Compare the best business bank accounts in the UK 2024

When starting a business, there are a lot of tasks to tick off your to-do list. After you’ve got your big idea nailed down and put the wheels in motion to bring it to life, one of the first things you’ll likely do is think about your business's finances.

There are lots of solutions that could fit your needs, from various UK providers. Some entrepreneurs will end up just going with the same provider that they use for their personal finances, while others will shop around for a solution that has a more business-focused offering.

It never hurts to check out what’s on the market, and get your head around what’s available. Business needs are diverse, and one provider may be a better fit than another, depending on what your objectives and growth goals are.

Before committing to a business bank account it’s important that you do your research and compare the best accounts on the market. Whether you’re the founder of a startup looking for the best financial options for your growing business or part of an established company that’s considering switching to a better provider. 

In this article, we’ll compare the best business bank accounts and alternatives on price, FX rates, customer support and benefits. We believe Airwallex offers businesses the best and most cost-effective global financial experience. But we’re biased, so we’ll let you decide!

Compare business bank accounts and alternatives in the UK

Use our table to compare a range of business bank accounts and alternative business account solutions offered by some of the UK's leading banks and FinTechs. 

*FX margin in addition to the interbank rate.

Sources last updated: Q1 2024. We have compared Airwallex's pricing structure with standard pricing published by competitors.

What is a business bank account?

A business bank account or business account is a type of account that's opened in the name of an entity — as opposed to an individual.

Those who’ve tried to operate their personal and business affairs from the same account know this can get quite complex as your business grows. That’s why dedicated business accounts exist. They’re designed to provide business owners with the support, functionality and visibility they need to manage their business.

What alternatives are there to a Business Bank Account?

An alternative to a business bank account is a "business account" provided by non-bank financial services providers. Business bank accounts are great for getting started, borrowing and moving money domestically.

Many businesses quickly realise the limitations and fees associated with their business bank account as they grow - especially internationally - and soon opt for fintech providers who offer alternative purpose-built business solutions such as international payments, invoicing, company cards and expense management, often known simply as business accounts.

What’s the difference between a Business Account and a Business Bank Account?

The difference between a business account and a business bank account is that the latter is provided by a financial institution that holds a banking licence, commonly known as banks (and building societies in the UK).

A business account generally refers to an account and financial solution provided by a financial institution that does not hold a banking licence but does hold other regulated licences. Many modern fintechs, like Airwallex or Wise, have opted not to become a bank. Airwallex is able to build a business account service that covers payment collection, treasury, transfers and payouts, invoicing, expense management and cards. 

FinTechs usually offer cheaper rates, and come with software integrations and benefits that can help you streamline your finances and cut down on admin. 

What fees are associated with business bank accounts?

Unlike personal bank accounts, many business account providers charge fees for managing your money. These can include monthly account fees, transaction fees for receiving and sending money to and from your account, and card fees.

Account fees are generally charged on a monthly, quarterly or annual basis, while additional transaction fees are levied as a percentage of each transaction value.

Airwallex doesn’t charge account or transaction fees, even on international payments. The only fee we charge is a small FX margin of 0.5 - 1%, which is 80% cheaper than FX fees charged by high street banks in the UK. 

Compare the fees of business bank accounts and alternatives

Some business account providers bury their fees in the small print, making it harder for you to find the best deal for your business. 

To help you sort the wheat from the chaff, here’s a breakdown of the fees you can expect to pay when you open a business account with the UK's leading providers.

Airwallex

Features and benefits

• Multi-currency account: Open accounts in 23 currencies (including USD, GBP, EUR, AUD and CNY) free of charge.

• Bank-beating FX rates: Pay just 0.5 - 1% for currency exchange. That’s 80% cheaper than high street banks.

• Transfers: Bypass the SWIFT network for fast, free international payments.

• Borderless Cards: Spend globally in multiple currencies with 0% transaction fees. Reward each of your employees with their own card and empower them to spend independently.

• Expenses: Upload and approve receipts in a click, set limits on a card level, and track spending in real-time.

• Payment Links: Collect payments from customers in a click with unique Payment Links. Airwallex rates

• Online payments: Connect Airwallex to your Shopify, Magento or WooCommerce store for cheaper multi-currency settlement.

