Top 37 Sole Trader Bank Accounts: 2023 UK Comparison

Even though it isn’t a legal requirement, for a lot of sole traders it’s handy to keep your business cash stored separately. These current and savings accounts are some of the most flexible options out there for sole traders, entrepreneurs, and the self-employed, with lots of helpful features and affordable monthly fees.

Featured: Tide*

The account is designed for all shapes and sizes of businesses including sole traders, consultants and contractors.
Free account available.
Paid accounts with enhanced features cost £9.99 or £49.99 per month.
Bank transfers cost £0.20 or are free within limits and card payments are free.
Online business bank accessible 24/7 through the mobile app, or on desktop.
Easily organise accounts and transactions on the app.
Contactless Mastercard debit card.
Spend abroad for free.
The app can also create and send invoices.
Integrate with accountancy software such as QuickBooks, Xero and Sage.

Website: Tide Business Banking
Read the full Tide Business Account review.

Tide

Free Business Bank Account

Visit Website Reviews

Key Features:

Monthly fee: Free
UK Card Purchases: Free
ATM withdrawals: £1
Bank Transfers: 20p
Overdraft: No
Access: App & Online

Protection:

FSCS protected: Yes, up to £85,000 via Clearbank
FCA regulated: Yes

Pros

No monthly or annual fee
Deposits are FSCS protected
Accounting software integration
Ability to add up to 5 business accounts
Free built-in invoice software

Cons

Costs 20p to transfer in or out (free with paid plans)
Costs £1 to withdraw cash via ATM
Can't deposit cheques
£2.50 to deposit cash at PostOffice or 3% at PayPoint

Companies are ranked in no particular order.

Bank name	Monthly fee
Tide	£0-£49.99 per month.
Starling Bank	No monthly fee. Some charges for paying in physical cash.
Cashplus Go	£0
Barclays	Up to £8.50
NatWest	Free account through Mettle, or transaction charges only on NatWest account.
HSBC	£6.50
Lloyds Bank	£7.00
Metro Bank	£0-£6.00
Bank of Scotland	£7.00
TSB	£5-£40
Santander	£7.50-£12.50
Royal Bank of Scotland	No monthly fee, just pay for what you use.
Ulster Bank	Not published.
Cooperative Bank	£7.00-£10.00
Allied Irish Bank	£10.00 per quarter
Anna Bank	£0, £4.90, £9.90, or £19.90
Revolut	£0, £7 or £25
Card One Money	£12.50
FairEverywhere	£12.50
Countingup	£4.95-£9.95
Aldermore	Savings only. No fee.
Nationwide	Savings only. No fee.
Virgin Money	£6.50
Cynergy Bank	£15 per quarter
Cumberland Building Society	£3-£5
Redwood Bank	Savings only. No fee.
Shawbrook Bank	Savings only. No fee.
Cambridge Building Society	Savings only. No fee.
Monzo	£0 or £5
Bunq	€2.99
Amaiz	£4.99 or £9.99
Monese	£9.95
Wise	Depends on transfer amount
Mettle	Free!

1. Starling Bank

An account with no monthly fee, just pay for what you use.
Manage your account 24/7 using the app.
A fully regulated UK bank account
There are small charges for some additional account features.
You can deposit cash at the Post Office.
Receive notifications about payments.
Integrates with accounting software such as Xero and FreeAgent.
Gain insight into your spending and outgoings.
Overdrafts may be offered subject to status.
Best British Bank, Best Banking App, Best Current Account Provider & Best Business Banking Provider at the British Bank Awards 2021.

Website: Starling Bank Business Banking
Read the full Starling Bank Business Bank Account review.

2. Cashplus GO

Manage your account 24/7 on mobile and desktop.
£0 per month
Card issue fee: £9.95 Initial card set up fee
Card purchases: Free
Access: Online/App
5 minute application with instant decision
Offers contactless Mastercard and expense cards.
There’s a charge for ATM withdrawals.
Instant notifications for payments and transfers.
Make deposits at Post Offices.
No credit check required.
Funds are FSCS protected

Website: Cashplus Website
Read the full Cashplus Business Current Account review.

3. NatWest

Offers 2 account options for sole traders.
Business bank account with no minimum charge, just pay for what you use.
Mettle mobile account with no monthly charges or transaction fees.
24/7 online and mobile banking.
New sole traders and small businesses get 18-months’ free business banking.
Business debit card.
Mettle account has a limit of £50,000 for sole traders.
Mettle account has some limitations in terms of accessing credit and international payments.
Free accounting software that is called FreeAgent.
Current Account Switch Guarantee offered on core NatWest accounts.

