Compare the top business bank accounts in the UK: 2025

By David Beach•Updated on 6 June 2025•Published on 1 July 2024•5 minutes

Business tipsFinance

Compare the top business bank accounts in the UK: 2025

In this article

•
What is a business bank account?
•
Alternatives to a Business Bank Account
•
Do I need a business account in the UK?
•
A quick look at the top 8 business bank account and alternative providers in the UK
•
The top features to look for in business bank accounts and alternatives
•
Compare the 8 top business bank account & non-bank business accounts in the UK
•
What’s the difference between a business account and a business bank account?
•
The importance of choosing the right business account
•
How do I open a business bank account?
•
Why open a business account with Airwallex?
•
What do British businesses say about Airwallex’s Business Accounts?

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

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.

Alternatives 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.

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.

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

Airwallex

Your global financial operating system. Airwallex’s business account lets you manage, hold, and move funds globally at remarkably low costs. Our features and tools make it easier, cheaper and more efficient to do business around the world.

Wise

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

Payoneer

Specializes 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 e-Money institution and bank, as it’s awaiting its full UK bank license.

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 is a personal thing. A global business operating in dozens in countries has very different needs to a UK startup that’s waiting to hit the VAT threshold.

Despite this, there are some things to assess no matter what your business looks like:

Fees: Make sure you understand the pricing structure and how it works with the way you do business. (e.g. Free cash deposits for businesses that take a lot of cash payments or low transaction fees for high-volume businesses.)
Speed: How quickly and easily can you get set-up with the account? A long wait or awkward downtime could disrupt your operations.
Scalability and future-proofing: An account might be good for today, but can it grow with your business? Your financial needs – both in terms of volume and complexity – will grow with your business.
Built for businesses: Some accounts are little more than rebadged personal accounts. The best accounts are specially built to deliver value for businesses, with specific features and services that only a business would need.
Visibility and transparency: As well as being easy to navigate and understand, you really want your business account to integrate with your other financial systems (including accounting software). Otherwise, you’ll be forced to do a lot of frustrating manual work.

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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.

	Multi-currency account	Expense management	Account fees	0% transaction fees	FX rate (in addition to interbank)	0% international card fees	Dedicated account manager
Airwallex	✅ 23+ currencies	✅	From £19p/m	✅	0.5-1%	✅	✅ for eligible accounts
Wise	✅ 22 currencies	✅	£45 one-time fee	❌	0% + fees between 0.33% and 3.13%¹	✅ if under two withdrawals or £200p/m	❌
Revolut	✅ 33 currencies	✅	From £10-£90 p/m	Within plan allowance	Within plan allowance 0% up to plan limit, 0.6% above²
Starling	EUR, USD and GBP only (not currently accepting new EUR or USD applications)	❌	Free, with optional extras including EUR (£2p/m), USD (£5p/m) and Business Toolkit (£7p/m)	❌	0.4% + £2p/m or £5p/m³	✅	❌
Payoneer	✅ 10 currencies	❌	$29.95p/a, other costs unclear	❌	0.5-2%⁴	❌	❌
HSBC	❌	❌	£10p/m after 12 months	❌	~3.7%⁵	❌	❌
Barclays	❌	❌	£8.50p/ after 12 months	❌	~ 2.75% + £25 fee⁶	❌	❌
Lloyds Bank	❌ Three currencies	❌	£8.50p/m after 12 months £24p/a for EUR, £60p/a for USD	❌	0.85%- 2.6%⁷	❌	❌
NatWest	❌	❌	✅	❌	2.5%-3.5%⁸	❌	✅ (based on annual turnover and eligibility)

*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.

	Business bank account	Business account
Hold funds and make and receive payments	✅	✅
Primary legislation	The Financial Services and Markets Act 2023 and Financial Services (Banking Reform) Act 2013	Electronic Money Regulations 2011
Authorised by the Financial Conduct Authority	✅	✅
Authorised by the Prudential Regulation Authority	✅	❌
Money protection	Up to £85,000 for sole holders or £170,000 for joint holders	Customer funds are safeguarded separately in ringfenced accounts with no upward limit in compliance with rules set out by the Financial Conduct Authority.
Use customer deposits for lending and investments	✅	❌
Have a banking licence	✅	❌
Offer overdrafts and loans	✅	❌

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?

While a few of the big banks might still need to see you in-person at one of their branches, almost all providers have online processes in 2025. No matter who they are and who you are, you’ll need to share some documents to set up your account.

Sole traders will need to provide:

Proof of identity, such as a picture of your passport or driving licence.
Proof of address, such as a bill or bank statement.

Limited companies will need to provide:

Proof of identity for all company directors.
Certificate of incorporation.
Memorandum and articles of association.

Once you’ve submitted your application, your provider will assess your eligibility and (hopefully) create your account. e-Money institutions regularly approve accounts on the day of application. Some of the traditional banks can take weeks or even months. Again, this is down to the legacy systems and processes at the big banks.

Why open a business account with Airwallex?

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.

“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.

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.

Sources and reference

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

https://wise.com/gb/pricing/business/hold-fees?sourceAmount=1000&sourceCurrency=GBP&targetCurrency=EUR&track=false
https://www.revolut.com/business/currency-exchange/#What%20are%20the%20exchange%20fees/
https://www.starlingbank.com/business-account/multi-currency/
https://www.payoneer.com/about/pricing/
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
https://rutlandfx.com/barclays-exchange-rate/#:~:text=Barclays%20Bank%20charges%20a%20%C2%A325,FX%20price%20plan%2C%20which%20is
https://www.lloydsbank.com/business/fx-margins.html
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 Q2 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].

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