If you run a UK company, you need a bank account to keep up with a trade. Nowadays, there are digital bank options that offer bank accounts for businesses.
Business banking requires specific features. Some are essential, while others are luxuries that can make life considerably more comfortable.
Here’s our guide to help you choose a digital bank account for business:
Any UK registered business can open a Monese account. Their business accounts cost £9.95 per month.
For your fee, you’ll get a business account and a Plus current account. Each comes with its own debit card, with spending controlled in-app. You can effortlessly switch between personal and business accounts, quickly transferring funds from one to the other when they’re needed.
Your Monese Mastercard account can be used online and in stores, while cash deposits can be made in over 40,000 UK locations. You can deposit cash at any Post Office or anywhere with PayPoint.
Support is available in 14 different languages. You can set up Direct Debits, and your transactions will automatically be categorized.
Money is ringfenced and covered by FCA regulations, providing state-of-the-art security protection from your business funds.
Another bank account for UK company owners to choose from, Monzo can connect to existing accountancy tools. Link your Monzo business account to Xero or FreeAgent to help you keep track of all of your income and expenditure.
With Monzo, you can give other people some access to the business account. That way, multiple people within your business can keep track of financial transactions.
Monzo’s business banking includes pots for sorting your money. You can set aside your tax, or your bills, with no risk of overspending. You will also get instant push notifications for all of your banking transactions.
You will receive a contactless Mastercard for spending and can set up Direct Debits to leave from your business account.
If you want a business account with Monzo, you’ll have to pay a monthly fee. Monzo is rolling out its business accounts slowly, and their fees are currently sensitive information. However, you can expect to start at around £5 per month while the bank account’s features are minimal. In the future Monzo aims to add extra features like tax calculations and might even pay your tax on your behalf.
Revolut offers what it describes as a ‘business bank account alternative. Instead, you’ll set up as many accounts as you need. All are controlled through the Revolut for Business dashboard.
Unlike with some other digital banks, you’ll have access on laptops and computers. Not every digital bank provides options apart from their app.
Revolut offers accounting tools with automated routines. You can issue business cards to your employees so that they can spend from the company account. This is an option for larger companies, while many other digital banks are more suitable for smaller businesses.
With Revolut, you can manage expenses and integrate with other accounting tools. Connect to FreeAgent or Xero, and see your spending in organized categories.
Revolut’s online software allows you to make bulk payments, including payments to up to 1,000 employees, when it’s time for them to receive their wages.
You can control access to the business account. If multiple members of staff need to see transactions, you can set individual permissions. Like with other digital banks, you can see everything at a glance on your phone from any location.
If you’re a freelancer or have a small business, Revolut for Business is free. As your business grows and your needs change, other subscriptions are available from £25 to £1000 per month.
Starling Bank offers a business bank account without any monthly fees. The account is suitable for freelancers and small business owners, as well as other registered limited companies.
With Starling Bank’s account, you can control your money on your phone or through a web browser. Spending is categorized, and you can automate your accounting by connecting to other software. Starling Bank connects to QuickBooks, Xero, and FreeAgent.
Your free business bank account can include flexible overdraft and instant payment alerts. If you need to deposit cash, this is an option at any UK Post Office branch.
Starling Bank’s business accounts are FSCS protected. You can open an account on your own or with other company directors.
As well as offering a free account, Starling Bank provides a Business Toolkit that is an option for £12 per month. This bookkeeping tool includes invoice creation tools, VAT records, and scheduled payments.