10 Best Business Bank Accounts

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A business bank account is one of the most significant decisions you will make in the early days of your business. It’s not something you should take lightly because it could impact your company daily for years. Whether it is a startup or an established company looking to switch up for a more competitive deal, you should take full consideration into opening a business account and thoroughly review your options before settling on any single option.

The good news is you have plenty of options to pick from. Possibly more than you thought if you venture into the world of digital banking, which many businesses are currently pivoting towards in addition to the high-street banks.

As you would expect, finding an account offering excellent service in every aspect is almost impossible, although some come very close. Therefore, you need to carefully consider what matters most to your business and pick an account that works for you.

Why You Should Open a Business Account?

Opening a business account has various benefits and could set up your business for the future. Also, it is a legal requirement and could protect you against debt liability. If you’re only thinking of opening a business account as a way to receive payments from your customers, here are other reasons that should help you see just how crucial a business account is.

It’s a legal requirement

Businesses operate as separate legal entities from the owners and are required to have a separate bank account dedicated to business transactions. 

If your business is operating as a limited liability company, a corporation or any other business entity, you will need to open the account with your government-issued documents and identification numbers. When opening the account, you might also need to show a business license and trade name paperwork.

It allows you to accept credit card payments

Another reason why opening a business account should be a priority is because it makes it easy for people to make payments. The ability to accept credit card payments is the single largest reason to open a business bank account. A personal bank account can’t accept credit card payments without the use of a payment service provider.

On the other hand, business bank accounts are set up with these transactions in mind. Considering that most people prefer to make their payments using credit and debit cards, this feature could be the lifeline of your business.

You should also know that having these extra features means the business account has more fees than your personal account. It’s a small trade-off that is definitely worth the price if it means capturing payments in a way that is convenient for your customers. 

It gives the business a more professional look

A business account screams seriousness every time you give it to a client compared to if you gave that client a personal account. The last thing you want is for your customers to think that your business is a hobby or that you don’t take it seriously.

In other cases, having a payment system and a business name that is different from each other might scare away customers because it looks like a red flag for some customers or vendors. A business bank account puts your business’s name on cheques, credit cards and other forms of payment, sewing credibility and trust into each financial touchpoint you have.

A business account can prepare you for growth

Opening a business account is the first step for many businesses in what could be a prosperous relationship between your business and a financial institution. It is one of the foundational aspects of building your business’s credit, which will prove helpful down the road when looking to fund growth or expansion in your operations.

Also, when it is time to learn about your options for a business line of credit or a business loan, you can take those steps with the financial institution you have trusted to handle your payments and one that has grown to understand your business.

Even if your business is currently a one-man wrecking ball, establishing a business bank account early helps lay the financial groundwork for taking on a system with employees when you’re ready.

Tax preparation is made easier

Having a business account simplifies the process of paying quarterly business taxes. By separating your finances from those of your business, you make it easier to determine how much you owe the government in taxes.

Also, should you be subjected to a tax audit and don’t maintain a separate bank account, your personal transactions may also be subject to scrutiny. Separating finances will make such a process easier and protect your personal finances.

It helps with liability and identity protection

Registering your business diligently provides some legal protection. But that’s not all. If you don’t separate your finances from those of your business, your personal assets could still be vulnerable. If your business should endure a lawsuit, and your personal finances are mingled with your business, a case could be made that they are not, in fact, separate entities and, in the process, be tied to your business and can be garnished.

A business account also helps keep your personal identity safe. It helps make you less vulnerable to cybercrime targeting your business. It is particularly important if your business makes many transactions and is at a higher risk for fraudulent activity.

You can see why a business account, though menial, isn’t something you should take lightly. You should look around to find the right account because once you open it, you might be tied to the financial institution you choose for years to come.

Who Needs a Business Account and Why?

You would need to set up a business account in several scenarios. If you’ve set up a limited company, charity or partnership, you will most likely need a business account to channel all the funds.

To do this, you should be an office of the company. Usually a director or company secretary. Some banks can vary these requirements to ensure the signee to the account is someone with some stake and shares in the company.

If you’re a sole trader, you don’t necessarily need to open a business account. You can still use your business account. However, the HMRC will treat your personal and business income as one.

Most banks will state in their terms and conditions that personal accounts are for personal use only and not for business. Using a personal account for business might elicit some concerns because of the volume of transactions and the level of security and features that come with personal accounts.

Some of the entities that should consider opening a business account include;

  • Sole traders – Sole traders don’t legally require a business account. But having one allows them to separate between their business and personal finances and run a leaner and more organised business. It might also help to have a business account as a sole trader for tax purposes.
  • Freelancers – Freelancers should also consider opening a business account, especially if they operate as a limited company.
  • Limited companies (LTD) – Limited companies are legally required to operate from a business current account rather than the director’s personal bank account. The business and business owners are separate legal entities, and their finances must be treated as such.
  • Limited liability Partnership (LLP) – An LLP must also separate its personal and business finances. Opening a business bank account is one of the ways business owners and directors can create a distinction between them and the business.

