Monito.com

Compare Best 7 Business Bank Accounts for UK Startups 2023

Sep 22, 2023
Advertiser disclosure

Startups in the United Kingdom, and particularly London, exist in one of the largest and most vibrant tech startup ecosystems in the world. To compete at the highest level, choosing a bank account for your startup will be one of the most important decisions youā€™ll make.

Founders will likely be looking for technology-first banks, accounting that manages runway, FSCS-insurance, and good customer service. Let's see which high-street banks and online bank alternatives offer the best features for startups in the UK.

šŸ†• We've partnered with Nerdwallet UK to help you compare UK's best business bank accounts for startups and benefit from exclusive sign-up deals with Nerdwallet's partners. This includes free accounting software licenses or 12-18 months of fee-free banking. Read more about Nerdwallet's editors top tips when picking the best startup business bank in the UK.

recommendation icon

Best Business Banks for Startups in the UK | In partnership with Nerdwallet

  • Starling Bank ā€” An all-around current account with powerful paid add-ons
  • Revolut Business ā€” Track team spending, budget analytics and great FX
  • Wise Business ā€” Make international payments at the real exchange rate
  • Payset ā€” Exchange over 34 currencies with virtual IBANs with support
  • ANNA Money ā€” All-in-one account management and business account
  • Tide ā€” Automate budgets, spend, and tax reporting
  • Soldo ā€” Track burn rate with budgeting and accounting software

Key Facts About UK Business Banking for Startups

šŸ‘Øā€āš–ļø Regulatory body

FCA

šŸ† Best startup bank
šŸ’ø Average monthly fee

Ā£0.00

šŸ”Ž No. of business accounts compared

7

šŸ“„ Business bank comparison tool
šŸ“¶ Size (revenue)
  1. Wise (Ā£559 million)
  2. Revolut (Ā£250 million)
  3. Starling Bank (Ā£188 million)

What Startups Should Look for in a Business Bank Account in the UK

From a founder's perspective, you'll want a smooth-running business account that causes the least amount of headaches so that your team can focus on delivering your product. In addition, business bank accounts with user-friendly interfaces will help you analyze spend, project future cash flow, and manage your bottom line more easily.

Five factors you may want to consider before choosing a business bank account for your startup:

  1. Fees: ATM withdrawals, deposits, overdrafts, foreign currency, exchange, and invoicing services can incur fees. Think about what paid services your business will use most, and which ones you can do without.
  2. Customer service: If you are going to take out large amounts of debt, then you may want to work with trustworthy bankers who can help you develop a financial plan (such as advise you on your debt-to-equity ratio). For technical assistance, fast and 24/7 assistance will be key.
  3. Introductory offers: Some banks may offer special introductory offers or promotions for new business customers. These may include waived fees or other perks, such as free access to certain services or tools.
  4. Applicable SaaS platforms: If your business uses any software-as-a-service (SaaS) platforms, such as accounting or invoicing software, you may want to choose a bank that integrates with these platforms. This can make it easier to manage your finances and keep your accounts organized.
  5. FSCS protection: The Financial Services Compensation Scheme (FSCS) is a UK government-backed program that protects depositors in the event that a bank fails. Consider whether a bank is FSCS-protected, as this can provide additional security for your business's money.

Does My Startup Need To Open a Business Bank Account?

There is no official legal definition of a startup in the UK, but the term is commonly used to refer to businesses that are introducing new products or technologies to the market, in the process of being established, and are looking to grow and scale. If you want to legally generate profit as a business, then you will need to open a business bank account.

Limited Companies

If you are registered with the HMRC and Companies House as a limited company, then you will be legally required to open a business bank account. Business owners may not use personal checking or savings accounts to conduct business-related finances.

Sole Traders

Sole traders and freelancers can use their personal bank accounts for their work because their status defines them as personally liable for any losses they incur. Many sole traders and freelancers still opt to open business bank accounts in order to separate their personal expenses from business expenses as well as to remain professional when transacting with customers and business partners.

