NatWest vs Nationwide for sole traders – which account works best for your business?

This guide focuses specifically on sole traders and the self-employed, comparing how NatWest’s business account stacks up against Nationwide’s personal and savings products when used for business purposes.

And because we’re ANNA, we’ll also show how we fit in – especially if you’d prefer your business account to handle your admin, taxes and invoicing automatically.

NatWest vs Nationwide at a glance

If you just want the summary, here’s the quick view:
NatWest’s business account gives sole traders proper tools for invoicing, bookkeeping and growth, while Nationwide offers a simpler route – a personal or savings account that works if you only need a safe place to manage business income.

Takeaway: For sole traders, both work – but NatWest offers business-specific tools, while Nationwide suits those keeping things simple with a personal or savings account.

Who are these accounts best for?

⚡ The cheapest

If you want a free-to-open account with no fixed monthly fees, both providers qualify.
NatWest’s business account has no ongoing monthly charge and even includes a 24-month free banking period for new businesses. Nationwide’s personal accounts are free by design – but lack business-specific tools like automated invoicing or accounting links.

Verdict: Both are free to hold, but NatWest gives more functionality for the same cost.

⚡ Best value for money

NatWest gives you business-grade features without subscription costs: accounting integration, overdrafts, and branch services. Nationwide’s value lies in its simplicity and reliable savings rates – ideal if you keep your admin separate and just want a safe place for business funds.

Verdict: NatWest offers more practical value; Nationwide suits minimalists.

⚡ Best for sole traders

For most sole traders, the NatWest business account is a solid upgrade from a personal current account – especially if you need to send invoices, integrate bookkeeping or separate business transactions for tax purposes.

Nationwide’s personal current account is still a good choice if you handle few transactions and don’t need any accounting integrations.

Verdict: NatWest fits growing sole traders; Nationwide fits very small or part-time self-employed users.

⚡ Best for savings and reserves

Nationwide shines when it comes to business-like savings. Its savings and fixed-rate products pay more competitive interest than NatWest’s business savings accounts, making it ideal for keeping a business emergency fund or tax reserve separate from your current account.

Verdict: Nationwide wins for savings; NatWest wins for daily business transactions.

⚡ The smartest app – NatWest’s edge

NatWest’s business app is purpose-built, with instant notifications, quick transfers and FreeAgent integration. Nationwide’s personal banking app is clean and reliable but not built for invoicing, bookkeeping or VAT tracking.

Verdict: NatWest offers a smarter app experience for anyone running a business.

Who can open an account?

NatWest

• Sole traders and limited companies
• UK residents with standard ID
• Includes access to FreeAgent for bookkeeping
• Supports Current Account Switch Service (CASS)

Nationwide

• Personal and joint accounts for UK residents
• Sole traders can use a personal account to manage income (if not required to hold a business account)

Business savings accounts available to UK-registered entities

Pricing and fees

NatWest pricing

• Monthly fee: £0
• Free period: 24 months free everyday banking for eligible start-ups and switchers
• Transaction fees (after free period):
   - Automated payments – £0.35
   - Manual payments – £0.70
   - Cash deposits – 0.7% (min £3)
• Overdraft: Available, subject to status
• Accounting: FreeAgent included

Nationwide pricing

• Monthly fee: £0
• Payments: Free UK transfers
• Cash/cheque deposits: Free at branch
• Overdraft: Available on personal terms

Savings: No fees; interest rates vary by product

Takeaway: Both accounts cost nothing to hold, but NatWest’s per-transaction structure can add up if you make lots of manual payments. Nationwide’s simplicity suits low-volume users.

Features comparison

Payments and transfers in the UK

Both support Faster Payments, standing orders and Direct Debits, though NatWest allows more control via its business platform.

Cash and cheque handling

NatWest accepts both through the Post Office network; Nationwide processes them through branches.

Cards and spend management

Both issue debit cards and support Apple Pay and Google Pay. NatWest adds expense tracking and permission controls.

Invoicing and integrations

NatWest integrates directly with FreeAgent, letting you invoice and reconcile payments automatically. Nationwide’s personal accounts lack integration.

Lending and overdrafts

Both provide overdrafts, but only NatWest offers business loans and credit facilities tailored for self-employed professionals.

App and user experience

App interface

NatWest’s app is business-focused and connects with FreeAgent for real-time bookkeeping.

Source: App store

Nationwide’s app is consumer-friendly and reliable but lacks business-specific tools.

Source: App store

You can explore both apps yourself:

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

Web access and APIs

Both support online access and exports; NatWest’s business dashboard offers more analytics.

Onboarding speed and switching

Both allow quick online sign-up, with NatWest also supporting business account switching via CASS.

Customer support and reviews

Common complaints

• NatWest: Delays with verification, slow ID checks for new business users
• Nationwide: Branch queues, limited online support for complex issues

Verdict: Both offer strong apps; NatWest leads on dedicated business support, Nationwide on branch familiarity.

Security and trust

FSCS protection

Both protect eligible deposits up to £85,000 per customer.

Fraud prevention and controls

Both use two-factor authentication, biometric login and instant card freeze options.

Bank stability and licensing

NatWest is a major UK bank with full business infrastructure; Nationwide is the UK’s largest building society with a strong reputation for security and service.

Verdict: Both are equally trustworthy; NatWest offers more advanced business-specific controls.

Which is best for your business?

• Freelancers and sole traders with invoices and tax needs: NatWest – FreeAgent, overdraft, and proper business account separation.
• Casual self-employed or side hustlers: Nationwide – simple, free personal banking, no extra features required.
• Those holding reserves: Nationwide – better savings options.
• Those planning to grow: NatWest – scalable and tax-ready.

Overall verdict: NatWest offers the best functionality; Nationwide remains a solid option for simplicity and savings.

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 admin support in your pocket (the clever kind). You get smart banking and built-in tools to help with all the other stuff no one tells you about when you start a business.

• Create and send invoices in seconds
• Capture receipts and auto-categorise your 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. Check the current plans →

Revolut Business

Ideal for freelancers working internationally with multi-currency support.
How to open Revolut Business Account →

Wise Business

Perfect for receiving foreign payments at low rates.

Tide

Quick setup and simple tools for early-stage businesses.
How to open Tide business account →

Mettle by NatWest

A free mobile account backed by NatWest, great for early sole traders.
How to open Mettle business account →

Verdict: NatWest vs Nationwide

Checklist:

• Full-featured account with FreeAgent and overdraft → NatWest
• Simple free account for light users → Nationwide
• Built-in admin and tax automation → ANNA

Whichever you choose, your business account should work for you – not just hold your money. Whether it’s tax filing, easy savings or everyday payments, there’s an option here that fits your way of doing business.

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