7 Best Online Business Bank Accounts for UK Small Businesses: Fees, Online Usability, and Features Compared in 2024

Starling Bank Business in Short

Starling Bank is based in the UK and offers its bank account exclusively to limited companies and sole traders registered in the UK. Their business checking account is packed with more fee-free features than any other free business bank account that we found in the country.

At £0 a month, you still get access to a fully-licensed UK current account, Starling Bank's feature-packed platform, and free Sterling transactions. For an optional monthly fee, you can design your account for services that your business needs, such as tax reporting or business accounts in US dollars and Euros.

The Starling bank business account is designed best for sole traders and limited companies who operate their business in the UK. Sending money within the UK and receiving Sterling (£) into your account is free. Making payments in Sterling and withdrawing cash from ATMs also incurs no fees.

You will be charged for sending money outside of the UK. Starling Bank will use the exchange rate shown within the international payments page of the app and will charge a 0.4% transfer fee per transaction. If you decide to send with a SWIFT payment, they will charge £5.50. 

Starling Bank Business Add-Ons

Here is the full breakdown of the add-ons that you can purchase to enhance your free online business bank account:

• The Business Toolkit: For £7 a month, you can create and send invoices to customers instantly. The app will calculate and make an HRMC tax report for you as well. This add-on is popular among sole traders and freelancers in the UK.
• Euro Business Account: At £2 a month, you get access to a European IBAN to receive Euros like a local. Hold and send Euros in this account, and spend them with your card like a local in Europe.
• US Dollar Business Account: For £5 a month, you get an American account number for easier payments in the US. Hold and send US dollars, or spend them with your Starling Bank business card.

Starling Bank Business Advantages

• Free to get paid in Sterling and to transfer Sterling;
• No foreign card transaction fees or ATM fees;
• Integrated with Xero, Quickbooks, and others in bespoke app hub;
• Cash and in-app cheque deposit.

Starling Bank Business Disadvantages

• Only offers multi-currency accounts in USD and EUR for a fee;
• Charges exchange rate margin and fixed fees for international transfers;
• Upgrade needed to create and send invoices.

Final Word: Easiest Business Bank Account to Open in the UK

Starling Bank’s multi-currency add-ons will certainly assist businesses that have important partners or suppliers in Europe or the US. Otherwise, the standard free business account should give you everything you’re looking for in basic banking services and administrative accounting. With accounts designed specifically for sole traders, Starling Bank can open business accounts for freelancers in a matter of minutes from the app. All the online banks on this list are quite easy to open, but this feature makes Starling Bank the easiest business bank account to open in the UK, in our opinion.

These reason why our experts recommend Starling Bank as a comprehensive option to all sole traders, small business owners, and limited companies – especially those who conduct business exclusively in the UK.

Revolut Business in Short

Revolut is not a bank, but an electronic money institution, registered with the FCA in the UK, to offer a business account that manages company expenses and customer payments. They expect to offer business loans and overdrafts in the coming years.

Opening up a 'Standard' account with Revolut is completely free and you will gain access to both UK and EU account details. The plan comes with plastic debit cards for your team, and you'll be able to track company spending including payroll with Revolut's software. The account also uses global IBANs so that you can receive payments from anywhere in the world.

Regardless of your plan, Revolut charges 1% + £0.20 for each online payment that you receive from customers using a UK card. All other cards will cost you 2.8% + £0.20 for each online payment. This is fairly competitive considering that major payment platforms, like Square, charge 1.9% for EEA and UK cards or 2.9% for all other cards. Only companies on the 'Enterprise' plan may negotiate with Revolut for custom pricing.

Revolut Business Advantages

• Low online payment acceptance fees;
• Advanced mobile app with a range of features;
• Competitive exchange rates;
• Option to fix future foreign exchange rates online;
• Quick and easy to open an account;
• Ability to integrate with business software packages.

Revolut Business Disadvantages

• No option to pay in cash or cheques;
• Daily withdrawal limit of £3,000.00 and monthly limit of £100,000.00;
• 2.00% cash ATM withdrawal fee;
• No overdraft facility;
• Plan costs can be high.