Expectedly, opening a business bank account requires a higher threshold for required documents. Not everyone can open an account, and banks usually run extensive checks when opening a business account, unlike personal accounts. Knowing that you should open a business account and take the right steps to acquire the right paperwork to allow you to open a business account.

What Do You Need to Open a Business Account?

You’ll need the following documents to open a business account in the UK:

  • An official ID such as a passport or driver’s license
  • Proof of your personal address. You can use your council tax statement or bank statement.
  • Proof of your legally registered business address. Correspondence from HMRC, Companies House, a utility bill, bank statement or rental agreement can suffice.
  • An estimated annual turnover of the business
  • Copy of your Companies House formation document, including your limited company number
  • Number of employees
  • Tax status, whether your business is VAT registered.

Other institutions might ask for additional details to verify your financial situation, including documents demonstrating a clean credit and banking history.

Factors to Consider When Choosing the Best Bank for Your Business

Whether it’s your first business account or you’ve been here before, knowing what to look for is important. Going for the largest bank isn’t always the best option, especially if it doesn’t have the right features to support your business’s growth.

Here are some of the factors you should consider when looking to open a business account that should help guide you to the best option;

Fees and Charges

As mentioned earlier, the additional features that most business accounts carry are not without charges. In fact, most business accounts will cost more to operate and run than personal accounts. You should understand what fees and charges are associated with your bank account, such as monthly, transaction, and overdraft fees. Initially, these may seem like small charges, but depending on the volume of your transactions, they can easily add up. Different banks and financial services have different fees and charges for their business accounts, as follows;

  • Monthly/ annual account fee – Most banks will have a flat fee for using the business account. The fee is charged monthly or annually. Some banks like HSBC will waive this fee for the first year and then restore it after the first 12 months. Also, different banks and financial services have different rates for this fee, with others not having one at all.
  • Direct debit/ Standing order – This fee applies when you set up and use direct debits and standing orders. If your business intends to use such services, you should carefully consider the different rates the different banks will charge.
  • FasterPayments fee – This fee applies when making FasterPayment bank transfers.
  • Cash deposit/withdrawal fee – You should also be extremely cautious, especially with banks that charge a cash deposit fee, which is most of them as long as you deposit or withdraw money at a bank branch or post office. However, with numerous other ways to make and receive payments, there is no reason why you should be incurring such costs.
  • Cheque deposit/issuance fee – This is the fee for depositing or issuing cheques to others. Businesses that hand out multiple checks should cautiously scrutinise this fee and get the best deal possible.
  • Automated payment fees – This fee is charged when you use automated services such as FasterPayments, direct debits, bill payments and online, mobile or telephone banking. The fee applies to money coming in and going out.
  • Cash payment fees – Cash transactions such as deposits and withdrawals at a bank branch or post office can attract this type of fee.
  • Manual payment fees – These are fees for manual transactions such as written cheques, deposits, and deposits made by paying in a slip or debit card or any other non-automated credit.
  • CHAPS fee – This fee is for high-value same-day payments made through CHAPS
  • Banker’s Cheque Fee – Charged for issuing a banker’s cheque
  • Non-sterling transaction fee – Charged for non-sterling card transactions made abroad
  • SEPA payment fee – Fee for cross-border Euro bank transfers made through SEPA.
  • SWIFT Payment Fee – Fee for international payments made through SWIFT.
  • Overdraft charges – Fee charged for the safe use of an authorised and unauthorised overdraft.

Looking at all these fees might indicate that running a business account can be an expensive affair. However, not all banks charge these fees. Some do and others don’t. Also, most fees are only incurred when you use the service. That’s why ensuring you choose the right financial services provider to partner with that balances costs and benefits is critical.

Interest Rates

Unless you have a struggling business, in many instances, you will have an account balance in your new account. Consider a business bank account that pays interest so that even the money in your account is working for you. Challenger banks often fall short here, which means businesses should consider having a blended approach to get the best of both worlds.

Overdraft facilities

Going into business, you hope you can start making a profit instantly. But this isn’t the reality of most businesses. And even if it is for you, you still need to open that credit option in case you need to take advantage of an opportunity. You will find overdrafts mainly with high-street banks, but this requires rigorous qualifications to be considered. Challenger banks like CashPlus have also started offering this service to qualifying businesses.

Online banking and mobile app functionality

Online banking and mobile app functionality are absolutely crucial to the accessibility of your finances. Almost every bank has them, but their functionality and user-friendliness vary greatly. You should choose a bank with an easy-to-useeasy-to-use platform accessible both on a desktop and on different smartphone platforms.

Such crucial features save you the need to go back and forth from the bank and give you direct and unlimited access to your funds from anywhere in the world. You just need to have an internet connection.

Customer service and support

This should be a basic requirement. Although you’re setting up your business account for success, you should also be prepared in case things don’t go as they should. Whether it’s your clients having trouble depositing money into your account or you have a simple query, the bank you choose should have an easily accessible customer service and support team that is easily reachable through various platforms such as email, phone and live chat.

You can easily verify the effectiveness of the customer support of the bank or financial institution you’re considering by looking at the customer reviews. Ideally, going with an option with a strong customer service support reputation can go a long way in creating a long and fruitful relationship.

