I’ve taken the time to compare the best online business bank accounts in detail and highlighted the pros and cons of each account, as well as all the associated costs and features, so you can find a smart, convenient business account to suit you.
Online business bank accounts are taking the world by storm as more and more business owners take advantage of their advanced features and tools.
- My best rated online business bank accounts in the UK, April 2024
- What is a business bank account?
- Requirements for opening a business account
- The difference between a business account and personal bank accounts
- How to choose the best business bank accounts for you
- Who must have a business account?
- Should a sole trader consider a business account?
- What is the current account switch guarantee?
- Is it possible to open a business bank account with bad credit?
- Do traditional banks offer online and mobile banking for business?
- Online business bank accounts FAQs
My best rated online business bank accounts in the UK, April 2024
- Counting Up – Best for bookkeeping
- Tide – Best for small traders
- Revolut – Best for small transactions
- Wise – Best for multi-currency accounts
- Cashplus Bank – Best for borrowing
Countingup is the latest fintech business account that comes with bookkeeping, tax, and accounting features designed to meet the needs of sole traders and limited companies with up to two directors.
Countingup’s integrated accounting software is included within the price from just £3 per month.
Tiered pricing plans to suit all business needs:
- 1st tier – £3/month – Total monthly deposits in £0 – £750
- 2nd tier – £9/month – Total monthly deposits in – £750 – £7,500
- 3rd tier – £18/month – Total monthly deposits in – £7,500+
- Easily identify payments matched to Invoices
- Send Invoices straight from the app
- Profit and loss, balance sheet and trial balance reports
- Forecasting Tool
- MTD VAT filing
- Accounts Filing
- Bookkeeping
- Tax estimates
- Receipt Capture
- Helpful UK-based support
- Account transfers in/out 30p
- Direct debit out 30p
- Foreign Transaction Fees 3% applied to clear transaction
- ATM withdrawal £1 per withdrawal
- Post Office Cash Load 0.5% (£2 min fee)
- PayPoint Cash Load 3%
- Replacement Card £5
| Absolute limits | Self-employed | Limited company |
|---|---|---|
| Maximum Account Balance | £60,000 | £400,000 |
| Maximum Mastercard purchase per day | £10,000 | £10,000 |
Tide is a dedicated business bank account offering free business banking that is perfect for small businesses and sole traders. Whilst Tide do have upgraded account options that come with a monthly fee, the free version is still packed with useful features and comes with a full UK sort code and account number, despite not being a regulated business account.
Tide is one of the easiest business bank accounts to open with no credit checks or paperwork required and for those that find managing their banking fiddly on their smartphone, with Tide everything can also be done on your desktop.
With a Tide business bank account, you get a business Mastercard, allowing you to conduct free purchases both at home and abroad.
Should you wish to register your company with Companies House, Tide also provide this service
for free.
Features of Tide Bank I like, include:
- Free card transactions
- Instant payment alerts
- Direct debits
- Scheduled payments
- Statements
- Accounting integration with software such as Xero and Free Agent
- Instant invoice payment and creation
- Easy to manage limits
- Apple Pay
- Ability to freeze and unfreeze your card within the app
- Digitally upload and store receipts to manage expenses
- Multiple accounts available
- Company expense cards
- Desktop access
- Business loans
Tide bank table of fees:
| Account | Monthly Fee | Additional Features |
|---|---|---|
| Business Account | FREE | NA |
| Tide Plus | £9.99 |
Free expense card 20 free transfers Priority support |
| Tide Cashback | £49.99 |
3 free expense cards 150 free transfers Dedicated account manager 0.5% cashback with your Tide card |
What to consider with Tide:
- Tide is not a regulated bank
- No free UK transfers
- Charges for deposits and withdrawals
With Revolut business you can open a free basic account if you are a small business with few transactions. Additional fees will apply for more transactions.
Revolut has more than four million customers across the globe, allowing business account holders to hold, receive, and exchange over 29 currencies.