13 Most Useful Startup Business Bank Account Features

Online banks are innovative alternatives that not only waive fees altogether, but also leverage technology to manage your finances. Many offer these services for free or have free introductory offers with Nerdwallet. The main drawback to online business banks is that they may not offer loans or business-related insurance products.

For day-to-day banking activities, see these useful digital banking services for startups in the UK:

  1. No monthly maintenance fee;
  2. Mobile app with good user experience;
  3. Accounting software integration;
  4. Expense and tax management;
  5. Drafts monthly spending reports;
  6. Sets aside savings for taxs;
  7. Invoice tracking;
  8. Multi-user access;
  9. Scheduled payments;
  10. Phone notifications;
  11. Virtual office address;
  12. 24/7 in-app customer service;
  13. Overdraft facility.

Gilles Lambert on Unsplash Mobile smartphone touchscreen

In this comparison guide, Monito will take you through the 6 best online business bank accounts that can help you automate your finances, scale your business, and free up your time to do what you love ā€” develop your products and scale your startup.

Starling Bank ā€” Best All-Around Free Online Business Account

Starling Bank is a fully licensed UK bank that offers up to Ā£85,000 of coverage from the Financial Services Compensation Scheme (FSCS). Its business bank account is comprehensive and free to use, and includes 24/7 human support. The bank has received numerous awards and is known for its exceptional service, which are more reasons why we recommend Starling Bank's business account to limited companies in the UK.

Account name: Original Free Business Account

Account type: Current (UK bank details).

Total cost: Ā£0 per month.

Noteworthy features: No UK transfer fees, no ATM withdrawal fees, cash and cheque deposit.

Availability: the UK.

More info: See our full Starling Bank review.

Revolut Business ā€” Best for Team Management

Revolut is a leading online financial services company known for its low-cost multi-currency accounts, budget analytics software, and other innovative features. Based in London, Revolut serves over 12 million personal users in the UK, EU, and around the world. Its extensive range of services and global reach have made it a popular choice among individuals and businesses looking for an alternative to traditional financial institutions.

Now with Revolut Business, freelancers, sole traders, and small businesses alike can take advantage of everything Revolut has to offer ā€” and more. Let's see how you can get paid globally, manage your team's expenses, and exchange currencies without hidden fees with Revolut Business.

Revolut Business

Account name: Standard

Account type: Current (UK and EU bank details).

Total cost: Ā£0 per month.

Noteworthy features: Forex futures rates, multi-currency balances.

Availability: EU/EEA, UK, Switzerland, the US.

More info: See our full Revolut Business review.

Wise Business ā€” Best Business Bank Account for International Payments

Wise is a UK-based money transfer operator that is widely regarded as one of the best money transfer services on the market. In addition to offering cheap international transfers, Wise offers a business bank account and card that allows you to manage money in over 50 currencies and provides local bank details in 8 currencies.

With Wise Business, you can collect money seamlessly, withdraw money from e-commerce stores in up to 10 currencies, and create invoices using your 8 bank details. Additionally, Wise offers industry-leading exchange rates for converting revenue denominated in foreign currency into your local currency, which can save you thousands of pounds compared to traditional banks. Overall, Wise is an excellent choice for businesses that need a flexible and cost-effective solution for managing and transferring money.

Account name: Wise Business

Account type: Electronic Money Account (held by Barclays in the UK, Wells Fargo in the US, DBS in Singapore, etc.).

Total cost: Ā£0 per month.

Noteworthy features: International money transfers, multiple account details, multi-currency balances.

Availability: UK, EU/EEA, Liechtenstein, Norway, Switzerland.

More info: See our full Wise Business account review.

Payset ā€” Best Virtual IBAN Account Provider

Payset, established in 2018, is a fully licensed e-money institution in the UK. Payset provides a multi-currency account designed for businesses to hold up to 34 currencies within a dedicated IBAN account. You can also convert 38 currency pairs 24/7. Overall, Payset is an ideal choice for startups that handle monthly balances to pay and receive funds in multiple currencies around the world.

payset logo

Account name: Payset Multi-Currency Account

Account type: Electronic Money Account (in an authorised bank in the EEA).