• Bill Pay: Upload, approve, pay, and reconcile your domestic and international bills all in the same place.

• Integrates with Xero and Netsuite for easy bookkeeping.

• Secure and protected: Airwallex is regulated by the Financial Conduct Authority (FCA) and holds an Electronic Money Institution (EMI) licence.

Why choose Airwallex?

Airwallex is built to serve all businesses, but particularly those that operate globally.

More than a business account, Airwallex is a one-stop solution that can help you increase your profit margins, streamline your financial processes, and tap into new global markets.

And the best part is you can manage all your finances—from expenses to eCommerce payment collections—in one place.

The fact that Airwallex integrates with leading eCommerce platforms makes it a great business bank account for eCommerce companies. Plus, our dedicated account managers are always on hand to help with any account queries.

Wise

Fees

• £45 one-time account set up fee.

• 2% fee for account funding (top-ups)

• 4.14 USD or 10 CAD to receive USD and CAD.

• FX rate: 0.33 - 3.56% above the interbank rate depending on transaction volume.

• £3 fee for each new card issued.

Features and benefits

• Suitable for freelancers, sole traders or small businesses.

• Multi-currency account: Open accounts in 10 currencies.

• Invoicing: Create and send invoices from your account.

• Integrates with Xero and Quickbooks.

• Employee cards

Limitations

• High transaction fees and card fees.

• High FX rate on some international currencies.

• No payment gateway or payment link capabilities.

• No expense management.

• No dedicated account manager.

Why choose Wise?

Like Airwallex, Wise is a good option for businesses that are looking for a cheaper way to send and receive a limited number of payments across borders on a regular basis.

However, Wise’s exchange rate and card fees are not as competitive as some providers. Wise also lacks some of the additional features, such as expense management and online payments, that can help startups and eCommerce businesses simplify their financial processes.

Revolut

Fees

• £0 - £79+ per month depending on your plan.

• £0.20 for local transfers and £5 for international transfers once you exceed your plan allowance (for example, for £19 a month, you get 5 no-fee international transfers, and 100 local transfers).

• FX rate: 0.6% above interbank rate once you exceed your plan allowance. Revolut charges an additional 1% for exchanges made outside market hours.

• Card fees: If you exceed your plan allowance, you will be charged Revolut's standard FX fees for international transactions.

• Payment acceptance: 1% + £0.20 to accept UK consumer cards and 2.8% + £0.20 to accept all international and commercial cards.

Features and benefits

• Suitable for freelancers, sole traders or small businesses with occasional international business.

• Multi-currency account.

• Multi-currency card and expense management.

• Payment gateway and payment links.

• Integration with WooCommerce, Magento, Xero and Quickbooks.

Limitations

• Only one International Bank Account Number (IBAN) per account.

• Monthly account fees can be high depending on plan.

• Transaction fees if you exceed your plan allowance.

• No dedicated account manager.

Why choose Revolut?

Revolut boasts competitive foreign exchange rates and offers solutions that facilitate eCommerce payment collection.

Revolute offers a multi-currency account, opening up opportunities for companies that trade internationally. However, Revolut does not offer unique international bank account numbers (IBANs) for each currency you trade in. Instead, you will receive a single IBAN for your multi-currency account and will need to set up additional accounts to receive additional IBANs.

Revolut charges monthly account fees for some plan allowances, and also charge transaction fees once you exceed your plan allowance.

Starling  

Fees

• £2 per month for EUR accounts and £5 for USD accounts. Domestic GBP accounts are free.

• £0.30 - £0.90 per international transfer.

• FX rate: 0.4% above interbank rate.

• International card transaction fees in line with MasterCard.

Features and benefits

• Great for freelancers, sole traders and small businesses with occasional to rare international business.

• Open EUR, USD and GBP accounts.

• Automated business spending catagorisation and receipt capture.

• Integration with Xero, Quickbooks and FreeAgent

• Overdraft available.

Limitations

• High monthly account maintenance fees

• Only two foreign currency accounts available (USD & EUR).

• High international transaction fees.

