Best Start Up Business Bank Accounts July 2024

Challenger bank Monzo offers businesses intuitive and efficient app-based banking, making it a great option for new start ups. Features offered by Monzo that might be useful to any business just taking off include round-the-clock customer service, free trials of accounting software and a pots feature that lets customers separate their money. However, some of these features are only included with Monzo’s Pro account, which carries a £5 monthly fee.

For further details, read NerdWallet’s Monzo Business Account Review.

Monzo key features:

• Accounts open quickly: New business bank accounts with Monzo are usually open and ready to use on the same day an application goes through.
• FSCS protection: With the Financial Services Compensation Scheme, deposits of up to £85,000 are protected.
• Free transactions: Electronic payments within the UK are completely free for Monzo’s business banking customers.
• Customer service: In-app customer support from Monzo is available to business customers with urgent concerns at all hours.

Pros:

• New customers can find free business banking with Monzo’s Lite offering. 
• Monzo’s mobile app is one of the best-reviewed mobile banking platforms on the market.
• Businesses can get started very quickly with Monzo, as accounts tend to be open on the same day an application is made.

Cons:

• Monzo has no branches and no telephone banking options, so it might not be best for those who like a human touch.
• Charities and partnerships cannot get an account with Monzo. 

Start ups and businesses with annual turnover below £1 million can use Virgin Money’s M Account for Business. There are no monthly fees and business owners can enjoy cashback on debit card purchases, three-month accounting software trials and a free business data insights platform.

For further details, read NerdWallet’s Virgin Money Business Account Review.

Virgin Money key features:

• Transaction costs: Electronic payments are free with a Virgin Money business account.
• Extras: Additional features like free data insights and accounting software trials could enhance your start up.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.

Pros:

• There is no monthly fee for the M Account.
• Business owners can get cashback of 0.25% on business debit card purchases.
• Eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).

Cons:

• Virgin Money’s customer service is not available 24/7.
• A business must have an annual turnover of less than £1 million in order to open the M Account.
• With no branches in the South of England, Wales or Northern Ireland, customers in these areas will struggle to access some face-to-face services.

This free business account from Starling is available to start ups and includes several features attractive to a brand-new business. These include no fees for basic transactions, all-hours customer service and a high-scoring mobile app. There are also paid extras, like the £7 per month Business Toolkit, which adds tax and invoicing capabilities.

Starling key features:

• No monthly fees: Starling’s basic business account has no monthly fee.
• Transaction fees: Start ups that sign up with Starling will be able to make Faster Payments, direct debits and standing orders for no cost within the UK.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 

Pros:

• A basic Starling account carries no maintenance fee.
• Everyday transactions are free for business owners who have a Starling account
• Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).

Cons:

• For some features, business owners will need to pay the £7 per month cost for the Business Toolkit.
• Account holders cannot manage their money over the phone or in a branch.
• It costs a minimum of £3 to deposit cash into your account and you must do so at the Post Office.

TSB has branches across the UK (excluding Northern Ireland) and has several useful services for start ups that choose to bank with them. These include free specialist support from small business advisers,  a 30-month fee-free period and discounted access to payment technology.

For further details, see NerdWallet’s TSB Business Account Review.

TSB key features:

• Face-to-face: Banking in a branch is available for customers in Scotland, England and Wales.
• Introductory offer: TSB’s fee-free period lasts for 30 months, which is significantly longer than most other providers’ introductory offers.
• Transaction fees: It offers free day-to-day transactions including Faster Payments, direct debits and cash withdrawals.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• TSB’s offer of 30 months of fee-free banking is much longer than introductory offers from much of the competition.
• Business owners can manage their money online, via the app, over the phone or at a branch.
• Eligible deposits of up to £85,000 are protected by the FSCS.
• Optional extras from the paid Business Plus account include free access to payment services app Revenu for 12 months.

Cons:

• There are no branches in Northern Ireland.
• After the end of the generous fee-free period, accounts cost £5 per month (for accounts with average monthly balances of under £10,000) and some transaction charges may also apply.
• It takes an average of 12 days to open a TSB business account.

Start ups headed by sole traders and sole directors might be interested in HSBC Kinetic. The account can be managed through one of the best apps on the market, is backed by a traditional bank and includes features such as simple international payments and cash-flow insights.

HSBC Kinetic key features:

• Transactions fees: Direct debits, standing orders and other electronic payments are free.
• Borrowing: Borrowing options, such as overdrafts, credit cards and loans are accessible through a Kinetic account. 
• FSCS protection: Deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Simple electronic transactions cost nothing to Kinetic account holders.
• With loans, credit cards and overdrafts in the offing, there are several borrowing options available with Kinetic. 
• Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).

Cons:

• After a fee-free year, accounts cost £6.50 per month.
• This account is only for sole traders and limited companies with just one director who is the sole shareholder. Additionally, the maximum annual turnover cannot exceed £6.5 million.

