35 Best Business Bank Accounts for Sole Traders (2024)

35 Best Business Bank Accounts for Sole Traders in 2024

·Updated 21/01/2024·

Sole traders can benefit from a separate business bank account, although it’s not a legal requirement. You can easily separate your business and personal life, at least financially, and get better insights into your incomings and outgoings.

Find the best sole trader bank account for your side hustle with deals from the UK's top high street and online business banking providers.

Tide Business Bank Accounts

Accounts suitable for small businesses including sole traders
Get a £50 voucher when you sign up with code: £50VOUCHER (T&Cs apply)
Can be opened in under 10 minutes
Connect your favourite accounting software with ease
24/7 account management with their app
Create, send & track invoices all from the Tide app
Offer business savings with market-leading instant access rate
Paid accounts with extra features from £9.99 to £49.99 plus VAT
Trusted by more than 450,000 UK businesses

Website Read our in-depth Tide review

Cashplus Business Bank Accounts

Available to sole traders & single director businesses
Charges no monthly fees with three free payments every month, then 30p each
Sync with Xero or QuickBooks accounting software
24/7 account management with their app
Categorise transactions, attach receipts & leave notes on payments
Open an account in no time with no need for a credit check
Access to finance including business overdrafts
Fully regulated UK bank protected by the FSCS
Friendly UK-based customer service team

Website Read our in-depth Cashplus Bank review

Countingup Business Accounts

Accounts designed for sole traders, freelancers & self-employed
Three months free banking offered to all new customers
Account fees range from £3 to £18 afterwards, depending on how many deposits are made monthly
Enjoy their integrated accounting & invoicing tools
24/7 online & mobile banking
Contactless Mastercard, with free purchases, sent out upon approved application
Capture digital receipts & automatically match to expenses
Rated an excellent 4.4 stars on Trustpilot
Customer support is available seven days a week

Website Read our in-depth Countingup review

Cynergy Bank Business Current Account

Account available to small registered businesses & sole traders
No monthly fee for the first 12 months available to new customers for a limited time only, then £25pm covering all standard electronic transactions (excludes cash, CHAPS, SWIFT & SEPA), T&Cs apply
Manage the account online with 24/7 access
Cash can be deposited at HSBC branches
Access to Faster Payments, CHAPS, SWIFT, SEPA & FX, fees apply
Get 2.50% AER variable on balances to £25,000 & 0.25% AER on anything over
Business savings with better easy access rate available to sole traders
FCA regulated UK bank benefitting from FSCS protection, on eligible deposits

Website Read our in-depth Cynergy Bank review

Airwallex Business Account

Multi-currency account for sole traders registered with HMRC as self-employed
Sign up online for free & pay no monthly fees for an account
Offer local bank details in 20+ currencies, in more than 60 countries
Local transfers are free while SWIFT payments cost £10-£20
Get market-leading FX rates with fast money transfers in 40+ currencies
Get 10% cashback on the first $1,000 of international transactions (T&Cs apply)
Integrates with a suite of financial tools, including popular accounting software
Have a TrustScore of 3.9 out of 5 on Trustpilot
Not a bank or covered by the FSCS but protected by safeguarding rules to protect deposits

Website

Revolut Freelancer Accounts

Three multi-currency accounts made for sole traders & freelancers
Free account available with restrictions such as no access to rewards or Revolut's API
Paid accounts for £5 or £19 per month
Connect accounting software & other convenient apps via the marketplace
Manage the account with online & mobile access
Send money to other Revolut accounts for free
Handle more than 28 different currencies with just one account
Track or spend in real-time & automatically categorise payments
Rated 4.2 stars on Trustpilot
Priority support included with the freelancer paid plans

Website Read our in-depth Revolut review

ANNA Money Business Accounts

Account created for freelancers & small businesses in mind
Free forever, just pay transaction fees on what you use
Paid accounts available for £14.90 to £49.90, plus VAT
Built-in invoicing & accounting software
Manage the account 24/7 online
Automated expense categorisation & receipt matching
Get 1% cashback on eligible purchases
Trustpilot rating of 4.6 stars
Refund of month's subscription if support take longer than 10 minutes to reply within app