Website: NatWest Business Banking
Read the full NatWest Business Account review.

4. HSBC Kinetic

HSBC Kinetic banking account which is an online account.
Designed for startups and small businesses including sole traders.
24/7 online and mobile banking.
£6.50 a month.
Electronic transactions are free.
Cash withdrawals are charged at 0.60%.
Transactions in branch and Post Offices are chargeable.
Turnover up to £2 million.
12 months’ free banking for new customers.
Apply online in minutes and open it the same day.

Website: HSBC Kinetic
Read the full HSBC Business Account review.

5. Lloyds Bank

24/7 online and mobile banking.
12 months’ free for new businesses.
£7 monthly fee.
Free electronic payments.
Cash payments in or out £1 per £100 for the first £1,500 per month then £0.90 per £100.
Cheques in or out £0.85.
Dedicated business management team.
Provides a range of guides and practical business tools.
Awarded Moneyfacts Best Service from a Business Bank 2020.
Ranked 6th in an independent regulatory survey of the 14 largest business banks in 2021.

Website: Lloyds Bank Business Banking
Read the full Lloyds Bank Business Account review.

6. Metro Bank

24/7 phone, online and mobile banking.
No monthly fee if the balance stays above £6,000 and 30 free transactions per month.
Monthly fee of £6 if you have under £6,000 in your account.
Transactions charged at £0.30.
Business MasterCard.
Free card purchase and cash withdrawals within Europe.
Support from Local Business Manager.
Access smart accounting software including digital receipt capture and integration with Xero.
Branches only in the Midlands and South of England.
Apply online and get an account in about 15 minutes.

Website: Metro Bank Business Banking
Read the full Metro Bank Business Account review.

7. Bank of Scotland

24/7 online and mobile banking.
12 months free day-to-day banking for new businesses.
£7 monthly account fee.
Electronic payments are free.
Cash payments in or out charged at £1 per £100 for first £1,500 then £0.90 per £100.
Cheques in and out are charged at £0.85.
Receive personalised account alerts.
Dedicated business management team to support you.
Accept card payments using Cardnet.
Access bespoke guides and reports.

Website: Bank of Scotland Business Banking
Read the full Bank of Scotland Business Account review.

8. TSB

Free for 25 months for new sole traders and those switching.
24/7 online and mobile banking.
£5-£40 monthly fee, depending on what you need.
Includes debit and credit cards.
Free electronic payments.
Make deposits at branches and Post Offices.
Free text alert service.
Free card payment reader from Square is available.
Ranked 11th in an independent regulatory survey of the 14 largest business banks.
Offers the Current Account Switch Guarantee.

Website: TSB Business Banking
Read the full TSB Business Account review.

9. Santander

Free account for 18 months for start-ups and 12 months discounted fee for switchers on some accounts.
Offers two types of accounts.
Account fees of either £7.50 or £12.50 per month.
24/7 online and mobile banking.
Access online, Santander branches and ATMs, and Post Offices.
123 account offers interest and up to £300 cashback per year.
No charges for deposits up to £1,000 per month, then £0.70 per £100.
Offers the Current Account Switch Guarantee.
Arranged overdraft available.
Ranked 3rd in an independent regulatory survey of the 14 largest business banks.

Website: Santander Business Banking
Read the full Santander Business Account review.

10. Royal Bank of Scotland

-No minimum monthly charge, only pay for what you use.
24/7 phone, online, and mobile banking.
24 months free everyday banking for new sole traders.
Debit and credit cards available.
Free access to FreeAgent accounting software.
Dedicated Relationship Manager.
Offers a range of borrowing options.
Provides savings products.
Provides the Current Account Switch Guarantee.
Offers Entrepreneur Accelerator programme and Business Growth Events.

Website: Royal Bank of Scotland Business Banking
Read the full Royal Bank of Scotland Business Account review.

11. Ulster Bank

24/7 online and mobile banking.
Sole traders must be registered in Northern Ireland to apply.
Startups can get 18 months free everyday banking.
Visa debit card avaialable.
Cheque book.
Make international payments.
A relationship manager maybe available subject to eligibility.
Free accounting software called Free Agent.
Provides the Current Account Switch Guarantee.
Offers a range of finance and savings products.

Website: Ulster Bank Business Banking
Read the full Ulster Bank Business Account review.