Integration with accounting software

If you use accounting software for your business, you should consider a bank account that integrates with your accounting software. It helps you keep track of your finances more easily and accurately and lifts a lot of the administrative weight.

Deposit protection

Not all business accounts in the UK have deposit protection. For a financial institution to be able to offer this service, it must be under the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 of deposits per eligible depositor per institution. Every high-street bank provides this protection, but digital-first accounts are not regulated banks, and most may not offer such protection.

Now that you know the factors that make or break a good option for a business account, you’re better equipped to determine which banks or digital banks you should consider when opening a business account. 

10 Best Business Accounts You Can Open Today

Almost every financial institution and processor in the UK is a possible candidate when looking to open a business account. With many eligible options, looking through them is tedious and confusing. To make it easy to find the right financial institution to open your business account with, we’ve narrowed down the options for you to the best 10.

Best Overall Business Account – Pay iO

Challenger banks, or digital banks, have been making a serious onslaught on the gains made by high-street banks over the years. Their more flexible requirements and advanced leverage on technology have provided businesses with unique services and features that make running the business easier with less administrative effort.

Unsurprisingly, the best overall business account comes from a challenger bank in the name of Pay iO. What sets Pay iO apart from other challenger banks is that business accounts are at its core. While other options focus on other services, such as sending money, Pay iO has focused solely on providing business account services for small and large businesses.

While Pay iO doesn’t have a free monthly plan like some of its competitors, it has a Platinum option that offers customised pricing based on the client’s needs.

Businesses can choose from three business account options starting at £25 per month for the Pay iO Pro account, £100 per month for the Pay iO Plus account, and the rates for the Pay iO platinum account are solely based on your needs and the features you want with your account.

With all Pay iO business accounts, you can send international payments with varying limits depending on your account type. The provider also offers local payments at competitive prices with card payment options.

Other features businesses can access through Pay iO business accounts include a dedicated account manager for Platinum accounts, 24/7 customer support, app access, direct debit services, and a GBP and EUR wallet.

Leicester-registered businesses get free monthly fees but must prove their Leicester trading address in the application.

Here’s a quick breakdown of Pay iO pricing structure and the available services and features under each business account;

Pay iO Pro

£25/per month

Pay iO Plus

£100/per month

Pay iO Platnum

SPEAK TO SALES

Business Debit Card

International Payments

 (Low Limits)

(High Limits)

(Custom Limits)

Local Payments

£0.5

£0.5

Custom

Card Payments

1% + 0.2

1% + 0.2

1% + 0.2

Account Manager

X

X

24/7 Support

App

Direct Debit

GBP Wallet

EUR Wallet

X

Pay iO business accounts are protected by several security features, including end-to-end encryption, two-factor authentication, and fraud monitoring. These security features cover the financial transactions on the platform and customer data.

The provider has received excellent feedback on most third-party review websites, noting their fast and efficient operation and easy communication from the customer support team. The ease of setting up and using the account and the fast onboarding process ensure businesses that opt for Pay iO can start receiving payments quickly and efficiently.

The only complaint from customers using Pay iO has been the lack of features you can only find from high-street banks, such as overdraft facilities.

Besides the different types of business accounts that you can open on Pay iO depending on your budget and the features you want, Pay iO has other additional features that small and large businesses can find useful.

The provider facilitates mobile and web access to the account for both small and large businesses. The mobile app is available on both Google and App Store. Small businesses can receive bank payments directly from their customers and manage transactions and expenses in one place.

This handy feature can reduce administrative work, allowing you to focus on revenue-generating ventures. Large and global companies and organisations can benefit from services such as sending and receiving global payments and managing the account, including integrating it with various account software to reduce administrative time and effort.

Businesses also get access to a multi-currency account and competitive currency exchange rates when they need the service.

Reasons to Choose Pay iO

  • Competitive monthly prices for different business accounts and a Platinum account with customisable monthly rates
  • User-friendly, simple and easy-to-use mobile app
  • Connects with various accounting software
  • Excellent reviews and customer service

Reasons Against Pay iO

  • No physical branches
  • No FCSC protection because it’s not a bank yet
  • No overdraft facility

Best Business Business Account (Runner-up): Starling Business Current Account

Starling Bank is another strong contender among companies looking for a financial services provider to open a business account with.

Starling Bank is an award-winning, fully digital challenger bank offering business accounts with competitive features and rates. The bank account is designed to meet the needs of entrepreneurs, freelancers and small to medium enterprises in various industries.

One of the notable features of the Starling Bank business account is that it has no monthly features. Also, users get seamless integration with popular accounting software, and their mobile app is well-designed and easy to use.

Starling Bank offers 24/7 customer support, real-time transaction alerts and comprehensive security features, making it an outstanding choice for every forward-thinking business and professional. Another reason to choose Starling Bank is because it is one of the few fully regulated digital banks by the Financial Conduct Authority and is also protected by the Financial Services Compensation Scheme up to £85,000. This makes Starling Bank an excellent choice for any business looking to use the technology digital banks have become known for, with the safety and security of a high-street bank. With Starling Bank, your money is safe even if the bank fails.