Website Read our in-depth ANNA Money review

Card One Money Business Account

Accounts available to sole traders that turnover less than £2 million
Opening charge of £55 with a monthly fee of £12.50
Integrates with accountancy software, from Xero to Sage
24/7 account management with their app
Apply in 10 minutes with no credit checks & open within 24 hours
No late or missed payment fees apply
Contactless Mastercard with free UK purchases is included
Whenever you pay someone, or they pay you you'll get a text alert
Trustpilot rating of 4.5 stars
Responsive customer service team, averaging answering the phone in four seconds

Website Read our in-depth Card One Money review

Wise Business Account

Digital business account suitable for sole traders
Costs £45 for banking details, no monthly fee thereafter just pay for transactions
Integrates with accounting software such as QuickBooks or Xero
Manage whenever or wherever with online & mobile banking
Apply within minutes & open an account in 4-7 days, on average
19x cheaper to send money than with PayPal
£3 debit card with no transaction fees except for converting currencies
Hold 50 different currencies & transfer to more than 80 countries
Trustpilot rating of 4.2 stars
Friendly support team available 24/7 via live chat

Website Read our in-depth Wise review

Fair Everywhere Business Account

Suitable for sole traders that operate internationally
Applications cost £55 & the monthly fee is £12.50
Open an account same-day with no hard credit checks
Earn up to 8% in cashback from over 50 retailers
Online-only, multi-currency account with 24/7 access
Offers wallets in EUR, GBP & USD currencies
Fair Everywhere Mastercard accepted in more than 200 countries
In-branch services offered at Barclays branches
Customer support team available Monday to Saturday

Website Read our in-depth Fair Everywhere review

Starling Sole Trader Account

An account specifically for sole traders & freelancers
No management fees with free UK transfers, ATM withdrawals & card purchases
Awarded Best Business Banking Provider 2023 in The British Bank Awards
Accounting integrations for Xero, QuickBooks & more
24/7 account management via the web or their award-winning mobile app
Application take roughly 10 minutes, with verifications taking a day on average
No card fees in the UK or abroad, with automated expense categorisation
Rating of 4.4 stars on Trustpilot
Deposits protected by the FSCS up to £85,000
Friendly UK-based customer support team available 24/7

Website Read our in-depth Starling Bank review

Monzo Business Lite

Free account for sole traders with restrictions like no access to exclusive offers or multi-user access
No monthly account fee with free & instant UK bank transfers
Accounting integrations & savings pots available with paid accounts
Manage your funds wherever you are with 24/7 mobile & web access
Applications take 10 minutes with signup or switching via the app
Get notified when you pay someone or someone pays you
Eligible deposits are protected with the FSCS
Awarded Best Business Banking Provider 2022 in The British Bank Awards
Rated 4 stars by Trustpilot customers

Website Read our in-depth Monzo review

Mettle Business Bank Account

Completely free bank business account, made for UK sole traders
Account balance is limited to a maximum of £50,000
Access FreeAgent accounting software for no charge
Manage 24/7 online with their mobile app
Apply in-app within minutes
Contactless Mastercard included, with free card transactions
Create, customise & send invoices on the go
Integrated savings pots available for deposits up to £1 million
Rated 4.6 stars on Trustpilot
Designed for small businesses, by NatWest

Website Read our in-depth Mettle review

Virgin M Account for Business

Available for startups, small businesses & sole traders that turnover less than £1 million
No monthly account fees, just pay for what you use
24/7 online access with their mobile app
Part of the Current Account Switch service
Earn 0.35% cashback on debit card payments
Savings & business finance available
£1,000 overdraft available on account opening
Currently has over 130 branches in the UK
Friendly UK-based customer support team

