If you are a sole trader, you are probably looking to keep your overheads down to help balance your books and one way of doing this is minimising the amount you pay for your business account.
This guide gives you the details for the best deals for sole trader business bank accounts from the leading banks through to the lesser known providers.
Topics
Featured: Starling Bank
Some of the features and benefits of Starling Bank’s sole trader business bank account.
- Offers a business account specifically for sole traders
- Choice of two accounts, one of which is free
- Apply for an account in minutes
- Eligibility checks apply
- Connects with accounting software
- Instant payment alerts
- Capture receipts
- Automate expenses
- Flexible overdrafts
- 24/7 UK support
Starling Bank is an online business banking provider that is trying to offer a different experience to the high street banks. They offer two types of business bank accounts which are the Original account which is free and the Business Toolkit which in addition to the basic features you get enhanced tools to support you running your business.
Starling Bank’s business bank account offers standard features including instant notifications, free UK bank transfers, connects with QuickBooks, Xero and FreeAgent and access to 24/7 UK-based customer support. Enhanced features include invoice and matching, automated expenses and bookkeeping, tax estimates and payment scheduling.
The table below gives a quick price comparison of the top UK sole trader business bank account providers.
| Company | Monthly Fee* | No of months free* |
|---|---|---|
| Starling Bank | From £0 | Not limited |
| Lloyds Bank | £6.50 | 18 months for new businesses |
| Metro Bank | £5 or free if balance stays over £5,000 | Permanently no account maintenance fee as long as balance stays over £5,000 |
| Bank of Scotland | £6.50 | 6 months |
| Barclays | £6-6.50 | None |
| Yorkshire Bank | £5 | 25 months |
| HSBC | £5.50 | 12-18 months |
| TSB | £5 minimum | 18 months |
| Santander | £7.50-40 | None |
| NatWest | No charge | None |
| Royal Bank of Scotland | No charge | None |
| Ulster Bank | £2.67 | None |
| Cooperative Bank | £10 | 18 months |
| Clydesdale Bank | £5 | 25 months |
| Bank of Ireland | £15 | None |
| Tide | Free | Permanently no account maintenance fee |
| Cashplus | £5.75 (monthly equivalent) | None |
| Allied Irish Bank | £3.33 (£10 per quarter) | None |
| Anna | From £0 | Depends on income |
| Revolut Business | From £0 | Not limited |
| CardOneMoney | £12.50 | None |
| Fair Everywhere | £12.50 | None |
| Countingup | From £0 | Depends on income |
| Coconut | From £0 | Not limited |
| State Bank of India | £0 or £6.67 depending on balance | Depends on your balance |
| The Cumberland | From £3 | 12 |
| Monzo | From £0 | Not limited |
| Acorn Account | £12.50 | None |
| Amaiz | Free | Not limited |
| Monese | £9.95 | None |
| Wise | Free | Not limited |
| Holvi | From £0 | Not limited |
| Mettle | Free | Not limited |
| Triodos Bank | Free | Not limited |
| Handelsbanken | Not stated | Not stated |
* The prices included here come from each company’s website and were accurate at the time of writing but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider charges different fees for different transactions. This guide should be used as a starting off point for more research on your part.
Below we profile each company’s plans and features in a bit more detail.
1. Lloyds Bank
Some of the features and benefits of Lloyds Bank‘s sole trader business bank account.
- Tailored current account for small businesses
- Introductory offer for new businesses giving first 18 months free day-to-day banking
- Simple pricing
- Free electronic payments
- Free cheques and cash withdrawals/deposits
- Mobile business banking app
- Dedicated support from a UK-based business management team
- Support for small businesses to aid their growth
- Additional financial support including loans, hire purchase, overdrafts, invoice finance and credit cards
- Access to financial and digital tools
Lloyds Bank is part of one of the largest banking providers in the UK, Lloyds Banking Group, and the group is formed of Bank of Scotland, Halifax, TSB, and Scottish Widows.
Lloyds Bank categorises their business accounts according to the turnover of the business and tailors their offering towards those businesses. Sole traders are eligible within the category of businesses with up to £3 million turnover.
Their small business account suits businesses that operate through electronic payments, cheques and cash withdrawals/deposits as there are no charges for these transactions on the account. New businesses can also benefit from 18 months free 18 day-to-day banking.
2. Metro Bank
Some of the features and benefits of Metro Bank‘s sole trader business bank account.
