Provider review
HSBC Business
Two quite different products under one brand. Kinetic is app-first and narrow; Business Banking is the full high-street package. Choosing the wrong one costs you.
Who holds your money
HSBC UK Bank plc, holder of a full UK banking licence, authorised by the PRA and regulated by the FCA and PRA.
Eligible deposits protected up to £120,000 per eligible depositor, shared across HSBC UK accounts including first direct.
Verify the firm reference number on the FCA Financial Services Register before relying on this.
Scorecard
Seven criteria, each weighted. Every score below says what drove it.
Outside the published top five on every measure in the CMA survey.
Foreign currency accounts, trade finance and documentary credits — things no challenger offers.
FSCS to £120,000, shared with first direct.
Tariff varies by account. Cash handling is the cost that catches businesses out.
1.21% AER with no plan fee to reach it, worth about £302 a year on £25,000.
Full cash and cheque handling, plus genuine international banking through a global network.
Kinetic is single-director only, where the director is also the sole shareholder. That rules out a lot of companies.
Weighted total 3.7 / 5. Weightings published on how we rate.
Service quality evidence
| Overall service quality | Joint 10th, 60% |
| Online and mobile banking | Joint 9th, 69% |
| Relationship management | 7th, 63% |
Independent survey of around 1,200 SME customers a year per provider, conducted by BVA BDRC (now part of Ipsos) and published by the CMA in August 2026. All 17 surveyed providers are ranked; a provider shows as not ranked only where it does not offer the service or fewer than 100 of its customers gave an eligible score.
Interest on balances
Verified from provider site| Rate on the free tier | 1.21% |
| Best sustainable rate | 1.21% |
| Extra cost to reach it | None |
| Access | Instant access |
| Net on £25,000 | £302 |
Business Money Manager instant access pays 1.21% AER up to £100,000, 1.24% above it, 1.26% from £250,000 and 1.31% from £1m, with interest paid quarterly. A 30+ day rate pays slightly more at each band, 1.25% up to £100,000. HSBC cut these rates on 10 March 2026 — the bottom instant tier fell from 1.33% to 1.21%, a 12 basis point reduction. Verified against business.hsbc.uk, 5 August 2026.
Affiliate note
Where we hold a commercial arrangement with a provider, this box says so and every link on the page is marked. Commission never affects the score or the ranking.
Fees are checked against the provider’s published tariff. If a page has not been re-checked within 60 days, it says so at the top.
The verdict
HSBC's business offering splits in two, and the split matters more than the marketing suggests. Kinetic is the app-based account, built for sole traders and single-director limited companies, with cash-flow insights and accounting integrations. Business Banking is the traditional relationship account with branch access, lending and international capability.
Kinetic is the better product for a solo consultant who wants a mainstream bank without high-street pricing. It is not, however, in the same class as Starling or Monzo on interface or speed, and it is meaningfully more restrictive on eligibility — the single-director rule rules out a lot of two-founder companies.
Business Banking is where HSBC's real advantage sits: international. If your business imports, exports, or holds foreign currency accounts, HSBC's global network is genuinely useful in a way that a digital challenger's FX feature is not. Trade finance, documentary credits and multi-currency accounts are available through a bank that does this at scale.
For a UK-only service business, none of that is worth paying for, and the free digital accounts win on cost outright.
Who it suits
- Importers and exporters who need genuine international banking rather than an FX feature.
- Sole traders wanting a mainstream bank with an app-first experience — Kinetic.
- Businesses with foreign currency requirements beyond occasional payments.
Who should look elsewhere
- Two-director companies looking at Kinetic. The single-director restriction is firm.
- UK-only digital businesses. You are paying for capability you will never touch.
- Anyone prioritising app quality. Starling and Monzo are ahead.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| HSBC KineticApp-based account for sole traders and single-director limited companies. Cash-flow insights, spending categorisation, integrations with Xero, QuickBooks and Sage. | Introductory free period, then a monthly fee | Verify current tariff |
| Small Business BankingFull-service account with branch access, cheque handling, overdrafts and lending. | Introductory free period, then a monthly fee | Verify current tariff |
| Business Banking (larger)For established businesses. International payments, foreign currency accounts, trade finance and relationship management. | Tariff by activity | Verify current tariff |
Pricing must be verified against the provider's own site before publication. Providers reprice without notice.
The fees that are not in the headline
The monthly fee is what gets advertised. These are the charges that decide what you actually pay.
| Charge | Cost | Who it affects |
|---|---|---|
| Monthly account fee | Introductory free period, then monthly | Everyone after the intro period ends. |
| Electronic payments | Free or within an allowance depending on plan | Check which plan you are on — allowances differ. |
| Cash paid in | Per £100 | Retail and hospitality using branch or machine. |
| International payments | Per transfer plus FX margin | Importers and exporters — HSBC's core strength. |
| Foreign currency accounts | Available on Business Banking | Businesses holding balances in other currencies. |
Applying
Kinetic applications are made in-app and are quick for eligible applicants. Business Banking may involve a branch appointment or a call, particularly for established businesses.
You will need photo ID, proof of address, Companies House details and information about the nature and expected turnover of the business. International activity will prompt additional questions about counterparties and countries.
Where applications fail
- More than one director, on Kinetic — a hard eligibility rule, not a risk judgement.
- Non-UK residency — directors and PSCs generally need to be UK resident.
- Higher-risk jurisdictions — trade with sanctioned or high-risk countries will stop an application.
- Sector appetite — money service businesses and some crypto activity are outside scope.
Alternatives worth costing
- Barclays Business — Comparable high-street package, often simpler onboarding for UK-only businesses.
- Starling Business — Free, and adequate for occasional international payments.
- Revolut Business — Better day-to-day multi-currency tooling, though without trade finance.
HSBC questions
What is the difference between HSBC Kinetic and HSBC Business Banking?
Kinetic is an app-only account for sole traders and single-director limited companies. Business Banking is the full-service account with branch access, cheque handling, lending and international capability. They have different eligibility rules and different tariffs.
Can two directors open an HSBC Kinetic account?
No. Kinetic is limited to sole traders and limited companies with a single director who is also the sole shareholder. Two-director companies need Business Banking instead.
Is HSBC good for international business banking?
It is one of the strongest options in the UK market. Foreign currency accounts, trade finance and a genuine global network put it ahead of digital challengers for importers and exporters — though for simple overseas payments a cheaper provider will do.
Is an HSBC business account FSCS protected?
Yes, up to £120,000 per eligible depositor. The limit is shared across HSBC UK accounts, including first direct.