Total cost: Registration from Ā£95 plus Ā£49 per month.

Noteworthy features: Multi-currency account, dedicated account manager, fraud prevention, invoicing.

Availability: the UK, Denmark, Luxembourg, Germany, the US.

More info: Visit the Payset website.

Tide ā€” Best Online Business Bank Account for Invoicing

Tide is an online financial platform that provides business bank accounts specifically designed to support small businesses and self-employed professionals, such as freelancers, contractors, and consultants. One of the key benefits of Tide is its convenient and user-friendly app, which makes it easy to open an account in just a few minutes. In addition to offering standard banking services, the app also helps with various administrative tasks, such as chasing unpaid invoices, paying salaries, and reporting taxes.

Tide also offers a virtual office address service for startups and newcomers to the UK, which can simplify the process of setting up your company in the UK. Overall, Tide is an excellent choice for small businesses and self-employed professionals who are looking for a comprehensive and convenient banking solution.

Tide Bank

Account name: Free Business Account

Account type: Current (UK bank details).

Total cost: Ā£0 per month.

Noteworthy features: Free invoicing, Credit options.

Availability: the UK.

More info: See our full Tide review.

ANNA Money ā€” Best Accounting Management for Startups

ANNA Money is a business bank account that is well-suited for small startups, freelancers, and creatives in the UK. One of its key features is its comprehensive finance management system, which can help you create, send, and chase invoices, track expenses, and handle VAT.

In addition to these features, ANNA Money also has a chatbot that can complete many tasks for you and answer questions, as well as provide access to real support people based in the UK (in Cardiff) if needed. Overall, ANNA Money is a convenient and user-friendly banking solution for self-employed professionals, small businesses, and startups.

Account name:Ā Pay As You Go

Account type:Ā Current (UK bank details).

Total cost:Ā Ā£0 per month.

Noteworthy features:Ā Free invoicing, Award-winning support.

Availability:Ā the UK.

Soldo ā€” Best Online Spend Management for Start Ups

Soldo is a UK financial services company that offers spend management features that work alongside your existing business bank account. One of the key advantages of Soldo is its budgeting and accounting software, which can help you track your burn rate and manage your staff's budgets using Soldo MasterCards. Soldo also supports wallets in EUR, GBP, and USD, which allows you to manage your funds in multiple currencies. Overall, Soldo is a convenient and user-friendly tool for small businesses and startups that need to manage their spending and budgeting effectively.

soldo logo business bank uk

Account name: Soldo

Account type: Linked to your main business bank account.

Total cost: Ā£0 to sign up.

Noteworthy features: Create temporary virtual cards for specific budgets and budget team spending on petrol and other expenses.

Availability: Europe

The Best Online Business Bank Accounts for Startups in the UK Compared

To wrap things up, let's take a look at how the product, service, and fees of a few of the free online business bank accounts we explored compare to one another in the UK:

Last updated: 01/02/2021
Ā¹ 0.5% charged if above monthly allowance of Ā£1,000.
Ā² None if paid with local currency. Otherwise, 0.24ā€“3.69% fee charged.

Best Business Bank Accounts for Startups in the UK in 2024

We've compiled a list of the best accounts for startups and divided them into the following categories, the best for managing teams, international payments, managing invoices, and the best overall business bank account.

Best for Team Management ā€” Revolut Business

Revolut BusinessĀ ā€” Track team spending with cards, budget analytics and great FX | ReadĀ our full review or go to their website.

Best Current Account ā€” Starling Bank

Starling BankĀ ā€” An all-around current account with powerful paid add-ons | ReadĀ our full review or go to their website.

Best for International Payments in the UK ā€” Wise Business

Wise BusinessĀ ā€” Make international payments at theĀ realĀ exchange rate | ReadĀ our full review or go to their website.

Best Virtual IBAN Account Provider in the UK ā€” Payset

Payset ā€” Hold and exchange over 34 currencies and work with a dedicated account manager | Visit their website.