• No payment gateway or payment link capability.

• Account access limited to company directors only.

• No dedicated account manager.

Why choose Starling?

Starling is a neobank, and is able to offer businesses credit, including an overdraft. Starling’s account fees are relatively cheap compared to traditional banks, and their FX rate is competitive.

Like Revolut, Starling’s multi-currency account options are limited, and they don’t offer a solution for online payment collection. They also charge international transfer fees, making them a less attractive option for businesses that trade globally.

Payoneer

Fees

• Transaction fee applies: 1% to receive local payments and 3% to receive card paymetns, unless receiving funds from another Payoneer account.

• Up to 3% transaction fee to send a payment unless paying another Payoneer account.

• 0.5% fee to move funds between your currency balances.

• FX rate: 0.5 - 2% above interbank (0.5% only applies if sending to another Payoneer account).

• 1.8% cross-border fee + 3.5% FX fee.

• $29.95pa for prepaid MasterCard debit cards.

Features and benefits

• Great if the majority of your clients are also Payoneer customers.

• Open accounts in 9 currencies.

• Marketplace integration with Amazon, eBay, Airbnb and more.

• Prepaid cards.

• Invoicing.

• Integration with Xero and Quickbooks.

Limitations

• High domestic and international transaction fees.

• No payment gateway or payment links.

• High card fees. No expense management features.

• No dedicated account manager.

For a full breakdown of Payoneer’s fees, read our Airwallex vs Payoneer comparison article.

Why choose Payoneer?

Like Airwallex, Payoneer is designed with global eCommerce businesses in mind. They offer marketplace integration with leading eCommerce platforms and allow for multi-currency payment collection in eight currencies.

However, unless you’re collecting or receiving money from another Payoneer account, you will be hit with high transaction fees and a steep FX rate of 2% when sending money abroad. for this reason, Payoneer is not the best business bank account for international payments.

Lloyds Bank

Fees

• For a small business GBP account, it's £7 per month after an initial 12 month free period. £24 per year for EUR account and £60 per year for international account.

• Fixed fee £15-£20, depending on location, for international payment via internet banking.

• FX rate: 2.6% above the interbank rate when sending £0 - £25,000, and 2.10% when sending £50,000.

• £1 per £100 transaction fee for cash payments. If over £1,500 a month, £0.90 per £100

• When using a Lloyds corporate debit card, a 2.75% conversion fee is incurred when making a payment in a currency other than GBP plus a transaction fee of 1.5% for international card payments (unless withdrawing EUR from an ATM).

Features and benefits

• Overdraft available.

• Comes linked with debit card.

• Invoicing.

• Cashflow forecasting.

• Receipt tracking.

• Connects to accounting software.

Limitations

• High FX rate and international account fees.

• High conversion fees for non-GBP international corporate card payments.

• No multi-currency account option (separate foreign currency accounts only).

• No option for local international payments (SWIFT and SEPA only).

• Only one debit card per account.

• No payment gateway or payment links.

• No dedicated account manager.

Why choose Lloyds?

Lloyds offers an overdraft, as well as business loans and credit cards. They have recently upgraded their digital offering to include additional benefits such as cashflow forecasting and receipt tracking.

Being a traditional bank, Lloyds’ FX rates are high, and transfer rates will be slower than some providers. Whilst you can open multiple foreign currency accounts with Lloyds, each account you open will come with monthly or annual fees, and you will not be able to manage your funds from a single interface.

Barclays Bank

Fees

• £8 - £8.50 monthly account fee after an initial 12 month free period.

• FX rate: 4.83% above interbank rate.

• 500 domestic payments for free, followed by £0.35 per GBP payment.

• Up to £0.35 transaction fee for SEPA payments. £15 for international payments + £3 for USD Cover Charge if sending USD to accounts outside of the US. Barclays also passes on their correspondent banking partner's fees to either the sender or the recipient.

• 2.75% transaction fee for all non-sterling card transactions.

Features and benefits

• Overdraft available.

• Comes linked with debit card.

• Free invoicing and accounting software from FreshBooks.

Limitations

• High FX rate and account fees.