There are currently 500,000+ customers on Revolut Business and you can spend in over 150 currencies at the interbank exchange rate which is as good as you will find.
Within the Revolut business bank account you can track expenses, set up teams and permissions and accept online card payments easily.
Features of the Revolut Business account I like, include:
- Multi-currency cards
- Fast payments which cost less when conducting international payments
- Payment approval so you can approve all payments before they are processed
- Bulk payments of up to 1,000 payments with a single click
- Integrations with accountancy software including Xero, Zoho, and Sage
- Partner discounts
- Priority support 24/7
Revolut Business accounts table of fees:
| Account | Monthly Fee | Additional Features |
|---|---|---|
| Basic Account | FREE | Unlimited team members |
| Grow | £25 |
10 free international payments Free metal card 100 free local payments £10k of free FX at interbank rate |
| Scale | £100 |
50 free international payments 1000 free local payments 2 free metal cards £50k of free FX at interbank rate |
| Custom | On application | Custom made plan |
Consider these points with Revolut Business
- No FSCS protection
- No option for paying in cash or cheques
- No overdraft facility
Wise are currently the biggest money transfer service in the UK, transferring over $6 billion every month in foreign exchange and saving individuals and businesses $3 million in hidden fees every day. Wise work out 19 times cheaper than Paypal to transfer money to over 80 countries. Depending on where you are sending money, international payments can be instant.
Wise also offer integration with accounting software Xero and offer business account holders employee debit cards, bulk payments, direct debits and volume discounts.
One of the things that make Wise stand out from the crowd is the recent launch of Assets. With Assets, business customers can choose how their money is held, potentially earning a return on any funds held within their Wise account across 54 currencies. Within Assets, Wise customers can earn a return by investing in stocks, whilst retaining instant access to the majority of their money with the ability to spend and send money as and when they need it.
With a Wise business current account, you get everything you need for international banking including a sort code, IBAN, routing number and more.
Features of Wise I like, include:
- Batch payments tool
- Hold multiple currencies
- Accountancy integrations
- Ability to add team members
- Option to add multiple cards to account
- Direct debits
- Assets
The following fees apply to a Wise business account:
- Replacement debit card: £3
- Spend in currencies in your account: FREE
- Convert a currency using your card: 0.33%-3.56%
- ATM withdrawals up to £200 / 30 days: FREE
- ATM withdrawals over £200 / 30 days: 2%
- Not FSCS protected
- Monthly fee for the Plus, Premium and Metal accounts
Cashplus bank is one of the best online banks if you think you may need to borrow money to support your business.
Cashplus are a fully fledged UK Bank, and as such are now able to offer additional financial services including cash advances up to £15,000.
Cashplus were a 2021 finalist at the British Bank Awards and there are currently no credit checks required when you open a business account.
The disadvantage of Cashplus is the annual fee of £69, however, we’ve managed to secure your first year free should you sign up to Cashplus Bank Business.
Features of Cashplus Business Bank I like, include:
- Business Mastercard
- Additional employee cards – up to 20 cards available for multi user access
- Centralised account management for tracking expenses and blocking transactions
- Spending insights
- Download Statements for improved tax reporting and record keeping
- Business cash advance up to £15,000
- iDraft – a fixed credit limit attached to your business current account with a limit of £2,000
- 1% cashback on all card spends
- Integrated with leading accounting software
- FSCS protection
Cashplus Bank Business has the following fee:
- Annual Fee: £69
- Additional card: £5.95
- Bank transfers: Free for first three, 99p thereafter
- ATM withdrawals: £2
- Cash deposits: Free up to £1,000 per month
To consider with Cashplus Bank:
- With an annual fee and charges for ATM withdrawals and bank transfers, this is not the most cost effective option available.
What is a business bank account?
A business bank account will provide a means for you to keep your business accounts separate from your personal accounts. This allows for easier and more accurate tracking of cash balances, expenses, payroll, money owed to the business and creditors that you owe money to.