Revolut Business Plans

Here's a full overview of Revolut's different account offerings:

• Standard: With zero up-front costs, the Standard option offers a digital current account (with EU IBAN and UK account number) with no monthly fee and 5 free local payments. Metal cards will cost you £49. Offering no free monthly allowance for international payments or foreign exchanges, this account is ideal for businesses that don't conduct business abroad.
• Grow: At £25 per month, 'Grow' accounts allots to you 100 free local payments, 10 free international payments, and £10,000.00 allowance of foreign exchange at the interbank exchange rate. Priority 24/7 support kicks in at this stage, plus you will be delivered 1 free metal card. 
• Scale: For £100 per month, the 'Scale' plan gives you 1,000 free local payments, 50 free international payments, and a £50,000.00 allowance of foreign exchange at the interbank exchange rate. It comes with 2 metal cards.
• Enterprise: This is Revolut's most comprehensive business account plan available, with custom allowances that can be tailored to your business. You’ll need to get in touch with Revolut to discuss pricing and your unique perks.

Final Word

Revolut is among the best online business accounts available on the market now in the UK and around the world. Its standard plan already gives you and your team access to a multi-currency current account and Revolut's finance management software, making it an attractive alternative to high-street banks. With free international payment and foreign exchange allowances, Revolut's upgraded plans tend to suit businesses that often trade abroad.

Wise Business in Short

Applying for a Wise Business account requires applicants to share their Companies House business registration details, where you’re located, the industry you’re in, and personal details of company stakeholders. In addition to sole traders and limited and public companies, Wise Business also supports freelancers, partnerships, charities, and trusts in the UK — far and away more wide-ranging than other online banks.

Once you're signed up, you'll be able to take advantage of the following features for free:

• Send money and make payments locally and internationally;
• Hold, exchange, and top-up up to 55 currencies;
• Use the batch tool to send hundreds of invoices and payments at once;
• Integrate with administrative and accounting software like QuickBooks;
• Get your first multi-currency debit card free.

Wise Business Paid Plan

For a one-time fee of £45, you will be able to unlock the full range of Wise's international banking features:

• Local bank details in the US, Eurozone, UK, Australia, New Zealand, Singapore, Romania, and Hungary;
• Register direct debits to your account;
• Withdraw money from platforms like Shopify and Stripe.

Wise Business Advantages

• Receive international payments without big fees.
• Batch pay up to 1,000 invoices and salaries at once;
• Give select employees access to money management;
• Mid-market exchange rate offered for currency transfers;
• Wise card can be used to avoid foreign transaction fees;
• No setup fees or monthly charges.

Wise Business Disadvantages

• Only the paid plan includes account details in 10 currencies;
• Cash or cheque payments aren't supported;
• Negative interest on large Euro account balances;
• Fees to top up the account via debit and credit card;
• Tight limits and conditions to fee-free ATM withdrawals.

How Wise Business Works

To get a sense of how you can leverage Wise Business, let's say that you conduct business in Portugal and you'd like to pay a supplier in Euros. With the Wise Business Account, you'll be able to:

1. Send British pounds from your bank account to your Wise GBP account;
2. Convert GBP to Euros at a low fee (e.g. if you add £1,000 and pay with British pounds, the total fee will be around 0.35% or £3.69*);
3. Pay your supplier with your Wise debit card, make or receive SEPA (and SWIFT) payments, or set up direct debits.

Final Word

Unlike the other online business bank account on this list, Wise Business charges no monthly fees. While its standard account is a good option for businesses that need to exchange foreign currency often, its paid option unlocks the truly impressive features — for just a one-time fee. If you serve international clients, Wise Business lets you get paid like a local in their country. If you’re being charged international transaction fees every time you deal with international clients, then Wise Business might be the right solution for you.

* Conversion made on 01/31/2022

Tide in Short

Tide’s free business bank account comes with a full UK sort code and account number, but its real value comes from its smart time-savings tools, which let you focus more time on your business in less time on administration.

As a business owner, you get access to a business MasterCard. Tide will automatically categorize your transactions, making accounting easier, and will track your invoices and payments. The free account allows you to hold up to five different business accounts, and integration with accounting software like QuickBooks or Xero means that more banking does not have to equal more headaches.

