Guide
How to switch business bank account
What the Current Account Switch Service covers, how long it takes and what to prepare.
Read guideCompare startup business accounts
Fast, low-cost banking built for new companies — free periods, quick onboarding and the essentials compared
Compare startup accountsReady to compare startup business accounts?
Run a full market comparison before you commit. It takes about five minutes and there's no obligation to apply.
Compare our startup business accounts deals
Get £200 when you open a Tide business account + 6 month free accounting
Tide Business Bank Account
Account fee
No account fee
Free banking duration
Free
Interest rate
0% AER
Register your business for £14.99 through Tide with Companies House. Get a free instant saver account which gives you up to 4% AER when you sign up for your Tide business bank account. Eligibility and T&Cs apply. 1 month free on any paid plan. FSCS-protected, bank account by ClearBank.
Get £200 cashback when you open a Tide business bank account through our link by 4th September. T&Cs apply.
View deal
Zempler Bank
A UK business bank account with a straightforward online application, including options for businesses that might not qualify with a high-street bank.
Learn moreTide Company Formation
Form your UK limited company and open a Tide business account together, in one simple process.
Form your companyWe may receive a commission if you open an account through these links, at no extra cost to you. Offers subject to eligibility and provider T&Cs.
What is a startup business account?
A startup business account is a business current account specifically aimed at newly formed companies, usually offering a free introductory period, fast digital onboarding and simplified fee structures for low transaction volumes.
Many mainstream banks and digital challengers run dedicated startup tiers with reduced eligibility requirements, since a brand-new company has no trading history to assess in the usual way.
These accounts are designed to remove friction in the first weeks of trading, when founders are focused on winning customers rather than navigating complex banking paperwork.
You typically apply as soon as your company is incorporated at Companies House, providing your certificate of incorporation, director ID and a description of what the business does.
Most providers offer a free period of six to eighteen months, sometimes with a limited number of free transactions, then move you onto a standard paid tier once the business is established.
What are the risks with startup business accounts?
- Not every business banking provider holds a full UK banking licence. E-money institutions protect your funds through safeguarding arrangements rather than FSCS deposit protection, and the two work differently if the firm fails.
- Fees that look small per transaction can add up quickly at volume — always model a typical month's activity against the fee schedule before switching.
- If something goes wrong, UK-regulated providers must run an internal complaints process, and eligible small businesses can escalate unresolved disputes to the Financial Ombudsman Service free of charge.
Why compare startup business accounts with us
Pre-revenue or idea stage
A free digital account with no minimum balance keeps costs at zero while you validate the business.
Just landed your first customers
Look for fast card issuance and instant payment notifications so you can react quickly to early cash flow.
Backed by an accelerator
Check if your programme has a banking partner offering extra perks or a longer free period.
Startup account options compared
Typical offers available to newly incorporated UK companies in their first two years.
| Account type | Free period | Setup time | Best for |
|---|---|---|---|
| App-based free account | Ongoing | Minutes to 1 day | Freelancers and one-person companies |
| Challenger paid plan | 1 – 3 months | 1 – 2 days | Startups hiring their first employees |
| High-street startup offer | 12 – 24 months | 3 – 10 days | Firms wanting branch access and future lending |
| Accountant-bundled account | Varies | 1 – 5 days | Founders wanting bookkeeping included |
What does a startup account cost?
Costs in year one against year three, once the introductory period ends and volumes grow.
| Cost line | Year one | Year three |
|---|---|---|
| Monthly fee | £0 (intro offer) | £6.50 – £35 |
| Payments and transfers | Usually included | Included or per item |
| Cash handling | Rarely used | £0.60 – £1 per £100 |
| Typical annual cost | £0 – £60 | £90 – £480 |
Expert advice
Free banking offers are designed to win you early and monetise you later, so check what happens in month 13.
“Pick the account that suits the business you'll be in two years, not just the one you're registering today.”
startup business accounts: pros and cons
Pros
- Free banking for the first months or years
- Fast approval, often same day for straightforward businesses
- Simple fee structures with few surprises
- No trading history required
Cons
- Free period eventually ends and fees kick in
- Lending and overdraft facilities are usually limited early on
- Cash and cheque deposits often unavailable
- Some accelerator-linked deals require staying with a specific provider
How to compare startup business accounts
Look past the headline offer and check these five things:
- 1
Monthly and transaction fees
Some providers bundle a fixed number of free transactions each month, then charge per payment or cash deposit above that — model your real volumes before you commit.
- 2
Integrations
Check native links to Xero, QuickBooks or Sage, since manual reconciliation quickly eats into any time saved by switching provider.
