What matters in an online business bank account
UK business banking has moved well beyond the local branch. Many owners now open an account before they have a shop or office. Sole traders and limited companies can apply through an app, upload identity documents and receive account details quickly. The appeal is not just speed. It is control: seeing payments as they arrive, issuing cards to staff, and connecting the account to accounting software.
But an online business bank account UK search returns a long list, and the right choice depends on how your business actually moves money. Monthly fees, UK transfer charges, cash deposit costs, foreign exchange margins and accounting integration all change the total cost. A no monthly fee account can still cost more if you handle cash or pay overseas suppliers regularly.
Deposit protection is a big dividing line. Eligible deposits in a UK bank are covered by the Financial Services Compensation Scheme up to the current limit. Some app-based providers are banks; others are e-money institutions with different arrangements. Check the small print before moving your main operating balance.
Compare the main options
| Provider | Monthly cost | Best for | Protection and access | Watch-outs |
|---|
| Starling | No monthly fee; no UK payment charges | All-round business banking with straightforward UK transfers | UK bank; FSCS protection for eligible deposits; app and web | Cash deposit fees; some bookkeeping tools cost extra |
| Tide | Entry plan has no monthly fee; paid plans charge monthly | Sole traders and small limited companies needing invoicing and expense tools | FSCS protection through a partner bank; app and web | Foreign exchange and cash handling costs can add up; plan limits vary |
| Monzo Business | Entry plan has no monthly fee; paid tiers add features | Simple app banking, card controls and director access | UK bank; FSCS protection for eligible deposits; app and web | Cash deposit limits and charges; fewer lending options |
| Revolut Business | Plans from £10 a month | International payments, multi-currency holding and team cards | UK bank licence; FSCS protection for eligible deposits; app and web | Plan allowances and fair usage rules; support is mainly app-first |
| Mettle | No monthly fee | Straightforward banking with NatWest backing | NatWest-backed; FSCS protection for eligible deposits; app | Fewer international features; not ideal for complex trade finance |
Published rates and features change, so confirm the current terms with each provider before you apply.
Which account fits your business
Sole trader or freelancer
If you mainly receive UK client payments and pay a few subscriptions, an online business bank account for sole traders with no monthly fee and low UK transfer charges is usually enough. Starling and Mettle are common starting points. Tide can be more useful when invoicing, receipt capture and expense tracking matter more than cash handling. Watch the cost of cash deposits and foreign card payments. A freelancer who takes occasional overseas work may still prefer a multi-currency account, especially if clients pay in euros or dollars.
Limited company with employees
A limited company needs clear director access, user permissions, bulk payments and accounting integration. Starling and Monzo Business both offer app controls and multi-director access. Revolut Business is stronger for team cards and spending rules. Check whether the account supports the number of directors and cardholders you need. Also check whether it exports to Xero, QuickBooks, FreeAgent or Sage without manual reformatting.
Importer, exporter or contractor paid in foreign currency
For regular international payments, the exchange rate and transfer fee matter more than the monthly fee. Revolut Business is built around multi-currency holding and transfers, with plans starting from £10 a month. Tide and Starling can handle international payments, but the cost structure may suit lower volumes better. Compare the all-in cost: monthly plan, transfer fee, exchange rate margin and receiving fee. A small difference in the exchange rate can outweigh a lower monthly charge.
Cash-heavy business
If you run a market stall, takeaway or salon, cash deposits are part of daily life. Many app-first accounts allow cash deposits through the Post Office or a partner network, but charge a percentage or a flat fee. Starling, Monzo and Tide all have limits or charges that matter at volume. A traditional bank may be better if you deposit cash several times a week and need a local branch. Do not choose an online account only because the monthly fee is low. Model the cash deposit cost first.
Open, switch and avoid the common traps
Before applying, gather your business details: company number if you have one, proof of address, ID for directors, and an estimate of monthly transactions. Most applications take minutes, but verification can take longer if your business is new or has complex ownership.
Use the Current Account Switch Service if you already bank elsewhere. It moves Direct Debits, standing orders and payees, and redirects incoming payments for a set period. Keep the old account open until the switch completes and check that HMRC, payroll and regular suppliers have the new details.
Read the fee schedule, not just the headline monthly price. Look for UK transfer charges, cash deposit fees, card replacement fees, foreign exchange margins, chargeback fees and charges for extra users. Check fair usage limits on international transfers. If you need an overdraft or business loan, ask early. Many app-based accounts are not a full replacement for a relationship bank.
Test support before you commit. Ask how to reach a human, what happens if a payment is blocked, and how long cash deposits take to clear. A useful account is one you can reach when something goes wrong.
Before you apply
Write down your last three months of transactions. Count UK transfers, cash deposits, card payments, international payments and the number of people who need access. Then compare two or three providers against that list, not against a generic ranking.
Check the deposit protection position, the accounting integration and the total monthly cost. If the numbers are close, choose the provider with clearer support and a simpler switch process.
Pick two accounts to compare this week. Request the full fee schedule, run your transaction counts through it, and apply for the one that leaves the least friction in your actual cash flow.
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