Top 8 business bank accounts in the UK (2026)

Key takeaways

• UK businesses choosing the best business bank account face a choice between traditional banks and modern fintech alternatives. Traditional banks offer stability but often restrict global growth with high FX costs.

• Smart businesses prioritise scalability over immediate fees when selecting accounts. Look for transparent FX margins, multi-currency support, and software integration.

• Airwallex provides the essential financial platform for global UK businesses. We offer an all-in-one solution with local accounts in over 60 countries, market-leading FX, and comprehensive business tools.

You could be a founder looking to grow your business or part of an established company that's looking for efficiency at scale. Either way, your business account is a key part of your business' operations and can be more than just a place to keep your money.

It's important that you do your research, comparing the best accounts on the market and choosing the right option for your needs.

In this article, we'll compare the best business bank accounts and alternatives on important measures. We'll also explain some of the nuances to consider and the thought processes to adopt if you want to make a good choice for today and the future.

What is a business bank account?

A business bank account is a specialized financial account opened in a company's name rather than an individual's, designed specifically for business transactions and financial management. Business bank accounts provide legal separation between personal and business finances, essential for proper accounting and regulatory compliance.

Separate business accounts provide legal protection, ease of administration, and business-specific benefits. They're designed to give business owners the support and products and functionality they need to manage their finances.

Why your business needs a dedicated account

Whether you're a registered limited company or a sole trader, separating your business and personal finances is a critical step. A dedicated business account is not just a regulatory requirement for some; it's the foundation for professional financial management.

Legal and professional separation

For limited companies in the UK, having a separate business account is a legal requirement. It establishes the business as a distinct legal entity. For sole traders, while not legally mandated, a dedicated account offers significant benefits:

• Simplified accounting:

  Easily track income and expenses without mixing them with personal transactions, making tax time straightforward.

• Professional image:

  Paying suppliers and receiving payments through a business-named account enhances your company's credibility.

• Clear financial visibility:

  Get an accurate, real-time view of your business's cash flow and financial health.

Do I need a business account in the UK?

Limited companies in the UK are legally required to have their own business account. As a unique legal entity, businesses have their own financial obligations and records to maintain.

Sole traders and freelancers can manage their finances from a personal current account, but many choose not to. Manually separating business expenses from personal ones isn't a good or fun way to spend time when the tax year ends.

The good news is that business owners have more options than ever for their accounts. New banking licenses have been booming in the last 15 years or so, along with the introduction of e-Money institutions. 'Business accounts', which are functionally very similar to banks' current accounts, have made the market far more competitive.

How to choose the right business account for your needs

Selecting the right account goes beyond comparing monthly fees. Your choice should support your operations today and scale with your ambitions for tomorrow. Consider these key areas to find the best fit for your business.

Assess your transaction profile

• Domestic vs. International:

  Does your business operate only in the UK, or do you pay overseas suppliers and receive payments from global customers? This will determine if you need strong multi-currency and foreign exchange (FX) capabilities.

• Volume and frequency:

  Are you processing a high volume of low-value payments, or fewer, larger transactions? Look for a fee structure that aligns with your payment patterns.

Evaluate for global growth

If you have international ambitions, prioritise features that eliminate cross-border friction:

• Multi-currency support:

  Can you hold, receive, and pay out funds in multiple currencies without forced, costly conversions?

• FX rates:

  Does the provider offer access to competitive, interbank exchange rates, or do they add significant markups?

• Local payment rails:

  Can you pay and get paid like a local in key markets to reduce fees and speed up settlement times?

A quick look at the top 8 business bank account and alternative providers in the UK

Airwallex

Airwallex stands out as a powerful alternative to traditional business banking, especially for UK businesses that operate on a global scale. With an Airwallex business account, you can manage your international finances seamlessly including multi-currency accounts, international payments, and Corporate Cards.

This can make it an excellent choice for businesses looking to scale their financial operations without the constraints of a traditional bank. Airwallex is authorised as an eMoney Institution and regulated by the Financial Conduct Authority and hold 60+ licences worldwide.

Wise

Offers cross-border and -currency business accounts for easy and transparent money management, with real-time exchange rates and low fees.

Payoneer

Specialises in cross-border payments, offering business accounts that facilitate global transactions, with capabilities for mass payouts and receiving funds from international marketplaces.

Revolut

Provides paid-for business accounts with features like multi-currency wallets, corporate debit cards, and expense management tools. Straddles the line between eMoney Institution and bank, as it's awaiting its full UK bank licence.

Starling

Known for its mobile-based business banking, Starling offers straightforward accounts with no monthly fees, integrations with popular accounting software, and savings spaces to separate your balance.

HSBC

The largest UK bank, when ranked by global assets. With a strong presence in Asia, they offer a wide range of business banking solutions, including current accounts, business savings accounts, loans, and trade finance services.

Barclays

One of the oldest banks in the UK, offering business banking services including accounts, loans, and merchant services. Known for tailored solutions for businesses of varying sizes and sectors.

Lloyds Bank

Provides a variety of business banking products, including accounts, loans, and payment services, with a focus on UK-based SMEs.

NatWest

Offers business banking services, including accounts, funding options, and sector-specific financial advice, primarily serving UK businesses. The wider group also operates the Royal Bank of Scotland and Ulster Bank.

The top features to look for in business bank accounts and alternatives

Finding the best business account depends on your specific needs. A global business has different requirements than a UK startup just hitting the VAT threshold.

Essential features to evaluate include:

• Fees:

  Understand the full pricing structure and how it aligns with your business model.

• Speed:

  Quick account setup prevents operational disruption during transitions.

• Scalability:

  Ensure the account can grow with your business's volume and complexity.

• Business-specific features:

  Look for purpose-built tools rather than rebadged personal accounts.