- No account maintenance fee if your balance stays above £5,000 which includes 50 free transactions
- Open 7 days a week, 8am-8pm on weekdays
- No need to make an appointment
- Switch bank accounts in their stores
- Will manage the switch process within 7 days
- Speedy account opening
- Support for new and growing businesses
- Local Business Managers available in every store
- UK call centre open 24/7
- Mobile app and online banking
Metro Bank operates different with stores opening 7 days a week, 8am to 8pm on weekdays. Phone banking is available 24/7 and is based in the UK. Customers can also access their accounts through a mobile app and online banking.
Metro Bank’s business bank account is designed to support SMEs including sole traders. To be eligible for this account your business must have an annual turnover of under £2 million.
The account has no account maintenance fee if the balance stays over £5,000, this includes 50 free transactions per month which includes electronic payments, cash deposits and withdraws. If the balance is under £5,000 then a £5 monthly fee will be applied.
3. Bank of Scotland
Some of the features and benefits of Bank of Scotland‘s sole trader business bank account.
- Free day-to-day business banking for 6 months if you switch your current account to them
- Free day-to-day business banking for new business start-ups for 18 months
- Free electronic payments, cash withdraws and debit card payments after the free banking period
- Simple pricing structure
- Online calculator to help you calculate the cost of the account
- Support for Scottish businesses to help them grow
- Business mentoring programme
- Online resource centre with tools and resources
- Offer the Current Account Switch Guarantee
Royal Bank of Scotland has designed their business bank accounts to cater for different sizes of businesses from sole traders to SMEs with an annual turnover of up to £3 million. They also offer accounts for new businesses that are only starting to trade. New business start-ups can benefit from 18 months free day-to-day business banking and new customers can also benefit with 6 months free day-to-day business banking.
At the end of the free period an account maintenance fee will apply which is £6.50 but electronic payments, cash withdraws from cash machines and paying by debit card remains free.
If you are a Scottish business they are committed to helping you grow and develop which they do through providing support from their teams, online and through their business mentoring programme.
4. Barclays
Some of the features and benefits of Barclays’ sole trader business bank account.
- Choose between two simple prices plans
- Mixed Payment Plan account that caters for businesses that have a range transaction needs
- E-Payments Plan account that caters for businesses that receive predominantly electronic payments
- Free cash machine withdrawals
- Free electronic internal transfer
- Online bank account fee calculator
- Price Plan Guarantee which reviews your account annually
- Loyalty reward which pays back a proportion of your account fee
- Service Guarantee for resolving issues
- Current Account Switch Service covered by the Switch Guarantee
Barclays offer established businesses including sole traders two business current bank accounts that cater for different types of business needs. The Mixed Payment Plan account caters for businesses that use cash, cheques and other non-electronic transactions to make and receive payments. e-Payment Plan account caters for businesses that make and receive electronic payments predominantly through online banking and debit cards.
Barclays also reward their customers with a monthly loyalty reward that pays back a proportion of the bank charges. The amount you receive back depends on the length of time you have banked with them.
5. Yorkshire Bank
Some of the features and benefits of Yorkshire Bank‘s sole trader business bank account.
- Choice of two business current accounts
- Free day-to-day business banking for 25 months for new start-up businesses
- Free day-to-day business bank for 25 months for new customers
- A bank account that has base rate linked credit interest
- Access to a personal business banking contact
- Optional agreed overdraft
- Access to your account by phone, mobile app and internet banking
- Use of Apple Pay
- Choice of statement frequency
- A range of business support tools are available
As a sole trader, you have a choice of two business current accounts with Yorkshire Bank. They reward those that switch to them with 25 months free day-to-day business banking on the Business Current Account. New start-up businesses can also benefit from the free 25 months free day-to-day banking. At the end of the free period, the monthly account maintenance is £5.
Alternatively, their other business bank account is the Business Choice Account which has base rate linked credit interest.
Yorkshire Bank also offers a range of business support tools and guidance to help its business customers develop and grow their businesses.
6. HSBC
Some of the features and benefits of HSBC‘s sole trader business bank account.
- 12-18 months free day-to-day business banking period for new business start-ups and new customers
- Fixed price tariff when the free banking period ends with no transaction charges
- Annual business account review to ensure you are on the best tariff
- Access your account online, over the telephone or mobile app
- Branch transactions at HSBC or Post Office branches
- Access to finance and borrowing to support your expansion plans
- Access to their Knowledge Centre for tools and articles
- Business Specialists available in branches
- International expertise to help you trade abroad
HSBC does not have a separate sole trader bank account but its small business bank accounts are available for sole traders as long as the turnover is below £2 million per year. If you are a new business start-up you can benefit from 18 months free day-to-day business banking. If you are an existing business, you can switch to HSBC and benefit from 12 months free day-to-day business banking. At the end of the free banking period, you can benefit from 12 months fixed banking tariff with no transactions fee.
