Compare business bank accounts UK: Which is best?

May 2023

Tired of being overcharged and underserved on your business bank account?

Ensure you’re getting the best deal with our quick and simple comparison tool.

For a personalised banking report, and access to tailored funding and savings opportunities for your business, simply register here.

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For a personalised banking and saving report tailored to your business, simply register and securely integrate your bank account through our Open Banking technology.

As a smart business no doubt you review your regular suppliers to ensure you’re getting the best value and the best service levels possible.

So why don’t more businesses do this with their banks? The truth is that many businesses are being overcharged – approximately £700 per account – and also underserved by their banks, so we’re here to help put that right.

Try our free, quick and simple business bank account comparison checker. Compare fees and services across all the key banks to ensure you’re matched with the best bank(s) for your business.

When it comes to banking, businesses are reluctant to change, fearing hassle, charges, or interruption to services. The good news is that this is no longer the case, it’s a quick and painless process, and switching business current accounts will soon be as common as switching any other service provider.

Swoop has access to 72 business current account offerings across 16 banks. This means we can quickly and securely analyse your usage patterns to determine which bank you would be better off banking with, and whether additional accounts to manage specific transactions, for example deposits, would offer you savings. Register here to receive your tailored banking report.

Useful tips for choosing a business bank account

To help you find the best current account for your business, it’s worth considering the following points:

Cost: Fees and charges will vary depending on the account you choose. Some business bank accounts charge monthly or annual fees, while others don’t. There may also be charges for certain transactions such as cash payments or international transfers.

Transaction limits: Some banks offer a set number of free transactions per month and anything over this will be charged a fee. For example, you may be able to carry out five UK transfers per month, but if you go over this number you’ll have to pay a fee.

Managing your account: If you’d prefer to be able to go into a branch to pay in cash and cheque payments, you might better off looking for a bank with a local branch. However, many digital or app-only banks allow you to deposit cash at Post Office branches (sometimes with a fee).

Size of business: Some banks offer different account options depending on the size of your business and whether you’re a start-up or more established company. Look for an account that’s likely to best serve your business needs.

Links to accounting software: A number of business bank accounts enable you to link up with accounting software such as Xero, QuickBooks, FreeAgent and Sage.

Invoicing services: You may also be able to benefit from invoicing services which create and send invoices and help you to better organise your accounts.

International banking: If you regularly send money overseas or travel abroad, look for an account that offers competitive international transfer fees and low/no fees for using your card abroad.

Overdraft options: Does your business go into its overdraft from time to time? If so, look for an account with a generous overdraft facility and low fees.

Other financial products: If you need other products like a a business loan or a grant. Speak to a Swoop expert to find out your options.

Credit checks: Some app-based providers won’t run a credit check as part of the application process which can make them a good option for those with bad credit. Use our tool to compare business accounts for those with bad credit to see which banks don’t require a credit check to apply.

Business bank account fees explained

When comparing business bank accounts you’ll need to factor in the cost of any fees – this could be a monthly fee for using the account or a charge for account transactions. It’s therefore important to read the terms and conditions of your chosen account carefully.

Some of the fees you may come across include:

Monthly or annual account fee: This is a flat fee that some bank accounts charge per month or per year simply for having the account. Some banks will waive this fee for the first 12 to 18 months.

Electronic payments (in or out): This includes Faster Payments to other individuals or companies, bill payments, direct debits and standing orders. Some business bank accounts won’t charge you for these transactions, while others might give you a set allowance per month and then charge per transaction if you go over this limit.

Cash or cheque payments (in or out): You could be charged a flat fee or percentage fee for deposits and withdrawals via a bank branch or at a Post Office counter. Some banks also charge for depositing a cheque.

Additional payments and services: This can include services such as making a CHAPs payment or issuing a banker’s cheque.

International transactions: Fees may be charged for international payments, such as a SEPA or SWIFT payment, from your bank account to one overseas, as well as for receiving an international payment into your account. You may also have to pay a fee for purchases or cash withdrawals made on your bank card overseas.

Overdraft charges: Some bank accounts charge an overdraft set-up fee as well as a daily fee, or you may be charged interest.

Best UK business bank for customer service – 2022 survey

In August 2022 the BVA BDRC published the findings from its Business Banking Service Quality survey. Undertaken as part of a regulatory requirement and published at the request of the providers and the Competition and Markets Authority, the study surveyed 18,000 SME bank account customers between July 2021 and June 2022.

Each customer was asked how likely they would be to recommend to other SMEs –

Their provider?
Their provider’s online and mobile bank services?
Services in-branch and in business centres?
Their provider’s SME overdraft and loan services?
Their provider’s relationship/account management services?

The results show the proportion of customers of each provider, among those who took part in the survey, who said they were ‘extremely likely’ or ‘very likely’ to recommend each service. A detailed breakdown for each category can be seen in the table below.