12. Co-operative Bank

New customers get 30 months free, including sole traders.
24/7 online and mobile banking.
£7-10 normal monthly fee.
Unlimited deposits and withdrawals are available.
No monthly fee or admin charges if your balance stays at £1000+ on some accounts.
Automated debits are included as free on the above offer.
Offers an account catering for members of the Federation of Small Businesses (FSB) with added benefits.
Provides the Current Account Switch Guarantee.
Awarded Moneyfacts Best Service for a Business Account 2017-2020, and Best Charity Banking Provider 2016-2020.
Ranked 11th in an independent regulatory survey of the 14 largest business banks.

Website: Co-operative Bank Business Banking
Read the full Co-operative Bank Business Account review.

13. Allied Irish Bank

£10 quarterly account fee.
24/7 online and mobile banking.
Process online and cash payments easily.
Make payments at Post Offices.
Debit card included.
Maximum daily debit card cash withdrawal of £500.
Cash payments from £0.65-£1.50 per £100.
Option to earn interest on your balance.
Provides the Current Account Switch Guarantee.
Also offers savings and loans products.

Website: Allied Irish Bank Business Banking
Read the full Allied Irish Bank Business Account review.

14. Barclays

Business Current Account for those with a turnover of up to £400,000.
24/7 online and mobile banking.
Two price plans – one for sole traders accepting cash and cheques, and one for online payments.
12 months’ free banking for sole traders in their first 12 months of trading.
Monthly account fees of £8 or £8.50.
Withdrawals from cash machines are free.
Cash deposits are charged at up to £1.50 per £100.
Telephone support based in the UK is available Monday-Friday 7am-8pm.
Offers payment taking facilities with Barclaycard.
Business Moneyfacts Business Start-up Bank of the Year 2017-2021.

Website: Barclays Business Banking
Read the full Barclays Business Account review.

15. Anna Bank

An account that caters specifically for startups, freelancers and creatives.
Free account for those depositing less than £500 per month.
Account fee based on income with paid accounts costing £4.90-£19.90.
Mobile business account, accessible on the app 24/7.
Includes Mastercard debit cards and virtual cards.
Connect with multiple bank accounts.
Create, send, and chase invoices.
Instant payment notifications.
Assistance in calculating the tax you owe and tax reminders.
Set up in less than 10 minutes.

Website: Anna Business Banking
Read the full Anna Business Bank Account review.

16. Revolut Business

Free account option available.
An account that is suitable for sole traders.
Enables businesses to work globally.
Mobile business account, accessible online and on desktop 24/7.
Trade in 30+ currencies with no fees.
Offers a free version with limited features.
Monthly fee is £7-£25, depends on the features.
Includes company cards with spending controls and virtual cards.
Integrate with accounting software such as QuickBooks and Xero.
Also offers payroll, loans and overdrafts.

Website: Revolut Business Banking
Read the full Revolut Business Bank Account review.

17. CardOneMoney

Monthly account fee of £12.50.
Application charge of £55.
24/7 online and mobile banking.
Includes business card no charges for spending with it.
£1.50 charge for ATM withdrawals.
Account alerts by SMS.
Add additional people to your account for £5 each.
UK based account manager.
Apply in less than 10 minutes.
Awarded Best Business Card Programme 2014 at the Card and Payments Awards.

Website: CardOneMoney Business Banking
Read the full CardOneMoney Business Bank Account review.

18. Fair Everywhere

Monthly account fee of £12.50.
Allows you to make payments abroad in 210 countries.
Enables you to make payments in low currencies at competitive rates.
Manage your account 24/7 using the Fair Everywhere app.
Includes a Mastercard that can be used internationally.
Provides currency wallets for euros, dollars and sterling.
Offers cash back on purchases at 50 UK high street retailers at 8%.
Monthly allowance of £100,000 to send and receive.
UK-based online and phone support open Monday-Friday with love chat on Saturdays.
Integrates with accounting software such as Xero, Sage, QuickBooks and Concur.

Website: Fair Everywhere Business Banking
Read the full Fair Everywhere Business Bank Account review.

19. Countingup

Free account if your monthly income is under £500.
£4.95-£9.95 a month, depending on how much you process each month.
Manage your account 24/7 using the app.
Contactless Mastercard.
Receipt capture and automated categorisation.
Instant notifications.
Includes invoicing and billing tools.
Allows you to instantly review your profit and loss.
Provides tax estimates.
Allows you to share with your accountant.

Website: Countingup Business Banking
Read the full Countingup Business Bank Account review.

