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

But beyond the big brands and familiar logos, their accounts differ in cost, features, and flexibility. This guide compares HSBC’s Kinetic Business Account with Santander’s 1|2|3 Business Current Account – from fees and functionality to eligibility and customer experience.

And because we’re ANNA, we’ll also show you how we stack up – especially if you’d prefer your business account to include admin tools, invoicing, and round-the-clock human support.

HSBC vs Santander at a glance

If you just want the short version: HSBC Kinetic is a simple mobile business account with a low monthly fee (free for the first 12 months), while Santander’s 1|2|3 Business Account includes cashback and tiered interest – but also a higher ongoing fee once the introductory period ends.

Takeaway: HSBC Kinetic is simpler and fully app-based, while Santander’s 1|2|3 account is better for businesses that value cashback and branch access.

Who are these accounts best for?

⚡ The cheapest – HSBC wins on fees

If cost is your top concern, HSBC Kinetic comes out ahead. The account is free for the first 12 months, and even after that, its £6.50 monthly fee remains lower than Santander’s £7.50. Most standard banking services – UK transfers, standing orders, and mobile cheque deposits – are included at no extra cost.

Santander does offer a longer free period (18 months), but once it ends, its ongoing fee and limited digital tools make it slightly less cost-efficient for small businesses that manage finances primarily online.

Verdict: HSBC offers the lowest ongoing cost and a smoother app experience.

⚡ Best value for money

Both banks are established names, but HSBC Kinetic offers more features per pound once fees kick in. You get modern integrations, expense categorisation, and a fully app-based experience for a lower monthly price.

Santander’s 1|2|3 Business Account shines if you maintain a higher balance or qualify for cashback on your spending – but for many small firms, that benefit won’t outweigh the higher cost and less flexible digital experience.

Verdict: HSBC Kinetic provides better long-term value unless cashback is a key priority.

⚡ Best for sole traders

For freelancers or sole traders, simplicity and mobility matter most. HSBC Kinetic is built around a slick app where you can open an account in minutes, send payments, and track spending on the go.

Santander’s account requires a bit more paperwork and is geared toward established small businesses with consistent income. The cashback scheme might appeal to some, but it’s not necessarily worth the extra admin.

Verdict: Sole traders and freelancers will find HSBC’s Kinetic faster to open and easier to manage.

⚡ Best for limited companies

If you’re running a limited company and want traditional banking access – including branches – Santander has the edge. You can manage your business both digitally and in-person, with dedicated support for SMEs and the option to speak to an advisor.

HSBC also supports limited companies via Kinetic, but it’s entirely app-based, with no branch servicing for transactions like large cash deposits.

Verdict: Santander suits established limited companies that value branch access and in-person service.

⚡ The smartest app – HSBC’s digital edge

Santander’s app is reliable and secure, but HSBC Kinetic was built from the ground up for mobile users. It’s clean, modern, and easy to navigate, offering instant spending insights, notifications, and tools like automated expense tracking.

If you prefer managing your finances entirely from your phone, HSBC’s app feels more responsive and intuitive.

Verdict: HSBC Kinetic offers the smarter, more user-friendly digital experience.

Who can open an account?

Pricing and fees

Money matters – and after the initial free period, these accounts differ slightly in cost and structure.

HSBC pricing

Free for the first 12 months, then £6.50/month.
Most standard features are included, with extra charges for international transfers and cash handling at branches.

Santander pricing

Free for 18 months, then £7.50/month.
Includes cashback and interest on balances up to certain limits, but limited accounting integrations.

Value for money

Sole traders: HSBC’s lower ongoing fee makes it more appealing.

Limited companies: Santander’s branch access and cashback might justify the price if you use them actively.

Features comparison

On paper, both banks tick the main boxes. The big difference? HSBC Kinetic includes more digital functionality up front, while Santander leans on its physical network and cashback programme.

Payments and transfers in the UK

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

Cash and cheque handling

HSBC: Deposits via branches or Post Office; cheques by app.

Santander: Deposits and cheques at branches and Post Office.

Cards and spend management

HSBC: Mastercard debit card, app-based spend tracking.

Santander: Mastercard debit card, less detailed spend analytics.

Invoicing and integrations

HSBC: Works with Xero, QuickBooks, and Sage.

Santander: Limited integrations; third-party exports required.

Lending and overdrafts

Both offer overdrafts and business loans (subject to approval).

App and user experience

A business account lives or dies by its digital experience.

App interface

HSBC Kinetic feels fresh and modern, with real-time notifications and expense summaries.

Source: App store

Santander is more traditional but solid and familiar.

Source: App store

You can explore both apps yourself:

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

Web access and APIs

Santander offers full online banking through web login.

HSBC Kinetic is primarily mobile-first, though business online banking is available separately via HSBCnet.

Onboarding speed and switching

Both support quick sign-up, and HSBC participates in the Current Account Switch Service (CASS).

Customer support and reviews

Support can make or break your day. Here’s how they compare.

Takeaway: HSBC’s business customers report a strong overall experience, with high satisfaction scores for its app and service reliability. Santander’s business users, on the other hand, highlight frequent delays and customer support frustrations – reflected in its much lower Trustpilot rating.

Security and trust

FSCS protection

Both are fully licensed UK banks, protecting up to £85,000 per business under FSCS.

Fraud prevention and controls

Both provide SCA/3-D Secure, biometric login, and card controls.

Bank stability and licensing

Both are established UK institutions with strong credit ratings and decades of experience.

Which is best for your business?

• Freelancers and sole traders: HSBC Kinetic – lower ongoing costs and faster onboarding.
• Limited companies with higher balances: Santander – cashback and branch network make sense.
• Digital-first startups: HSBC’s app-first design fits better.
• Cash-handling businesses: Santander’s branch access wins.
• International traders: Both support FX, but HSBC’s global network gives it a slight edge.

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 assistant too. You get smart banking and built-in tools to handle all the little jobs that eat up your time:

• Create and send invoices in seconds
• Capture receipts and auto-categorise expenses
• Get VAT and Corporation Tax filed – automatically
• Add your team – not just co-directors
• 4 free SWIFT payments a month on our Big Business plan
• Real humans, 24/7 – every plan, every day

And yes – ANNA starts at £0/month.

Starling Bank

A great all-rounder with a free plan, modern app, and accounting integrations. Ideal for startups and freelancers who prefer straightforward banking.

How to open Starling business account →

Monzo Business

A digital-only challenger offering clear budgeting tools and intuitive design. Free “Lite” and paid “Pro” tiers.

How to open Monzo business account →

Tide

Fast setup and simple app interface. Not a bank (it’s an e-money account), but good for early-stage businesses.

How to open Tide business account →

Wise Business

Perfect for global traders. Hold and send money in multiple currencies at competitive FX rates.

Verdict: HSBC vs Santander

Checklist:

• Lowest ongoing cost and best mobile app → HSBC Kinetic
• Cashback and branch access → Santander 1|2|3
• Built-in admin and tax tools → ANNA Money

Whichever you choose, your business account should help you work smarter – not just store your money. If you want simple banking with automation and 24/7 human support, ANNA might just be the best alternative out there.