Unlike some of the other online business accounts on this list, Tide does not allow clients to hold foreign currency. While you may be able to receive transfers from a few countries, you may have to pay SEPA or SWIFT payment fees, which add up quickly.

If your business is expanding globally and you need to carry out international transfers, Tide may not be the right choice for you, and you’ll need to widen your search. We suggest looking at alternatives such as Wise Business, Revolut Business, Payoneer. 

Tide Advantages

• Invoicing included in all membership plans;
• FSCS protection for ClearBank deposits;
• Fee-free card transactions abroad (£1 for ATM withdrawals);
• No credit checks are required at application;
• Option to create separate accounts for different purposes;
• Ability to sync accounts with accounting software.

Tide Disadvantages

• Doesn’t support international payments (for most members);
• No multi-currency accounts or foreign currency storage;
• Must pay extra for dedicated support;
• Fee applies to direct debits and cash deposits;
• Cheque deposits not accepted.

Tide Plans

Tide accounts break down into three tiers as follows:

• Free: For no monthly fee, you get UK bank account details and a business Mastercard that is linked to Tide's multi-purposed software for tracking spending, tax reporting, and receiving payments. Extra cards cost £5 and bank transfers in and out cost 20p per transfer.
• Plus: For £9.99 per month, get dedicated in-app and phone support plus legal advice. The plan includes 1 extra card for your team. 20 transfers per month are free.
• Cashback: At £49.99 a month, you get a dedicated account manager and 0.5% cashback with your Tide card. Your team gets 3 extra cards, and you are allotted 150 transfers a month for free.

Final Word

Tide is a mission-driven company dedicated to supporting small businesses in the UK that are looking to grow and scale. It is a good free banking option for businesses that invoice their customers. Starling Bank, for example, does not offer invoicing for free and instead charges a monthly fee. If you are a business that deals with cash or cheques often, then Starting Bank may suit you better because Tide does not accept cheques at the moment.

Monzo Business in Short

Monzo’s free business bank account is an ideal option for businesses with small teams that do not require a significant level of management. Integration with accounting software, multiuser access, and saving pots add-ons are only available with the paid option. 

The free option comes with a Monzo business debit card that can be used for payments abroad, free of transaction fees. The software will generate unique payment links for your customers and will also let customers pay with Apple Pay, Google Pay, or card via Stripe.

Monzo Business Advantages

• Integrated with Stripe for customer payments;
• 24/7 award-winning customer support;
• Accepts payments in cash or cheque;
• No international card transaction fees with card;
• Free UK bank transfers.

Monzo Business Disadvantages

• Easy bank transfers are free until 2023;
• No accounting software integration with free plan;
• Invoicing is available in the paid plan only.

Monzo Business Plans:

Monzo offers the two following tiers of membership for their online bank account:

• Business Lite: For no starting or monthly fee, this plan sets your business up with a UK bank account, a Monzo debit card, and Monzo's software. You can schedule payments, separate company money into pots, and transfer money to UK banks for free. Get paid with payment links, Stripe, Google Pay, or Apple Pay, bank transfer.
• Business Pro: At £5 per month, you get all the features of the 'Lite' plan plus invoicing, integration with accounting software, and 'tax' pots to automatically set aside money for paying taxes. Also get multi-user access and a free 6-month trial of Xero.

Final Word

Ultimately, Monzo business’s free plan gives you all the essentials for banking like a high-street bank, but for free and online. However, it lacks important features for account management, invoicing, and other convenient tools to streamline admin. This is why Monito recommends Monzo Business for freelancers and small businesses that can keep track of their own expenses and do not have a need to manage large teams and budgets. If you decide to upgrade for a low £5 a month, then Monzo may be a good option for small businesses in the process of scaling.

Payoneer in Short

Payoneer offers only one account, which is free to sign up for and allows enterprises big and small to expand into global markets, request payments locally, and withdraw revenue into a local bank account. You will also be able to pay your value-added tax in the UK directly from your Payoneer balance fee-free. This is a great alternative to paying a fee for wire transfers or for withdrawing funds to your local bank. Instead of offering tiers of paid services, Payoneer has a complex schedule of fees, which we will detail here.

Payoneer Advantages

• Get paid into local bank accounts;
• Coverts foreign currency at the mid-market rate;
• Withdraw multi-currency earnings into local account at low cost;
• Pay UK's VAT directly from Payoneer balance;
• Connect with thousands of online marketplaces;
• Access working capital and manage cash flow
• 24/7 multilingual support.

Payoneer Disadvantages

• Charges fee to withdraw Payoneer balance to your UK bank;
• Charges fixed transaction fee when converting foreign revenue;
• Charges annual fee for Payoneer's MasterCard.

Payoneer's Fee Schedule

In short, Payoneer is an infrastructure that connects you to a global network of customers, suppliers, and marketplaces online. Thus, you will be charged a fee for gaining access to this powerful service. Payoneer will charge you fees for getting paid, withdrawing funds to your local bank, and paying suppliers.

Transactions done with other Payoneer users are free, whether you are paying them or are getting paid. Receiving payments into your Payoneer provided account details is free for all currencies but USD. Receiving USD may cost 0 to 1% of the transaction, depending on the country. If you get paid from marketplaces, such as Airbnb or Fiverr, check their sites for details because their fees may vary.

• Get Paid: Payments by credit card will cost you 3% per transaction, regardless of currency. If you get an ACH bank debit from an American customer, that will cost 1% per transaction.
• Withdraw to Bank: The principle here is to avoid foreign currency exchanges. Withdrawing your GBP Payoneer balance to your UK bank will cost a flat fee of £1.50 (the same applies to USD to USD banks and EUR to EUR banks).
  
  Foreign currency withdrawals (i.e. USD Payoneer balance to GBP account in the UK) will cost 2% of the transaction.
  
  Withdrawing in a non-local currency (i.e. withdrawing your USD into a USD account in the UK) will also cost you 2% per transaction.
• Pay: If you pay suppliers or partners by bank transfer, Payoneer will charge 2% per payment. A fixed fee will also apply if the payment is made in GBP, USD, EUR (£1.50, $1.50, €1.50 respectively).
• Currency Transfer: For each transfer from one currency to another, you will pay 0.5% of each transfer.
• Inactivity Fee: Pay a $29.95 penalty for not making a transaction or Payoneer card payment in 12 months.

Final Word

What are we find most impressive about Payoneer is its global infrastructure that puts you in contact with the world’s largest and most far-reaching online marketplaces. The software eases the process for customers to pay you, making it the most attractive online business bank account on this list for e-commerce businesses. Its added bonus of low fees for international money transfers makes Payoneer an ideal solution for those hoping to expand their reach into an international customer base. 

Soldo in Short

Soldo is one of the best expense management platforms available to startups and established corporations across Europe. We know how important it is for high-growth startups to manage their burn rate, which is why Soldo is an excellent solution. Their Start plan is free while Pro costs £6 per user per month and Premium costs £10 per user per month. Trusted by big names from Monzo to Toyota, Soldo can issue virtual cards and set spending policies with approvals, limits, category controls, and alerts to save you time and money.

Soldo Advantages

• Built for both employee and company spend;
• Can instantly issue many virtual cards;
• Wallets in GBP, EUR, and USD to manage major currencies;
• Connect with Xero and other accounting software;
• Custom budgets and rules to control your costs.

Soldo Disadvantages

• Not a bank account and must be paired with a business bank account;
• Start plan is very limited and charges fees to issue cards;
• Not transparent FX-rate for conversions of foreign currency wallets;
• Can only withdraw funds to banks in the account holder’s name.

Soldo's Pricing List

Soldo offers three plans, which come with adds ons for a price:

• Start: Get a feel for the Soldo platform for free for up to three users. You will be charged £7 for issuing additional plastic cards to your team.
• Pro: For £6 per user per month, get more advanced spend management rules, temporary virtual cards for ad hoc purchases, and more.
• Premium: For £10 per user per month, get multi-currency wallets, API developer access, and other powerful settings.

Final Word

Soldo's spend management software helps you get rid of excess spending and potentially fraudulent expenses to bring efficiency and transparency to your startup. Leverage your petty cash into more effective places and empower your team to spend where it matters. Trusted by over 30,000 leading companies in the UK and across Europe, Soldo has saved founders thousands of pounds and countless hours of admin work. For these reasons and more, we think Soldo is an excellent bank account supplement for any startup or established business in the UK.