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

But while both provide trusted, traditional options backed by long histories, their pricing, digital tools and everyday usability can differ quite a bit. This guide compares NatWest’s free and paid business accounts with Lloyds’ range of business options – covering everything from fees and features to customer support and who can apply.

And because we’re ANNA, we’ll also show you how we stack up – especially if you’d rather your business account came with built-in admin tools, automated tax filing and 24/7 support from real humans.

NatWest vs Lloyds at a glance

If you just want the highlights, here’s how they compare: NatWest offers a free account for startups and a paid one for established businesses, while Lloyds provides a simple pay-as-you-go structure for new firms and fixed monthly fees for larger ones.

Takeaway: NatWest’s Startup Account is one of the few that stays free for two full years, while Lloyds’ Business Current Account wins for flexibility and integration options once your business is established.

Who are these accounts best for?

⚡ The cheapest option

For new businesses, both providers have free introductory offers – but NatWest takes the lead here. Its Startup Account is free for 24 months, while Lloyds offers 12 months free before a £6.50 monthly fee kicks in.

That’s a whole extra year of free banking, which can make a real difference if you’re just getting started. NatWest also bundles in free accounting software (FreeAgent) for eligible customers, saving even more on admin tools.

Verdict: NatWest offers the cheapest entry point for new businesses.

⚡ Best value for money

Once the introductory period ends, Lloyds becomes slightly more predictable. Its tiered pricing for turnover levels (starting from £6.50/month) is easy to understand, and the pay-as-you-go structure works well for businesses with light transaction volumes.

NatWest’s £8/month standard business account comes with added extras like the FreeAgent integration and more comprehensive overdraft options – so while it costs a little more, you get stronger digital tools.

Verdict: Lloyds is better for low-volume users, but NatWest wins for those who want accounting features and extra flexibility.

⚡ Best for sole traders

If you’re a freelancer or self-employed, both banks work fine, but NatWest’s Startup Account is especially appealing – no monthly fee for two years and automatic access to FreeAgent accounting software if you meet eligibility criteria.

Lloyds’ app is solid and offers easy cash deposits, but its free period is shorter and there’s no built-in bookkeeping support.

Verdict: Sole traders who want an all-in-one setup will find NatWest more complete.

⚡ Best for limited companies

Running a limited company means managing more complex finances – multiple directors, employees, invoices, and taxes. Lloyds’ Business Current Account provides dependable features for this: multiple user access, linked savings, and accounting software integrations make it a safe bet for growing SMEs.

NatWest’s offering is strong but somewhat tailored toward smaller firms. Still, its FreeAgent integration and two-year free period make it ideal for early-stage limited companies.

Verdict: Lloyds is stronger for scaling limited companies; NatWest suits early-stage ones.

⚡ The most modern experience

While both are traditional high-street banks, NatWest’s app feels slightly more modern and intuitive. It provides real-time notifications, budgeting insights, and a polished interface that competes with newer fintechs. Lloyds’ app is functional and reliable, but more conventional in style.

Verdict: NatWest edges ahead with a smoother digital experience.

Who can open an account?

Both are open to UK-registered sole traders and limited companies, but their eligibility terms differ slightly.

NatWest

• Sole traders, limited companies and partnerships
• Must be UK-based and trading
• FreeAgent included if you make at least one transaction a month and keep your account active
• Online and app-based verification

Lloyds

• Sole traders, partnerships, limited companies
• Directors and key individuals must be UK-resident
• Verification through ID check, address, and business details
• Industry exclusions apply

Pricing and fees

Money matters, and both banks have simple, transparent pricing once the free period ends.

NatWest pricing

• Start-up Account: Free for 24 months.
• Standard Business Account: £8/month after free period.
• Additional charges: £0.70 per £100 cash deposits, £0.35 per automated payment after the first 20.

Lloyds pricing

• Start-up/Small Business Account: Free for 12 months.
• Standard Account: £8.50/month (turnover-based).
• Additional charges: £1 per £100 cash deposits, £0.35 per automated transaction.

Value for money

For small businesses and startups, NatWest’s two-year free period offers unbeatable short-term value. For more established businesses, Lloyds’ predictable tariff makes it easier to forecast monthly costs.

Verdict: If you’re launching a business, NatWest’s free period and FreeAgent inclusion make it the stronger choice. If you’re already established, Lloyds’ flat pricing structure offers stability.

Features comparison

On paper, both tick the essential boxes. The main difference is that NatWest includes FreeAgent accounting for eligible businesses, while Lloyds relies on third-party integrations.

