approval times vary. Some digital providers advertise rapid applications, but additional checks can delay an application.
What Documents Do You Need for a Business Bank Account?
Requirements vary, so check the provider before applying.
Sole trader
You may need:
- Personal identification
- Proof of address
- Business details
- UTR if available
- Information about expected business activity
Starling, for example, says sole-trader applicants may provide their UTR if registered with HMRC, although its current information says you can still apply if you do not have one yet.
Limited company
You may need:
- Company registration details
- Director information
- PSC information
- Personal identification
- Registered business address
- Information about business activities
Providers can carry out additional checks depending on the circumstances.
Does a Sole Trader Need a Business Bank Account?
A sole trader is not legally separate from the individual in the same way as a limited company.
However, using a separate account for business income and expenses can make bookkeeping, tax preparation and cash-flow management easier.
Before opening an account, check the provider’s terms because some business accounts have specific eligibility rules for sole traders.
Does a Limited Company Need a Business Bank Account?
A limited company is a separate legal entity from its owners.
Using a dedicated business account is therefore important for maintaining a clear separation between company finances and personal finances.
It also makes it easier to track:
- Company income
- Supplier costs
- Payroll
- Business expenses
- Tax
- Dividends
- Cash flow
The exact account requirements depend on the company and provider.
Can You Have More Than One Business Bank Account?
Yes, a business can potentially use more than one account, subject to the providers’ terms.
For example, a business might use:
- One account for day-to-day transactions
- Another account for tax reserves
- A separate savings account
- Another account for international activity
Multiple accounts can improve organisation, but they also create additional administration.
Before opening another account, check whether there are account fees, transaction charges or restrictions.
How to Switch Business Bank Accounts
Switching can be easier than many business owners expect when the provider participates in the Current Account Switch Service.
A typical switch involves:
- Open the new account.
- Request a switch through the provider.
- Confirm the switch date.
- The switching service transfers relevant payments and balance.
- Your old account is closed as part of the service.
NatWest currently states that its eligible switches through the Current Account Switch Service can be completed within seven working days.
Lloyds similarly describes a three-step switching process using the Current Account Switch Service.
Before switching, check important recurring payments, customer invoices and supplier arrangements.
Best Free Business Bank Account UK
There are several accounts with £0 monthly plans, but “free” should be interpreted carefully.
For example:
- Monzo Lite: £0 monthly fee
- Starling Business: no monthly fee
- Mettle: no account-maintenance fee
- Tide Free: £0 monthly fee
- NatWest Start-up: free everyday banking for eligible start-ups for two years
- Lloyds: no monthly account fee for 12 months for eligible new customers, then £10/month
The cheapest account depends on how you use it.
A business that makes very few transactions may benefit from a free plan, while a higher-volume business may save money by paying a monthly fee for more included services.
Best Business Bank Account for Freelancers
Freelancers usually benefit from:
- Low or no monthly fees
- Mobile banking
- Easy invoicing
- Accounting integrations
- Tax-management tools
- Simple expense tracking
Monzo, Starling, Mettle and Tide are therefore useful accounts to compare.
Mettle can be particularly relevant for freelancers who already use FreeAgent, while Monzo may appeal to people who prefer a mobile-first banking experience.
Best Business Bank Account for Start-Ups
A start-up should look beyond the introductory offer.
Compare:
- How long free banking lasts
- What happens after the offer ends
- Transaction charges
- Cash handling
- Accounting software
- Business support
- Borrowing options
- International payments
- Ability to add users
NatWest’s Start-up account currently offers two years of free banking on everyday transactions to eligible businesses trading for less than one year with turnover below £1 million.
Lloyds currently offers 12 months without an account fee for eligible first-time business-account customers, followed by £10/month.
Best Business Bank Account for a Small Limited Company
A small limited company may need more than a simple current account.
