The UK Business Banking Landscape
The UK market now splits into two broad groups. Digital providers such as Starling, Tide, Monzo, Revolut Business, Wise Business and Mettle build their accounts around an app, fast onboarding and accounting links. High street banks still appeal to businesses that want a branch, a relationship manager or complex lending. Most owners searching for an online business bank account UK start with price, then discover that cash deposits and international payments decide the real cost.
Cash handling is a common blind spot. A shop, market stall or trade business may search for a business bank account near me because it needs to pay in takings. Digital accounts often use the Post Office or PayPoint instead of a branch. Starling, for example, charges 0.7% with a £3 minimum for Post Office cash deposits. Monzo charges £1 per cash deposit. Tide uses a percentage-based deposit fee. These charges matter more than a monthly charge for a cash-heavy business.
Eligibility is the first filter. A sole trader can open a business bank account for sole trader use with Monzo, Starling, Tide or Mettle, but ownership rules differ. Mettle accepts sole traders and small limited companies with up to two owners, and only one owner can access the account. Revolut Business is aimed at registered companies, not sole traders. A limited company bank account also needs the company registered at Companies House before most providers will review the application.
Compare the Main Online Accounts
The table below gives a practical starting point. Prices are current provider figures and can change, so confirm them on the provider page before applying. The monthly price is only one part of business banking fees. Check transfer allowances, card charges abroad, ATM fees and cash deposit costs.
| Provider | Best for | Price | Pros | Watch-outs |
|---|
| Starling Business | Everyday UK banking with built-in tools | No monthly fee; no UK payment charges | Strong app, invoicing tools, multi-director access, cheque deposit in-app | Post Office cash deposits cost 0.7% with a £3 minimum |
| Tide | Startups that want invoicing and expense cards | No monthly fee on Lite; paid plans from £12.49/month | Invoicing, expense cards, accounting links, tiered plans | Lite has a small transfer allowance; cash deposit fees apply |
| Monzo Business | Mobile-first sole traders and directors | Lite has no monthly fee; Pro is £5/month | Tax Pots, payment links, card controls, clear app | £1 charge for cash deposits; some tools sit on Pro |
| Revolut Business | International payments and team spending | From £10/month; higher plans cost more | Multi-currency accounts, team cards, spend controls | Not open to sole traders; fees apply outside plan allowances |
| Wise Business | International transfers and FX | Essential has no monthly fee; Advanced has a one-time £50 fee | Transparent FX, local account details in several currencies | Wise is not a bank; it is not a full UK current account |
| Mettle | Small limited companies and sole traders | No monthly fee; Mettle+ is £4/month | NatWest-backed, invoicing tools, simple app | Eligibility limits; one owner can access; no BACS or CHAPS support |
The table shows why a single “best” account does not exist. A Manchester sole trader who invoices a handful of UK clients may do well with a no-monthly-fee account that includes invoicing and a small transfer allowance. A Bristol e-commerce seller paying suppliers in euros and dollars should compare the FX markup and the cost of receiving international payments, not just the monthly charge. A London agency with ten staff needs multi-user access and spend controls, so Revolut Business or Starling may fit better than a basic sole trader account.
Support is another practical test. Digital providers usually handle queries through in-app chat, phone lines or email. A business that pays staff on Friday needs to know when support is available and how quickly a blocked payment can be reviewed. Read the provider’s help centre before applying, and check whether it offers a named contact for larger businesses.
Deposit protection also deserves a check. Many UK accounts cover eligible deposits under a deposit protection scheme, but not every provider is a bank. Wise Business is an e-money provider, so its safeguarding rules differ from a bank current account. If your business holds a large balance, confirm how the money is protected before you switch.
Practical Steps and Local Examples
Confirm your legal structure and ownership. A sole trader applies with personal details and trading information. A limited company needs its Companies House number, registered address and director details. Check whether the account allows every director to access it. Starling supports multi-director access, while Mettle limits access to one owner. This small detail can decide whether an account works for a partnership-style company.
Map your monthly money flow. List UK transfers, international payments, cash deposits, ATM withdrawals and card spending abroad. Then compare the total cost, not the headline monthly charge. A Tide Lite account may suit a low-volume startup, while a growing business that sends many UK payments may prefer a paid Tide plan or Starling. A business with frequent euro payments should look closely at Revolut Business and Wise Business.
Prepare for a digital application. Most providers ask for proof of identity, proof of address, business registration details and information about expected turnover. Some also ask for a business plan or evidence of trading. Keep these files ready before you start. A clean application reduces the chance of delays and repeated requests.
Use local switching support. The Current Account Switch Service can move Direct Debits, standing orders and incoming payments from an old business account to a new one. This is useful for a Leeds consultancy moving from a high street bank to a digital provider. Local Chambers of Commerce and the Federation of Small Businesses can also point owners toward banking guidance and regional events.
For a practical local example, consider a Manchester graphic designer who works alone and invoices UK clients. She needs a sole trader business account with simple invoicing and a debit card. A no-monthly-fee option such as Monzo Lite, Starling or Tide Lite could keep overheads low, but she should check the cash deposit charge if clients still pay in cash. A Bristol e-commerce seller has a different problem: supplier payments in dollars and euros. He should compare the online business bank account providers that show FX costs clearly, then calculate the monthly total across his last three months of trading.
Before you apply, shortlist two accounts and test them against your real transactions. Open the pricing pages, note the monthly charge, transfer allowance, FX markup and cash deposit fee, then ask each provider how it handles your biggest payment type. One hour with your bank statements will tell you more than a long feature list.
研究の知恵