21. Aldermore

Business savings account only, no current account.
Suitable for sole traders.
Offers fixed-rate and easy access savings accounts.
Competitive interest rates of 0.05-0.85% AER.
No fees or charges for standard account features (some non-standard features carry charges).
Fixed-rate accounts available for 6 months or 1 year.
Provides real-time interest rate information.
Also offers business finance.
Rated excellent by Business Maney facts.
Average independent review score of 4.7 out of 5.

Website: Aldermore Business Savings
Read the full Aldermore Business Savings Account review.

23. Nationwide

Business savings account only, no current account.
Internet banking should be available in late 2021.
Offers easy access, notice, and fixed rate accounts available.
0.05-0.30% AER.
£5,000 minimum opening balance on all accounts.
1-year term only on fixed-rate accounts.
35 or 95 days’ notice on notice accounts.
Flexible account allows withdraws at any time but the minimum amount of £500.
Offers monthly or annual interest.
Interest isn’t applied if the balance is below £5,000.

Website: Nationwide Business Savings
Read the full Nationwide Business Savings Account review.

24. Virgin Money

Provides a combined offering from Yorkshire Bank and Clydesdale Bank.
25 months free everyday banking for new businesses or customers.
Normal account fee is £6.50 per month.
Offers cashback with selected merchants when using their debit card at 0.35%.
No transaction fees in Europe.
Automated debits and credits are charged at £0.30.
Cash payments charged at £0.65 per £100.
Provides the Current Account Switch Guarantee.
Offers a range of smart Money Management digital tools.
Five-star rating for Business Current Account – Business Tariff 2021.

Website: Virgin Money Business Banking
Read the full Virgin Money Business Savings Account review.

25. Cynergy Bank

Account maintenance fee of £15 per quarter.
Offers current and savings accounts suitable for sole traders.
Manage everything online and on mobile 24/7.
Offers contactless Visa debit card.
Can make payments and withdraws at HSBC branches.
Requires an opening deposit of £10.
Transaction fees vary £0.30-0.60.
Cash payments charges are £0.65 per £100.
Their customer services is open 7 days a week.
Business Moneyfacts finalist for Best Business Fixed Account Provider 2019.

Website: Cynergy Bank Business Banking
Read the full Cynergy Bank Business Bank Account review.

26. Cumberland Building Society

Free for 12 months for businesses with a turnover of up to £250,000 per year.
Current account and savings available.
Manage your account 24/7 online and on the app.
£3-5 monthly fee.
Includes a debit card.
Accept money on your phone using Pay2Mobile.
Integrates with Xero accounting software.
Provides switching in 7 days.
Overdraft facility may be available subject to status.
Feefo rating of 4.8/5.

Website: Cumberland Building Society Business Banking
Read the full Cumberland Building Society Business Bank Account review.

27. Redwood Bank

Business savings account only, no current account.
Notice and fixed-rate accounts available.
0.8-1.0% AER available.
Notice accounts offer 35 or 95 days’ notice.
1-year bond only.
Suitable for savings between £10,000-£1,000,000.
Choice of monthly or annual interest.
Can have up to 4 authorised users.
Can apply online in 15 minutes.
Awarded Best Business Variable Rate Deposit Account Provider 2019 and 2020.

Website: Redwood Bank Business Savings
Read the full Redwood Bank Business Savings Account review.

28. Shawbrook Bank

Business savings account only, no current account.
Offers easy access, notice and fixed-rate accounts.
0.50-1.10% AER available.
Minimum deposit/balance of £1,000.
Maximum balance £2,000,000.
1 and 2-year fixed-rate accounts.
45 or 100-day notice accounts.
Easy access account is accessible at any time.
Choice of monthly or annual interest.
Offers a range of financing options.

Website: Shawbrook Bank Business Savings
Read the full Shawbrook Bank Business Savings Account review.

29. Cambridge Building Society

Business savings account only, no current account.
Suitable for sole traders.
Only offers an easy access account.
0.1% AER.
Minimum £1,000 investment.
Maximum investment of £2,500,000.
Can pay in up to £1,000 cash and 1 cheque per day.
Interest is earned daily.
Interest is paid annually on 31st December.
You can open an account in branch or through the post.

Website: Cambridge Building Society Business Savings
Read the full Cambridge Building Society Business Savings Account review.