Source: BVA BDRC

Ranking	Provider	Score
1	Starling Bank	83%
2	Monzo	79%
3	Handelsbanken	73%
4	tide	68%
5	Metro Bank	64%
6	Santander	59%
7	Lloyds Bank	58%
8	NatWest	56%
9	Barclays	55%
10	Bank of Scotland	54%
11	TSB	51%
12	Royal Bank of Scotland	50%
13	HSBC UK	43%
13	Virgin Money	43%
15	The Co-operative Bank	40%

Ranking	Provider	Score
1	Starling Bank	87%
2	Monzo	84%
3	tide	75%
4	Barclays	68%
4	NatWest	68%
6	Lloyds Bank	66%
6	Metro Bank	66%
8	Royal Bank of Scotland of Scotland	64%
8	Santander	64%
8	Bank of Scotland	64%
11	TSB	62%
12	HSBC UK	57%
13	Handelsbanken	56%
14	Virgin Money	52%
15	The Co-operative bank	32%

Ranking	Provider	Score
1	Handelsbanken	72%
2	Royal Bank of Scotland	58%
2	Santander	58%
4	Lloyds Bank	57%
4	NatWest	57%%
6	Metro Bank	55%
7	Virgin Money	54%
7	Barclays	54%
9	Bank of Scotland	53%
10	HSBC UK	48%%
11	The Co-operative bank	45%
	*The ranking does not include any brands where the eligible sample size is less than 100 (Starling Bank, tide and TSB are excluded from this table)

Ranking	Provider	Score
1	Handelsbanken	83%
2	Monzo	81%
3	Starling Bank	74%%
4	tide	66%
5	Metro Bank	62%
6	Santander	59%
7	Lloyds Bank	58%%
8	NatWest	57%
9	Barclays	54%
10	TSB	53%
11	Royal Bank of Scotland	51%
11	Bank of Scotland	51%
13	Virgin Money	45%
14	HSBC UK	42%
15	The Co-operative bank	37%

Ranking	Provider	Score
1	Metro Bank	71%
2	Handelsbanken	65%
3	Bank of Scotland	57%
4	Lloyds Bank	54%
5	Santander of Scotland	53%
6	TSB	52%
7	NatWest	49%
8	Barclays	44%
9	Virgin Money	43%
9	The Co-operative bank	43%
11	Royal Bank of Scotland	42%
12	HSBC UK	40%
	*Monzo, Starling Bank and tide are excluded from this measure as do not operate a branch network

Frequently Asked Questions

Why might I switch business bank accounts – or open an additional bank account?

There are two main reasons you might benefit from either switching bank account or opening an additional account. First – and most obviously – you might be able to find a better deal that will save you money. For example, you might find a bank that will offer you a cheaper overdraft or lower fees. Some of the newer digital accounts have no monthly fee (digital – i.e. you can’t use cheques) and some banks will have introductory offers such as an interest-free overdraft, no monthly charges for a limited period, or free accounting software – though you might still need to pay for things like cash deposits or ATM withdrawals.

Switching banks is comparable to switching energy and broadband providers – sometimes the best deals are only offered to new customers! Second, your business might have grown and your existing provider might not be able to offer the services that you require, for example a larger overdraft facility, specialist support services or better customer services. Whatever your reasons, there is nothing stopping you from switching business bank accounts at any time.

Are there any advantages to having more than one business bank account? I’m not sure I want to switch entirely…

Multi-banking can certainly save you money if, for example, you open an additional account and move the most expensive transactions to it. Some banks, for example, have specialist benefits for businesses that are more digital.

How long does it take to switch business bank accounts?

It takes a maximum of seven working days to switch if you’re a small business covered by the Current Account Switch Guarantee. In other words, your new bank account should be up-and-running fewer than seven days after you notify your bank account provider.

Do I need to go through a credit check to switch accounts?

Yes, any new bank will run a credit check before offering you banking services.

Can I still open a business bank account if I have bad credit?

Yes, you can. Some providers (e.g. app-based providers) will let you open a new account if you’ve had credit problems in the past, though it’s unlikely the big, high street banks will accept you. Use our comparison tool to see bank accounts that require no credit check to apply.

Is it easy to switch business bank accounts?

Yes. Look at the summary information for the different business bank accounts in our comparison table above. Click on the bank account that most appeals – and the new bank will do almost all the work and walk you through the process. You’d continue to use your old bank account for up to seven days, by which time you’ll have received your new debit card for the new account. Switching business bank accounts is covered by the Current Account Switch Guarantee, which was introduced by the government in 2013 onto help people switch their bank accounts quickly and easily.

What about my direct debits and standing orders?

During the seven day ‘handover’, your old bank and your new bank will work together to make sure that any direct debits, standing orders and other transfers are ported over seamlessly to your new current account.

I’m worried I might miss a payment during the switch?

Rest assured this wouldn’t happen. Your previous bank would redirect any payments linked to your current account to your new bank account – this ensures you don’t miss any payments.

How do I find the most suitable bank account for my business?

If you look at the summary details Swoop has given above for each of our current account banking partners, you’ll be able to see what works for you.

Are there any downsides to switching current account? Is there any small print I should be looking out for?

There’s only one we can think of but it doesn’t apply if you switch banks via Swoop – some banks might not offer new customer all offers immediately, so do your due diligence.

What is the difference between a business bank account and a personal account?

Business bank accounts are aimed at both start ups and established businesses. As with personal bank accounts, you can make deposits and withdrawals, use a debit card for purchases, and apply for an overdraft. The main difference is that for business bank accounts, in addition to monthly or annual fees, most banks will charge you fees per business transaction – so you may have to pay a small fee every time you deposit cash, write a cheque, set up a direct debit or standing order, or make a bank transfer.

How do I know I’m choosing the right business bank account?

First, have a look below at the list of services that business bank accounts usually offer – and see which apply to you:

Cash in/out
Paying bills
Writing and receiving cheques
Direct debits and standing orders
Online and telephone banking
Mobile banking
Overdraft (limit vary according to provider and your business)
Links to accounting software (e.g. FreeAgent, QuickBooks or Xero) or proprietary book-keeping software
Access to support services and business finance. Second, make sure that the services you want are actually offered by any potential new account before you make the switch or open an additional bank account.

Will it cost me anything if I switch business accounts?

There should be no penalty for switching, but make sure you pay off any debts you have with your existing account provider before you switch (e.g. your overdraft balance or any unpaid bills). It’s also worth double-checking with your provider that there aren’t any circumstances where switches incur a penalty.