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Opening a dedicated business bank account is one of the first things you need to do when you register a limited company in the UK. It's not just good practice, but a legal requirement. Because a limited company is a separate legal entity from its owners, there must be a clear division between the company's finances and those of its directors. Using a personal account for company transactions puts you on the wrong side of HMRC.
The good news is that the commercial bank accounts market in the UK is genuinely competitive, with digital challengers and high street banks all fighting for the attention of new businesses. Whether you want zero monthly fees forever, a generous free banking period, built-in accounting tools, or multi-currency support, there's an account for you.
Here's a practical breakdown of the best options for new businesses this year:
Bank Accounts for New Companies: Live Offers and Fees
UK Business Banks for New Companies Compared
1. Starling Bank - best for new limited companies
Starling is a top choice for fee-free business banking. Over 500,000 UK businesses bank with Starling as of 2026, and for good reason: there is no monthly fee, charges for UK bank transfers, or minimum balance requirement. As a fully licensed UK bank, deposits are FSCS protected up to £85,000.
For a new limited company, the practical features matter most. Starling offers 24/7 in-app support from real agents, free invoicing tools, digital receipt capture, and Spaces: individual pots within your account you can use to set aside money for tax, VAT, or upcoming bills. The accounting integrations with Xero, QuickBooks, and FreeAgent are automatic and reliable, which saves considerable admin time from day one.
Cash deposits are handled via Post Office branches, though fees apply, so if your business handles regular cash takings, factor that in. Eligibility covers companies limited by shares (Ltd) and LLPs registered at Companies House.
Key details:
UK bank transfers: Free
FSCS protection: Yes, up to £85,000
Accounting integrations: Xero, QuickBooks, FreeAgent
Support: 24/7 in-app
2. Tide - best for easy setup
If you want to be banking within an hour of incorporation, Tide is hard to beat. Applications are completed entirely in-app, and most limited companies receive an account number and sort code within minutes. Tide is a fully authorised bank in the UK, carrying FSCS protection on eligible deposits.
Their free plan has no monthly fee, though it charges for external bank transfers - a cost that adds up if you make lots of payments. For growing businesses, the Smart plan includes unlimited free transfers. Tide also offers a linked Instant Saver account, which is useful for saving funds between tax payments.
Invoicing, expense categorisation, and integrations with QuickBooks, Xero, and Sage are all included, even on the free tier.
Key details:
UK bank transfers: Chargeable on the free plan, unlimited free on the upgraded plan
FSCS protection: Yes
Notable perk: Savings account with a competitive interest rate
3. Monzo Business - best for tax
Monzo Business Lite is free and solid for day-to-day banking. Monzo earns its place on this list with their Pro plan, which is built for directors who want to stay on top of their tax position without relying on an accountant.
The standout feature is Tax Pots: you set a percentage of every incoming payment to be automatically moved into a dedicated pot. For example, if a client pays you £5,000, Monzo might instantly move 19% into your Corporation Tax pot before you can accidentally spend it. Monzo is also one of the few providers to offer built-in HMRC-recognised Making Tax Digital (MTD) software, which is very relevant now that MTD for Income Tax has been rolled out from April 2026.
Monzo is a fully regulated UK bank with FSCS protection up to £85,000. The app is excellent - clean, fast, and reliable - and accounting integrations cover Xero, FreeAgent, Sage, and QuickBooks.
Key details:
Tax Pots: Pro and above
FSCS protection: Yes
MTD software: Built-in, HMRC-recognised
Accounting integrations: Xero, FreeAgent, Sage, QuickBooks
4. Revolut Business - best for international trading
If your limited company is trading internationally from day one - billing overseas clients, paying EU suppliers, or holding foreign currency - Revolut Business is a strong option for cross-border work.
Revolut Business now holds a full UK banking licence as Revolut Bank UK Ltd, and eligible deposits are FSCS protected. The Basic plan includes free local GBP payments monthly, plus an FX allowance at the interbank rate before a small markup kicks in. You can hold, send, and receive payments in over 35 currencies.
For a new limited company that isn't doing substantial international work, Revolut's monthly fees might make it hard to justify over some of the alternatives, but for e-commerce businesses, digital agencies with overseas clients, or any company with a multi-currency revenue stream, the FX savings alone can outweigh the cost.
Key details:
Multi-currency: 35+ currencies
FSCS protection: Yes
Free FX allowance: Limited with the Basic plan, larger allowance with the Grow plan
5. Barclays Business - best high street bank for startups
For directors who want the reassurance of an established brand, branch access, phone support, and relationship managers as the business grows, Barclays is a standout choice. New bank accounts for start ups come with a period of free day-to-day banking, after which the standard monthly fee applies.
