Best UK Business Bank Accounts for Startups & Freelancers (2025) – Choosing the right business bank account is one of the first, and most important, financial decisions for startups, sole traders, and freelancers. The right account can save you fees, simplify bookkeeping, and make day-to-day operations easier.
In this guide, we compare Tide, Starling, Revolut Business, and traditional UK banks side by side, including fees, features, pros, and cons, so that you can find the perfect match for your business.
What to Consider Before Opening a Business Account
When comparing providers, check these factors carefully:
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Monthly fees or subscription costs – low margins mean these add up.
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UK transfer fees – important if you pay many suppliers or send lots of invoices.
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International & FX fees – essential for businesses with overseas clients.
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Cash & cheque handling – traditional banks usually win here.
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Extra tools – invoicing, multi-user access, integrations with Xero, QuickBooks, etc.
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Overdrafts or credit lines – important for growing startups.
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Security & FSCS protection – confirm your funds are protected.
Tide vs Starling vs Revolut Business – Key Comparison
| Provider | Monthly Costs | Key Fees | Best Features | Cons |
|---|---|---|---|---|
| Starling Bank | Free for basic business account. | Free UK transfers. FX fees apply for some overseas use. Cash deposits are available, but with fees. | Excellent app, accounting integrations, FSCS-protected. | Limited cash/cheque handling. No physical branches. |
| Tide | Free plan available; paid tiers unlock more features. | Free allowance then ~£0.20 per transfer. ATM withdrawals ~£1. | Great for freelancers & startups; easy sign-up; invoicing tools built in. | Limited borrowing options, cash handling costs. |
| Revolut Business | Starts at ~£10/month. Higher tiers available. | Free UK transfers up to a limit; FX fees apply depending on plan. | Multi-currency accounts, expense management, virtual cards. | Monthly cost rises quickly; some fees are hidden in FX markups. |
Traditional UK Banks
High-street banks like Lloyds, Santander, HSBC, and NatWest still have advantages:
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Face-to-face support and branch access
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Easier cash & cheque deposits
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Wider range of credit facilities
But expect monthly fees after free trial periods and additional charges for many transactions.
| Bank | Introductory Offer | Monthly Fee After Intro | Notes |
|---|---|---|---|
| Lloyds | 12 months free | ~£8.50/month | Good branch coverage, full SME support |
| Santander | Free or reduced fee first year | ~£7–£12/month | Good for established SMEs, decent app |
| HSBC/NatWest | Similar offers | Varies | Popular with cash-heavy businesses |
How to Choose the Right Account
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Freelancers & digital businesses: Starling or Tide (low fees, strong apps).
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International focus: Revolut Business (multi-currency, cheaper FX).
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Cash-heavy businesses: Lloyds, HSBC, or other high-street providers.
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Growing startups: Choose a bank that offers loans, overdrafts, and credit facilities.
Typical Business Banking Fees (2025)
| Fee Type | Digital Banks (Tide/Starling/Revolut) | Traditional Banks |
|---|---|---|
| Monthly Fee | £0–£30 depending on plan | £5–£15 after intro offer |
| UK Transfers | Mostly free or ~£0.20 after allowance | Often free up to 100/month |
| Cash Deposits | £1+ per deposit (if available) | ~£0.85 per £100 |
| International Transfers | Small FX markup (0.4–1%) | High SWIFT fees + FX markup |
Final Recommendations
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Low cost & easy setup: Starling (no monthly fee, great app).
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Feature-rich with extras: Revolut (but watch subscription costs).
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Simple invoicing: Tide (especially if you just started freelancing).
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Cash & credit needs: Lloyds, HSBC, Santander, or NatWest.
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