Top 5 Best Business Bank Accounts In The UK

If you’re looking for the best deal on your commercial bank account, keep reading to find out what the best UK banks offer businesses and how they compare. We screen the leading major banks down to lesser-known providers.

Top 5 Best Business Bank Accounts In The UK

Starling Bank

Some of the features and benefits of a Starling Bank business account.

  • There are no monthly fees for small businesses
  • Deposit money in more than 11,500 branches of post offices nationwide
  • All eligible deposits are protected by the FSCS up to £85,000
  • Manage your cash flow in real-time
  • Classified transactions
  • Share your transactions with your accountant or accounting software
  • Switch from work to personal in the app with a single tap.
  • Apply in less than 10 minutes with 100% signup on mobile
  • 24/7 customer support
  • Open the banking services market

Starling Bank is one of the leading alternative banks in the UK and, unlike some of the other merchant accounts mentioned above, offers FSCS deposit protection. Approved by the Prudential Regulatory Authority since July 2016.

What really sets them apart is the Starling Marketplace for third-party apps with integrations with services like Xero, PensionBee, and Wealthify. They also do not charge a monthly maintenance fee and do not charge fees for sending or receiving money via faster checkouts, direct debits, and standing orders.

Therefore, Starling might be a good option if you don’t need in-branch services most of the time and are happy to bank mainly via the app or online.

Tide

Some of the features and benefits of the Tide Business Banking Account.

  • There are no monthly or annual fees
  • Use of the card is free at home and abroad
  • Free transfers for Tide members
  • Quick setup of bank accounts
  • Designed with businesses and freelancers in mind
  • instant credit
  • Manage your cards on the Tide app
  • Interactive banking with your accounting software
  • Create and pay bills through the app

Tide promotes itself as not a bank and they offer a modern approach to business banking with easy access to its business banking app and quick setup.

Tide business bank accounts have very straightforward pricing with no account maintenance fees and no card use fees. They charge fees for transfers to or from non-Tide accounts, cash withdrawals and cash deposits.

Tide offers a range of additional value-added services which includes giving companies instant credit of up to £15,000. Their business banking app allows companies to control their bank accounts wherever they are, including managing their bank cards, bills, and general banking.

Website: Tide business bank account website

Compare: Compare Tide Banking on NerdWallet

Lloyds Bank

Some of the features and benefits of a Lloyds business bank account.

  • Simple pricing
  • Free electronic payments
  • Free cash withdrawal
  • Free payments by debit card
  • Dedicated support from the UK business management team
  • Access to financial and digital tools
  • 18 months of free daily business banking for new companies
  • Business Mobile Banking Application
  • Regularly updated guides and tools to manage your business
  • Online bank account cost calculator

61% service quality score based on the 2019 report from the Competition and Markets Authority
Lloyds Bank is part of one of the UK’s largest providers of banking services, Lloyds Banking Group, the group consists of the Bank of Scotland, Halifax, TSB, and Scottish Widows. Lloyds Bank’s roots can be traced back to 1765 when the bank was first established.

Lloyds Bank bases its business bank accounts around business turnover and tailors its services to the size of the business. Their business combinations are based on a turnover of less than £3m, between £3m and £25m, and over £25m.

The Business Banking offering is suitable for new and existing businesses as their bank accounts are designed to be flexible to support the business to grow and develop with dedicated business support whenever needed.

Website: Lloyds bank account website

Metro Bank

Some of the features and benefits of a Metro Bank commercial bank account.

  • local business managers
  • 24/7 customer support team
  • Clearance of fees and costs
  • If the balance remains above £5,000 for the whole month, they will waive the monthly account fee
  • Get 50 free transactions per month if your balance remains over £5,000
  • Open 7 days a week
  • No need for appointments in their stores
  • Online banking and mobile application

71% of service quality points based on a report issued by the Markets and Competition Authority for 2019
Metro Bank may not be one of the UK’s most popular or most established banks, but it offers a different style of service that caters to modern business. They offer corporate bank accounts that have no monthly fees and 50 free transactions per month if you maintain a minimum balance of £5,000.

To be eligible for a Metro Bank account, you must be over 18 years old and have an annual turnover or balance sheet of up to £2m. A minimum of 50% of the shares in your business must be owned by UK residents, and at least 50% of the business’s directors or beneficial owners must also be UK residents.

Metro Bank offers flexible banking services that allow you to access your bank account and services online, over the phone, or on the go by providing online banking services and a mobile application. Metro Bank also has a network of local business managers located in Metro Bank stores available for support and advice.

The Bank of Scotland

Some of the features and benefits of a Bank of Scotland commercial bank account.

  • Simple pricing
  • Free electronic payments
  • Business support by phone, branch or online
  • Access to online, telephone, mobile, and branch banking facilities in addition to providing text alerts
  • 6 months of free daily banking services when you switch to it
  • Exchange within 7 days
  • Dedicated switch team
  • There are no cash withdrawals from ATMs
  • access to their trading knowledge
  • A range of other business products including loans, overdrafts, charge cards, insurance, card payments, and international services

54% Service Quality Score based on a report issued by the Markets and Competition Authority for 2019
The Bank of Scotland is part of the larger group of banks under the Lloyds Banking Group. It was first established in 1695 and is one of the oldest banking institutions in the United Kingdom.

Bank of Scotland offers a competitive and flexible bank account product that enables businesses to access their accounts through a variety of methods. They also provide a range of other business products including loans, overdrafts, charge cards, insurance, card payments, and international services.

Bank of Scotland offers a business checking account calculator to help you assess the expected costs of banking with them. They have also created a repository of online evidence and reports supporting the business which they call Business KnowledgeBox. This contains information on topics such as financial planning, legal issues, and understanding your customers.

Website: Bank of Scotland commercial bank account website

Barclays

Some of the features and benefits of a Barclays merchant account.

  • Highest-rated online banking and mobile services for SMEs based on a report from the Competition and Markets Authority
  • Two simple price plans to choose from
  • Free electronic payments on the payment plan tariff
  • Rate Plan Guarantee that does an annual review to verify you are on the best plan
  • Offers a loyalty bonus to win back a percentage of account fees
  • The account is available to companies with a turnover of £6.5m
  • Special standards for sectors such as agriculture and social housing
  • Fully managed conversion service
  • A range of supportive business services such as loans and cash flow financing
  • Business insurance services provided by Allianz
  • A service guarantee that makes promises about handling complaints

61% service quality score based on the 2019 report from the Competition and Markets Authority
Barclays offers two rate plans for customers to choose from, namely the Mixed Payments Plan and the Payments Plan. The mixed payments plan caters to businesses that use cash, checks, and a host of other methods to make and receive payments. The Payments Plan caters to businesses that receive and make electronic payments mostly through online banking and debit cards.

Barclays Bank rewards its customers for their loyalty by giving them a percentage of their monthly fee back. This is calculated based on the length of time bank transactions take with them and the annual credit turnover. Loyalty benefit ranges from 5% to 50% of the fee applied to the account per month.

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