HSBC is supportive of small businesses and offers a range of business support tools and guides to help businesses to grow and develop. Their Knowledge Centre, Business Specialists and financial support are available to help businesses.
7. TSB
Some of the features and benefits of TSB‘s sole trader business bank account.
- 18 months free day-to-day business banking for new customers
- 18 months free day-to-day business banking for new business start-ups
- Access to 550 high street branches
- Manage your account 24/7 through internet banking
- Contact a Business Advisor over the phone for support
- New start-ups get support from a relationship manager
- Existing business can access the dedicated switch team during the switch
- Backed by the Current Account Switch Guarantee
- Access to Faster Payments
- Ability to export your statements into your finance package
TSB offers an attractive free day-to-day banking period to new customers and new business start-ups that remain within the account limits and do not go overdrawn without prior agreement. Sole traders with a turnover below £125,000 can open their account in any local branch.
TSB’s current account banking services offer flexibility for sole traders who may not manage to get to branches during normal business hours through their 24/7 internet banking facility and over the phone support. TSB also run a free daily text alert service that enables you to have alerts texted to you with your account balance.
8. Santander
Some of the features and benefits of Santander‘s sole trader business bank account.
- Caters for a variety of businesses including small independent businesses
- Account fee includes standard day-to-day banking so no additional fees for electronic transactions
- Account fee structured based on the amount of cash you deposit
- Monthly interest on credit balance at 0.10% gross/AER (variable)
- Online banking
- Mobile banking app
- Access services through Post Offices
- Contactless payments with your mobile device
- Award-winning account
- Optional approved overdraft facilities
- Member of the Current Account Switch Service and backed by the Current Account Switch Guarantee.
Santander’s Business Current Account is available for a variety of businesses including sole traders and it offers day-to-day standard banking as part of its monthly tariff. The account fee varies only due to the amount of cash you select to deposit for free. The account fee varies from £7.50-40 and the cash deposit amount varies from £1,000-10,000.
Santander has been awarded the Best Business Current Account Provider by Moneyfacts for the last 16 years. Their business account can be accessed through a variety of means that give customers the flexibility of banking when they need through digital tools and Post Office branches.
9. NatWest
Some of the features and benefits of NatWest‘s sole trader business bank account.
- A business account designed for smaller businesses
- Access to FreeAgent their free accounting software
- Online banking
- Award-winning mobile banking app
- Telephone banking
- Dedicated team to assist with business planning
- Includes a Visa debit card
- Able to set up text and email alerts
- Everyday support
- Access to their servicing hub
NatWest has designed their small business current account to help smaller businesses and sole traders to do business easily with access to their account from wherever they are. NatWest has created a servicing hub to help their customers to get instant access to their business accounts and any other financial services provided by NatWest in one place.
NatWest also gives their customers access to their account online, over the phone and through their award-winning mobile banking app. Customers can also set up alerts that can be sent to them by text or email. NatWest also gives their customers free access to their FreeAgent business accounting software.
10. Royal Bank of Scotland
Some of the features and benefits of Royal Bank of Scotland‘s sole trader business bank account.
- Small business bank account suitable for sole traders
- Access to Relationship Manager
- Online banking
- Telephone banking
- Mobile banking app
- Business planning support
- Alerts via email and text
- FreeAgent access at no charge
- Visa debit card
- Access to other financial support including credit cards and overdrafts
Royal Bank of Scotland has created a business bank account that caters for smaller businesses from small independent sole traders through to those with an operating turnover of up to £2 million per year.
Royal Bank of Scotland aims to help its smaller customers by giving them access to their account at any time and place to keep them on top of their finances. They do this making their accounts accessible through online banking, telephone banking, mobile banking app, and through offering alerts via text and email. And to make managing your finances easier they give their customers access to the FreeAgent accounting software at no charge.
11. Ulster Bank
Some of the features and benefits of Ulster Bank‘s sole trader business bank account.
- Dedicated account for small businesses
- Caters only for Northern Ireland businesses
- Online application
- Online banking offering Anytime Internet Banking
- Mobile banking app
- Business Visa debit card
- A dedicated business support team
- Member of the Current Account Switch Service
- Switching backed by the Current Account Switch Guarantee which means moving banks will only take 7 working days
Ulster Bank has a small business bank account that caters for sole traders and small businesses with an operating turnover of up to £2 million. Ulster Bank is a dedicated bank for Northern Ireland, so all business customers must reside in Northern Ireland.
Ulster Bank understands that small businesses need to focus on their work and that taking time out for banking is not easy. To help Ulster Bank allow new customers to apply online and give them access to their account 24/7. Switching accounts to them is easy as they are part of the Current Account Switch Service which guarantees a switch within 7 working days.