Pay particular attention to:
- Multiple directors
- User permissions
- Accounting integrations
- Bulk payments
- Expense cards
- Cash management
- International payments
- Borrowing
- Business savings
Monzo, Starling, NatWest, Lloyds and Tide can all be worth comparing depending on the company’s requirements and eligibility.
Best Business Bank Account for Cash-Heavy Businesses
Cash-heavy businesses should compare deposit facilities before choosing an account.
A suitable account should have:
- Convenient cash-deposit locations
- Reasonable daily limits
- Reasonable annual limits
- Transparent deposit fees
- Suitable branch or Post Office access
Starling currently supports business cash deposits through the Post Office but charges 0.7%, subject to a £3 minimum.
NatWest and Lloyds may be worth considering where branch or broader cash-banking services are important.
Best Business Bank Account UK 2026: Final Verdict
There is no universally best business bank account in the UK.
The strongest choice depends on your business structure, transaction volume, cash requirements, accounting setup and future plans.
Best for digital-first banking
Monzo Business stands out for businesses that want an app-led experience with invoicing, tax and accounting tools available on eligible plans.
Best for no monthly account fee
Starling Business is worth considering if keeping the monthly account fee at £0 is a priority. Its cash-deposit charges and limits should still be checked if you handle cash.
Best for FreeAgent users
Mettle is particularly relevant to small businesses that value its FreeAgent connection and simple digital banking.
Best for business-management tools
Tide can appeal to businesses that want banking combined with invoicing, expenses, accounting and other business-management services. Its Free plan and paid plans have different transaction allowances.
Best traditional banking option for start-ups
NatWest is worth comparing for eligible start-ups that value branches, digital banking and a two-year free everyday-banking period.
Best high-street alternative
Lloyds combines digital banking with wider business services and currently offers no monthly account fee for 12 months to eligible first-time business-account customers before the £10 monthly fee applies.
Ultimately, compare the total cost and features you will actually use, rather than choosing an account based only on the word “free”.
Frequently Asked Questions
What is the best business bank account in the UK in 2026?
There is no single best account for every business. Monzo may suit digital-first businesses, Starling may suit businesses prioritising no monthly fees, Mettle can suit FreeAgent users, Tide offers business-management tools, while NatWest and Lloyds may appeal to businesses wanting traditional banking services.
What is the best free business bank account?
Starling, Monzo Lite, Mettle and Tide all offer £0 monthly-fee options under their current plans or account structures. However, additional services and transactions may still incur charges.
Is Monzo Business free?
Monzo currently offers a free Lite plan. Pro costs £9 per month and Team starts from £25 per month.
Is Starling Business free?
Starling currently states that its business accounts have no monthly fees. However, some services, including cash deposits, can have charges.
Is Mettle free?
Mettle currently has no account-maintenance fee. Its optional Mettle+ service costs £4 per month. Other services, such as cash deposits, can have separate charges.
Is Tide free?
Tide has a £0 Free plan. Paid plans currently start at £12.49 per month. The Free plan has fewer included transfers than the higher plans.
Which bank is best for a new UK business?
Compare start-up eligibility, introductory banking offers, accounting tools, transaction fees and future costs. NatWest currently offers eligible start-ups two years of free everyday banking, while other providers offer different free or introductory plans.
Can I open a business bank account online?
Yes. Several providers allow online applications. However, you will normally need to complete identity, business and compliance checks before the account is approved.
What documents are needed to open a business bank account?
Requirements vary. You may need identification, proof of address, business details, company-registration information, director or PSC information and tax details.
Can I switch business bank accounts?
Yes, where the provider and account are eligible for the Current Account Switch Service. The service can transfer relevant payments and close the old account according to its switching process.
Which business bank is best for international payments?
There is no universal winner. Compare the actual FX rate, transfer fees, supported currencies and payment limits rather than simply looking for a £0 monthly account.
Does a business bank account help with Making Tax Digital?
A business bank account itself does not make a business MTD-compliant. However, accounting and record-keeping tools connected to the account may make it easier to maintain digital records and work with compatible software.