In addition to the great features and services the bank offers, it is also highly regarded by its users. It has attracted over 35,000 reviews on various third-party review websites like Trustpilot with an average rating of 4.4 out of 5 stars.

Most of the positive comments from the reviews highlight the easy-to-use mobile app and the fact that Starling doesn’t have any monthly fees. For businesses, this is a huge upside that can translate to significant savings for the business. Other customers appreciate the platform’s good customer service and fast payments while ensuring a secure experience.

However, the limited ATM network has also been highlighted as an occasional bug in the mobile app. The majority of the people who have used the platform to run their business accounts seem happy and satisfied with the service and support provided by Starling Bank.

Here is a breakdown of the services and fees that Starling Bank offers;

Fee

Amount

Comments

Monthly account fee

£0

No monthly fee for Starling Business accounts.

Card payments (UK and abroad)

£0

Free card payments in the UK and abroad.

Transfers in and out of accounts

£0

Free transfers in and out of accounts.

ATM cash withdrawals

Free up to £300 per month

Free ATM withdrawals of up to £300 per month.

ATM cash withdrawals (over £300 per month)

£2

£2 per ATM withdrawal after £300 per month limit is exceeded

Cash deposits

£0

Free cash deposits at Starling ATMs.

Reasons to Choose Starling Bank

As evident, Starling Bank has many desirable features that have powered its success over the last few years. Some of the reasons you should consider opening a business account with Sterling Include;

  • Starling Bank doesn’t charge any monthly fees to maintain your business account.
  • The services are fully regulated by the FCA and protected by the FSCS
  • You can integrate your Starling Bank business account with accounting software such as Quickbooks, Xero and FreeAgent
  • You get free ATM for cash deposits and up to £300 in withdrawals every month

Reasons Against Starling Bank

  • Starling doesn’t offer any interest on the funds you hold in the account
  • It is a fully digital bank with no physical branches
  • The mobile app can be buggy at times

Best Business Account for Global Transactions: Revolut Grow

Revolut is one of the most notable international money-sending platforms. It has over 25 million customers worldwide and pitches itself as an e-money institution for the modern world. Even though Revolut is more appealing to regular travellers, it has a wide range of services for everyone.

It is designed to let you easily spend money globally and use real-time exchange rates. Whether you’re shopping at your local supermarket or jetting off to another continent, Revolut makes it easy to see what you’re spending and access it.

At the personal level, Revolut offers features such as disposable virtual cards, instant spending notifications, vaults to help you with your savings, budgeting, custom card control and some travel insurance options.

Over the years, the platform has sought to increase its reach beyond personal accounts, including business ones.

Revolut offers two types of business accounts. The first type is for businesses and comes in three different tiers. These include free, grow, scale and enterprise. The free version has no monthly costs, while the Grow, Scale and Enterprise options have monthly charges.

The features you can access on the platform with your business account depend on your business account tier.

The Revolut business account provides multi-currency capabilities, low-cost international transfers, and the ability to hold and exchange over 30 currencies within a single platform. It’s a great account if you operate internationally and mostly within the EEA.

The versatility of this account greatly simplifies the challenges of dealing with foreign exchange rates and fees, making it an ideal choice for businesses that engage in international trade. Revolut also integrates with leading account software, providing its customers with 24/7 customer support and advanced expense management tools.

Another highlight of the Revolut Business account is the variety of features it offers to protect your money. These include two-factor authentication, fraud monitoring and encryption.

The Grow account is the most balanced for businesses set up as companies. Here are the features and fees associated with the Revolut Grow business account;

Fee

Amount

Notes

Monthly account fee

£25

Monthly fee for the Revolut Grow account.

Card payments (UK and abroad)

£0

Free card payments in the UK and abroad.

Transfers in and out of accounts

£0

Free transfers in and out of accounts.

ATM cash withdrawals

Free up to 100 per month

Free ATM withdrawals up to 100 per month.

ATM cash withdrawals (over 100 per month)

£0.2 per additional transfer

£0.2 per additional ATM withdrawal over 100 per month.

Guaranteed SWIFT (OUR) Transfers

£10

A flat fee applies whenever you use the Guaranteed SWIFT (OUR) Transfer feature. The fee depends on your base currency and changes from time to time, but you will always see the current fee in the app before you agree to the transfer.

Free FX allowance

£10k

You can exchange up to £10k per month without paying a fee.

Plastic card

1 per team member

Free plastic card for each team member.

The second option for a Revolut business account is the freelancer business account. This is available in three plans: Free, professional and ultimate. The free option has no monthly costs. Under this plan, the user can access free payments to existing Revolut accounts, up to 5 free local transfers, ATM withdrawals, and free initial company cards for each team member, and the account can hold up to 25+ currencies.