12. Cooperative Bank
Some of the features and benefits of Cooperative Bank‘s sole trader business bank account.
- Free 18 months introductory offer for new customers
- Special bank account available for the Federation of Small Business (FSB) members
- Ability to manage your account online 24/7
- Able to use telephone and postal banking
- A network of branches for counter services and guidance
- Access counter services in Post Office branches
- Optional overdraft facility
- Offer lending options
- Simply switch
- Participates in the Current Account Switch Guarantee
Cooperative Bank overs a few business bank accounts suitable for sole traders which included a free day-to-day business banking offer for new customers, a bank account designed only for the Federation of Small Businesses (FSB), and three business tariffs to choose from.
The Federation of Small Businesses account offers better rates and more inclusive free transactions than their other bank accounts. They also give these customers a loyalty bonus each year of £25 if the account is still active.
Cooperative Bank offers flexible banking service with the ability to make transactions in local Post Office branches which are often essential for smaller businesses who deal with cash and cheques but struggle to get to the high street banks.
13. Clydesdale Bank
Some of the features and benefits of Clydesdale Bank‘s sole trader business bank account.
- Free 25 months of day-to-day business banking period for new customers and business start-ups
- Bank account designed for small businesses
- Optional agreed overdraft
- Borrowing facilities up to £250,000
- Internet banking service
- Mobile app
- Member of the Current Account Switching Service
- Backed by the Current Account Switch Guarantee mean switch will take place within 7 working days
- Direct contact with someone who understands your type of business
- Special support tools and guidance
Clydesdale banking offers an attractive and long free banking period of 25 months which is one of the longest on the market which is available to both new customers and new business start-ups. Switching to them is made easy due to them being part of the Current Account Switch Service which guarantees that the switch will take place within 7 working days.
They have made the account easy to manage with internet banking and a mobile app to help businesses to bank at times convenient for them and to enable them to stay on top of their finances. Clydesdale Bank also offers a direct contact that understands your business sector and gives you access to specialist tools and guidance.
14. Bank of Ireland
Some of the features and benefits of Bank of Ireland‘s sole trader business bank account.
- Sole traders can apply online
- Simple price plan
- Favours online banking and smart payment options
- Debit card with contactless purchases
- Online banking
- Mobile banking app
- Telephone banking
- Agreed overdraft facilities
- Cash handling
- Apply for a savings account and credit card on one application
Bank of Ireland offers business banking services to customers who are based in Ireland which they have a long history of supporting. Bank of Ireland has tried to make switching your account to them simple and pain-free by setting it out in 6 simple steps and having business advisers available in every branch to help you. Sole traders are able to apply for their account online.
Bank of Ireland offers a simple bank account pricing structure with a quarterly account maintenance fee and transaction fees that encourage the use of online banking and smart payment methods as these carry lower transaction fees.
15. Tide
Some of the features and benefits of Tide‘s sole trader business bank account.
- No monthly or annual account fees
- Simple pricing with low transaction costs
- Banking service designed for small businesses and sole traders
- Simple banking aiming to reduce time on banking
- Mobile banking app
- Free card usage at home or abroad
- Free money transfers to and from other Tide members
- Use of Post Office branches for transactions (charges apply)
- Make deposits at PayPoints (charges apply)
- Membership benefits
Tide is a member-based bank account service and as a member, you get benefits for working with other members as there are no transaction fees between Tide accounts. You are eligible for a Tide Sole Trader bank account if you are a UK based sole trader or freelancer with a valid UK residential address and you are registered with the HMRC.
Tide aims to reduce the amount of time small businesses spend on their banking, so they can focus on their business. Tide does not offer their accounts to high-risk industries such as those that deal with the trading of volatile priced goods, unlicensed services or products, money services or gambling.
16. Zempler Bank formerly Cashplus
Some of the features and benefits of Cashplus‘ sole trader business current account.
- Monthly fee: Free
- Card issue fee: £9.95 Initial card set up fee
- Card purchases: Free
- Access: Online/App
- 5 minute application with instant decision
- Manage your account 24×7 via our mobile app and online banking, with additional UK based customer services phone support
- Funds are FSCS protected
- Available to UK registered companies with at least one UK resident director or UK based sole traders and self-employed
- Applicants must be aged 18+ and have a valid UK phone number and residential address
Zempler Bank has simplified their accounts to make working with them simple. Zempler Bank is now free.
Some of Zempler Bank’ transactions are free such as UK purchases, direct debits, bank transfers and the first 3 electronic payments and transfers are free then 30p each.
Zempler Bank make setting up an account with them easily through a quick and simple online application which if successful will give you a current account straight away. Zempler Bank is dedicated in supporting smaller businesses and have tailored their bank account to support them and access their account 24/7 wherever they are.