There is a lot to like from The Co-Operative Bank for start ups. The bank offers start-up guidance and other support tools, plus deals on insurance, HR tools and more. The bank also places ethics at the forefront of its mission, so it may appeal strongly to socially conscious new business owners. 

The Co-operative Bank key features:

• Account options: Business owners can choose from six different current account options.
• FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
• Borrowing: Account holders can access borrowing through an overdraft, a charge card for expenses, a credit card, or a variable rate business loan.
• Account management: Manage your money online, over the phone, via the app or in a branch

Pros:

• Some of the bank’s accounts do not charge a monthly fee or digital transaction fees.
• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Customers can manage their accounts online, over the phone, via the mobile app and in a branch.
• Customers can access a business overdraft, credit card, charge card and loan.

Cons:

• It takes an average of 14 days to open an account with The Co-Operative Bank. This is significantly slower than most of the competition.
• Customers do not have access to round-the-clock customer support.
• There are no branches in Northern Ireland.

Aside from its Kinetic offering, which NerdWallet has reviewed separately, HSBC’s offering for start ups includes an account specially tailored for small businesses. Perks include access to borrowing, free simple electronic transactions and numerous ways to access your account.

HSBC key features:

• Introductory offer: New business customers get 12 months of free banking.
• Transaction fees: Everyday banking transactions are free for HSBC business banking customers.
• Borrowing: Account holders can easily apply for business overdrafts, credit cards or loans.
• Credit facilities: Business overdrafts, credit cards or loans may be available through HSBC.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.

Pros:

• The introductory offer for customers who sign up for the small business account includes free banking for a year, including no fees for everyday transactions. 
• Accounts can be accessed online, via a mobile app, over the phone or at a branch.
• Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS).
• All sorts of borrowing options are available to HSBC customers, including loans and credit cards.

Cons:

• Although there is a fee-free introductory period, the bank then charges business customers a monthly maintenance fee of £8 on their account.
• Though there are many ways to access the account, HSBC’s mobile app has not been as well reviewed as some of the competition.
• It takes an average of 4.5 days to open an account, which is longer than some of its competitors.

This British high-street bank has a specific account for start ups, with features including a business community hub, which is intended to help new business owners meet new contacts and grow their ideas. The bank also has branches throughout the UK and offers a variety of borrowing options.  

For more details, read NerdWallet’s Barclays Business Account review.

Barclays key features:

• Points of access: Barclays customers can manage their money online, via the app, over the phone, or at a wide choice of Barclays branches.
• Borrowing options: Borrowing options include loans, mortgages and overdrafts.
• FSCS Protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• There are no transaction fees for everyday banking.
• The specialised account for start ups includes features such as the Eagle Labs community hub, which could help them to grow and develop.
• Barclays business banking customers get free access to Freshbooks accounting software.
• Eligible deposits of up to £85,000 are protected by the FSCS.
• Barclays has branches in England, Wales, Scotland and Northern Ireland.

Cons:

• A Barclays business account will cost £8.50 per month following the end of the introductory offer period. 
• The average account opening time for a business account with Barclays is quite long at eight days, while there could even be a 50-day wait for some customers.

NatWest offshoot Mettle is an offering specifically for self-employed workers and limited companies with up to two owners. There is a lot to like here for start ups, including a great mobile app, different pots to organise your money and free access to accounting software if you make at least one transaction per month.

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features:

• Mobile app: Business banking customers can use Mettle’s well received mobile app to manage their money. 
• Sole trader focus: UK-based sole traders, plus an account for limited companies with a maximum of two owners, are specifically catered for by Mettle’s account.
• Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Pros:

• Mettle business customers pay no monthly fees or transaction charges.
• The mobile app is one of the top banking apps on the market.
• Customers can access customer service via app, email and over the phone seven days a week.
• Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).

Cons:

• Mettle has no branches for face-to-face support.
• There is no way to add a cheque to your account.
• International payments are not possible for those with a Mettle account. 
• Borrowing options like overdrafts, credit cards or loans are not available with Mettle.

With an RBS business account, you only pay for what you use instead of facing a flat monthly fee. An account for start ups is available, which charges no fees on everyday transactions for the first 24 months. It gives free access to FreeAgent accounting software as well as borrowing options. 

For more details, see NerdWallet’s RBS business account review.

RBS key features:

• Introductory offer: Start ups can enjoy two years of no transaction fees.
• Borrowing: Business overdrafts, credit cards or loans are available to RBS business customers.
• Perks: Extras include free access to FreeAgent accounting software and you may be eligible for help from a dedicated relationship manager.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Start-up customers can avoid everyday transaction fees for the first two years.
• Accounts are opened quickly, with 85% of RBS customers getting up and running on the day they apply.
• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Customers can manage their money at a branch, over the phone, online and via the app.

Cons:

• RBS accounts are generally for customers in Scotland. If you are in England or Wales, you may be directed to open a NatWest account instead, while people in Northern Ireland are likely to be steered towards Ulster Bank. 
• Although the introductory fee-free period lasts for a long time, RBS business customers will then have to pay for most transactions.