Website Read our in-depth Virgin Money review

HSBC Kinetic Current Account

Designed for sole traders or limited companies with one director
New sole traders or those that switch receive 12 months of free banking. Usually £6.50 per month
Apply for a credit card or arrange an overdraft in-app
Access the account on desktop or mobile app 24/7
Most accounts are opened the same day
Offered HSBC Kinetic Savings Account upon application
Switch in 7 days with the Current Account Switch service
Monthly cashflow breakdown reports with expense tracking
Leading UK bank, part of the big four in the UK
Get support whenever in-app or call up Monday to Friday, 9am-5pm

Website Read our in-depth HSBC review

NatWest Start-up Business Account

Account available for sole traders, freelancers & startups
New businesses pay no fees for 18 months. Pay-as-you-go transactions thereafter, with no monthly fee
Free sole trader bank account with Mettle
Includes free access to their FreeAgent accounting software
Access your money 24/7 online with their award-winning app
You can apply in as little as 10 minutes
Business overdrafts & credit cards available
Switch your current account in 7 days
Large number of branches across England, including mobile ones
Experienced UK-based support team

Website Read our in-depth NatWest review

Metro Business Bank Account

Available for small businesses & sole traders
Monthly account fee of £6, waived for balances of more than £6k, with 30 free transactions for the month too
Bank whenever with online & mobile banking
Can be opened in 2-3 working days
Switch your account in 7 days
Free expert advice from Enterprise Nation
No charge for card purchases across Europe
Access to a range of borrowing options
77 branches available with some drive-thru stores
Top rated bank for customer service

Website Read our in-depth Metro Bank review

Lloyds Small Business Account

Account for new, small & self-employed businesses that turnover up to £3 million
12 months free banking for new businesses, including individuals. £7 monthly fee after
Access to financial support including arranged overdrafts & more
Bank whenever with online & mobile banking
Accounts are usually opened 4 weeks after applying
Part of the Current Account Switch service
Access to suite of useful business guides & tools
Business debit card with free payments included
One of the big four banks in the UK
Experienced UK customer support with a dedicated business management team

Website Read our in-depth Lloyds Bank review

Barclays Start-up Business Account

Accounts for startups & sole traders with annual turnover of less than £400,000
No-fee banking for 12 months for new businesses, £8 or £8.50 monthly fee thereafter, depending on tariff
Electronic & mixed-payment tariffs are available
You'll always be moved onto the best tariff with Barclay's Price Plan guarantee
24/7 banking online or via mobile app
Can be opened in an average of 5 days of application
Specialist advice from entrepreneur & startup experts
Multiple savings accounts available
One of the leading big four banks
7 day Current Account Switch Guarantee

Website Read our in-depth Barclays review

SumUp Business Account

Business account suitable for sole traders & freelance sellers
With no monthly or annual fees, plus free UK transfers
Online-only account managed through the web or mobile app
Create invoices easily with their integrated accounting features
Apply in minutes & start using the account once verified
Includes three free ATM withdrawals each month
Contactless Mastercard with free transactions
Manage expenses & track spending with the SumUp app
Access their suite of products to help accept payments or sell online
Email, phone or live chat support available

Website Read our in-depth SumUp review

TSB Business Plus Account

The account is suitable for sole traders
25 months free day-to-day banking for new customers, £5 monthly thereafter
Choose from their electronic payments or mixed-transaction tariffs
Manage the account 24/7 online with internet or mobile banking
Account can be opened after 5 days of submitting an application
7 day Current Account Switch Guarantee
Get specialist support to help progress your business
Savings & finance solutions are available, criteria applies
There are more than 290 branches currently
Business banking call centre available Monday to Friday, 8am-6pm & Saturday, 9am-2pm

Website Read our in-depth TSB review

The Co-operative Directplus Account

Account available for startups & sole traders
All new customers get 30 months of free banking if balance is kept above £1,000
Monthly fee of £7 outside the introductory period criteria
Bank whenever with online & mobile banking
Ethical bank with community & customer focused values
Easily switch your account in 7 days
Overdrafts & savings solutions are available
Deposits protected by the FSCS
There are 50 branches available across England, Scotland & Wales
Friendly UK-based customer support team