17. Allied Irish Bank
Some of the features and benefits of Allied Irish Bank’s sole trader business bank account.
- Flexible current account
- Internet banking service
- Variable interest rates
- Business debit card
- £500 daily cash withdrawal
- Make deposits in a branch, Post Offices and other banks
- Can make and receive a variety of payments
- Overdrafts are available
- Fees and charges are applied quarterly
- Transaction fees apply
Allied Irish Bank is a banking provider operating in the Republic of Ireland and the UK offering a range of banking products. Their product range includes business bank accounts suitable for a range of businesses including sole traders.
Allied Irish Bank’s business bank account is a flexible account that has a range of charges including an account fee and transaction charges which are applied quarterly. The account comes with a debit card which can be used in the UK and abroad and allows you to withdraw up to £500 per day. You can make deposits either in one of their branches, at Post Offices and some other banks.
18. Anna
Some of the features and benefits of Anna’s sole trader business bank account.
- Quick and easy account to set up
- Online account management
- Allocate debit cards to employees for expenses
- Set spending limits on cards
- Instant payment notifications
- Free Direct Debits
- Scheduling and recurring payments
- Earn cashback
- Can connect your bank accounts together
- Designed for freelancers and small businesses
Anna is a business banking provider offering a digital service that is run through an app and cards. They specialise in providing bank accounts to freelancers and small businesses including new business start-ups. Their business account is quick and easy to set up and you can have an account in minutes and debit card in five days.
Anna’s current account is managed online and allows you to allocate debit cards to your staff so you manage expenses better and you can set individual spending limits. The account features include instant payment notifications, free Direct Debits, scheduling and recurring payments, and you can connect your account to other accounts.
19. Revolut Business
Some of the features and benefits of Revolut Business’s sole trader account.
- Dedicated freelancer account
- Choice of two accounts
- One free and one paid account
- Manage your account online or through the app
- Offers smart cards
- Cards can be used abroad
- Works with leading accountancy software
- Allows transactions in 150 currencies
- Lets you allocate access to team members
- International banking provider
Revolut Business is a payment provider that operates internationally which allows them to manage up to 150 currencies and enables you to hold 28 currencies. They provide their customers with an app to manage their account with.
Revolut Business offers two accounts to freelancers which are a Free account that provides basic account features, and Professional account which is paid for and has enhanced features. Their accounts come with smart cards which can be used abroad. Their accounts also feature the ability to allocate access to multiple team members and integrate your account with some of the leading accounting software packages.
20. Card One Money
Some of the features and benefits of CardOneMoney’s sole trader business bank account.
- Digital banking provider
- Specialises in providing accounts to small businesses and sole traders
- Open an account quickly and easily
- Download their free app
- Doesn’t require credit checks
- Manage your account online including viewing statements
- Set up Direct Debits and Standing Orders
- Receive free account notifications
- Can preload card balances
- Provides Mastercard which can earn you cashback
CardOneMoney is a business finance provider that provides digital services which are designed for individuals and small business including sole traders. Their digital business accounts are managed through their mobile app which is free to download and is easy to use.
CardOneMoney has designed its account to be simple and easy to set up within four hours. You apply online for their account and it doesn’t require you to have a credit check, but an account fee applies. Their account features include Direct Debit and Standing Orders, free account notifications, preloaded card balances and Mastercards that can earn you cash back on some purchases.
21. Fair Everywhere
Some of the features and benefits of Fair Everywhere’s sole trader business bank account.
- Online business bank account
- For day to day money management
- Suitable for sole traders
- Can be used in the UK and internationally
- Transparent pricing
- Easy to open an account
- Offers fair fees and exchange rates
- Provides as many cards as needed
- Card purchases can earn rewards
- UK call centres
Fair Everywhere is an international business banking provider that offers a card-based service and online management. They provide a global service that allows you to operate in the UK and abroad with fair fees and exchange rates with cards that can be used anywhere.
Fair Everywhere’s business bank account is easy to open through their website and it doesn’t require a signature. They have designed their account to offer you a day to day money management solution for small businesses and sole traders. They offer as many cards as you require with the account and each card can earn you rewards at selected UK high street retailers.
22. Countingup
Some of the features and benefits of Countingup’s sole trader business bank account.
- Offers a choice of account level
- One of which is a free account for low earners
- Transaction fees apply on some transactions
- Monthly account fees are linked to income level
- Provides contactless Mastercard
- Receive instant notification
- Produce invoice and billing
- Capture receipts
- Automatically categorises expenses
- Support available seven days a week
Countingup is a business bank account provider specialising in services to small and new businesses. Their accounts are online-based and provide customers with tools to help them save time on administration. To be eligible for the account you need to be self-employed with an account balance below £50,000 or a limited company with an account balance below £120,000.