Like the company business account, this option also has three plans: Free, professional and the ultimate. The latter two are paid plans, while the free plan has no monthly fees. The professional plan has some handy extras like expense management, where you can capture payments on the move. Here’s a comparison of the different Freelancer business accounts on Revolut;

Free

Professional

Ultimate

Team members

Unlimited

Unlimited

Unlimited

Payment cards included

1 plastic card

200 virtual cards

No metal card

1 plastic card

200 virtual cards

No metal card

1 plastic card

200 virtual cards

1 metal card

Free UK transfers

5/mo

20/mo

100/mo

Free SWIFT transfers*

0

5/mo

10/mo

Free currency conversion

None

Up to £5k/mo

Up to £10k/mo

Reasons to Choose Revolut Business Accounts

  • Offer very competitive foreign exchange rates
  • You can set a fixed future Forex rate online
  • 24/7 customer support
  • Invoices and expense tracking are available

Reasons Against 

  • You can’t deposit cash
  • There’s a £3,000 daily withdrawal limit
  • There is no FCSC protection because Revolut isn’t a bank yet.

Best Business Bank Account for Freelancers: Anna – Pay as You Go Account

Absolutely No Nonsense Admin, or ANNA, is a mobile-based business account focused on the admin and tax side of managing your business’s finances. Like many other digital financial services providers, ANNA is not a bank and is not in a position to provide credit, loans or interest. But they offer business accounts that come complete with a sort code and account number.

There are three business accounts to choose from, with the option of no monthly fees for smaller businesses. The differences between the different accounts are highlighted below;

 

Pay as you go                                    

    Business                                                 

        Big Business

Monthly fee

Free

£14.90 a month

£49.90 a month

Transaction fees

Yes (local transfers, ATM withdrawals, paying cash in, international payments)

Yes (but with free allowances per month)

Yes (but with free allowances per month)

Account management 

Via a mobile app

Via a mobile app

Via a mobile app

FSCS protection

No

No

No

Set-up time

Same day

Same day

Same day

Cash deposits

Yes (1% per transaction)

Yes (up to £300, then a 1% fee applies)

Yes (unlimited, although some restrictions still apply)

Cheque deposits

No

No

No

Access to other banking services

Yes

Yes

Yes

International payments

Yes

Yes

Yes

Customer service

24/7 in-app support

Email: support@anna.money 

Telephone: book a call via its website

24/7 in-app support

Email: support@anna.money 

Telephone: book a call via its website

24/7 in-app support

Email: support@anna.money 

Telephone: book a call via its website

Multiple user access 

Yes

Yes

Yes

Create and send invoices

Yes

Yes

Yes

Integration with accounting software tools

Yes

Yes

Yes

The Anna Pay as You Go Account is particularly noteworthy. It is a free account with the same features as the Business and Big Business accounts. However, under the Pay as You Go account, you only pay for the transactions you make.

You can set up your ANNA business account in as little as three minutes. The account is available to sole traders. Limited companies and LLPs can apply for the account. 

Besides the monthly fees where applicable, ANNA also charges £1, international payments at £5 per SWIFT payment and cash deposits at 1%.

ANNA customers rate the service as excellent, with glowing reviews on various independent review websites. On Trustpilot, ANNA has a score of 4.5 out of 5.0 stars and has garnered over 2500 reviews. 84% of the reviewers have given ANNA a 5-star rating, citing that the app is easy and accessible, with a majority mentioning having a positive experience with the provider.

With ANNA, businesses can create, send, and chase invoices, saving you valuable administrative time. You also get free cash withdrawals from an ATM in the UK without incurring any fees.

Any business that is looking to keep fees at a minimum from their business account should consider the Pay as You Go business account from ANNA. You won’t have to worry about the monthly fees; other associated fees are extremely low.

Reasons To Choose ANNA

  • You have multiple account options, including the free Pay As You Go business account option
  • Fast customer service response time
  • In-app invoicing
  • Free payroll service for directors
  • Good rates for spending abroad through a partnership between ANNA and Currency Cloud

Reasons Against

  • ANNA is a fully digital bank with no physical branches, which might concern some businesses
  • Your deposits on ANNA are not protected by the UK’s FSCS scheme
  • You can only receive money in Euros and Dollars, which requires a Payoneer account.

Best Business Account for Poor Credit or to Build Credit: Cashplus Bank

You’ve probably come across many businesses whose business accounts have been turned down mainly because the signee of the account or the business itself has a negative credit history. During the KYC routine, most banks run a background financial check on the business and person opening the account. If you have any bad debts, declare bankruptcy, or are actively in collection, the bank might decline your request for a business account.

Cashplus is one of the few services allowing you to open a business bank account even with a poor credit history. If you’re looking to build it up, this account could be what you need to get back in the good graces of the financial sector. The account is a second chance of sorts and doesn’t require any credit check during the application process. It’s likely that Cashplus will do a credit check to see what they’re getting into, but it has been known to approve business accounts of numerous people with bad credit ratings.

Besides the exceptional accessibility of Cashplus, it also has other features that businesses can use to improve their credit score. These include the credit builder tool, an innovative feature that allows account holders to showcase responsible behaviour by making regular and on-time payments and improving their credit rating over time.

Cashplus also offers other banking services through its business account, such as direct debits, faster payments, dedicated customer support and contactless Mastercard.

With a slew of security features such as two-factor authentication, fraud monitoring and encryption, the service ensures the safety of the data and transactions on its platform. Also, funds deposited in the Cashplus system is protected by the FSCS up to £85,000 in deposits per account.

