Provider review
Starling Business
The account most UK small businesses should open by default — free, FSCS-protected, and one of the very few digital accounts that will actually lend to you.
Who holds your money
Starling Bank Limited, authorised by the Prudential Regulation Authority and regulated by the FCA and PRA. It holds a full UK banking licence in its own name.
Eligible deposits protected up to £120,000 per eligible depositor. The limit is shared with any Starling personal account you hold.
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.
2nd for overall service quality, and 2nd for online and mobile banking at 86%.
Free accounting integrations, cheque imaging, an overdraft and multi-currency. Little sits behind a paywall.
FSCS to £120,000 on a standalone licence, shared only with a Starling personal account.
No monthly fee and unlimited electronic payments. You pay only for cash and international transfers.
Pays nothing at all on business balances. On a £25,000 reserve that is the whole of the market rate foregone.
Cheque imaging, Post Office cash at 0.7% with a £3 minimum, and flat-fee international transfers.
Broad. Sole traders and limited companies, no trading history required.
Weighted total 4.2 / 5. Weightings published on how we rate.
Service quality evidence
| Overall service quality | 2nd, 83% |
| Online and mobile banking | 2nd, 87% |
| Relationship management | 3rd, 74% |
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 | — |
| Best sustainable rate | — |
| Extra cost to reach it | None |
| Access | Not offered |
| Net on £25,000 | £0 |
Starling pays no interest on business balances. Its Easy Saver, Fixed Saver and Cash ISA are personal products — every one carries the condition "Starling personal current account required" — and Business Spaces organise money without earning on it. If you hold a reserve, hold it somewhere else. Verified against starlingbank.com, 4 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
Starling is the account we recommend more often than any other, and the reason is boringly simple: there is no monthly fee, and nothing a normal small business needs is hidden behind one. Electronic payments in and out are free with no monthly allowance to blow through. Accounting integrations with Xero, QuickBooks and FreeAgent come as standard rather than as a paid upgrade. You can pay cash in at the Post Office. You can apply for an overdraft.
That last point matters more than it sounds. Most app-based business accounts don't lend. If your cash flow is lumpy — you invoice on 30 days and your suppliers want 14 — an overdraft facility is the difference between a business account and a payment app with a nice interface.
Starling's own accounting product has been restructured: Accounting Essentials is free and covers Making Tax Digital and automated bookkeeping, while Accounting Plus at £7 a month adds VAT recording, calculation and filing to HMRC. That price is scheduled to roughly double from April 2027, so if you're weighing it against a standalone Xero or FreeAgent subscription, price the second year rather than the first.
The weaknesses are real but narrow. There's no branch network, so if you're depositing thousands in notes weekly the Post Office percentage charge will beat you. And Starling applies its own sector appetite — certain SIC codes are declined regardless of how sound the business is.
Who it suits
- Sole traders and small limited companies who want a genuinely free account with no feature paywall.
- Businesses that might need credit — one of very few digital accounts offering a business overdraft.
- Anyone already on Xero, QuickBooks or FreeAgent, since the integration costs nothing.
- Occasional cash handlers who can consolidate deposits.
Who should look elsewhere
- High-volume cash businesses. Percentage charges compound fast; price a high-street account against it.
- Businesses needing many currencies. Currency coverage is narrower than Revolut or Wise.
- Higher-risk sectors. Starling holds firm on its excluded SIC list.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| BusinessFree electronic payments, Mastercard debit card, Post Office cash deposits, accounting integrations, overdraft on application, Savings Spaces. | £0 | £0 |
| Accounting EssentialsMaking Tax Digital support and automated bookkeeping, included at no charge. | £0 | £0 |
| Accounting PlusAdds VAT recording, calculation and submission to HMRC. Scheduled to rise to £14/month from April 2027. | £7 | £84 |
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 |
|---|---|---|
| Paying in cash (Post Office) | 0.7%, min £3 | Any business with counter takings. The minimum charge punishes small, frequent deposits. |
| Cash withdrawal at ATM | Free | Businesses needing a till float. |
| Cash withdrawal at Post Office | £0.50 | Larger withdrawals over the counter. |
| Cheque deposits | Imaging up to a limit, post above it | Construction, care and other cheque-heavy sectors. |
| International payments | Flat fee plus FX margin | Occasional overseas payers wanting predictable pricing. |
Applying
Application is in-app and often completes the same day for a sole trader. Limited companies take longer where the Companies House record needs matching.
You'll need photo ID, a selfie video, your registered business details and a clear description of what the business does. Starling asks about expected turnover and where income comes from — answer it specifically.
Where applications fail
- Excluded sectors — certain SIC codes are outside appetite regardless of the individual business.
- Companies House mismatch — registered address, director names and SIC code must match exactly.
- Unverifiable trading address — a formation agent mailbox is a common stumbling block.
- Vague business description — "consultancy" tells an onboarding team nothing about your income.
Alternatives worth costing
- Monzo Business — Better app, but integrations cost £9 a month and there is no overdraft.
- Mettle — Also free and FSCS-protected, with FreeAgent included — but no cheques or international payments.
- Barclays Business — Worth the fee if you handle serious cash volumes or need a lending relationship.
Starling questions
Is Starling Business really free?
There is no monthly account fee and no charge for electronic payments in or out. You pay only for cash handling, international transfers and the optional Accounting Plus tier. For a business paid entirely by bank transfer, it genuinely costs nothing.
Is Starling covered by FSCS?
Yes. Starling Bank Limited holds a full UK banking licence, so eligible deposits are protected up to £120,000 per eligible depositor. That limit is shared across any personal Starling account you also hold.
Can I get an overdraft with Starling Business?
Overdrafts are available on application, subject to assessment. This is one of Starling's clearest advantages over Monzo and Mettle, neither of which offers one as standard.
Can I pay cheques into Starling?
Yes. Cheques can be deposited by imaging in the app up to a value limit, and posted above it. Confirm the current limit in-app before relying on it.
Does Starling accept limited companies with overseas directors?
Eligibility is assessed case by case and is generally broader than Monzo's hard UK-residency rule, but overseas ownership does add friction. Check before applying.