Countingup’s business bank account has three tiers which are linked to the monthly income you have which indicates the price you pay. Those with an income under £500 can benefit from a free account. Their account provides contactless Mastercard, notifications, invoice and billing capabilities, capture receipts and automatically categorises expenses.
23. Coconut
Some of the features and benefits of Coconut’s sole trader business bank account.
- Accounts designed for sole traders
- Offers two accounts, one of which is free
- Suitable for new businesses
- Easy to set up
- Allows you to connect accounts and credit cards
- Comes with a Mastercard debit card
- Create and send invoices
- Handle expenses
- Automated matching
- Can help estimate your taxes
Coconut is not just a business bank account provider but also an accounting and tax tool provider which they have combined to help smaller businesses like sole traders and limited companies to better manage their finances. Their bank account allows you to connect accounts and credit cards and integrate with accounting tools.
Coconut provides a choice of two business bank accounts – the Starter account for newer and small businesses is free, and the Grow account is a paid account with additional functionality. Both accounts offer expense tracking, invoices (three per month for the free account), tax estimates for sole traders and 2% on purchases abroad.
24. State Bank of India
Some of the features and benefits of State Bank of India’s sole trader business bank account.
- An account suited to small to medium-sized businesses
- Annual fee doesn’t apply if minimum balance is maintained
- 25 free transactions per month
- 0% AER/gross variable rates
- Easy access funds instantly
- Convenient online banking
- Online application
- Access specialist business advisors
- International network of branches
- Also offers saving accounts and loan products
State Bank of India is an international banking services provider that offers a range of business banking products in the UK including business bank accounts, savings accounts and loans. They cater for small to medium-sized businesses which include sole traders which they support in growing.
State Bank of India’s business current account has no annual account fee if the average monthly balance is maintained over an agreed level. Their business account allows you to make 25 free transactions per month and transaction fees apply after this. The account is easy to access and is convenient with online banking.
25. The Cumberland
Some of the features and benefits of The Cumberland‘s sole trader business bank account.
- Business bank account that caters for sole traders
- First-year for free
- Online and mobile banking
- Offers a choice of two accounts
- Flexible service
- Integrates with Xero accounting software
- The different account types offer different fee structures
- Online calculator to help you choose the right account
- Has a network of 34 branches
- Must live in their operating area
The Cumberland like many building societies is run for the benefit of its customers and they offer a range of banking products including business bank accounts. Their business bank account is suitable for businesses of all sizes including sole traders.
The Cumberland operates in Cumbria, South-West Scotland, West Northumberland and North Lancashire and you need to live in this area to be eligible for an account. They offer new customers the first year for free and a choice of two types of accounts. Their bank accounts differ in their fee structure to cater for different business needs.
26. Monzo
Some of the features and benefits of Monzo’s sole trader business bank account.
- Specialise in small business bank accounts
- Choice of two accounts
- One account is a free basic account
- Some transaction fees apply
- Easy to set up
- Manage the account online and through your mobile
- Integrates with leading account software
- Receive payment notifications
- Manage invoices and receipts
- 24/7 customer support
Monzo is an online and app-based business banking provider who was created to offer an alternative to traditional banks. They specialise in providing services to small businesses and sole traders. They offer two bank accounts which provide customers with accounting support.
Monzo’s two business bank accounts are a Lite account which is a basic account and free, and a Pro account which has additional features but has a monthly charge. You can set an account up easily through their website and the account is accessed online and through your mobile. Features include integration with accounting software, payment notifications, manage invoices and receipts, and 24/7 support.
27. Acorn Account
Some of the features and benefits of Acorn Account’s sole trader business bank account.
- Dedicated small business account
- Choice of two accounts
- Offers a free account
- Transaction fees apply
- Manage your account online
- Offers multiple Mastercards
- Provides automated phone services for some transactions
- Check balance through SMS service
- Text alerts
- UK-based call centre
Acorn Account is a digital banking provider that is part of Spectrum Card Services group. They offer accounts and card services to sole traders and small businesses. You can set up an account simply online within 24 hours and you won’t need to visit a branch or have a credit check.
Acorn Account’s business bank account is designed to be accessible and you can access information online, you can check your balance via SMS and receive text alerts. They have a UK based call centre and have an automated phone service for quicker transactions. The account features include multiple Mastercards, tracking bills, invoices and wages as well as downloading statements.
28. Amaiz
Some of the features and benefits of Amaiz’s sole trader business bank account.