Here is a quick glance at the features that Cashplus has to offer its business account holders;

 

                          

Business Go                    

  Business Extra

Monthly fee

Free

£9 a month

Transaction fees

Yes (payments outside free allowance, ATM withdrawals, cash deposits)

Yes (payments outside free allowance, ATM withdrawals, cash deposits)

Account management 

Online

Via a mobile app

Online

Via a mobile app

FSCS protection

Yes

Yes

Set-up time

Same day

Same day

Cash deposits

Yes (0.5% fee, minimum £3)

Yes (0.5% fee, minimum £3)

Cheque deposits

No

No

Access to other banking services

Yes (overdraft, credit card, cash advance)

Yes (overdraft, credit card, cash advance)

International payments

Can receive but not send international payments

Can receive but not send international payments

Customer service

0330 024 0924 (8 am to 8 pm Monday to Friday, 8 am to 4 pm Saturdays)

0330 024 0924 (8 am to 8 pm Monday to Friday, 8 am to 4 pm Saturdays)

Multiple user access 

Yes

Yes

Create and send invoices

Yes

Yes

Integration with accounting software tools

Yes

Yes

Cashpluus is notoriously popular, having garnered close to 9000 reviews on Trustpilot. Although its rating is not as stellar as the other services, it still stands at a remarkable 3.8 stars out of five. Most of the reviews are largely positive, with users praising the account for its fast and easy application process, competitive exchange rates and responsive and efficient customer support.

However, the service does have high fees for international ATM withdrawals. The lack of a physical location and elusive customer service at times have also been mentioned as some of the drawbacks of the service.

Reasons to Choose Cashplus Business Account

  • No credit check is required
  • UK-based customer services
  • Overdraft possible for qualifying accounts
  • Credit builder functionality
  • Excellent Trustpilot reviews

Reasons Against

  • The ATM charges are higher than competitors
  • No physical branches
  • There’s a steep fee to apply for a business MasterCard

Best Crypto-Friendly Business Bank Account: Revolut – Grow or Scale Accounts

Despite the scepticism and second-guesses, cryptocurrency is slowly taking over as the currency of choice in many industries. It offers an unrivalled level of security and anonymity that has driven its surge in popularity over the last few years.

More and more businesses have jumped on the cryptocurrency bandwagon. So much so that some are even looking into crypto-friendly business accounts. Although crypto has made some in-roads into business, it’s still not the main currency and finding a crypto business account might not be as easy as finding one that supports other major currencies. But it is not impossible.

Revolut is one of the financial platforms that offers a crypto-friendly business account. In fact, it easily passes as one of the best. With their innovative platform, you can hold, exchange and transfer popular cryptocurrencies such as Bitcoin, Litecoin, Ethereum and more within the user-friendly app.

This option makes it easier for users to manage their digital assets and enjoy real-time exchange rates and instant transactions. Revolut has always reiterated its commitment to embracing emerging financial technologies and seamlessly integrating traditional banking services. Offering cryptocurrencies is one of the ways it is living up to this expectation.

One of the most commendable aspects of Revolut for crypto users is the usability of the banking solution app. Revolut has the most user-friendly app as far as mobile-based banking solutions go and as far as crypto exchanges are concerned. Because Revolut is exclusively based on the mobile platform, having a strong and user-friendly app is crucial. Everything about the app, from registration to checkout and exchange, is flawless.

Revolut also has one of the best Crypto Cards. It’s a free card to order, and the delivery is free. It’s a unique feature that allows you to spend over 800 cryptocurrencies with no conversation fees and zero hidden fees with the lowest transaction fees.

You can also connect the card with Apple Pay and Google Pay and earn crypto cash back on every transaction.

Users can choose from different account plans that include Standard, Plus, Premium and Metal. The fees you pay for the account depend on the plan you choose and are present to users within the Revolut app before they confirm any cryptocurrency exchange.

Besides the fee, your account plan will also limit the region in which you can trade your crypto. In addition to offering the best crypto experience, Revolut also promises the lowest fees on the market and up to 3% cash back on every purchase.

Reason for Revolut Crypto Business Account

  • The platform is extremely simple to use
  • It’s a fast-growing platform with exceptional features and benefits
  • It supports a majority of the most popular crypto coins
  • You get many additional features, including the Crypto card

Reasons Against

  • You are not the holder of the cryptocurrency you’ve bought
  • You can’t transfer your purchased crypto
  • You incur significant fees in the transactions

Best Business Account for Business Savings: Shawbrook Bank – Easy Access Business Account

Shawbrook Bank was founded in 2011 and has established itself as a specialist provider in lending and savings. There’s no current account available on Shawbrook Bank, but it offers numerous solutions for businesses looking to grow and save. The bank offers working capital loans, asset finance, savings accounts and commercial mortgages for various businesses in different industries.

It is a digital finance service provider with no physical branches in the UK. However, the service is easily reachable online and over the phone.

The Shawbrook Bank Easy Access business savings account is perfect when you’re looking to put some money away for a rainy day but still need it to be accessible when the occasion arrives. Besides allowing you to save money, this business account option gives you a 0.50% gross/AER rate. But, this rate is subject to change.