• Integration:

  Seamless connection with accounting software eliminates manual work.

Compare the 8 top business bank account & non-bank business accounts 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.

*Margin in addition to the interbank rate.

Sources last updated: Q2 2025. We have compared Airwallex's pricing structure with standard pricing published by competitors.

What's the difference between a business account and a business bank account?

A business bank account is provided by a financial institution with a banking license. A business account is provided by an e-Money or other non-bank financial institution.

Both are legitimate and trustworthy ways to store and spend your business' funds, but there are some differences to be aware of – which we explain in the table below.

The importance of choosing the right business account

When business owners start looking for a new bank account, they tend to prioritise one of two things:

• Which one has the cheapest transaction fees

• Which one offers the highest interest rates or cashback

These are important to consider, but they can lead to problems in the future. The right account doesn't just offer financial incentives, it also provides features that your business needs to improve margins, scale up, and reach the next level.

For example, if your business has suppliers in five different countries, a cheap account fee or high-interest business savings account won't make up for expensive international transfers. The real value of a business account would be its like-for-like settlement or mid-market FX rates.

Choosing an account that aligns with the nature of your business and its operations will reward you long into the future.

How do I open a business bank account?

Most providers now offer online account opening processes in 2026. Traditional banks may still require branch visits, but modern alternatives typically approve applications within hours.

Required documents vary by business structure:

Sole traders need:

• Proof of identity (passport or driving licence)

• Proof of address (recent bill or statement)

Limited companies need:

• Director identification for all company officers

• Certificate of incorporation

• Memorandum and articles of association

Processing times vary significantly. e-Money institutions often approve accounts same-day, while traditional banks may take weeks or months due to legacy systems.

Why choose Airwallex for your business financial operations?

We won't take up too much of your time with this, but we want to share five quick reasons why businesses are choosing to grow with Airwallex:

• Make the world feel local – No need for arduous paperwork or costly FX, an Airwallex global account lets you open domestic and foreign accounts in over 60 countries, so you can collect payments from customers around the world in their local currency (130+ currencies, in fact). Then, you can convert it as needed in the future or pay bills in that same currency.

• Let customers pay their way – You can accept over 160 payment methods, so your customers feel at home with you the world over.

• Market-leading FX – The minute your supply chains and customer base extend beyond your home borders, costs start to rise. Airwallex offers some of the most competitive FX rates – or you can skip exchange entirely, with like-for-like settlement in over a dozen currencies.

• The global financial OS – As well as providing all the financial services a global business needs (including global payouts, spend management, and payment acceptance), we also offer integrations with ecommerce platforms and accounting software.

• It's in your hands – We've built Airwallex to be flexible, customisable, and adaptable. Your dev team can use our APIs to create incredible and unique experiences for your brand.

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.

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.

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.

Read Olsam's story.

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

FAQs

How should you compare business bank accounts?

To move your business forward, you need to compare accounts based on more than just basic fees.

Start by defining your core needs: is seamless accounting integration with your chosen software non-negotiable? If you're building a global business, you must scrutinise the quality of FX rates and demand true multi-currency functionality, not just a costly conversion service.

Finally, look at the bank's capability to offer future growth, including transparent credit access, digital support, and the essential security that keeps your global operations protected.

What bank is best for a small business account in the UK?

When UK small businesses look for the "best bank," they often consider high-street names like Barclays, HSBC, or digital-first banks like Starling. These are excellent choices for domestic banking, in-person services, or applying for business loans.

However, for businesses that operate internationally – paying overseas suppliers, selling to foreign customers, or managing different currencies – the financial solution might not be a traditional bank at all.

This is where an Airwallex Business Account excels. While Airwallex is not a bank, it is a financial technology platform (regulated by the Financial Conduct Authority) that offers a powerful alternative designed for global commerce. For a transparent monthly fee, our account gives UK businesses the tools to operate globally with greater efficiency, including:

• Multi-currency capabilities to hold and pay funds in over 20 currencies.

• Local account details for the UK, US, Europe, and more, so you can get paid like a local business.

• Access to competitive FX rates that can significantly reduce the cost of international transfers, often saving you far more than the fees charged by traditional banks.

What is the best business account for a small business in the UK?

For globally-minded small businesses, Airwallex's financial platform offers Global Accounts with local details in 20+ currencies, competitive FX rates, and zero international card fees.

Sources and references

For more information on Airwallex pricing, please visit our pricing page.

1. https://wise.com/gb/pricing/business/hold-fees?sourceAmount=1000&sourceCurrency=GBP&targetCurrency=EUR&track=false

2. https://www.revolut.com/business/currency-exchange/#What%20are%20the%20exchange%20fees/

3. https://www.starlingbank.com/business-account/multi-currency/

4. https://www.payoneer.com/about/pricing/

5. https://www.disruptionbanking.com/2024/01/19/wise-demands-banks-reveal-fx-markups-as-hidden-fees-lead-frustrated-brits-to-lose-faith-in-banks/#:~:text=As%20of%20December%20to%20January,charges%20a%20hidden%20fee

6. https://rutlandfx.com/barclays-exchange-rate/#:~:text=Barclays%20Bank%20charges%20a%20%C2%A325,FX%20price%20plan%2C%20which%20is

7. https://www.lloydsbank.com/business/fx-margins.html

8. https://www.natwest.com/business/support-centre/making-and-accepting-payments/electronic-payments/international-transfers/fx-currency-calculator.html#making-international-payments

Disclaimer: We updated this article in Q3 2025. The information was based on our own online research and we were not able to manually test each tool or provider. The information is provided for educational purposes only and a reader should consider the specific requirements of their business when evaluating providers. If you would like to request an update, feel free to contact us at [email protected].