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How to Start a Business in the UK
23 June, 2025•15 mins
The Best Business Bank Accounts in the UK: A guide for 2025
Updated: · 15 min read
As a business owner, you know how important it is to make the right choices when it comes to your finances. There are seemingly countless business banking options in the UK, and the choice can feel overwhelming, so it’s useful to compare features, fees and services to work out which account is the best fit for your business. In this guide, we’re looking at the best business bank accounts in 2025 to try to show you which of the options available might work best for you.
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- In this article
- Frequently asked questions
Frequently asked questions
Can I get a business account with bad credit?
Yes. Some providers offer accounts with minimal checks, so you can open an account even if you have poor credit history.
Are business bank accounts safe?
Most business accounts from UK-registered institutions are regulated by the FCA. Many of these also offer FSCS protection up to £85,000. Even business accounts that aren’t FSCF protected are generally safe, and the money held in customer accounts is ring-fenced, so it can’t be used for other purposes.
Are business banking charges tax deductible?
Yes. Most costs associated with operating a business bank account are considered allowable business expenses.
Can I get a free business bank account?
Absolutely. Providers like ANNA, Starling, Mettle, and Monzo offer free plans, often with optional premium upgrades.
Can I switch business bank accounts?
Yes. The Current Account Switch Service (CASS) makes switching easy for eligible providers.
Can I have a business account as a sole trader?
Yes. Many business accounts are tailored for sole traders, including those from ANNA, Monzo, and Countingup.
Does my limited company need a business bank account?
Yes. Legally, a limited company must have a separate account for its business transactions.
How do I open a business bank account?
Most digital banks allow you to apply in minutes via an app.
How much do business bank accounts cost?
Fees vary for business bank accounts. Some are free, while others charge £5-£20+ per month. Look closely at transaction fees and any add-on services when evaluating your options.
What is the Financial Services Compensation Scheme (FSCS)?
FSCS protects deposits up to £85,000 per financial institution. Some providers may not be a part of this scheme but still offer protections for customer money.
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