• No multi-currency account option (separate foreign currency accounts only).

• No option for local international payments (SWIFT and SEPA only).

• Only one debit card per account.

• No payment gateway, payment links or expense management.

• No dedicated account manager.

Why choose Barclays?

Barclays offers free invoicing and accounting software in partnership with FreshBooks. You can also access credit through an overdraft facility, credit card or business loan.

Like all traditional banks, Barclays’ FX rates are high, their transfer rate is slow and they do not offer multi-currency accounts. Unlike some traditional banks, Barclays charges transaction fees for online payments, as well as for cash payments.

HSBC

Fees

• £8 - £10 monthly account fee for domestic business account after an initial 12 month free period.

• £96 - £180 annual fee for international business accounts, depending on small business to corporate plans.

• FX rate: up to 3.5% above interbank rate.

• Free domestic payments. £17 for CHAPS payments via internet banking.

• £17 to make international payments from your account via internet banking.

• 2.75% for international card transactions.

Features and benefits

• Overdraft available.

• Comes linked with a debit card.

• Connects to accounting software.

Limitations

• High FX rate and account fees.

• No multi-currency account option (separate foreign currency accounts only).

• No option for local international payments (SWIFT and SEPA only).

• Only one debit card per account.

• No payment gateway, payment links or expense management.

• No dedicated account manager.

Why choose HSBC?

HSBC offers financial services including overdraft facilities, credit cards and business loans.

HSBC charges high FX fees and international card transaction fees, so may not be the best option for businesses that trade in multiple currencies. HSBC does not offer any additional benefits such as expense management or payment links.

NatWest

Fees

• FX rate: not transparent. Our calculations indicate 2.35% above interbank rate.

• £0.35 for electronic transactions. £0.70 per £100 for in-branch transactions. £21 for international transactions.

• £15 to make international transactions via online banking, except EUR. £1 to collect non-EUR payments below £101, or £7 if above £101.

• 2.75% for international card transactions.

Features and benefits

• Overdraft available.

• Comes linked with a debit card.

• Free invoicing and accounting software from FreeAgent.

• Dedicated relationship manager (turnover and eligibility criteria apply).

Limitations

• High transaction fees and FX fees.

• No multi-currency account option (separate foreign currency accounts only).

• No option for local international payments (SWIFT and SEPA only).

• No payment gateway, payment links or expense management software.

• Only one debit card per account.

Why choose NatWest?

NatWest offers free invoicing and accounting software though FreeAgent, and a dedicated relationship manager to businesses that meet their turnover criteria. They also offer credit options, including overdraft facilities and business loans.

NatWest are not transparent about their FX rate, and they charge steep transaction fees for sending a receiving money, as well as high international card transaction fees. Like most traditional banks, they do not offer multi-currency accounts. For this reason, they are not the best option for businesses that trade across borders.

Do I need a business account?

Limited companies in the UK are legally required to have their own business account because they are a separate legal entity with their own financial obligations. 

Sole traders and freelancers can manage their finances from a personal bank account, but many choose not to because manually separating business expenses from personal ones can make tax assessment a headache. 

Business accounts also offer benefits that personal accounts do not. These include:

• Higher daily spend limits, which are useful when you need to purchase equipment or pay suppliers.

• The ability to accept credit and debit card payments from customers. 

• The chance to build up a good credit rating for your business. 

• Greater access to loans and credit, including government-backed loan schemes such as the Recovery Loan scheme (RLs), standard business loans, and credit cards.

What do I need to set up a business account?

Setting up a business account is now easier than ever. Gone are the days when you had to go in-person to a bank branch, most providers will allow you to do everything online. 

All business account providers will ask for some documentation before setting up your account. This is so they can check that you are who you say you are. 

Sole traders will be asked to provide:

• Proof of identity, such as a picture of your passport or driving license. 

• Proof of address, such as a bill or bank statement. 

Limited companies will be asked to provide:

• Proof of identity for all company directors. 

• Certificate of incorporation.

• Memorandum and articles of association. 

Once you’ve submitted your documentation, your provider will look it over and assess your eligibility before setting up your account. This process should take no more than a week. 

