Comparison
Best business bank accounts for start-ups
A brand-new company has no trading history, no accounts and no track record. That rules out some of the best accounts entirely — and makes the free-banking period worth more than it looks.
Our picks
Monzo Business
Open in minutes with no trading history required, first for service in the CMA survey, and it pays 1.30% on your balance from day one. All directors must be UK resident.
Virgin Money
25 months of free day-to-day banking for start-ups within 12 months of trading — more than twice what the rest of the high street offers, and a route into branch access and lending.
Mettle by NatWest
Free forever with a FreeAgent subscription included, which removes the accounting software cost entirely at the point you can least afford it.
Compared
Scores use our seven weighted criteria. Run your own figures on the true cost calculator.
| Account | Time to open | Free period | Interest | Accepts day-one businesses | Score |
|---|---|---|---|---|---|
| MoMonzo Business | Minutes, in-app | None | 1.30% from day one | Yes | 4.3 |
| MMettle by NatWest | Same day | None | 1.46% | Yes | 3.9 |
| SStarling Business | Same day | None | None | Yes | 4.2 |
| VVirgin Money | Days | 25 months free | 3.55% (unverified) | Yes | 4.1 |
| Barclays Business | 1–3 weeks | 12 months free | 1.26% (unverified) | Yes | 3.6 |
| NNatWest Business | Days to weeks | Intro period | 1.11% (unverified) | Yes | 3.6 |
| ZZempler Bank | Fast | None | None | Yes, thin files accepted | 3.2 |
| AlAllica Bank | Longer | None | 2.83% | No — established only | 4.0 |
What actually blocks a start-up
It is rarely credit. New companies get declined for structural reasons, and knowing them saves weeks.
- Allica requires established trading history. A day-one company will not qualify however good the proposition.
- Monzo requires every director and person of significant control to be UK resident. One overseas co-founder ends it.
- Mettle restricts how many owners a company can have and is aimed at single-director businesses.
- HSBC Kinetic is single-director only, where the director is also the sole shareholder.
Beyond that, the causes are mundane and fixable: a Companies House record that does not match your application, a SIC code chosen carelessly from a dropdown at incorporation, or a registered address at a formation agent that cannot be verified. See why applications get declined and what a SIC code is.
How much is a free banking period actually worth?
Virgin Money’s 25 months is genuinely the longest on the high street, and for a start-up with no revenue that has real value. But price it properly: 25 months of free banking against a permanently free account is worth nothing at all unless you also need the branch, the cash handling or the lending relationship.
Open the account before you need it
Two practical points that catch new founders out. First, incorporate before you apply — providers verify against Companies House and applications submitted before the register updates fail on mismatch. Second, do not apply to five providers at once; several run credit searches and a cluster of applications is itself a risk signal.
What a start-up should not pay for
Multi-user access, expense cards, multi-currency accounts and relationship management are all sold hard to new businesses and needed by almost none of them. Start on a free tier, and upgrade when a specific problem appears rather than in anticipation of one.
The exception is interest. If you have raised money and are sitting on a runway, the rate matters immediately — a £100,000 balance earning nothing is a £2,800 a year decision. See best business savings accounts.
Common questions
Can I open a business account for a company with no trading history?
Yes. Monzo, Starling, Mettle, Tide and the high-street banks all accept day-one companies. Allica is the notable exception, requiring established trading history. What matters far more than history is that your Companies House record matches your application exactly.
What is the longest free business banking period?
Virgin Money offers 25 months for start-ups within 12 months of trading and for switchers, subject to a turnover ceiling and a £250,000 annual cash limit. Barclays, Lloyds, NatWest and HSBC typically offer 12 months.
How quickly can a start-up open a business account?
Minutes to a day with Monzo, Starling, Mettle or Tide. One to three weeks at a high-street bank, longer with overseas directors or an unusual ownership structure.
Do start-ups need a business bank account immediately?
A limited company should have one from the start, because the company is a separate legal person and its money is not yours. Mixing it with personal money creates a director’s loan account tangle that costs more to untangle than the account costs to run.