- 3
Cash and cheque handling
Digital-only providers are usually cheapest but can charge heavily, or refuse outright, to pay in cash or cheques through the Post Office or a partner network.
- 4
Customer support
Compare whether you get a dedicated relationship manager, phone support, or app-only chat — this matters far more once something goes wrong with a payment.
- 5
FSCS or safeguarding protection
Confirm whether the provider holds a full UK banking licence (FSCS protection up to £85,000) or is an e-money institution using client-money safeguarding rules instead.
Compare startup business accounts
See what's available for your business today. It takes just minutes.
Am I eligible for a startup business account?
Most providers will ask for:
1. Recent incorporation
Many startup tiers are specifically for companies incorporated within the last 6-24 months, though some accept any first-time business banking customer.
2. Director ID and address
Proof of identity and address for each director, usually verified instantly via a selfie video check in-app.
3. Companies House details
Your company number and registered office address, cross-checked against the Companies House register in real time.
4. Business description
A short explanation of what the company does and expected activity levels, used for anti-money-laundering risk screening.
Meet Tomasz, launching a coffee subscription business
Tomasz incorporates his company on a Tuesday and applies for a startup account the same afternoon using his Companies House certificate.
His account is approved within hours, with 18 months free banking and instant card issuance to his phone for online spending.
By month 14, his transaction volume has grown enough that he compares the standard paid tier against switching providers, ultimately staying put because the integration with his accounting software saves more time than he'd save on fees elsewhere.
Startup account now, or wait and compare later?
Opening a dedicated business account immediately after incorporation avoids mixing personal and business funds from day one, which makes bookkeeping, tax returns and any future funding round far cleaner.
Some founders delay switching from a free digital account even once fees begin, because the accounting integration and transaction history built up are worth more than a marginally cheaper alternative.
It's usually worth reviewing your account around the point the free period ends, comparing fees against your now-established transaction volumes.
How to compare and apply for startup business accounts
1
Tell us about your business
Share your trading history, turnover and what you need the product to do. It takes a couple of minutes.
2
We search the market
We compare providers across the UK on cost, features and eligibility so you only see options you can actually get.
3
Review your options
Fees, rates and terms side by side in plain English, with no jargon and no pressure to proceed.
4
Apply with confidence
Pick the provider that fits and complete the application online. We'll tell you exactly what documents you need.
Why choose Grow Your Business?
Wide choice of providers
We compare a broad range of UK providers so you can find the option that actually fits how your business operates.
Exclusive offers
We work hard to bring you exclusive deals, switching incentives and cashback where they're available.
Simple and fast
It takes just a few minutes to compare with us — and the deal you find could be well below what you pay today.
What types of startup account are there?
There are more options available than ever, so it pays to match the product to how your business actually operates.
Free-period digital account
A set number of free months from account opening, after which standard fees apply. Best for founders who want to test their idea without upfront banking costs.
Incubator or accelerator-linked account
Offered through partnerships with startup accelerators and offering extra perks like free software credits. Useful if you're already part of a recognised programme.
Sole trader starter account
Lightweight accounts for sole traders and freelancers with minimal setup requirements. Suited to solo founders testing an idea before incorporating.
Pre-revenue company account
Designed for companies not yet trading, sometimes with restrictions on transaction volume until revenue begins. Useful for holding initial investment or grant funding safely.
Providers we compare
Accounts open to newly registered UK limited companies, LLPs and sole traders.
Starling Bank
Tide
Monzo Business
Revolut Business
ANNA Money
Zempler Bank
NatWest
Lloyds Bank
Barclays
HSBC UK
Santander
Metro BankComparing with us is a no-brainer
“I had the company registered on the Monday and the account live by Wednesday, with the accounting software already linked.”
Aisha, Birmingham
startup business accounts guides
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Funding options for growing firms
Overdrafts, invoice finance and asset finance compared for cash-flow gaps.
Read guidestartup business accounts FAQs
Can I open a business account before my company is incorporated?
Most providers require your company to already be registered at Companies House, though some accept pre-registration applications that activate once incorporation completes.
How long does the free banking period usually last?
It varies by provider, typically ranging from six months to two years, and is often tied to your date of incorporation rather than account opening.
Will I need a credit check?
Some providers run a soft credit check on directors, which shouldn't affect your personal credit score, mainly to assess eligibility for future overdraft facilities.
What happens when the free period ends?
You'll move onto the provider's standard fee tier automatically, and it's a good moment to compare whether switching providers or upgrading your plan makes more sense.
Do I need an accountant to open a startup account?
No, most providers let founders apply directly, though an accountant can help you choose an account with the right integrations for your bookkeeping software.
Written by the Grow Your Business editorial team · Updated 26 July 2026