Business bank accounts for limited companies: choosing the right fit
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
Quick answer
A limited company is a separate legal person, so its money must go into an account in the company’s own name — not a director’s personal account. The main choice is between app-led accounts that open quickly and banks with branches and relationship managers.
Our pick for a one- or two-director company that wants no monthly fee: Starling or Mettle (Mettle accepts companies with up to two owners). Our pick for an established company holding £50,000 or more: compare Allica Bank, which is built for businesses trading at least 12 months.
Limited company account options compared
| Provider | Who it suits | Monthly fee | Accounting software |
|---|---|---|---|
| Starling | Sole traders and limited companies; 18+ and UK-based | No monthly fee | Xero, QuickBooks and FreeAgent feeds via Starling Marketplace |
| Mettle (NatWest) | Sole traders and limited companies with up to two owners | No monthly fee (optional Mettle+ add-on £4 a month) | FreeAgent included if you make one transaction a month |
| Monzo Business | Sole traders and limited company directors in the UK | Lite: free. Pro: £9 a month (first month free). Team: from £25 a month | Xero, QuickBooks, FreeAgent and Sage on Pro and Team |
| Revolut Business | Limited companies and sole traders; multi-currency users | Basic £10, Grow from £30, Scale from £90 a month | Xero bank feed (syncs roughly every 4 to 6 hours) |
| Allica Bank | Established businesses (12+ months) able to deposit £50,000 or more | £25 a month if your average balance falls below £10,000 (unless you have an Allica loan) | Sage, Xero, QuickBooks and FreeAgent |
| Barclays | Start-ups and switchers; branch access | No monthly fee for 12 months, then £8.50 a month; transaction charges apply | 12 months of Sage free, then 50% off |
| Santander (Business Current Account – Classic) | Businesses with up to 2 directors, owners or partners | 12 months’ free everyday banking for start-ups and switchers, then £9.99 a month | 6 months of Xero free (offer, T&Cs apply) |
Figures as of 3 October 2026, taken from each provider’s own website. Fees, plans and eligibility change, so check the provider before applying.
Who it’s for
- Newly incorporated companies opening their first account
- Directors who want separate logins, cards or approval rules for colleagues
- Companies with growing balances who care about FSCS limits
- Companies wanting their bank to feed straight into Xero, QuickBooks or FreeAgent
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You haven’t incorporated yet — a sole trader account may be simpler for now
- Your company has complex ownership (trusts, overseas parents) — app-led providers may decline
- You need large lending facilities tied to the account from day one
- You want regulated advice on company structure
Full explanation
Why the account must be in the company’s name
A company’s money belongs to the company. Paying company income into a personal account muddles the records your accountant needs for company accounts and Corporation Tax, and makes director’s loan account entries harder to track. Check GOV.UK for how directors can take money out of a company.
Directors, signatories and access
Think about who needs to do what. Some accounts let you add colleagues with view-only access or spending cards; others need every director to complete identity checks. If two people must approve payments, check that the account supports it — Allica, for example, offers two-person authorisation.
Growing balances
As retained profit builds up, FSCS limits and savings rates matter more. Allica links a savings pot to its current account. If your balance is above £120,000, you may want to spread money across banking licences — see FSCS protection limits.
For the paperwork side, read our guide to opening a company bank account. For structure questions, see Sole trader vs limited company and our Limited company banking FAQs.
The catch
Your company gets its own FSCS limit. A limited company’s eligible deposits are protected separately from its directors’ personal money, up to £120,000 per banking licence. Balances above that may not be covered.
Team features usually cost extra. Monzo Business Team starts from £25 a month; Revolut Business Grow starts from £30 a month.
Some accounts limit owners. Mettle accepts limited companies with up to two owners; Santander’s Classic account is for businesses with up to 2 directors, owners or partners.
Opening your first company account?
Check a provider’s current terms for limited companies:
These go straight to each provider’s own website. They aren’t referral links and we don’t earn from them.
FAQs
Does a limited company legally need its own bank account?
Yes. Business.gov.uk says limited companies must have a business bank account. The company is a separate legal entity, so its money goes in an account in the company’s name.
Is company money protected separately from mine?
Yes. A limited company has its own FSCS limit, separate from its directors’ personal limit — £120,000 per banking licence.
Can I add another director to an app-led account?
Usually, though each person may need identity checks. Some plans charge more for team access — Monzo Business Team starts from £25 a month.
Which accounts suit established companies with large balances?
Allica Bank targets businesses trading 12 months or more that can deposit £50,000 or more, and charges £25 a month if the average balance falls below £10,000.
Can a limited company use a sole trader account?
No. A sole trader account is in an individual’s name. A company needs an account in the company’s registered name.
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