Provider review
Virgin Money Business
The longest free banking period on the UK high street, an account that pays nothing to hold if your turnover is modest, and a business savings account you can open without banking with them at all.
Who holds your money
Virgin Money is a trading name of Clydesdale Bank plc, which holds a full UK banking licence. Virgin Money is now part of Nationwide Building Society following its acquisition.
Eligible deposits protected up to £120,000 per eligible depositor — but Virgin Money states plainly that this covers your combined eligible deposits with Virgin Money and Nationwide. If you bank with either, you do not have two allowances. This is exactly the group-brand question that catches people out.
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.
Xero free for six months, branch access, and a standalone savings account that does not require the current account.
FSCS to £120,000, but Virgin states the limit covers your combined deposits with Virgin Money and Nationwide. Marked down for the shared limit, as NatWest, Lloyds and Mettle are.
25 months free, the longest on the high street. Price year three, not year one.
3.50% AER with no plan fee to reach it, worth about £875 a year on £25,000.
Branch and counter access, with a £250,000 annual cash limit inside the free banking offer.
The 25-month offer requires genuine switchers or start-ups within 12 months of trading, under a turnover ceiling.
Weighted total 4.1 / 5. Weightings published on how we rate.
Service quality evidence
| Overall service quality | 8th, 62% |
| Online and mobile banking | 12th, 65% |
| Relationship management | Joint 9th, 60% |
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 | 3.50% |
| Best sustainable rate | 3.50% |
| Extra cost to reach it | None |
| Access | Instant access |
| Net on £25,000 | £875 |
The Business Access Savings Account pays 3.50% AER (3.45% gross), instant access, from £1 up to £2m, with no fees. It is a standalone account that does not link to a Virgin Money business current account — unusual, since almost every rival ties its rate to the current account or a paid plan. The linked Business Cash Management Account pays only 1.10%. Notice accounts run 2.43% to 3.51%, and fixed term deposits 3.75% to 4.00% from £5,000. Verified against uk.virginmoney.com, 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
Virgin Money runs the broadest range of business current accounts of anyone in this comparison — five distinct products before you count the charity and club variants — and the differences between them are real rather than cosmetic.
The headline is the free banking. New customers switching their main business account, or start-ups within twelve months of trading, get 25 months of free day-to-day banking on the Business Current Account, subject to a turnover ceiling and a £250,000 annual cash limit. That is more than twice what Barclays, Lloyds or NatWest offer, and for a business finding its feet the difference is material.
The M Account for Business goes further for smaller operations: no monthly account fee at all, subject to qualifying criteria, for start-ups and switchers under £1m turnover, with free day-to-day online banking. International and CHAPS payments are excluded from that, and above £1m turnover you are pushed to the standard Business Current Account.
Neither of those pays credit interest. If you want interest on the current account balance you need the Business Choice Account, which carries a monthly fee and pays a base-rate-linked rate — the usual trade-off, and one our net-yield model would want you to price properly.
The genuinely unusual thing is the savings side. The Business Access Savings Account is instant access, takes deposits from £1 up to £2m, has no fees, and does not require a Virgin Money current account. Almost every rival ties its business savings rate to holding the current account, or to a paid plan. This one does not, which makes it worth considering purely as a home for a reserve regardless of who you bank with.
Where Virgin is weaker is service. It sits outside the CMA's published top five on every measure, and its public review scores are middling. And the Nationwide acquisition introduces genuine uncertainty about how the product range evolves.
Who it suits
- Start-ups and switchers who can use 25 months of free banking rather than the usual twelve.
- Smaller businesses under £1m turnover, where the M Account can cost nothing at all.
- Anyone wanting a business savings account on its own — no current account required, instant access, from £1.
- Charities, clubs and societies, which get dedicated accounts with free transactional banking under set thresholds.
- Professional firms holding client money, which have a purpose-built account.
Who should look elsewhere
- Businesses prioritising service quality. Outside the CMA top five on every measure.
- Anyone wanting interest on the current account balance without paying for it — that needs the Business Choice Account.
- Heavy international payers. International and CHAPS payments sit outside the free banking offers.
- Businesses wanting certainty about the roadmap, given the Nationwide acquisition.
