The business banking landscape has undergone significant changes in recent years, with the rise of digital, online-only accounts. For businesses that prioritize online management and do not require branch access, digital-only providers offer efficient and effective solutions. With the increasing number of options available, choosing the best online-only business bank account can be a daunting task.
To help business owners make informed decisions, NerdWallet has ranked the top online-only UK business bank accounts based on essential criteria such as low monthly fees, easy account access, quick account setup, and the ability to deposit cash and cheques. The list exclusively features providers that are digital-only and do not have branch access.
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Monzo Lite Business Account:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: Free
- Eligibility Criteria: Available to sole traders or directors of registered limited companies based in the UK.
Monzo offers a simple and streamlined online solution for sole traders and limited companies. With a free basic account option and a premium account for £5 per month, Monzo provides affordable business banking services. Account opening is quick, deposits are protected by the Financial Services Compensation Scheme (FSCS), and the bank offers low-cost options compared to competitors.
Pros:
- Free business account available
- Simple transactions are free
- Quick account opening process
Cons:
- Not available for charities or partnerships
- Cash deposits incur a fee
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Starling Business Account:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: Free
- Eligibility Criteria: Limited companies or LLPs registered at Companies House with UK resident directors.
Starling Bank offers a free business account with no monthly fees and free transactions such as direct debits and standing orders. Deposits are protected by the FSCS, and customers have access to 24/7 customer support. Additional features like the Business Toolkit come at a cost of £7 per month.
Pros:
- No monthly fee for standard account
- Free transactions
- 24/7 customer support
Cons:
- Some features require additional payment
- Cash deposits at the Post Office incur a fee
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Allica Bank Business Rewards Account:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: From free
- Offer: Up to 1.5% cashback on card spend
- Eligibility Criteria: UK-based businesses trading for at least 12 months with a minimum balance of £50k.
Allica Bank’s Business Rewards Account targets SMEs, offering interest on savings, cashback on card spend, and FSCS protection. While the account is free with no monthly fees, it does not allow cash or cheque deposits.
Pros:
- Free account with no monthly fee
- Cashback on card spend
- Instant access savings pot with high AER
Cons:
- No cash or cheque deposits
- Limited customer service hours
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Mettle Business Bank Account:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: Free
- Eligibility Criteria: Sole traders or limited companies with up to two owners based in the UK.
Mettle, part of the Natwest Group, offers a free business account with no monthly fees and a highly rated mobile app. While the account is simple and cost-effective, it does not support cheque deposits or international payments.
Pros:
- Free account with no fees
- Highly rated mobile app
- Access to customer support seven days a week
Cons:
- No cheque deposits
- Limited international payment options
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Zempler Bank (formerly Cashplus) Business Go Account:
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: 3 free per month, then 30p each
- Eligibility Criteria: UK registered companies or UK-based sole traders with UK resident directors.
Zempler Bank offers business accounts with no monthly fees and the potential for overdrafts and credit facilities. While the account does not require a credit check, it lacks 24/7 customer service and international payment capabilities.
Pros:
- No monthly fees
- Potential access to overdrafts and credit facilities
- Same-day account opening for most customers
Cons:
- Limited customer service hours
- No international payment options
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Tide Business Account – Free:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: 20p each
- Offer: £200 Cashback when opening a Tide business account and Savings account
- Eligibility Criteria: Registered business account or UK-based sole trader/freelancer aged 18+.
Tide offers multiple business account options with various features at different price points. With accounting software integration, free invoicing, and a well-reviewed app, Tide is a popular choice for small business owners seeking online banking solutions.
Pros:
- Free business account with no monthly fees
- Accessible via mobile app and website
- 24/7 customer support
Cons:
- Limited free transactions
- Fees for everyday transactions
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SumUp Business Account:
- Monthly Fee: Free
- UK Card Purchase Fees: Free
- UK Bank Transfer Fees: Free
- Eligibility Criteria: Free account for businesses transacting less than £10K per month.
SumUp’s free business account is designed for businesses already using their point-of-sale technologies. With quick account setup, business tools, and no hidden fees, SumUp offers a seamless banking experience for retail-focused businesses.
Pros:
- Quick account setup process
- Business tools included
- No hidden fees
Cons:
- Deposits not FSCS protected
- Limited international payment options
In conclusion, choosing the best online-only business bank account depends on your specific business needs and preferences. Consider factors such as fees, transaction costs, deposit options, customer support, and additional features before making a decision. With a range of providers offering diverse services, there is a suitable online business account for every type of business.
