Best Business Bank Account for UK Startups in 2024

Article Summary

Choosing the best business bank account is one of the most crucial decisions a new Startup can make. So which is the best business bank account for UK Startups. In 2024, the UK market offers a wide variety of digital-first banking solutions tailored for entrepreneurs. From easy account setup to robust tools for managing finances, the right business bank account can make a world of difference in managing cash flow, invoicing, and expenses. This guide compares the top business bank accounts for UK Startups, highlighting the pros and cons of Revolut, Monzo, Starling, Tide, Anna Money, Virgin Money, and Templar to help you find the best fit for your business needs.

The Importance of a Business Bank Account for UK Startups

Setting up a business bank account is essential for startups, not only to separate personal and business finances but also to take advantage of features such as invoicing, expense management, and tax planning. As a new business owner, you need a reliable and cost-effective banking solution that offers the flexibility to grow with your startup. In this review, we’ll assess some of the leading UK business bank accounts for 2024, helping you choose the best option for your needs.

Revolut Business Account: Pros and Cons

Revolut is a popular choice for startups, offering a range of digital banking services that are ideal for businesses with international dealings.

Pros:

Multi-currency accounts: Manage multiple currencies with ease, ideal for businesses with global clients.
Real-time spending insights: Track expenses and transactions in real-time.
Integrated tools: Access accounting integrations, payment processing, and expense management features.

Cons:

Fees for international transfers: Although it supports multiple currencies, international transfers can come with fees after a certain limit.
Limited customer support: Some users report slow responses when dealing with customer support.
No FSCS protection: As Revolut is not a fully licensed UK bank, it does not offer Financial Services Compensation Scheme (FSCS) protection.

Monzo Business Account Review

Monzo is known for its transparency and user-friendly mobile banking app, making it a strong contender for Startups.

Pros:

Free and paid account options: Choose between a free plan or a Pro plan (£5/month) with extra features like invoicing and tax-saving pots.
Excellent customer support: 24/7 in-app support for business users.
Integration with accounting software: Seamlessly integrates with Xero, QuickBooks, and FreeAgent.
FSCS protection: Deposits up to £85,000 are protected under FSCS.

Cons:

Limited cash deposit options: Cash deposits can only be made via PayPoint, with a small fee attached.
Basic free plan: The free account lacks some of the advanced features startups may need as they grow, such as automated tax pots or invoicing.

Starling Business Account Review

Starling Bank continues to stand out as one of the top business account providers in the UK, thanks to its comprehensive range of features for Startups.

Pros:

No monthly fees: Starling offers a completely free business account with no hidden charges.
24/7 customer support: Access reliable customer service at any time.
Overdraft and loan facilities: Get access to business overdrafts and loans, ideal for startups needing financial flexibility.
Multi-currency accounts: Manage foreign currency accounts for global transactions.
FSCS protection: Your deposits are insured up to £85,000 under FSCS.

Cons:

Limited physical branches: As a digital-only bank, Starling doesn’t have physical branches, which may not suit all businesses.
International transfers can incur fees: Although Starling supports international transfers, fees can apply.

Tide Business Account Review

Tide is a great option for startups looking for quick, hassle-free business banking with a focus on simple account management.

Pros:

Quick account setup: Start your business account within minutes using Tide’s fast onboarding process.
No monthly fees for basic accounts: The free plan is ideal for small startups.
Expense management tools: Easily track expenses and create invoices through the app.
Pay-as-you-go pricing: Costs like cash deposits and transfers are charged as you use them, offering flexibility.
Integrates with accounting software: Link Tide to Xero, QuickBooks, and more.

Cons:

Limited international options: Tide doesn’t support multi-currency accounts or extensive international transfers.
No FSCS protection: As an e-money institution, Tide does not offer FSCS protection.
Customer service response times: Some users report slower customer support for free plan users.

Anna Money Business Account Review

Anna Money is designed for small businesses and freelancers, with an emphasis on simplifying invoicing and expense tracking.

Pros:

Invoicing features: Create and manage invoices directly within the app.
Expense management: Automatically categorise transactions and track expenses.
FSCS protection: Anna Money partners with licensed banks that offer FSCS protection.
24/7 customer support: Get quick responses from Anna’s UK-based support team.

Cons:

Monthly fees: Anna Money charges a monthly fee starting at £5.95 for its basic plan.
Limited multi-currency support: Anna Money does not offer the same level of multi-currency features as some competitors.

Virgin Money Business Account Review

Virgin Money is a traditional banking provider offering both physical branches and digital banking solutions.

Pros:

Access to physical branches: Virgin Money offers in-person banking for those who prefer face-to-face services.
FSCS protection: All deposits up to £85,000 are protected under FSCS.
Overdraft facilities: Virgin Money provides access to business overdrafts, ideal for startups needing credit flexibility.

Cons:

Monthly fees: Virgin Money business accounts come with monthly fees, which can be higher than digital-only banks.
Fewer modern banking features: Virgin Money doesn’t offer the same level of fintech integrations or real-time financial tools as digital-first banks.

Templar Business Account Review

Templar is a relatively new entrant in the business banking space, focusing on offering tailored financial solutions for startups and entrepreneurs.

Pros:

Tailored business solutions: Templar focuses on providing bespoke banking services for startups.
Multi-currency accounts: Suitable for businesses with international clients or operations.
Strong customer service: Templar provides personal and attentive customer support.

Cons:

Limited online resources: Fewer digital tools and integrations compared to digital-first banks like Starling or Monzo.

New to the market: As a newer provider, Templar doesn’t have the same track record as more established banks.

Which Business Bank Account is Best for UK Startups?

When looking for the best business bank account for UK Startups, your decision should be based on your startup’s specific needs, such as multi-currency accounts, invoicing, or access to overdraft facilities. Here’s our recommendation based on different needs:

Best for International Business: Revolut offers strong multi-currency support, ideal for startups with global clients.
Best for Free Banking: Starling provides an excellent, fee-free account with robust features.
Best for Simple Account Setup: Tide is perfect for startups that want a fast and easy account setup.
Best for Invoicing: Anna Money shines with its built-in invoicing and expense management tools.
Best for Traditional Banking: Virgin Money offers access