BEST Small Business Bank Accounts

The BEST small business bank accounts and where to find FREE SME business banking.

We look at small business bank accounts, free banking, new bank account offers and account switching offers. If you are starting a new business, or you are fed up with paying over the odds in bank fees, finding a cheaper or better business bank could be key to improving business success.

There are more business banks and small business bank accounts than ever. Many online or digital banks now offer ongoing FREE banking for their basic start-up accounts. Whist many established high street business banks offer limited periods of FREE banking for new business registrations, or businesses looking to switch accounts from another business bank.

Your business needs, important things to consider when looking for a small business bank account

What are your business banking requirements?

Payments/Receipts – Are most of your payments and sales by card or electronic, does your business need to take cash payments?
Paying in / withdrawing cash – Do you need to pay cash into your business bank account? Is withdrawing cash important for running your business?
Transaction size & frequency – Will you take lots of smaller electronic payments or fewer larger value payments?
Local physical branch or online – Do you need a physical branch close by, or are you able to do most business banking online/electronically?
Overdraft – Will your business need an overdraft? Some business are able to survive by having a good cash flow, other businesses need to hold a significant value in stock, so an  overdraft is often vital. As NOT all businesses accounts offer overdrafts this can be an important consideration when accessing suitable business banking services for your business.

All these things are important as they will have an impact on the best type of bank account for your business and the most cost efficient way of banking.

We have listed some of the best offers in terms of free business banking, it is important to understand that some of the newer digital online/app based banks are not registered under the FSCS (Financial Services Compensation Scheme). The FSCS currently covers balances up to the value of £85,000. If a provider is not FSCS registered your money could be at risk as it is not covered and if the bank fails for any reason you would not be eligible to make an FSCS claim.

4.5 stars: Excellent
  • FREE - Ongoing NO monthly fee

  • FREE to send money via Faster Payments, Direct Debit, Standing Order

  • FREE debit card payments / FREE withdrawls UK ATMs

  • Flexible banking, online, in app, live chat

  • Overdraft - 15% EAR Soletrader  / 5-15% EAR Limited liability partnership (1.5% or £50 min charge annually)

  • Fully Regulated - FSCS covered to £85,000

  • NO interest paid on balance

  • NO cheque cashing /depositing

4.1 stars: Great
  • FREE - Ongoing NO monthly fee

  • FREE to send money via Faster Payments, Direct Debit, Standing Order

  • FREE debit card payments / FREE withdrawls UK ATMs

  • Flexible banking by online, in app, email

  • Cash deposit at PostOffice (£1 charge per deposit).

  • FREE LTD Co formation with new accounts

  •  Fully Regulated - FSCS covered (Clear Bank Ltd) to £85,000

  • NO interest paid 

  • NO cheque cashing /depositing

  • NO overdraft facility

£50 FOR SIGNING UP USE CODE 
XBD937 

4.2 stars: Great
  • FREE - Ongoing NO monthly fee (max balance up to £50,000 sole trader / £100,000 Ltd company

  • FREE to send money via Faster Payments, Direct Debit, Standing Order

  • FREE debit card payments / FREE withdrawls UK ATMs

  • Flexible banking by phone, online, in app

  • Extra in app features customer invoicing with payment reconciliation

  • Fully Regulated - FSCS covered (via Natwest) to £85,000

  • NO interest paid on balance

  • NO cheque cashing /depositing

  • NO overdraft facility

3.5 stars: Average
  • FREE - Ongoing NO monthly fee £5,000+ account balance required

  • 50 free transactions per month if £5,000+ balance

  • Online & physical branches open 7 days a week

  • Local Business Manager + 24/7 customer support 

  • Flexible banking online / mobile app

  • Fully Regulated - FSCS covered to £85,000

  • NO interest paid on balance

  • NO cheque cashing /depositing

  • NO overdraft facility

4.5 stars: Excellent
  • FREE business banking Business Lite or Business Pro £5/month  

  • FREE to send money via Faster Payments, Direct Debit, Standing Order

  • Pay in cash/cheques at PayPoint (£1 charge) 

  • Flexible banking by online / mobile app

  • Xero cloud accounting free for 6 months (Business Pro accounts only worth £180)

  • Fully Regulated - FSCS covered to £85,000

  • NO interest paid on balance

  • NO overdraft facility

  • FREE business banking for 30 months (new customers & switching customers) £1,000 min account balance

  • £5/month after 30 months 

  • FREE to send money via Faster Payments, Direct Debit, Standing Order

  • Overdraft facility available / loan availability

  • 30 cheque payments per month are free

  • Flexible banking by phone, branch, online

  • Access to your account through Post Office branches

  • Fully Regulated - FSCS covered to £85,000

Disclaimer: WOWCOMPARE.CO provides news and articles for a consumer and small business audience.

WOWCOMPARE is not a lender, bank, broker and we are not authorised or regulated by the FCA as a provider of financial advice. We do not recommend any product or service featured on this site, however we may receive a commission for sales and services purchased as a result of using this website.

 

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