Best business bank accounts for startups UK 2026

Several UK business accounts for startups charge no monthly fee: Mettle, Monzo Business Lite, Starling and Tide Lite among them. High-street banks such as NatWest and Barclays offer 12 to 24 months of free day-to-day banking before a monthly tariff starts. This page lists them by monthly fee, with prices taken from each provider’s own website on 6 November 2026. We do not rank or score providers.

Do startups need a business bank account?

A limited company should have an account in its own name, because the company’s money belongs to the company. GOV.UK explains that a director who takes out more than they put in, other than as salary or dividends, has taken a director’s loan, which must be recorded.

Sole traders can legally use a personal account. A separate account still makes bookkeeping and your tax return far simpler. If you have not chosen a structure yet, see limited company vs sole trader.

Startup business accounts by monthly fee

All prices below are standard monthly fees from the providers’ own pages, checked on 6 November 2026. Accounts with the same fee are listed alphabetically.

Tide also lists a Max plan at £69.99 a month. Revolut Business’s pricing page did not load when we checked, so it is not included.

What each provider says

Barclays. No monthly account fee for the first 12 months if you do not already have a Barclays business account, then £8.50 a month. Simple electronic payments are free under its tariff. Deposits are FSCS-protected up to £120,000.

HSBC. HSBC’s Small Business Banking Account has no monthly account fee and free UK digital banking, and is open to all legal entities. Its Business Banking Account for established firms offers 12 months of free banking.

Mettle. Mettle has no monthly fee and suits sole traders and limited companies with up to two owners. FreeAgent accounting software is included while you make at least one transaction a month. Post Office cash deposits cost £2.75 each. Its bank account is provided by NatWest and FSCS-protected; its e-money accounts, provided by Prepay Technologies, are not.

Monzo. Monzo’s fee information dated 18 August 2026 lists Lite at £0, Pro at £9 and Team at £25 a month. UK transfers are free and cash deposits at PayPoint or the Post Office cost £1.

NatWest. The Start-up account waives day-to-day charges for two years, then moves to the Standard Tariff. It includes FreeAgent while you keep the account. International payments, Bankline and unarranged overdraft charges are not covered.

Starling. Starling’s business account has no monthly fee and no charge for UK transfers. It is for UK-registered limited companies and LLPs whose directors are UK residents; sole traders use a separate account. Cash deposits cost 0.7% or £3, whichever is higher.

Tide. Tide is not a bank. Its pricing page says Tide accounts powered by ClearBank are FSCS-protected up to £120,000, while some members hold e-money accounts with PrePay Technologies, where funds are safeguarded but not FSCS-covered.

Which applies to you?

• If you handle cash, compare cash deposit fees: £1 at Monzo, £2.75 at Mettle, 0.7% (minimum £3) at Starling.
• If you hold large balances, check whether the account is a bank account with FSCS protection of £120,000 or an e-money account.
• If you want free accounting software, Mettle and NatWest both include FreeAgent on conditions.
• If you make many transfers, check the monthly allowance on Tide’s plans.
• If you are a sole trader, check eligibility first: Starling’s business account is for companies and LLPs only.

How to open a startup business account

1. Set up the business first. A company must be registered at Companies House before it can open an account.
2. Gather ID. Expect to be asked for identity and address details for the directors and owners.
3. Check eligibility. Look for residency rules, owner limits and turnover caps.
4. Apply online or in the app. Most digital banks decide within days.
5. Connect your bookkeeping software. Link the bank feed so transactions flow into your records.

For ongoing charges such as card, international and overdraft fees, see business bank account fees. For accounts with no monthly fee at all, see free business bank accounts.

Frequently asked questions

Which business bank accounts have no monthly fee?

Mettle, Monzo Business Lite, Starling Business, Tide Lite and HSBC’s Small Business Banking Account had no monthly fee on 6 November 2026. NatWest and Barclays offer free periods for new businesses.

How long is NatWest’s free banking for startups?

Two years of free day-to-day banking for businesses trading under a year with turnover under £1 million. After that the account moves to the Standard Tariff.

Is my money protected in a business account?

Eligible deposits with a UK bank are protected by the FSCS up to £120,000 per depositor per bank. E-money accounts are safeguarded instead and are not covered by the FSCS.

Can a sole trader open a Starling business account?

Starling’s business account is for limited companies and LLPs. Starling offers a separate sole trader account.

Do prices change?

Yes. Providers change fees and offers regularly, so check the provider’s own page before you apply.