The Easy Access account has a minimum balance of £1,000. The most you can put into the account is £85,000, in line with the FSCS limit. The interest can be paid annually or monthly, depending on your needs.

You can add funds to the account and withdraw at any time without any notice period. However, it should be noted that the minimum withdrawal amount is £500.

Shawbrook Bank allows you to manage your business savings account online or by phone. Because of the flexible nature of the account, you won’t have any fears about your company’s money being locked up when you need it.

In addition to providing businesses with an online, flexible savings business account, Shawbrook also has fixed-rate bonds. These are for businesses that want to shelve away some money for longer and are not required to access those funds. It can be a great way to balance your savings.

In the case of fixed-rate bonds, you have an alternative that you should look into. The period of the bonds can change, but these are mostly one and two-year bonds.

The 1-year bond rate currently sits at 1.00% gross AED (variable), with the minimum balance being £5,000 and a maximum of up to £2,000,000.  

The 2-year bond has a slightly higher interest rate of 1.10% gross/AER, also variable with the same minimum and maximum amounts applied.

These rates are not fixed. They are subject to change, and you won’t be able to get the money out no matter how early you need to get a hold of it.

Shawbrook Bank takes pride in providing its clientele with a dedicated customer support team that ensures businesses receive personalised assistance when needed. The bank also has multiple security features to protect your money, such as encryption, two-factor authentication, and fraud monitoring. The deposits in the bank are also protected by the FSCS up to £85,000.

The efforts of the bank haven’t gone unnoticed. It has attracted many positive reviews from businesses and entrepreneurs that have a history with the bank. The bank has a high rating on various independent review websites. On Trustpilot, Shawbrook has a rating of 4.4 out of 5 stars based on 7,800 reviews which is quite remarkable. The most positive reviews praise the bank for its excellent customer service, competitive interest rates and extensive range of products and services.

Negative comments highlight the high product and service fees and lack of a physical branch network. If you’re considering opening a Shawbrook bank account, here is a breakdown of the different fees you should expect;

 

Fee

Amount

Comments

Monthly account fee

£12

Monthly fee for the Shawbrook Bank – Easy Access Business account.

Card payments (UK and abroad)

£0

Free card payments in the UK and abroad.

Transfers in and out of accounts

Free

Free transfers in and out of accounts.

ATM cash withdrawals

Free up to £250 per month

Free ATM withdrawals up to £250 per month.

ATM cash withdrawals (over £250 per month)

£1.50 per ATM

£1.50 per ATM withdrawal over £250 per month.

Cash deposits

Free

Free cash deposits at Shawbrook ATMs.

 

 

 

Reasons to Choose Shawbrook Bank

  • Competitive interest rates of up to 4.15% AER
  • 24/7 customer service
  • Deposits protected by the FSCS

Reasons Against  

  • No physical branches
  • You can only have one easy-access account per business

Best Business Account for Startups: Tide – Free Account

Startup businesses have the hardest time opening a business account. They don’t have any financial history, and they have to be cautious about the fees associated with a business account because, at this stage, keeping operating costs low is critical.

As such, startups require unique financial solutions that balance service delivery and costs. Many new banks have developed attractive offerings for limited company owners and targeting startups. Most of the solutions that would help startups make it past their first year are not necessarily held by high-street banks.

Fortunately, a new crop of banks might have the solutions that startups need in a business account without the exorbitant fees that come with operating a business account. Pay iO is one such service, but Tide is leading the charge with its free business account, which is perfect for startups.

With the free business current account from Tide, startups can enjoy genuinely free business banking. There are no annual or monthly fees whatsoever. Not having any monthly fees on their account is crucial for a new business that needs to save every penny.

Just to make sure you get off on the right foot, you also get free transfers for one year and free payments between Tide accounts.

Although the account is free, it offers numerous benefits and features that every business will be happy to have. These features will make it easier for the business to receive and send money.

First is a UK sort code and account number. This is crucial for the business and allows it to receive money into the account from various sources. The business also gets free Mastercard use in the UK and overseas.

You can order up to 35 additional cards on Tide if you have team members working for you. This makes accessibility easier and more convenient, and the business can meet its obligations regardless of where your team is.

Another first that businesses get on Tide is the ability to register their company for free and open their Tide business account simultaneously. You don’t have to spend a single second without a business account. You can hit the ground running by simultaneously setting up your business and account.

You can access a Central London virtual office address for a small additional fee. This is for businesses that don’t have a physical address yet.

You will also get access to Tide’s easy expense management. It reduces administrative load by making filing for VAT returns simple.

Once your free business account runs on Tide, support is available in-app 24/7, 365 days a year. You can access your account from a mobile phone, tablet or desktop.

The Tide business account integrates seamlessly with some of the most common accounting software online, like FreeAgent, Xero, Sage, Quickbooks and Kashflow. 

As with most companies, time is at a premium, and you can’t afford to get hung up on any one thing – not even your business bank account. Tide avoids this by making it possible to have the account set up in as little as five minutes. The account is ready within a short time, and you can start sending the details to your clients and receiving money.

