How to choose a business bank account

1. Check the protection model before anything else

Licensed banks protect eligible deposits directly through the FSCS up to £120,000. E-money institutions either partner with a licensed bank (FSCS flows through, as with Tide/ClearBank) or rely on safeguarding — a different, weaker promise. Both models serve millions safely, but you should know which one holds your money before the balance grows, not after.

2. Price your real monthly usage, not the sticker

Count last month's transfers, cash deposits, ATM withdrawals and international card transactions, then run them through each provider's fee table. Five free transfers then 20p sounds trivial until fifty payments cost £10. Free-with-meters and fee-plus-free-everything routinely swap places depending on volume — do the two-minute maths.

3. Decide how much admin you want inside the bank app

Tide builds invoicing, expense cards and formation in; Starling and Mettle feed your data to dedicated accounting apps instead. Neither is wrong: bundling suits operators who want one login; specialising suits anyone whose accountant lives in Xero or FreeAgent. Pick a philosophy before a provider.

4. Treat cash honestly

If customers pay you in notes weekly, every challenger becomes awkward and fee-bearing — Post Office and PayPoint fees are the tax on digital-only banking. Cash-heavy businesses should price a high-street account into the comparison from the start; it is often cheaper than the "free" alternatives.

5. Think two years ahead on borrowing and FX

Switching banks is painful, so buy for the business you expect: overdrafts and loans (Starling, high street), multi-currency needs (Barclays, Starling EUR/USD), expense cards for a team (Tide). The account that fits at formation should not become the constraint at Series A.

6. Use the switch service without fear

The Current Account Switch Service covers most small businesses, moves your balance, payments and payees in seven working days, and redirects anything sent to the old account. If an incumbent is charging you for 2019 service levels, leaving is a solved problem — which is why retention offers appear the moment you ask.

Next steps

With the criteria clear, the fastest route to a confident shortlist is our category research: