Best Business Bank Accounts for UK Small Businesses

We compare 6 business bank accounts for UK small businesses, from digital accounts with no monthly fee to high street banks with free introductory periods. The right choice depends on your business structure, how you get paid, and the fees you will pay. All figures are correct as at 4 November 2026.

Why the right business bank account matters

A business bank account is where your customers pay you and where you pay suppliers, staff, and tax. Picking one is a big decision for a small business, because the fees and tools shape your costs and admin every month. Sole traders are not legally required to open a business account, but a limited company must keep its money separate from its directors' money.

There is no single account that suits every business. This comparison sets out what each provider says on its own website, so you can see how they differ.

Business bank account comparison table

This table shows the monthly fee, additional charges, funds protection from the Financial Services Compensation Scheme (FSCS), accounting software, and eligibility for each account.

We took these figures from each provider’s website on 10 November 2026. Additional charges are the ones each provider lists on its account page, so they are not a full list of fees. Fees, offers, and eligibility change, so check the provider’s current terms before you apply.

What these fees add up to

Monthly fees set the baseline cost. Over 12 months, once any introductory period ends, they add up to:

• Starling Bank, Monzo Business Lite, and Tide Lite: £0 a year, with no monthly fee.

• Barclays: £0 in the first 12 months, then £102 a year at £8.50 a month.

• Santander: £0 in the first 12 months, then £119.88 a year at £9.99 a month.

• Lloyds: £0 in the first 12 months, then £120 a year at £10 a month.

These totals exclude payment, cash, and foreign exchange charges, which can change the picture. The additional charges column in the table shows the main ones each provider lists.

How digital and high street accounts differ

Digital providers run mainly through an app. Monzo Business Lite charges £1 per cash deposit, Tide Lite includes 5 bank transfers each month, then 20p each, and Starling Bank includes free invoicing. High street banks add branch or Post Office banking alongside online banking.

How your money is protected

The FSCS protects eligible deposits up to £120,000 per person or company, per authorised firm. The limit applies to all your eligible deposits with the same firm, not to each account separately, so savings and current accounts at the same bank count towards one £120,000 limit. Starling Bank, Monzo Business, Barclays, Lloyds, and Santander all show FSCS protection on their sites. Our guide to FSCS protection explains how the limit applies in more detail.

Tide works differently. It states that it is not a bank. ClearBank provides some Tide accounts, and the FSCS protects eligible deposits in those. Other Tide accounts are e-money (electronic money) accounts. Tide holds that money in a safeguarding account, and the FSCS does not cover it. Ask Tide which type of account you would hold before you apply.

Choosing between these accounts

Each provider sets its own rules, so the options differ by business type:

• Sole traders: Monzo Business and Tide both state that sole traders can apply. Starling Bank offers a separate sole trader account, and its main business account is for limited companies and LLPs.

• Limited companies: Starling Bank, Monzo Business, Tide, Barclays, and Lloyds all list limited companies as eligible. Barclays asks for a Companies House number and incorporation date.

• New businesses: Barclays, Lloyds, and Santander offer 12 months with no monthly fee to eligible new customers. 

• Cash: Barclays, Lloyds, and Santander list branch, Post Office, or machine deposits, and the fees differ, as shown in the table.

• Borrowing: Santander lists an overdraft from £500 to £25,000, subject to status, at 14.94% EAR (variable), with an annual arrangement fee of 1.75% of your agreed limit (minimum £100). Lloyds lists business overdrafts up to £25,000 at a representative 15.62% EAR (variable). Its fees depend on your limit: £12 a month for £500 to £5,000, or 1.99% a year (minimum £150) for £5,001 to £25,000. Rates and fees depend on your circumstances and are subject to status.

If you want to add business credit

A business bank account holds your own money, while a business credit card, like the Capital on Tap Business Credit Card, lets you spend up to a set limit and repay later. Many businesses use both. Read our guide to business credit card rates or find out how to build business credit.

The bottom line

Digital accounts have low or no monthly fees, while high street banks offer free introductory periods and branch or Post Office options. Compare fees, protection, and eligibility against how your business gets paid, and check each provider's current terms before you apply.

Frequently asked questions

Sources: provider websites for Starling Bank, Monzo Business, Tide (including its accounting integrations page), Barclays, Lloyds, and Santander, all checked on 10 November 2026.

This guide does not constitute financial advice. Rates, fees and terms are correct as of 10 November 2026 and are subject to change. Always check the provider’s current terms before applying.