Best for Invoicing ā€” Tide

TideĀ ā€” Automate your budgets, spending, and tax reporting | ReadĀ our full review or go to Nerdwallet's review.

Best for Accounting ā€” ANNA Money

ANNA MoneyĀ ā€” All-in-one account management and business account | Go to their website.

Best for Spend Management ā€” Soldo

SoldoĀ ā€” Track your burn rate, budgets, and accounting in EUR, GBP, or USD. | Go to their website.

info icon

Need to Register a Company in the UK?

Read our in-depth guide on how to set up a company in the UK in two major steps. Our experts have researched and compiled startup resources for your unique scenario.

FAQ About the Best Small Business Bank Accounts in the UK

Read More About the Top Online Business Bank Accounts and Fintechs

How to Set Up a Company in the UK in 2022
May 26, 2023 - by Jarrod Suda
9 Best Sole Trader Bank Accounts for Self-employed in the UK
January 20, 2023 - by Jarrod Suda
Best UK Challenger Banks
January 16, 2024 - by Byron MĆ¼hlberg
11 Best International Business Banks
January 9, 2024 - by Jarrod Suda
Best Free Bank Accounts UK
January 9, 2024 - by Byron MĆ¼hlberg
Top 10 Online Small Business Checking Accounts in the USA in 2023
December 29, 2022 - by Jarrod Suda
Starling Bank Review
January 16, 2024 - by Rachel Wait
Tide: The Ultimate Monito Business Banking Review
December 29, 2022 - by Rachel Wait
UK's Best Online Banks
January 8, 2024 - by Byron MĆ¼hlberg
Revolut Business Review: Fees, Exchange Rates, Functionalities, and More
December 29, 2022 - by Rachel Wait
Best Digital Banking App UK
January 16, 2024 - by Jarrod Suda
HSBC Business Bank Account: 2023 Review of Service & Fees
May 8, 2023 - by Jarrod Suda
7 Best Online Business Bank Accounts for UK Small Business
February 27, 2023 - by Jarrod Suda
Mettle Bank Business Account Review: Service & Fees in 2023
January 20, 2023 - by Jarrod Suda
How to Open a Business Bank Account in 2023
February 23, 2023 - by Jarrod Suda
UK Bank Account (Even For Non-Residents)
March 15, 2024 - by FranƧois Briod
Chase UK Review
March 15, 2024 - by Byron MĆ¼hlberg
The Best Instant Payday Loans With No Credit Check in 2024
March 13, 2024 - by Jarrod Suda
The 6 Best Money Transfer Apps in the United Kingdom
March 1, 2024 - by Jarrod Suda

Why Trust Monito?

Youā€™re probably all too familiar with the often outrageous cost of sending money abroad. After facing this frustration themselves back in 2013, co-founders FranƧois, Laurent, and Pascal launched a real-time comparison engine to compare the best money transfer services across the globe. Today, Monitoā€™s award-winning comparisons, reviews, and guides are trusted by around 8 million people each year and our recommendations are backed by millions of pricing data points and dozens of expert tests ā€” all allowing you to make the savviest decisions with confidence.

Learn More About Monito
  • Monito is trusted by 15+ million users across the globe.

  • Monito's experts spend hours researching and testing services so that you don't have to.

  • Our recommendations are always unbiased and independent.

Monito.com

Global Impact Finance Ltd
Rue du Pont 22
1003 Lausanne
Switzerland

Affiliate Disclosure
Instead of banner ads and paywalls, Monito makes money through affiliate links to the various payment service providers featured on our website. While we work hard to scout the market for the best deals, we're unable to consider every possible product available to you. Our extensive range of trusted affiliate partners enables us to make detailed, unbiased, and solution-driven recommendations for all types of consumer questions and problems. This allows us to match our users with the right providers to suit their needs and, in doing so, match our providers with new customers, creating a win-win for everybody involved. However, while some links on Monito may indeed earn us a commission, this fact never impacts the independence and integrity of our opinions, recommendations, and evaluations.