Online business bank accounts are now becoming mainstream, largely due to their cost-effective nature and plethora of tools and features to help streamline your business accounts. Many of the best business bank accounts online will include integration with accounting software and if your business crosses any borders then switching to online banking can save you a significant amount in fees and exchange rates.
Requirements for opening a business account
The process of opening a business account varies from that of a personal account and you will need a few more details about your business to hand such as your expected yearly turnover and evidence of your trading activities.
The difference between a business account and personal bank accounts
A business bank account is designed to hold and manage the money that is generated solely from your business. It allows you to conduct your everyday business transactions such as payroll, purchasing materials and paying for goods and services. Conversely, a personal bank account is for personal finances.
Often the tools, features, and charges will differ between a business bank account and a personal bank account, although this can vary from one provider to another.
How to choose the best business bank accounts for you
There are a good variety of business current accounts available and whilst it may seem obvious to apply for a business bank account at the same establishment where you hold your personal bank account, this isn’t always the best choice. When deciding on an account taking into account the following:
Account fees: Whilst many online business bank accounts offer a free banking period for basic services, you should check that the tools available are sufficient and consider whether you will need to upgrade to a business bank account with a monthly account fee.
Operational fees: Consider your usage of the account and any business bank account fees that you may be subjected to including cash withdrawals, paying in fees, transfer fees, ATM fees, and any other associated costs. Should you require accounting help, check the provider is offering free accounting software.
Overdraft: If there is a possibility that you may require overdraft facilities then check the provider you are considering has this option.
Business loan: Not many of the online business bank account providers will offer business loans. Cashplus offer a loan and are worth consideration if this is a priority for your business.
Interest: Very few of the online banks offering a business bank account will offer interest on the funds held in your account. This is a disadvantage if you are in the black and are looking to grow your funds. In this instance, you may want to consider Wise Assets, which offers the opportunity to invest funds held in your business current account which you can access as normal. Alternatively, consider a business bank account that also gives you access to a savings account with interest.
Paying in tools: Are you likely to need to pay in a lot of cash and or cheques? Ensure you check the charges, and level of convenience as unlike traditional banks, online banks do not have physical branches. Many will allow you to pay into your account at a Post Office or paying in-service, and some have the facility to pay in cheques using your phone camera.
Features: Ensure you have considered the features and tools that will benefit your business. You may need separate pockets for tax funds, or the ability to store and categorise your receipts within the app.
Who must have a business account?
If you have a limited company then it is your legal obligation to have a business account as your business finances must be kept separate from your personal finances.
Should a sole trader consider a business account?
As a sole trader, you are under no legal obligation to have a business account however, a business account can be useful for anyone including sole traders and freelancers as business bank accounts work to keep finances separate and make for easier tax returns. A small business bank account can help to manage business finance and free up your time for running the business.
What is the current account switch guarantee?
If your new bank is offering the current account switch guarantee, this means they are offering to take care of all admin involved in switching over your account from your old provider, to your new provider. This includes moving your balance and switching your payments.
Is it possible to open a business bank account with bad credit?
Bad credit can make opening a business account more problematic and you may not always get the choice you may have otherwise. However, there are business account providers that will allow you to open an account without a credit check, such as Tide.
Do traditional banks offer online and mobile banking for business?
Yes, many high street banks will offer online and mobile business banking services including Royal Bank of Scotland and Co operative bank. However, there will be associated costs, and you may not get access to the same features found at the challenger banks.
Online business bank accounts FAQs
I receive a lot of cash payments. Should I switch to an online bank?
Without a physical branch, cash payments can be tricky to pay in, and a lot of online banks will charge you for this service.
Therefore, it is worth checking if the bank you are considering is offering cash payments.
Can I open a business bank account online in the UK?
- Learn how to invest in the FTSE100
- Have you considered transferring your pension?
- Find the best trading platforms