Website Read our in-depth The Co-operative Bank review

Unity Trust Bank Business Current Account

Accounts for like-minded sole traders
Quarterly account fee of £6, charged quarterly
Manage your money 24/7 with online & mobile banking
Counter services available at NatWest Banking Group branches
No debit card is issued with their current accounts
Business credit cards & savings are available
Switch your account in 7 days with the switch service
Ethical bank with a focus on helping to solve social & community issues
Deposits up to £85,000 are covered by the FSCS
90% of all customer support issues are resolved by the first person spoken to

Website Read our in-depth Unity Trust Bank review

Santander Business Current Account

2 accounts available for sole traders, small & large businesses
Reduced monthly fees for switchers (12 months) & new businesses (18 months). Account fees from £7.50 after
Moneyfacts Best Business Current Account Provider 2021
24/7 online & mobile banking with text or email alerts
Lengthy application & opening process
Savings accounts & borrowing products available
Part of the Current Account Switch service
Receive up to £300 cashback per year
Currently has over 450 branches in the UK
UK customer support team

Website Read our in-depth Santander review

Reliance Bank Business Current Account

Account suitable for sole proprietor businesses
Six months of free everyday banking available on positive balances of £5,000 or more, £5 per month otherwise
Manage the account on the go with 24/7 internet banking
Counter services available at NatWest & RBS branches
Business debit card & chequebook included
Part of the Current Account Switch service
Arranged overdraft & more available
Fully licenced bank covered by the FSCS
Official bank for The Salvation Army
Ethical bank with friendly customer support available by phone, fax or email

Website Read our in-depth Reliance Bank review

Handelsbanken Business Current Account

Suitable banking solution for sole traders
Fees vary for every business, call up for a quote
Best rated bank for account & relationship management
24/7 online & mobile banking
Applications need to be done over the phone or in-branch
Business overdrafts & other finance options available
7 day Current Account Switch Guarantee
Direct line to a dedicated business account manager
Currently there are over 200 branches in the UK
24/7 customer-favourite support team

Website Read our in-depth Handelsbanken review

Cater Allen Reserve Account for Business

Account suitable for sole traders, freelancers & contractors
No monthly account fee with 30 free transactions each month
Manage the account 24/7 online
Option to bank by telephone or post
7 day Current Account Switch Guarantee
Balances over £500,000 generate interest
Free debit card included, also available in euros & US dollars
No overdrafts offered but other finance options are available
Eligible deposits are protected by the FSCS

Cater Allen Private Bank Business Banking

Website Read our in-depth Cater Allen Private Bank review

The Cumberland Business Current Accounts

Accounts suitable for sole traders that live within their branch operating area
2 account options for businesses depending on preferred transaction type
Both with 12 months free banking for those with turnover up to £250,000
Option A (£5pm) for those that work with cash & Option B (£3) for those that make more digital payments
24/7 online & mobile banking
Integrates with Xero accounting software
eSavings account exclusively available for Internet Banking customers
Deposits up to £85,000 are safe thanks to the FSCS
Experienced & friendly UK customer support team

Cumberland Building Society Business Banking

Website Read our in-depth Cumberland Building Society review

Bank of Scotland Small Business Account

Accounts for new, small & self-employed businesses
12 months free banking for new businesses, £7 monthly fee after
Arranged overdraft & more available
24/7 online & mobile banking
Usually opened after 4 weeks after applying
7 day Current Account Switch Guarantee
Access to suite of useful business guides & tools
Business debit card with free payments included
All 184 branches are located across Scotland
Experienced & friendly UK-based customer support

Website Read our in-depth Bank of Scotland review

Royal Bank of Scotland Start-up Business Account

Account available for sole traders, freelancers & startups
New businesses pay no fees for 24 months. Pay-as-you-go transactions thereafter, with no monthly fee
Includes free access to their FreeAgent accounting software
24/7 online & mobile banking
Applications take as little as 10 minutes
Savings, overdrafts & business finance available
Switch your current account in 7 days
Branches can be found in Scotland, England & Wales
Experienced UK-based support team

