Welcome to my comprehensive guide to UK start-up bank accounts. If you’re an aspiring solopreneur or a new business owner in the UK, choosing the correct bank account is vital for managing your finances successfully.
In this article, let’s look at the top options available and provide valuable insights to help you make an informed decision.
We’ll go over everything you need to know about UK start-up bank accounts, from account features and transaction fees to online banking capabilities and customer service.
So, let’s get started and uncover the best financial solutions to help your business flourish.
What should you look for in a UK Start-up Bank Account?
Look for a bank that offers the following:
Easy Access
Good start-up banks make account setup easy and fast for businesses. They offer simplified web or mobile apps to save paperwork and approval times.
Zero or No Fees
Start-up banks offer beneficial fee structures that are good for new enterprises. Start-ups can manage their funds for 6–24 months without paying for banking. Start-up banks may offer no or reduced fees after the initial term.
Protect Your Money
A good start-up bank should look after your money. They do this if regulated by The UK Financial Services Compensation Scheme. (FSCS).
The FSCS covers eligible deposits up to £85,000 per customer per bank. For example, if you have £100,000 in a bank that fails if the FSCS regulates it, you would get £85,000 back.
In other words, don’t put all your eggs in one basket, especially when starting out.
You can be assured that all the accounts featured in this article have all three features.
1. Starling Bank
What I love about Starling Bank
- Quick and seamless account setup with no monthly fees.
- Real-time notifications for transactions, providing better financial control.
- In-app integrations with popular accounting software for easy expense tracking and reconciliation.
- Business tools like goal setting and cash flow forecasting for better financial planning.
What I don’t love
- Some users have reported occasional issues with third-party integrations.
- Not available to non-UK residents
I use Starling for business and personal banking and have yet to uncover a flaw in the bank. In Central Asia, I can withdraw money from ATMs for free. This saves me a lot of money.
I am not the only one who thinks Starling is an awesome bank that deserves the number-one spot. An independent service quality survey agrees with me on this.
So, try Starling if you are shopping for a business bank account.
2. Metro Bank
What I love about Metro Bank
- One of few banks that has physical branches that you can visit.
- Extended banking hours, including weekends and holidays, to make your life convenient.
- 24/7 customer service is available for prompt assistance.
- Online and mobile banking with features like real-time balance updates and transaction alerts.
- Access a range of banking services and products to support your business growth.
What I don’t love
- There is limited geographical coverage, as Metro Bank primarily operates in the South East of England.
- Some users have reported longer waiting times for customer support.
3. Barclays Start-up Business Current Account
What I love about the Barclays Start-up account
- Traditional high street bank.
- Free banking for the first 12 months.
- Access to the Barclays app and online banking for easy account management.
- Dedicated support from Barclays’ business banking team.
- Free invoicing and accounting software from FreshBooks, which is worth £228 per year
What I don’t love
- Fees may apply after the initial free banking period, and they might not be the most competitive compared to other banks.
- Limited branch access, as Barclays has been reducing its branch network in recent years.
Barclays Bank has been around all my life, and I am no spring chicken. So, there is an element of trust. I also love that they are trying to keep up with the latest banking technologies for our fast-paced world.
4. Mettle
What I love about Mettle
- Mettle is a standalone UK-based bank launched by NatWest.
- Explicitly designed for solopreneurs and small limited companies.
- Quick and easy account opening process with no credit checks.
- FreeAgent accounting software for free, saving you up to £150 a year.
- Create and send invoices from your phone.
What I don’t love
- Limited integration options with accounting software compared to other banks.
- Some users have reported occasional technical issues with the app.
Like Barclays Bank, Natwest is a trusted household name. If you are unsure about using the newer challenger banks like Starling, Monzo or Tide, Mettle by Natwest is a good option.
5. HSBC Kinetic
What I love about HSBC Kinetic
- Quick and easy account setup, allowing you to open an account in a matter of minutes. A first for HSBC.
- Overdraft, credit cards or small business loans are available but subject to eligibility and a credit check.
- Up to 30% off business broadband with Talk Talk Business
- Discounted accounting software from Ember
- Access to business insurance with Aviva
What I don’t love
- Limited physical branch access, as HSBC, has also been reducing its branch network.
- Some users have reported slower customer support response times compared to other banks.
6. Revolut
What I love about Revolut
- Revolut offers four business bank account packages. As your business grows, you can upgrade your bank account (for a fee)
- Multi-currency accounts with competitive exchange rates.
- Expense management tools and receipt scanning for simplified tracking.
- Real-time spending notifications and budgeting features for better financial control.
- Additional services like business insurance and advanced payment features.
What I don’t love
- Fees
| Free account | Grow | Scale | Enterprise | |
| Monthly Fee | £0.00 | £25.00 | £100.00 | Custom |
- Limited customer support options, as Revolut primarily offers chat or in-app messaging support.
- Some users have reported occasional issues with account verification processes.
Tide
What I love about Tide
- Tide also offer four packages so your account can grow as your business grows. Their Basic account is free.
- Tools for managing expenses and sending invoices directly from the app.
- Access to additional services like business loans and international payments.
What I don’t love
- Fees. Big fees. All their accounts attract fees. See below and be the judge.
| Free Account | Plus Account | Pro Account | Cashback | |
| Monthly Fee | £0.00 | £9.99 + VAT | £18.99 + VAT | £49.99 + VAT |
| Expense Card | £5.00 | One free card inc | Two free cards, inc | Three free cards, inc |
| ATM withdrawals per transaction | £1.00 | £1.00 | £1.00 | £1.00 |
| Transfers in & out of your account | 20p per transfer | 20 transfers per month free | Unlimited transfers | 150 transfers per month free |
Final Thoughts
People often choose these banks because they have a lot to offer, are easy to get to, and have a good name in the market.
But it’s important to think about your business needs carefully, compare the account features, fees, and services each bank offers, and choose the best that fits your needs.
Consider account fees, transaction limits, the ability to bank online, customer service, and other services your business needs.
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