5 things to consider if you’re a small business opening a business account

Small businesses may have additional considerations. Finding a business account built specifically for small businesses in the UK can be challenging, but there are a few key criteria to look for in your search.

Fees

Yet again - the first thing to look at is fees! Small business accounts should have low or no monthly fees and should not charge penalties for not achieving minimum deposit thresholds. When cash flow is tight, every pound counts and so this flexibility will enable your business to continue to use capital where it's needed most.

While you’re evaluating fees, it’s also worth looking at overall value. It may be worth paying a little bit more for one centralised product or service, rather than several smaller fees for many. This could help you save money overall, and will also likely save you precious time - while avoiding frustrating tasks like manual data transfer.

Scalability

It's also critical to find a small business account that will grow with you. As your business grows, so do your payment needs and their complexity.

By opening a small business account that has features like international payments, online payment processing and card creation from day one, you save yourself countless hours of having to switch in a year or two when you've outgrown your current provider.

Products and services designed for small businesses

Different providers may have valuable products or services which can help you boost efficiencies or streamline your financial operations. For example, Airwallex offers expense management and employee reimbursements.

Visibility and transparency

When you’re running a small business – or any business – money is moving everywhere. Supplier and vendor payments, subscriptions, customer transactions, bills, employee expenses… The list goes on.

As we mentioned before, you know that every pound is critical. Founders should keep an eagle eye over their money movements, so a birds-eye, real-time view of money movement is absolutely essential.

What are the common financial operations challenges for growing companies?

When you’re looking at providers, it can be helpful to think about future hurdles and opportunities, as well as challenges that you’re currently facing.

Some of the top financial operations challenges small businesses encounter generally include;

• Making and taking online payments; Spending online and accepting digital payments efficiently is likely to be pretty important for your business as it grows. Circulating bank details to customers, taking credit card payments over the phone or using clunky payment providers with limited capabilities… This can create a frustrating customer experience and cost you and your team hours each week.

• Costly conversion fees; Massive conversion fees can be a nasty surprise that most businesses encounter. Sometimes you can even be hit with multiple conversions when dealing with merchant fees. Ouch!

• Misplaced or mismanaged bills; Bills can be tricky - pay them late, and you risk being hit with hefty fees. Misplace them, and could create an administrative disaster for yourself when it’s time for reconciliation. Multiple approvals of bills can create even more chaos if you don’t have the right workflows set up properly. Creating a solid system for your bill payments can save you a lot of trouble.

• Manual data entry between admin software; Data entry is one of the biggest bugbears for any professional – it’s time consuming and can lead to human error, which could cause stress for your team. Plus, moving data around manually is often risky when it comes to security. You want to look out for opportunities to integrate your programmes, so that your financial data can easily move between platforms, and through as few hands as possible.

Why open a business account with Airwallex?

Airwallex can help small businesses grow rapidly. Why do our SME customers love us? Here’s just a few reasons why.

1. We help companies easily access a global market and suppliers

Accessing global suppliers easily can bolster a local business, while taking your business to the world can lead to untapped growth opportunities. However, doing either of these things can trigger lots of questions for small business owners;

• How can you pay local suppliers and vendors to support global production and logistics?

• Do you need local bank accounts to accept and make international payments?

• How can you optimise your customer experience so that they can pay in their local currency and preferred payment method?

• Is it worth selling your product or service globally when you’re being hit with foreign exchange and conversion fees, over and over again?

Airwallex can help solve these problems, making international expansion more accessible than ever before.

2. Forget opening local bank accounts

Skip the excessive paperwork and open your Airwallex Global Account online in minutes. Collect payments from global customers in their preferred currency and spend your proceeds later in the same currency. Better yet, you can get started with a Global Account for free, and it only takes a few minutes to sign up.

3. Skip conversion fees and costly foreign exchange (FX) rates

With our FX and Transfers features you can access market-leading FX rates no matter the transaction size and rapidly pay suppliers in 150+ countries and regions and 45+ currencies.

4. Take payments from popular international providers

Accept Payments from customers around the world through over 160+ payment methods, including Apple Pay, Google Pay, WeChat Pay and Alipay.