Payments and transfers in the UK

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

Cash and cheque handling

• NatWest: Cash deposits through Post Office or branches (0.7% fee, £3 minimum), free cheque deposits.
• Lloyds: Cash deposits £1 per £100, cheque deposits free in-branch or by app.

Cards and spend management

Both offer business debit cards and support Apple Pay and Google Pay. Lloyds also provides clear spend tracking tools in-app, while NatWest focuses on simplicity.

Invoicing and integrations

• NatWest: FreeAgent integration (for eligible users) – invoicing, expenses, and tax tools included.
• Lloyds: Compatible with Xero, QuickBooks, and Sage, but these require separate subscriptions.

Lending and overdrafts

Both banks provide overdraft and lending options, subject to credit approval.

App and user experience

A great business account should feel effortless to use – and most of that comes down to the app. Both NatWest and Lloyds offer well-designed mobile apps, but they take slightly different approaches.

App interface

NatWest’s app feels more modern and intuitive, with a clean interface, clear navigation and useful features like spending insights and instant notifications. It’s designed to feel closer to a digital-first experience, even though it’s part of a traditional bank.

Source: App store

Lloyds’ app is more conventional – straightforward and reliable, but less polished visually. It covers all the essentials such as payments, statements and card management, but doesn’t offer the same interactive dashboard or insights that NatWest provides.

Source: App store

Verdict: NatWest offers the more modern and user-friendly interface.

You can explore both apps yourself:

• Lloyds on the App Store / Google Play,
• NatWest on the App Store / Google Play.

Web access and APIs

Both accounts can be managed from desktop as well as mobile, with full access to transactions, statements and account controls. Lloyds has a slightly more advanced online banking portal for larger companies with multiple accounts, while NatWest focuses more on the mobile experience but still offers strong web functionality.

Verdict: Lloyds’ web banking is better suited to companies with complex structures, while NatWest delivers a smoother all-round digital experience.

Onboarding speed and switching

Both banks allow applications to be completed online, but NatWest’s process tends to be quicker. You can verify your ID and submit documents directly through the app, and in many cases, approval comes within a day.

Lloyds sometimes requires additional checks or branch verification, especially for limited companies with multiple directors, which can make setup slower. Both support the Current Account Switch Service (CASS) to help you move from another provider easily.

Verdict: NatWest wins for fast, app-based onboarding and smooth switching.

Customer support and reviews

Both banks have extensive customer service networks, though NatWest is slightly faster to respond via in-app chat.

Verdict: Both apps perform well, but NatWest’s app is often praised for its design and FreeAgent link, while Lloyds’ app is known for its robust reliability.

Neither scores highly – most complaints centre around account freezes or slow compliance checks – but both are longstanding, regulated UK institutions with FSCS protection.

Security and trust

Your money’s only as safe as the bank that holds it. Thankfully, both are fully regulated UK banks.

FSCS protection

Funds up to £85,000 are protected under the Financial Services Compensation Scheme (FSCS).

Fraud prevention and controls

Both offer biometric logins, 3D Secure, card freezing, and spending notifications.

Bank stability and licensing

Both are licensed and established UK institutions with decades of experience and a strong regulatory track record.

Which is best for your business?

Alternatives to consider

ANNA – your business account and admin sidekick

Here’s where things get smarter.

ANNA isn’t just a business account – it’s your admin assistant on standby. You can open an account in minutes, issue invoices, capture receipts, and even have your VAT and Corporation Tax filed automatically.

What makes ANNA different:

• Create and send invoices in seconds
• Capture and categorise expenses automatically
• VAT and tax filing handled for you
• Add your team (not just co-directors)
• 4 free SWIFT payments per month on the Big Business plan
• Real humans, 24/7, on every plan

And yes – ANNA starts at £0/month. See current pricing.

Revolut Business

Great for international freelancers and exporters. Multi-currency accounts and competitive FX rates, but not covered by FSCS.
How to open Revolut business account →

Wise Business

Excellent for businesses getting paid in multiple currencies – simple, transparent international transfers.

Tide

Fast setup and clean UI. Ideal for new microbusinesses, but it’s an e-money account (not a bank).
How to open Tide business account →

Mettle by NatWest

A free and lightweight option for very small businesses. Handy for freelancers but limited features compared to ANNA, NatWest or Lloyds.
How to open Mettle business account →

Verdict: NatWest vs Lloyds

If you want solid, traditional banking with decades of experience, you can’t go wrong with NatWest or Lloyds. But if you’d prefer something modern, fast and built for real-world admin tasks – ANNA business account is the smarter choice.

Whichever you pick, make sure your business account does more than just hold money – it should save you time, reduce stress, and help your company grow.

Disclaimer: All info accurate as of October 2025. Always check official websites for the latest details.