Best business bank accounts for limited companies UK 2026

Most UK banks and app-based providers accept limited companies, but each sets its own rules on company type, number of owners and where shareholders live. On 6 November 2026, HSBC, Mettle, Monzo, Starling and Tide all offered an account with no monthly fee, while Barclays and Santander waived fees for the first 12 months. We do not rank providers; they are listed alphabetically from their own websites, so check the terms before you apply.

Does a limited company need a business bank account?

In practice, yes. A limited company is a separate legal person, so its income and spending should run through an account in its own name. Mixing company and personal money makes the books harder to keep and can create an overdrawn directors’ loan account.

Most providers also require a business account for a company. GOV.UK sets out the ways a director can take money out, through salary, dividends or a director’s loan, in its guide to taking money out of a limited company.

Which accounts accept limited companies?

These are the accounts we checked, with the monthly fee on 6 November 2026.

Monzo Team adds £5 a month for each member after the first six. Tide’s Lite plan includes 5 free bank transfers a month and Smart includes 30, according to its pricing page.

Who can open each account?

Eligibility is where accounts differ most for companies. Check these rules before you apply.

• Barclays: at least one person on the application must be a UK resident aged 18 or over. The 12-month free offer is not available if the business already holds a Barclays business current account, per its business current account page.
• HSBC: the Small Business Banking Account is described as suitable for all legal entity types.
• Mettle: only one owner can use the account, that person must be a director and a PSC, and the company can have no more than two PSCs. PLCs, LLPs and CICs are not supported, per Mettle’s eligibility page.
• Monzo: companies limited by shares only. Companies limited by guarantee, PLCs, CICs and LLPs are excluded, and dormant companies are not supported.
• NatWest: the two-year free offer is for switchers with turnover up to £2 million who use the full Current Account Switch Service.
• Santander: the Classic account is for businesses with up to 2 directors, owners or partners. The 12-month offer covers start-ups and switchers.
• Starling: companies limited by shares and LLPs. Every PSC must be a UK-resident individual, with no corporate shareholders, according to its business account page.
• Tide: directors of companies registered at Companies House, aged over 18, with photo ID. Some sectors, such as crypto trading, are not accepted.

If your company is limited by guarantee, see our guide to companies limited by guarantee and check with HSBC or a high-street bank.

What do the accounts charge for cash and transfers?

Fees beyond the monthly charge usually come from cash deposits, international payments and transfers above an allowance.

Starling says cheques are paid in free. Monzo’s fee information, version 1.16 dated 18 August 2026, changed international payment fees from 1 November 2026. HSBC charges for cheques and CHAPS on its Small Business Banking Account. For more detail, see our comparison of business bank account fees.

Is the company’s money protected?

Eligible deposits at a UK bank are protected by the FSCS up to £120,000 per eligible depositor per firm. The limit rose from £85,000 on 1 December 2025.

Tide is not a bank itself. Its current accounts are provided by ClearBank, and Tide says eligible deposits are protected up to £120,000 across all accounts with ClearBank. If a company keeps more than £120,000, consider spreading it across separate banking licences.

Which applies to your company?

• If you are a one-director company with one or two owners, Mettle, Monzo, Starling and Tide all fit; compare cash and transfer fees.
• If a holding company owns your shares, Starling will not accept you; check Monzo, Tide or a high-street bank.
• If you pay in cash weekly, compare per-deposit costs, or look at branch banking.
• If you need borrowing over £100,000, HSBC offers this on its Business Banking Account, subject to credit checks.
• If you are switching from another bank, NatWest’s two-year switch offer may beat a 12-month free period.
• If you are just incorporating, see how to set up a limited company and business bank accounts for startups.

What to do now

1. Check your company type and PSCs on the Companies House register.
2. Rule out providers whose eligibility rules exclude you.
3. Estimate monthly transfers, cash deposits and foreign payments.
4. Work out a year’s cost from each fee page, including the fee after any free period.
5. Confirm the account connects to your accounting software; Starling lists Xero, QuickBooks and FreeAgent. See our guide to accounting software for small businesses.

Frequently asked questions

Can I use my personal bank account for my limited company?

You should not. The company is a separate legal person, so its money should go through an account in the company’s name. Using a personal account makes it hard to separate company income from yours.

Which business bank accounts are free for limited companies?

On 6 November 2026, HSBC Small Business Banking, Mettle, Monzo Lite, Starling and Tide Lite had no monthly fee. Barclays and Santander waived fees for 12 months.

Can a company with two directors open a Mettle account?

Only one owner can use a Mettle account, and that person must be a director and a PSC. The company can have no more than two PSCs.

Can a company limited by guarantee open a Monzo Business account?

No. Monzo supports only companies limited by shares. HSBC says its Small Business Banking Account suits all legal entity types.

Is Tide covered by the FSCS?

Tide’s current accounts are provided by ClearBank, and Tide says eligible deposits are protected up to £120,000 across all ClearBank accounts.