We’ve helped businesses around the UK scale to new destinations with our incredible FX infrastructure. Together, we’re taking amazing British ideas to the world.

Airwallex business account benefits

Fees

Setting up a business account with Airwallex is free. There are no monthly account fees, set up fees, transaction fees or card fees. 

The only cost to you is a small FX margin of 0.5% for Euro, USD, AUD, HKD, CNY, JPY, CAD, CHF, NZD, SGD and 1% for other currencies. 

Our FX margin is 80% cheaper than high street banks, making Airwallex a great option for companies that send and receive money abroad.  

Features 

• Multi-currency account: Open accounts in 23 currencies (including USD, GBP, EUR, AUD and CNY) free of charge. 

• Bank-beating FX rates: Pay just 0.5 - 1% for currency exchange. That’s 80% cheaper than high street banks.

• Transfers: Bypass the SWIFT network for fast, free international payments.

• Borderless Cards: Spend globally in multiple currencies with 0% transaction fees. Reward each of your employees with their own card and empower them to spend independently.

• Expenses: Upload and approve receipts in a click, set limits on a card level, and track spending in real-time.     

• Payment Links: Collect payments from customers in a click with unique Payment Links. Airwallex rates 

• Online payments: Connect Airwallex to your Shopify, Magento or WooCommerce store for cheaper multi-currency settlement.

• Bill Pay: Upload, approve, pay, and reconcile your domestic and international bills all in the same place.

• Integrates with Xero and Netsuite for easy bookkeeping. 

• Secure and protected: Airwallex is regulated by the Financial Conduct Authority (FCA) and holds an Electronic Money Institution (EMI) licence.  

What do British businesses say about Airwallex’s Business Accounts?

We’ve spoken to a number of our customers across industries to learn how they have used Airwallex Business Accounts to streamline their financial operations. Here’s just a few excerpts from our portfolio of success stories.

Conductr

Jos Van der Steen, Co-founder and COO at Conductr, a business that specialises in building attractions and experiences, struggled with the expensive pain of growing internationally.

“We tried Payoneer and Wise, but the interfaces were clunky and it's not easy to do anything. Airwallex is very easy and very convenient for us. A major benefit of Airwallex is how easy it is to open accounts in different countries - now we can pay suppliers quicker. It’s invaluable having a live conversion of all our accounts into a GBP value, so I get an immediate snapshot of our finances. Using Airwallex has saved us over £100,000 in fees in less than a year. It's been eye-opening how much we’ve saved by using Airwallex instead of our traditional bank.” - Jos Van der Steen, Co-founder and COO, Conductr.

Read Conductr's story.

Perspective Pictures

Video production agency, Perspective Pictures, frequently travels the world filming for impressive clients. Making international payments for sets, equipment and teams was a problem Rupert Rixon, Managing Director, simply did not need.

“Genuinely, Airwallex has saved us so much time, money, and hassle. Previously there would always be this anxiety when we were doing these big shoots or having to work with lots of remote teams and pay them and I would be constantly worried that we would have our bank account locked.” - Rupert Rixon, Managing Director, Perspective Pictures.

Read Perspective Pictures' story.

Olsam

Olsam buys small Amazon companies and grows them into eCommerce brands. With growth, they needed a better way to manage the global financial operations of their portfolio.

“The customer service and the responsiveness of Airwallex is a massive reason why we’ve chosen to work with you. We’re having to set up new accounts all the time, if we hit roadblocks we know we can email or call, and we’ll have a timely response. If you’re looking for a scalable and slick onboarding and set up process for each acquisition, Airwallex is fantastic. It also provides a great interface for viewing a consolidated list of seller centrals and Amazon stores in a nice dashboard. The design is very helpful for businesses like us.” - Sam Horbye, Co-Founder, Olsam.

“Airwallex allows us to switch between multiple business accounts with one log in, allowing easier management of multiple subsidiaries. And being able to integrate with Xero is really beneficial.” - Martyn Firth, Finance Director, Olsam.

Read Olsam's story.

If you’re interested in setting up a free Airwallex business account, sign up today or click below to watch a 3-minute demo.

Related article: How to switch your business bank account in the UK