Where UK businesses get stuck
Setting up a limited company takes minutes at Companies House. Finding somewhere sensible to keep the money takes longer. Most people start by searching for an online business bank account UK providers list and end up with a shortlist of app-based banks and e-money firms. Three friction points come up again and again.
The first is eligibility. A free online business bank account for sole traders is easy to find. An online business bank account for limited companies with two directors narrows the field quickly. Mettle works for sole traders and companies with a single owner-director, while Monzo Business and Starling accept most limited companies. Read the criteria before you download anything.
The second is fee creep. The headline monthly price is rarely the whole story. Tide's free plan includes five transfers a month, then 20p each, and cash paid in at the Post Office costs £1 per deposit. Starling charges 0.7% on Post Office cash deposits with a £3 minimum, but sends UK payments free. If you move money twenty times a week, those pennies matter more than the subscription.
The third is protection. A bank licence and an e-money licence are not the same thing. Starling, Monzo, Mettle and Zempler hold full UK banking permissions, so eligible balances sit inside the Financial Services Compensation Scheme, which covers up to £120,000 per eligible depositor, businesses included. Tide accounts are held at ClearBank, also inside the scheme. ANNA, Wise Business and Revolut Business are e-money products: your money is safeguarded in segregated accounts, but not covered by that deposit guarantee.
Priya, a brand designer in Manchester, learned the last point the hard way when a provider froze her balance during a client dispute. She now keeps her main trading balance with a scheme-protected bank and routes euro invoices through a separate currency account. It sounds like extra admin. It took her one afternoon.
The comparison table UK owners keep open
Prices below are entry points advertised by each provider. They shift, and paid tiers add features rather than change the basics, so read the fee page yourself before applying.
| Provider | Monthly cost | Best for | Deposit protection | UK transfers and cash | Watch out for |
|---|
| Starling Bank | £0 | Free everyday banking with built-in invoicing | FSCS, up to £120,000 | Free UK payments; Post Office cash at 0.7%, £3 minimum | No branch network |
| Tide | £0, paid plans from £12.49 | Invoicing and accounting links from day one | Held at ClearBank, FSCS eligible | 5 free transfers, then 20p; £1 per cash deposit | Card and FX charges on the free tier |
| Monzo Business | Lite £0; Pro £9; Team from £25 | Mobile-first owners who want tax pots | FSCS, up to £120,000 | Free UK transfers; cash via PayPoint and Post Office | Accounting links sit on paid plans |
| Mettle | £0 | Sole traders and one-director companies using FreeAgent | FSCS, up to £120,000 | Free UK transfers; limited cash options | One owner only, no partnerships |
| Zempler Bank | Free plan; paid plans around £9 and £19 | Owners who want bookkeeping inside the app | FSCS, up to £120,000 | Free UK transfers; Post Office deposits | Smaller list of integrations |
| ANNA Money | £0 on pay-as-you-go | Tax reminders and expense chasing | E-money safeguarding, not FSCS | Commission on incoming payments | Per-transaction charges add up |
| Wise Business | Essential free; Advanced one-off fee | Invoices and payments in several currencies | Safeguarding, not a bank | Local details in multiple currencies | Not a UK business current account |
| Revolut Business | Plans from around £10 | Teams needing many cards and approvals | Safeguarding, not FSCS | Free allowance, then per-transfer fees | Plan limits change the maths |
The pattern is fairly clear. If you want an account that behaves like a bank account, start with Starling or Monzo. If an online business bank account with invoicing tools and a clean bookkeeping trail matters more than branch-style banking, Tide, Mettle and Zempler are strong there. If most customers pay in euros or dollars, a currency account alongside your main account usually beats forcing one provider to do everything.
Tom runs a two-person engineering consultancy in Bristol. Most of his invoices go to clients in the Netherlands and Ireland. He keeps a Starling account for payroll and UK direct debits, and a Wise Business account for euro receipts, moving money across when the rate suits him rather than when a client pays. His advice: do not let a payment sit in the wrong currency while you shop around for the best app.
What the app should do before you commit
Invoicing that pulls through to Xero, QuickBooks or FreeAgent saves a monthly subscription on its own. A tool that handles Making Tax Digital for Income Tax reporting is worth checking if you are self-employed and above the turnover threshold, since quarterly updates become part of normal life rather than a one-off chore. Receipt capture and VAT tagging matter more than cashback offers. Test the support channel too: a phone line that answers at 4pm on a Friday is worth paying for.
A short checklist before you apply
Run through these five steps in order. They take under an hour and save months of switching later.
Confirm your legal structure first, because it decides which applications will even open. A sole trader has the widest choice. A limited company needs an account that accepts corporate applicants, and multi-director firms need multi-user access.
Map your money for a month. Count incoming payments, outgoing transfers, ATM visits and any cash taken at a market stall or shop. That count, not the marketing page, tells you whether a free tier with per-transfer fees beats a £12 monthly plan.
Check the protection status and the name on the licence. Regulated is not the same as deposit-protected, and the difference only matters on the day something goes wrong.
Apply, then run both accounts side by side for a month before switching. The Current Account Switch Service moves direct debits and standing orders, but you still need to shift payment links, saved payees and payroll details yourself.
Keep records tidy from week one. HMRC expects business records to be kept for at least five years after the filing deadline, and a clean transaction feed makes that job far less painful.
Local help is closer than it looks. Companies House publishes filing deadlines you can check before a bank asks, the Post Office handles cash deposits for several providers, and the Federation of Small Businesses runs practical sessions on record keeping for members. If a dispute with a provider escalates, the Business Banking Resolution Service exists for eligible smaller firms.
One note on timing. Open the account before your first invoice, not after. Applications can be approved within minutes at Monzo and Tide, but a mismatch in your Companies House details, a misspelled trading name or a director with an overseas address can hold things up for weeks. Chasing a client payment into a personal account is a conversation nobody enjoys.
Then recheck the fee page every twelve months. Entry prices move, free tiers gain conditions, and the plan that suited a turnover of £30,000 rarely suits one of £100,000.
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