Best business bank accounts

How to open a business bank account

You can open a business bank account in a variety of ways, depending on your preferences, your business and your chosen provider.

Most providers allow you to open a business account online, and you may also be able to open one via mobile app, by visiting a branch or over the phone.

Bear in mind that some providers don’t allow businesses with a turnover above a certain limit to open an account online. So larger businesses with a higher turnover may need to open their account via phone.

As part of the application process, some providers may run a credit check.

Depending on the provider and your business, it may be possible to open an account in as little as 10 minutes. However, it could take several days, or even weeks, for the provider to process your application.

What documents do I need to open an account?

When opening a business bank account, you’ll need to tell the provider some information about you and your business, such as:

• the personal details of all partners and directors of the business
• the trading address and contact details for your business
• your estimated turnover
• your company registration number (if it’s a limited company).

To support your application, you will also need to provide some documents to prove your identity and address, and to verify your business.

For example, as proof of ID, you could use a valid UK passport or a valid UK driving licence and, to prove your address, you could use financial statements (current accounts, mortgage, credit cards), utility bills or a tenancy agreement.

Providers may also ask for documents to verify your business, such as proof of trading address. You may be able to use a letter from HMRC, a commercial lease or rental agreement, invoices, utility bills or letters from a solicitor or accountant, for example.

Switching business bank accounts

As with personal current accounts, it may be possible to switch your business bank account using the Current Account Switch Service (CASS) if your new and existing bank are both signed up to the scheme.

To use the CASS, your business needs to have fewer than 50 employees and an annual turnover under £6.5 million.

The CASS can make it easier to switch accounts and transfer all your regular payments, including direct debits and standing orders. Read more on the Current Account Switch Service.

What banks offer the best business bank accounts?

With so many accounts to choose from, it can be difficult for business owners to decide which bank is best for their business.

Ultimately, the best business bank account for you depends on the nature of your business and your own preferences.

For example, if you want the option to bank in-person by visiting a branch, a high street bank could be the best choice for you. Alternatively, if you’re happy to bank solely online or via app, a so-called “challenger bank” could be a more appealing option.

You should also think about your business activities, including the number and size of payments you make and receive and whether you deal with cash or cheques. These factors can influence which business bank account is best for you as, for example, some providers charge higher fees for cash deposits while some charge fees for every transfer.

Compare business bank accounts on our chart above to help you find the right account for your business.

Things to consider before applying

When selecting a business bank account, there are several points to consider before applying, including:

• Fees: Check that the fees charged by a business bank account make sense for your business activities. Some charges to look out for include monthly account fees, transaction fees and fees for depositing any cash or cheques, for example.
• Opening or switching incentives: Some providers may offer a cash incentive or a limited period of fee-free banking when opening or switching to a new account. These could be appealing incentives to businesses, but make sure you check the terms and set a reminder to review your account before the end of the free banking period.
• Eligibility criteria: Before opening a business account, check your business meets the eligibility criteria. Some accounts may not be available to certain business structures, and some may require your business to have a minimum (or maximum) turnover to be eligible, for example.
• Management methods: Whether you prefer to manage your business finances online, by app, by phone or by visiting a branch, for example, it’s important to make sure your chosen business account offers your preferred management method.
• Features: While some business bank accounts are relatively basic, others are more comprehensive and may offer invoicing tools, spending cards for your team and integration with accountancy software, for example.
• Transaction limits: Providers may set limits on cash withdrawals and deposits, as well as the amount you can transfer in one payment or transfer in total per day/month. Check an account’s limits work for your business requirements before opening.
• International payments: If you regularly send and/or receive international payments and deal with different currencies, it’s worth checking whether a business account allows this and, if so, whether there are any extra fees.