Best Business Bank Account for Non-Profits: Metro Bank – Charity & Community Accounts

The best business account should match your business’s needs. Every type of business has unique financial needs that should be considered when choosing a business account. A charity of community banking customer needs to maximise their contributions for the greater good, and opening an account that facilitates this is crucial.

While other business accounts focus on premium service, a charity or community business account must ensure they keep their costs minimal without compromising service.

Metro Bank is one of the few options that offers an excellent charity and community bank option. The bank begins its unique package offering by providing its potential customers with a free consultative review called a Charity Banking Analysis, where they review the status of your business and determine if it is suited for this type of account. The bank tries to understand what your organisation is about and gives you pointers on making it more efficient and streamlining your processes. Having worked with many other charities and community-based organisations, you can rest assured their team has the skills and experience to help you with financial services, tweaking your operations, and help you become more efficient financially.

Metro Bank’s Charity and Community business account is an excellent choice for a charity, society or a local club. The account has a host of features designed to help those who help others.

The first notable feature the organisation stands to benefit from Is the 200 free transactions a month from the account, excluding CHAPS and the first £10,000 cash paid in or withdrawn each month at the counter is also free.

The account also allows charities and community organisations to borrow occasionally. Because the bank’s initial step is understanding your business, they can design borrowing solutions that fit your situation. This gives the organisation much-needed funding in times of scarcity and repayment terms that play to its strength.

The account also provides a dedicated relationship manager. You have one dedicated point of contact who understands your needs and works with you to help you achieve the objectives of your organisation.

For some services, you can get special charity rates, big display cheques for special events and even free coin counting in-store, which is handy when processing donations and collections.

Once you open a charity and community business account at Metro Bank, you can have peace of mind because the bank uses state-of-the-art security features, including encryption, two-factor authentication and fraud monitoring to protect your money. The money is also FSCS protected up to £85,000.

Metro Bank has received numerous reviews, most of which are positive for its outstanding work and business accounts. It is rated a high 4.3 stars out of 5 out of over 4,000 reviews on leading independent review website Trustpilot. Most users have praised the bank for its excellent customer service, competitive interest rates and convenient branch network.

Others have mentioned the high fees for some products and the lack of ATMs outside of the UK. However, these factors might not really affect charities and community organisations operating within the UK.

Best Business Account for an Overdraft – Starling Business Current Account

Overdraft facilities are a crucial lifeline for businesses. They provide a quick injection of cash without going through all the paperwork required by taking out a loan. Granted, an overdraft can have substantial fees attached to it, but if it means helping your business meet its obligations to its clients, so be it. Also, even for businesses that might have a healthy cash flow, it helps to know that this credit option is available to you if you ever need it.

Just like a business account, having the right overdraft option for your business is just as crucial. Most high-street banks and some digital banks offer this option. But Starling Bank stands out as the best business bank account for overdrafts.

With a Starling business account, you have a simple, flexible approach to borrowing. You have access to overdrafts of up to £50,000 for limited companies and limited liability partnerships, ensuring businesses have access to funds when needed.

One of the main advantages of the Starling Bank overdraft option is that you only incur interest on the balance used. This makes it a cost-effective solution for businesses that want to manage their finances more efficiently and reduce the costs associated with borrowing.

Before qualifying for an overdraft on Starling Bank, the bank’s expert lending team thoroughly assesses your financials and applications, ensuring responsible lending practices and tailored financial solutions for your business.

Another unique feature of the Starling Bank overdraft is that personal guarantee is all required as security for the amount borrowed. This is a vital lifeline for businesses in dire straits that don’t have the necessary security in the business to secure the loan.

Starling Bank makes the overdraft available to limited liability companies and limited liability partnerships. However, the service is not yet available to sole traders. Once you apply for the overdraft, Starling will conduct an annual review to ensure compliance and regularly look at your financial health.

Businesses qualifying for the overdraft must have a Starling Bank business account. If you don’t have one, you will need to open it and transfer your primary banking. Also, the business must have been trading for at least 24 months, and the borrower must be based in the UK carrying out trading activity in the UK.

During the financial health check, Starling will also look at your Persons of Significant Control (PSCs) on Companies House. You will need to have active UK-based PSCs as well.

Once your business passes the viability test, which includes credit and fraud checks for all applicants, startling will undertake credit and fraud checks for all applicants. This will include checking the business and its directors.

Although Starling Bank offers an incredible overdraft facility with competitive rates that only apply to the funds you use, it’s unfortunate that sole traders, who would most likely be the ones who can use such a facility, are not eligible for it.

Final Remarks

When setting out to get a business account, it’s vital to consider your business’s goals and needs and find a matching account. Although high-street banks still have a major grasp on the banking industry, challenger banks are making a surge, offering superior solutions that deliver a better banking experience by relying on technology, allowing businesses to do more with their accounts and reducing time spent waiting in banking halls.

Some digital banks have gone as far as being registered as banks offering numerous financial services, including loans. A good example of this is Starling Bank. Others, like Pay iO, have developed unique features that allow them to appeal to small and large businesses by providing them with unrivalled control and accessibility of their finances at a small and affordable monthly cost.

Regardless of your business goals, you can rest assured that a bank out there, high-street or digital, can meet and exceed them.

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