Every tier, priced
What each plan includes, and what the step up actually costs over a year.
| Plan | Monthly | Per year |
|---|---|---|
| M Account for BusinessFor start-ups and switchers with turnover under £1m. Free day-to-day online banking, excluding international and CHAPS. Debit Mastercard, app and internet banking, overdraft subject to assessment. No credit interest. Unpaid item fee £4. | £0, subject to qualifying criteria | £0 |
| Business Current AccountOpen to all businesses. 25 months free day-to-day banking for new switchers under £6.5m turnover or start-ups within 12 months of trading, with a £250,000 annual cash limit. No credit interest. Unpaid item fee £7. | Free for 25 months, then tariff | Tariff from month 26 |
| Business Choice AccountThe only standard business account here that pays base-rate-linked credit interest on the current account balance. Full transaction charges apply. | Monthly fee applies | Verify current tariff |
| Professional Firms Client AccountFor firms holding and managing client funds. Base-rate-linked credit interest subject to individual agreement. | £0 for designated client accounts | £0 |
| Business Access Savings Account3.50% AER (3.45% gross), instant access, from £1 up to £2m, no fees, and no Virgin Money current account required. Managed through Online Service rather than Business Internet Banking. The linked Business Cash Management Account pays just 1.10% by comparison. | £0 | £0 |
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 | £0 to monthly, by account | The M Account can be free indefinitely; the Business Current Account is free for 25 months then moves to tariff. |
| Free banking period | 25 months | New switchers and start-ups. The longest on the UK high street. |
| Xero accounting software | Free for 6 months, then paid | Making Tax Digital users. A recognised MTD package, but an introductory offer rather than an ongoing inclusion — unlike Mettle’s permanent FreeAgent. |
| Cash within the free offer | Capped at £250,000 a year | Cash-heavy businesses will breach this and move to per-item charges. |
| International and CHAPS payments | Excluded from free banking | Anyone paying overseas — these are charged from day one. |
| Unpaid item fee | £4 (M Account) or £7 (business current accounts) | Businesses running close to their limit. |
| Unplanned borrowing | Daily fee above a buffer, plus interest | Arrange an overdraft rather than drifting over. |
Applying
Applications are made online, with a separate route for continuing a saved application. Business Internet Banking registration is automatic on the M Account.
Expect the standard requirements: photo ID, proof of address, Companies House details where applicable, expected turnover and a description of the business. The free banking offers have eligibility conditions on turnover and trading history, so check you qualify before you apply rather than after.
Where applications fail
- Turnover above the threshold — the M Account is limited to businesses under £1m; above that you are directed to the Business Current Account.
- Not a genuine switcher or start-up — the 25-month offer requires switching your main account or trading for under 12 months.
- Companies House mismatch — details must match the register.
- Higher-risk sectors — standard exclusions apply.
Alternatives worth costing
- NatWest Business — Comparable high-street range with free FreeAgent included.
- Barclays Business — Larger branch network, but only 12 months free.
- Allica Bank — Better interest on balances if your business is established enough to qualify.
- Starling Business — Permanently free rather than free for 25 months, if you can live without a branch.
Virgin Money questions
How long is Virgin Money free business banking?
25 months on the Business Current Account for new customers switching their main business account or start-ups within 12 months of trading, subject to a turnover ceiling and a £250,000 annual cash limit. That is the longest free period on the UK high street. The M Account for Business can be free indefinitely for businesses under £1m turnover, subject to qualifying criteria.
Can I open a Virgin Money business savings account without a current account?
Yes. The Business Access Savings Account does not require a Virgin Money business current account, takes deposits from £1 up to £2m, and has no fees. That is unusual — most rivals tie their business savings rate to holding the current account or to a paid plan.
Does Virgin Money pay interest on business current accounts?
Only on the Business Choice Account and the Professional Firms Client Account, which pay base-rate-linked credit interest. The M Account for Business and the standard Business Current Account do not.
Is Virgin Money business banking FSCS protected?
Yes, up to £120,000 per eligible depositor. Virgin Money is a trading name of Clydesdale Bank plc and is now part of Nationwide Building Society — check whether the two share a single FSCS limit before assuming you have two separate allowances.
What happens to Virgin Money now it is part of Nationwide?
The business accounts continue to operate under the Virgin Money brand for now. Any acquisition of this size brings uncertainty about which products survive and on what terms, which is worth weighing if you are choosing an account you expect to hold for years.