Website Read our in-depth Royal Bank of Scotland review

Danske Bank Small Business

Choice of two tariffs, one that has benefits for digital businesses (£9pm) & the other a mixed-transaction tariff (£14pm)
Suitable for sole traders with yearly turnover of less that £1 million
One of the Big Four Irish banks
Great customer feedback on their online & mobile banking
Counter services at Danske Bank or Post Office branches
Setup email or SMS balance & transaction notifications
Part of the Current Account Switch Guarantee
Protected by the FSCS
Experienced customer support, accessible by phone 7 days a week or 24/7 live chat

Website Read our in-depth Danske Bank review

Monese Business Account

Digital business account for made for sole traders
Monthly management fee of £9.95, includes personal account
All UK bank transfers are free
Bank whenever with online & mobile banking
Deposit cash at Post Office & PayPoint locations
24/7 in-app support, available in 14 languages
Send money to more than 30 countries
Save & separate money with savings Pots
Customers rate them 4.3 stars out of 5 on Trustpilot

Website Read our in-depth Monese review

Amaiz Business Accounts

Three accounts available, all suitable for sole traders
Monthly fees range from £0 to £99, plus onboarding fees
Integrates with FreeAgent accounting, or export statements
Manage the account 24/7 online
Free cash services available at Post Office branches
Set up your account in just a matter of minutes
Receipt & invoice management is automated
Business Mastercard, with free purchases, included
Commit to your savings goals with separate Jar accounts
Rated 4.1 stars out of 5 on Trustpilot
Live-chat customer support available 24/7

Website Read our in-depth Amaiz review

What is the best sole trader bank account?

Here's what we think are the best bank accounts for sole traders and why:

Best sole trader account overall: Starling Sole Trader Account · Free
Best free sole trader account: Tide Business Bank Accounts · From £0
Best for cashless: Revolut Freelancer Accounts · From £0
Best for cash & cheques: NatWest Start-up Business Account · Free
Best for international payments: Airwallex Business Account · Free
Best for bad or no-credit scores: Cashplus Business Bank Accounts · From £0

What is a sole trader business bank account?

A sole trader bank account is a type of account specifically designed for individuals who operate their own business as sole traders, this can technically be a personal bank account.

A sole trader is a self-employed individual who runs a business on their own without forming a separate legal entity, such as a limited company.

How much do sole trader accounts cost?

Much like generic business bank accounts, sole trader-specific accounts can charge monthly and transactional fees.

What you're charged varies with each account but monthly fees tend to be between £3 and £12.50, while standard transaction fees are usually less than £1 each.

There are also some free business accounts, like Starling, that are completely free forever, high street banks usually offer free banking periods and others just charge for what you use.

Is there any specific eligibility criteria for sole trader business accounts?

While most accounts are suitable for sole traders, there are a number of business accounts made just for them. These usually come with certain turnover criteria or limits on balances.

Sole trader accounts normally come with single access too, since there is no need for multiple users.

How to open a sole trader bank account

It isn't a legal requirement for sole traders to have a separate account so you may decide you don't need a business bank account.

However, if you do decide to open a business account the application process is usually straightforward for sole traders and can be completed quickly online.

For most accounts you will need to provide:

Proof of identification - a passport or driver's licence
Proof of address - a recent bank statement or utility bill
Business information - basic details like the nature of the business and whether you have a physical office

How to choose the best sole trader account

There is no one best bank account for sole traders as it really depends on what you want and need.

Consider whether you want an online-only account or if you'd prefer the option of branch services.

This will probably be determined by your preferred transaction type; electronic payments, such as bank transfers or direct debits, or cash and card.

Frequently asked questions

It's not uncommon to have questions when looking in to business banking, especially for the first time. These are some of the most relevant questions for business bank accounts:

No, sole traders are not legally required to have a business bank account.

Yes, sole traders are not legally required to separate their personal and business income for tax so can use their personal bank account.

While it is not a requirement, it may be smart to separate your finances earlier to save yourself hassle should you register further down the line.