HSBC vs NatWest business account – which one should you choose?

This guide compares the main free plans from each provider, covering everything from features and fees to customer support and eligibility.

And because we’re ANNA, we’ll also show you how we stack up – especially if you’d prefer your business account to handle not just your payments, but also your admin, invoices, and taxes.

HSBC vs NatWest at a glance

If you just want the summary, here’s the quick view: HSBC’s Kinetic business account gives you a strong traditional backbone with app-based management, while NatWest’s digital business account is lighter, faster to open, and simpler for sole traders or freelancers.

Takeaway: HSBC’s Kinetic account offers more traditional banking functionality with physical branch access, while NatWest focuses on a simple, entirely digital experience with no ongoing costs.

Who are these accounts best for?

⚡ The cheapest

If cost is your top priority, NatWest’s free business account wins. There’s no monthly fee at all, and you still get essential features such as UK payments, a debit card, and accounting integrations with FreeAgent.

HSBC’s Kinetic account also starts free for 12 months, which is generous, but once the offer period ends you’ll be charged £6.50 a month – even if you don’t use premium services.

Verdict: NatWest offers the most budget-friendly option for long-term use.

⚡ Best value for money

When weighing long-term value, HSBC’s Kinetic account delivers a more complete traditional experience: access to branches, overdraft facilities, and international transfers all in one package. That said, those features only matter if your business actually uses them. For digital-first businesses that just need simple UK payments and invoices, NatWest’s free account gives excellent value with zero ongoing cost.

Verdict: HSBC offers more traditional tools; NatWest offers better value for digital businesses.

⚡ Best for sole traders

Sole traders will appreciate how quick and easy NatWest’s setup process is – you can open an account in minutes, directly from your phone, with no monthly fees. The built-in FreeAgent integration also makes tracking income and expenses effortless.

HSBC Kinetic also works for sole traders but involves more paperwork and identity checks, and the free period eventually ends.

Verdict: NatWest’s account is simpler and more cost-efficient for sole traders.

⚡ Best for limited companies

If your business is incorporated and you need more control over payments, HSBC’s Kinetic business account is the stronger option. It supports multi-user access for directors, overdraft facilities, and cash/cheque handling across the HSBC branch network.

NatWest’s digital account is lighter on features – good for basic operations, but not for companies managing multiple staff or significant transaction volumes.

Verdict: HSBC Kinetic is better suited to limited companies that need flexibility and traditional banking access.

⚡ Best for international business

HSBC clearly leads here. Kinetic supports international transfers and foreign currency payments through SWIFT and SEPA, whereas NatWest’s free plan focuses purely on UK transactions.

Verdict: For international operations, HSBC Kinetic is the only practical choice.

Who can open an account?

Both target UK-based small businesses, but requirements differ slightly.

Takeaway: both are accessible to UK businesses, but NatWest’s verification process is faster and fully digital, while HSBC’s Kinetic still relies on more traditional checks.

Pricing and fees

HSBC pricing

Free for the first 12 months, then £6.50/month. Standard charges apply for cash deposits (0.6% per £100) and international transfers.

NatWest pricing

Entirely free, with no setup or monthly fees. Transaction limits apply for high-volume businesses, and no international transfers are supported.

Value for money

If you want a full-service business account with international and branch access, HSBC is worth paying for.
If your business runs entirely online, NatWest’s zero-cost model is more efficient.

Verdict: HSBC gives you more tools, but NatWest’s simplicity wins for businesses that just want to avoid ongoing costs.

Features comparison

Payments and transfers in the UK

Both accounts support Faster Payments, standing orders, and Direct Debits.

Cash and cheque handling

HSBC: cash and cheque deposits accepted at branches or Post Offices (fees apply).

NatWest: cash and cheques accepted free at NatWest branches.

Cards and spend management

Both accounts offer physical debit cards, compatible with Apple Pay and Google Pay. No virtual or expense cards on either free plan.

Invoicing and integrations

HSBC integrates with Xero, QuickBooks, and Sage.

NatWest integrates with FreeAgent (included free for eligible customers).

Lending and overdrafts

HSBC provides overdrafts and small business loans.

NatWest’s free plan doesn’t include lending features.

App and user experience

Both providers now focus on mobile-first management, but they approach it differently.

App interface

HSBC Kinetic’s app is built for simplicity but retains a corporate tone – functional and clear rather than playful.

Source: App store

NatWest’s app (and Mettle’s variant) is sleek, colourful, and easy to navigate, appealing to freelancers and entrepreneurs used to app-based finance.

Source: App store

You can explore both apps yourself:

• HSBC on the App Store / Google Play,
• NatWes on the App Store / Google Play.

Web access and APIs

HSBC offers full web banking and exports for statements and reports.

NatWest’s free plan is mostly app-driven, though desktop access is available for standard accounts.

Onboarding speed and switching

NatWest’s digital setup is faster; HSBC requires more steps for ID verification but supports the Current Account Switch Service (CASS).

Customer support and reviews

App Store / Google Play ratings

Both score above 4.5, with NatWest’s mobile interface receiving slightly higher praise for ease of use.

Note: Both major banks face criticism for account access delays and slower compliance checks, which is common among legacy providers.

Security and trust

Both are fully licensed UK institutions with FSCS protection up to £85,000 per account.

Two-factor authentication, biometric logins, and fraud monitoring are standard for both.

Verdict: Both offer the same high level of protection and regulatory oversight.

Which is best for your business?

• Freelancers and sole traders: NatWest’s free account is ideal – fast, simple, and no hidden fees.
• Limited companies: HSBC Kinetic suits those who need overdrafts or branch access.
• International businesses: Only HSBC supports global payments.
• Cash-heavy businesses: Both allow deposits, but HSBC offers more branch options.
• Digital-first startups: NatWest’s modern app-based experience fits perfectly.

Alternatives to consider

ANNA – your business account and admin sidekick

Here’s where we do things differently.

ANNA isn’t just a business account – it’s your admin partner that helps with all the behind-the-scenes work of running a business.

• Create and send invoices in seconds
• Capture receipts automatically and track expenses
• File VAT and Corporation Tax automatically
• Add your team members – not just co-directors
• 4 free SWIFT payments a month on the Big Business plan
• Real humans available 24/7

And yes, ANNA starts at £0/month. Check the current plans →

Revolut Business

Great for international transactions and multi-currency accounts, with competitive FX rates – but no FSCS protection.
How to open Revolut Business Account →

Wise Business

Ideal for holding and sending foreign currencies. Perfect for freelancers invoicing abroad.

Tide

Quick to open, simple to use, and made for startups – though it’s an e-money account rather than a licensed bank.
How to open Tide business account →

Mettle by NatWest

A free, lightweight business account backed by NatWest, perfect for side hustles and small startups.
How to open Mettle business account →

Verdict: HSBC vs NatWest

Checklist:

• Traditional features and international reach → HSBC Kinetic
• Simplicity and long-term zero fees → NatWest
• Built-in admin, invoicing, and tax tools → ANNA

Whichever you choose, your business account should make life easier – not more complicated. Whether you prioritise low costs, global reach, or automated admin, there’s a smart option waiting to fit your business perfectly.