Yeah, opening a business bank account in the UK these days can feel like trying to get past a nightclub bouncer in trainers; long waits, endless checks, and often no clear reason for rejection. That said, I am told that currently, some online banks are a better bet than the main names that spring to mind, but it’s important to check what you need.
Here’s a quick breakdown of the current landscape (as of end of March 2025):
1. Starling Bank
Best for:
Fast, digital-first banking with minimal fuss.
Pros:
- No monthly fees for standard business accounts.
- Quick online application process.
- Great app, slick user experience.
- Integration with Xero, QuickBooks, etc.
Cons:
Not ideal for cash-heavy businesses (no physical branches).
2. Tide
Best for:
Freelancers, sole traders, small businesses.
Pros:
- Very quick to open accounts (sometimes same-day).
- Expense management tools included.
- Multiple pricing tiers, including free.
Cons:
It’s not a fully licensed bank; funds are safeguarded, but not FSCS-protected.
3. Monzo Business
Best for:
Tech-savvy small businesses.
Pros:
- Intuitive interface.
- Good for managing money, pots, and invoices.
- Integrations and automation tools.
Cons: Business account features only available on paid plans (£5–£10/month).
4. Revolut Business
Best for:
International transactions and digital-first businesses.
Pros:
- Multi-currency accounts.
- Competitive FX rates.
- Fast onboarding.
Cons:
Tiered pricing can get pricey; customer service is hit or miss based on a recent TV programme.
As of April 2025, Revolut has obtained a UK banking licence but is still in the “mobilisation” phase, meaning it operates under an Electronic Money Institution (EMI) licence. Consequently, standard Revolut accounts are not yet protected by the Financial Services Compensation Scheme (FSCS). Instead, customer funds are safeguarded under the Electronic Money Regulations 2011, which require Revolut to keep your money in separate accounts with partner banks.
However, funds held in Revolut savings accounts are deposited with partner banks, and eligible deposits in these accounts are protected by the FSCS up to £85,000 per bank.
Once Revolut completes the mobilisation phase and transitions to full banking operations, standard accounts will become FSCS-protected. Until then, if FSCS protection is a priority for you, you might consider using a traditional bank or a digital bank like Starling or Monzo, which already offer FSCS protection.
5. Metro Bank
Best for:
Businesses that deal with cash and need branches.
Pros:
- Instant account opening in-branch (with all documents).
- Open 7 days a week.
Cons:
Old-school; limited online features compared to fintech banks.
Trying to get a bank account open at the moment, (especially with the banks formerly referred to as “high streets”) requires the strength of ten men and the patience of a saint, neither of which a start up entrepreneur is likely to possess. You’ve got a business to get going and need to get a bank account to apply for SEIS before you can pitch for investment. Everyday brings another level of annoyance as you get passed from customer service level 1 to 15…
There are the main issues that banks are having to consider:
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Money laundering regs: Banks are under intense scrutiny to “Know Your Customer” (KYC).
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Brexit fallout: This made onboarding foreign directors or overseas ownership trickier.
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High demand + reduced staffing: Many banks are backlogged.
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Risk aversion: Especially with startups in crypto, adult, or politically sensitive industries.
Here are a few tips to try and reduce the time it could take to get the account you need open:
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Register your business with a clear, legitimate business purpose.
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Have all documentation ready: ID, proof of address, Companies House reg, business plan if new.
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Avoid industry red flags like anything labelled “consulting” or “marketing” without further detail.
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If rejected, request clarification – sometimes it’s something easily fixable (like a missing document).
The FSB is actively lobbying both the government and Financial Services Authority on this, if you’re a member, it’s worth getting in touch with your development team to see if they have any updates or you have a case story that can help with their campaign.
NB: It’s worth noting that the Bank of England has proposed increasing the FSCS deposit protection limit from £85,000 to £110,000 to reflect inflation over the past eight years. If approved by the Treasury, this change could take effect between December 2025 and May 2026. Be careful of where you have your cash, both as a business and individual; your accountant can give you impartial advice on this.
Photo by Nick Pampoukidis