30. Monzo

Free Lite account offered.
Enhanced Pro account for £5 per month.
Designed for sole traders and limited companies in the UK.
Online bank account only. Manage everything 24/7 on the app.
Customer support is also available 24/7.
Includes a business debit card.
Allows you to organise money into pots.
Receive notifications on spend and payments.
Integrations with accounting tools such as QuickBooks, Xero and FreeAgent.
Smart invoicing features including invoice tracking and digital receipts.

Website: Monzo Business Banking
Read the full Monzo Business Bank Account review.

32. bunq

€2.99 monthly account fee.
Suitable for start-ups and sole traders.
Online management only using their app 24/7.
Real-time notifications to your phone.
Offers multiple local IBANs and local currencies.
Allows you to manage business and personal accounts in a single overview.
Can have up to 25 sub-accounts to manage bills and VAT.
Allows you to automatically sort payments to your sub-accounts.
Expenses and invoice management included.
Set up an account in 5 minutes.

Website: bunq Business Banking
Read the full bunq Business Bank Account review.

33. Amaiz

Offers an account tailored to sole traders.
Monthly account fee of £4.99-£9.99.
Online only. Manage your account on desktop and the app 24/7.
Contactless Mastercard and virtual card.
Instant notifications on transactions.
Capture receipts and store invoices.
Track your cash flow and profit and loss on the app.
International transfers are charged at 0.1%.
ATM withdrawal fees at 2%.
Also offers card payment reader packages.

Website: Amaiz Business Banking
Read the full Amaiz Business Bank Account review.

34. Monese

Monthly account fee of £9.95.
International bank account.
Manage your account on the app 24/7.
Includes contactless Mastercard.
Deposits can be made at PayPoints and Post Offices.
Manage outgoings, invoices, and expenses on the app.
Transfers within the UK are free.
Low-priced international transfers.
Customer support in the app in 14 languages.
Sign up online.

Website: Monese Business Banking
Read the full Monese Business Bank Account review.

35. Wise

No account fee just charges for transactions.
Set up fee is charged at £16.
Suitable for sole traders as well as small businesses.
Online only. Manage your current account online and on the app 24/7.
Send and receive money in 55+ currencies with real exchange rates.
Operates across over 70 countries.
Claims to be 19x cheaper than PayPal.
Receive money with no fees.
Includes debit cards with no foreign transaction fees.
Can integrate with accounting tools such as Xero.

Website: Wise Business Banking
Read the full Wise Business Bank Account review.

36. Mettle

An account designed for sole traders and limited companies with up to 2 owners.
No monthly fee or transaction costs.
Manage your current account on the app 24/7 (iOS only).
Associated with NatWest.
The maximum balance for sole traders is £50,000.
Can put aside money in Pots.
Monitor your expenses in the app.
Invoicing tool allowing you to create invoices through to reconciling them.
Integrates with accounting software such as QuickBooks, Xero and Free Agent.
Apply in minutes through their app.

Website: Mettle Business Banking
Read the full Mettle Business Bank Account review.

* Please note we have an affiliate relationship with Revolut, Starling Bank and Tide.

FAQ

Can a sole trader use a personal bank account?

Legally, sole traders are their business. Whereas limited companies are separate from their owners.

This means that sole traders can use a personal bank account for their business finances and expenses.

However,, getting a dedicated sole trader bank account is still a good idea, because it makes keeping track of revenue and expenses much easier and simpler.

Should you get a business bank account as a sole trader?

It’s wise to get a separate business bank account for your business’ cash because it keeps everything separate and organised.

Most business accounts are available to both sole traders and limited companies, so they’re just as appropriate for individual sole traders as they are to companies with directors.

How to open a sole trader bank account in the UK?

You can often open a business bank account online – it’s normally very quick and easy to do. As a sole trader, you’ll usually need to provide:

1) Details about your business, including turnover (if available).

2) Your details – name, date of birth, address and National Insurance number.

How much do sole trader bank accounts cost?

Monthly fees and charges vary, but are often very affordable for sole traders.

Many business bank accounts include a free period or trial of several months, which gives you the chance to build a solid foundation for your business before you start paying monthly fees.

There may also be some extra charges for account transactions like ATM withdrawals or cash deposits in branches/Post Offices but these should be published clearly on the website or in your account terms and conditions.

What is the best sole trader bank account?

The best sole trader bank account depends entirely on your needs! Many sole traders find they prefer to go with a traditional bank, while others like to try new technology and work with an exclusively mobile bank.

Whatever you choose, always make sure the monthly fee is worth it and you’re getting access to the features you need.

Compare Business Bank Accounts & Loans