When starting a new business, one of the first things on your to-do list needs to be to open a bank account so you can start to pay invoices out of your new business bank account (and keep these finances separate) and also have some bank details to give out to your new customers.

Below we break down what to expect in the first few months, which providers commonly give the best offers and which accounts are the easiest to open.

What To Look Out For In A New Business Banking Account

Initial and ongoing fees – does the account have monthly maintenance charges, per-transaction fees, card charges, and international transfer costs?

Allowances – is there a limit to the number of bank transfers you can do? Do you get a free card?  Does the bank integrate into bookkeeping solutions? Are there any initial sign-up bonuses or company formation credits?

Ease of set-up – does the account offer fully online ‘app-based’ verification or do you need to go into branch to perform identity checks?  How long does it take to set the account up?

Service & support – Is there 24/7 in-app chat or do you need to wait on hold on the phone? What are Trustpilot and industry reviews like?

Safety & regulation – Is the bank covered by FSCS protection limits and other business banking protections? Are there any recent regulatory actions you should know about?

Upside options – Does the account offer integrated invoicing, accounting exports, multi-currency accounts, lending options etc?

Launching Pad Recommends:

1. Mettle – our top pick!

• The Mettle account is a free-business-banking offer by NatWest, aimed at sole traders & limited companies with up to two owners. There are no monthly fees for the basic account and it is set up via an app on your phone – very simple to do! Applicants must be UK resident, UK business and able to use a mobile device.
• Mettle also includes a licence for FreeAgent accounting software (which is the best accounting software we have trialled to date!) if you make at least 1 transaction a month via Mettle. As a further bonus, signing up with FreeAgent (for free!) also gives you 20% off insurance at Hiscox for both new and existing customers.
• Service & limitations: Making international payments and depositing cheques may be limited.  There is no branch to pop in to so this account wouldn’t be suitable for those who like to go into the bank and chat to a real person.  They also do not offer a switching scheme, so you will manually have to change Direct Debit payments should you already have a business bank account.  However, the lack of monthly charges plus the free accounting software and cheaper business insurance make it a winner in our eyes!

2. The Co-operative Bank (with FSB membership)

• If you are a member of the Federation of Small Businesses (FSB) the Co-operative Bank offers a free business current account. It comes with free basic transactions, cheque deposits and cash deposits up to £1,000 per charging period.
• Service & reviews: These are mixed. On Trustpilot the bank scores 4.2/5 for business banking based on 9,900 reviews. But the mobile app business side has a very low score (1.4/5 on App Store). The app is fiddly to use but works well once you’ve got your head around the logging in.
• Setup: Being a traditional bank, there may be more paperwork than the no-branch challengers.
• This account is a good option if you are already an FSB member or plan to join, and you value branch access or more traditional banking. But consider the weaker app experience and reviews carefully.

3. Starling

• Starling is a challenger bank offering a digital business account to UK sole traders and limited companies. There is no monthly fee and no payment charges for the standard business bank account.
• Service & limitations: The app has very good user-experience reviews and the account integrates well with accounting software (Xero/QuickBooks/FreeAgent). But there are limitations for example for international/multi-currency use the offering is more limited (EUR/USD accounts for new users may not be available).
• This account is great for UK startups needing strong digital user experience, has no charges and is easy to setup. If you plan to trade with international companies, you should check carefully before signing up.

4. Tide

• Tide offers a digital business account for UK small businesses. The account is free to set up but transaction fees do apply to some transfers and there are some limitations. Online reviews suggest this account is fast to setup and Tide offer the Current Account Switching Service so all your Direct Debits will be transferred with you. they are currently offering £50 cashback if you use this link They also offer cashback and discounts from lots of companies including food, broadband suppliers etc. There’s no contract and no monthly fees so if it doesn’t work out you can easily change your account.
• Setup and use: Tide is excellent for very simple UK operations, especially solo businesses, freelancers, startups just getting going. It is less suitable if you need branches, full banking services, or many cash/cheque capabilities.
• Tide provides a good business bank account as long as you are comfortable with digital-only, and the free £50 and regular discounts are a great incentive!

To Summarise…

• If you are a sole trader or very small limited company, UK-based, minimal international business, and want minimal cost and free accounting software: Mettle is a very strong pick.
• If you already have FSB membership or plan to join, and you prefer a more “traditional” bank with branch access, the Co-operative Bank’s FSB offering may work.
• If you value excellent digital experience, flexible operations, strong integrations and zero monthly fee: go with Starling.
• If you just need a quick, digital-only account to separate business finances and you don’t mind a few limitations: Tide is a good alternative.

If you would like to chat through any of the above, or have any general questions about your new business please do get in touch!

Disclaimer:
The information provided on this website, including any guidance relating to bank accounts, card payment systems, insurance, or other financial and business matters, is offered for general informational purposes only. While efforts are made to ensure accuracy at the time of publication, financial products, regulatory requirements, and provider terms can change without notice.

This content does not constitute financial, legal, or professional advice, and should not be relied upon as a sole basis for making decisions. We make no representations or warranties—express or implied—regarding the completeness, accuracy, reliability, or suitability of the information provided.

Users should verify all details directly with relevant banks, payment providers, insurers, or appropriately qualified professionals before acting on any information contained on this site. We accept no liability for any loss, damage, or consequences arising from reliance on the information provided.