- Bank accounts suitable for small businesses and sole traders
- Offers a free account with transaction fees
- Their paid account has fewer transaction fees
- Simple to set up an account
- Manage your account online or through the app
- Can help you reduce your administration
- Assists in managing payments
- Offers prepaid Mastercards
- Can add a sub-account for savings or tax
- Provides live business hour support
Amaiz is a digital banking services provider that caters for small businesses and sole traders. They have designed their bank accounts to help businesses to manage their finances and reduce administration. They offer two business bank accounts – the Starter account which has a £4,000 monthly turnover limit and no account fee but has some transaction fees, and the Advanced account which has a monthly charge but fewer transaction fees.
Amaiz’s business accounts are digital accounts managed through an online account or app. The account features include free transfers in, free cashpoint withdrawals, invoicing, live support and contactless Mastercard.
29. Monese
Some of the features and benefits of Monese’s sole trader business bank account.
- Mobile-based business bank account
- To be eligible you need a personal account
- Single account offered with a simple fee structure
- Simple to set up an account
- Can make local payments for free
- International transfers are low-cost
- Can manage your personal and business account in one place
- Can make deposits in 40,000 locations
- International provider who supports 14 languages
- Only available to UK registered businesses
Monese is a mobile banking provider that was the first provider of its kind in the UK and they operate across Europe. They offer personal and business bank accounts suitable for sole traders, but you must have a personal account and be a UK registered business to be eligible.
Moneses offers a single business bank account that has a simple fee structure and low transaction rates for international transfers and free local transfers. You can link your personal and business account to manage them in one place. Setting up an account is easy online and account management is through your mobile and deposits can be made in 40,000 locations.
30. Wise
Some of the features and benefits of Wise’s sole trader business bank account.
- Offers a free business current account
- Transaction fees apply
- An international banking provider
- Handles a range of currencies
- Offers real exchange rates
- Includes a debit card for free
- No fees for receiving money
- Allows you to pay local and international invoices
- Integrates with Xero
- Enables you to automate payments and workflows
Wise (formerly TransferWise) is a business banking provider that operates online and is a bank that specialises in providing international services. They can handle multiple currencies and offer you real exchange rates which makes doing business internationally easier. Their business bank account is designed for freelancers, sole traders, entrepreneurs, small to medium and large businesses.
Wise’s business bank accounts operate online to make managing your money better and more accessible. Their account features include a free debit card, no fees for receiving money, ability to pay local and international invoices, integrates with Xero, and can help you to automate payments and workflows.
31. Holvi
Some of the features and benefits of Holvi’s sole trader business bank account.
- Accounts available to new and small businesses
- Has no monthly/annual account fee
- Easy to set up
- Allows unlimited transfers
- Mastercard is included
- Three invoices per month are free
- Capture receipts
- Run invoice and expense reports
- Other charges can apply
- Offers account upgrade at any point
Holvi is an online banking provider based in Finland who offers their services to new businesses, sole traders and small businesses in the UK. They offer two businesses bank accounts catering for different businesses – free Starter account and a Grower account with a monthly charge and fewer transaction fees.
Holvi offers an easy to set up a bank account to help businesses to streamline their finances with an all-in-one service. Both accounts come with a Mastercard and extra cards can be ordered at a cost. Their other features include unlimited transfers, receipt capture, an allowance of three invoices per month free, run invoice and expense reports, and unlimited users.
32. Mettle
Some of the features and benefits of Mettle’s sole trader business bank account.
- Account designed for sole traders and small limited companies
- No account fee
- Manage your account through their app
- Simply to set up
- Allows you to send and receive payments
- Create and send invoices through the app
- Notifies you when you are paid
- Matches payments
- Allows you to add receipts to your transactions
- Provides support within the app
Mettle offers businesses an app-based banking solution that specifically caters for sole traders and limited companies that have no more than two owners. Mettle is also part of NatWest. Their accounts are designed for small businesses and have a balance limit of £50,000 for sole traders and £100,000 for limited companies.
Mettle is an app-based banking provider, so you need an iPhone or an Android device to be able to access your account. The app allows you to manage a variety of functions including creating and sending invoices, sending and receiving payments, receive payment notifications, attach receipts to transactions, and access support.
33. Triodos Bank
Some of the features and benefits of Triodos Bank’s sole trader business bank account.
- Bank account for social ventures
- They are a socially conscious bank
- No monthly fees
- Minimum turnover of £5,000
- Designed to help day to day management
- Online management
- Can also use phone banking and postal services
- Debit or credit cards may not be available
- Payments can be made to and from abroad
- Allows you to set up Direct Debits and Standing Orders
Triodos Bank established themselves as an ethical bank that only does business with those that fit with their ethos and so they mainly work with social ventures or charities. They offer two types of accounts – Social Venture Current Account and a Charity Account.