Barclays offers a solid mobile app, integrations with major accounting platforms, and access to its Eagle Labs network - a collection of spaces and programmes supporting early-stage businesses with resources and networking. If your business needs an overdraft, business loan, or credit card in the first year, having a relationship with a high street bank can make those conversations easier.
The free banking period is genuinely useful, but plan ahead. Review your options before the end of the introductory period if you're prioritising keeping business banking costs low.
Key details:
Branch access: Yes
FSCS protection: Yes
Useful for: Business lending, overdraft access, branch visits
6. HSBC Business Banking - best high street bank for app features
HSBC's business banking for new companies offers an introductory period of free banking, after which the standard fee applies. New limited companies should look at the standard HSBC Small Business Banking Account.
The account offers solid online and mobile banking, integration with Xero and QuickBooks via Open Banking, and access to HSBC's broader business services, including invoice finance and asset finance, which can be useful if you anticipate needing working capital support. HSBC's brand recognition can also carry weight when dealing with certain corporate clients or suppliers who view bank credibility as part of their due diligence.
Key details:
FSCS protection: Yes
Branch access: Yes
Accounting integrations: Xero, QuickBooks (via Open Banking)
7. Mettle by NatWest - best for FreeAgent users
Mettle is NatWest's app-only business account, free to use with no monthly fees. It's less well-known than the others on this list, but earns its place through one genuinely compelling offer: FreeAgent accounting software included with the account.
FreeAgent is one of the most popular accounting platforms for new limited companies in the UK, with a standalone subscription normally costing at least £19 a month. Getting it bundled for free is a meaningful saving over the first year. Mettle syncs automatically with FreeAgent, so your transactions appear in your accounts in near-real time without manual entry.
Mettle is backed by NatWest Group, and deposits are protected by NatWest's FSCS coverage, so it carries the stability of a major bank behind its app-first interface. The current account features are functional rather than feature-rich, but for a new limited company that's also looking for accounting software, Mettle makes a strong financial case.
Key details:
FreeAgent: Included free
FSCS protection: Yes (backed by NatWest)
Best for: Cost-conscious new companies planning to use accounting software
What to Look for in a Business Bank Account
Beyond the headline monthly fee or welcome offer that business banks advertise, these are the factors that matter most for new limited companies in the UK:
FSCS protection: All fully licensed UK banks protect eligible deposits up to £85,000 per person, per institution. E-money institutions (some fintech providers) use safeguarding arrangements, in which your funds are ring-fenced, but the protection mechanism differs.
Accounting integrations: Xero, QuickBooks, and FreeAgent are the big three for UK limited companies. Most digital accounts connect automatically, with no CSV exports required. This alone can save you several hours every month.
Cash-handling: If your business regularly deposits cash, check whether your provider supports this and what it costs. Most digital providers allow Post Office deposits, but do charge for them. If cash is central to your operations, a high street bank could be more practical.
Transaction fees on free plans: Some ‘free’ bank accounts charge a fee per external transfer, despite having no monthly fee. Some providers charge beyond a free allowance, and some are genuinely free for all domestic transfers.
Onboarding speed: Digital banks typically approve straightforward limited companies in less than 48 hours - sometimes minutes. High street banks often take one to two weeks due to robust manual review processes. If you need to invoice a client immediately after incorporating, this could be important to you.
What Documents You’ll Need to Open a New Account
For a new limited company, every provider will require:
Your Companies House registration number
Registered company address
Proof of identity for directors
Proof of address for directors
Details of significant shareholders
Basic information about your business and expected turnover
Digital banks typically verify these documents via a simple app upload. High street banks might ask for original documents.
In Summary
For most new limited companies launching this year, Starling Bank is a strong all-round choice: no fees, no transfer charges, 24/7 support, and solid accounting integrations. Tide is a good pick if you want to be up and running in minutes, and the value of its built-in invoicing tools. Monzo could be well worth its monthly fee if staying on top of tax is a priority. Revolut Business is a solid option if you're trading internationally from launch.
For directors who want the backing of a major bank or access to credit facilities, Barclays and HSBC offer a genuinely free year of banking that gives you time to decide whether the ongoing fee is justified.
Whichever account you choose, compare the full picture - not just the monthly fee. You can run a side-by-side comparison of startup bank accounts and see all current deals at BusinessComparison, including accounts designed specifically for new limited companies and options with no monthly fees.