Triodos Bank’s Social Venture Current Account has no monthly account fee, but some transaction fees apply. They have designed their account to help businesses to manage their day to day banking requirements. The account includes being able to receive payments from abroad, set up Direct Debits and Standing Orders, and they can offer some over the counter deposits if required.
34. Handelsbanken
Some of the features and benefits of Handelsbanken’s sole trader business bank account.
- They offer business current account for sole traders, limited businesses and partnerships
- Easy and secure bank account
- Offers current accounts in a range of currencies
- Allows you to make and accept payments internationally
- Simple and stress-free switching service
- Choose the date when you want to switch
- Apply in branch or over the phone
- Has a network of branches
- Overdrafts may be available
- Dedicated account management
Handelsbanken is an international banking provider that is based in Sweden but has branches across the UK that provide banking services to businesses. They offer business bank accounts to sole traders, limited businesses and partnerships that meet their eligibility criteria.
Handelsbanken provides their business bank accounts in a range of currencies and they allow you to make and accept payments within and outside the UK. They provide an easy and secure bank account that is simple and stress-free to switch to and you can even choose the date that the switch happens. You can apply in branch or over the phone for a bank account.
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FAQs
What Is A Sole Trader Bank Account?
A sole trader bank account is great for those who are a one-person business. This is a unique type of bank account that’s different to others available as standard.
Most banks that you’ll find on the high street will offer a sole trader bank account whilst other bank providers have bank account options tailored exclusively to company owners. With a business bank account, they operate in the same way that regular current accounts do.
You have the same functionalities as sole trader bank accounts, whereby you can use a mobile banking app, debit and credit card use, and overdraft options.
There are differences in sole trader bank accounts with lower interest rates but higher fees.
How Do I Open A Sole Trader Account In The UK?
It’s important to know that it’s not a legal requirement to have sole trader bank accounts, as you can use a regular bank account to conduct your business.
However, there are benefits to business bank accounts that you might find worthwhile, like financial advice from the banks themselves regarding sole trading. The process of filing your tax return to HMRC is a lot easier.
Opening a sole trader business account is easy, and most applications will only take a few minutes to set up. You’ll need the typical details you’d expect when opening a personal bank account, but in this case, you’ll need to show evidence of trading to be eligible.
Can I Use A Personal Bank Account As A Sole Trader?
Yes, you can use a personal bank account instead of a business account as a sole trader. It’s not something you’d get in trouble for if you decided to opt for personal accounts instead.
However, some like to have a separate business bank account because it helps keep everything organised financially. Some sole traders will be happy to front the monthly fees, whilst other businesses may stick to a personal account to keep expenditures to a minimum.
It’s worth looking at the opportunities and benefits that a business current account provider can offer over a standard personal account. You may find that high street banks are perfectly fine, or you may want a more specialist provider for your business banking.
Is It Legal To Transfer Money From A Business Account To A Personal Account In The UK?
When transferring money from a business account to a personal one, it’s not illegal if you’re repaying the money to the business as soon as possible. To help balance your business accounts, it’s necessary to pay them back as quickly as possible.
It may mean that the person handling your business finances has to do extra work to make these transactions. However, it’s worthwhile investing in some accounting software to keep an eye on your bookkeeping.
Can HMRC Check Personal Bank Accounts?
For sole traders, regardless of whether your business finance is handled through a personal account or a business current account, HMRC has the power to check any that they need to when investigating you as a taxpayer.
To conduct their investigations, they’ll need to see all evidence of business transactions, from sales to bank transfers. They’ll issue a third-party notice to request this information from the banks in question.
It’s also something that they can issue to the sole trader’s accountants, estate agents, etc.
How Much Money Should A Small Business Have In The Bank?
There’s no official figure regarding your bank balance as a small business for business finances. Every business is different regarding business income and the health of its cash flow.
Using accounting software can help manage your bank balance more successfully, so it’s a worthwhile investment alongside your business banking accounts.
If anything, you should have three months’ worth of working capital in the bank account, which is helpful. This is what’s called a cash reserve, and it’s something to aim toward when considering how much money to have in the bank at one time.
Can Sole Traders Get A Free Business Bank Account?
It’s always worthwhile to look at comparison sites for business bank accounts as a sole trader. This can help to weigh up the pros and cons of the account providers to see which one is best for you.
Most would recommend having a separate account for your business regardless, but it’s up to you whether that works for your business right now.
There are some free business banking options out there, whether that’s mostly free with some fees for additional services or a free account for X amount of months before charging a monthly account fee.