COMPARE THE BEST BUSINESS BANK ACCOUNT FOR SMALL BUSINESSES 2020

COMPARE THE BEST BUSINESS BANK ACCOUNT FOR SMALL BUSINESSES 2020

What’s the Best Business Banking Account For Your Start-Up Or Growing Business?

For anyone attempting to get a small business up and running, there’s an extensive list of things to compare and consider. 

Whether you are attempting to secure a physical location for your new business or working on setting up a business website, it can sometimes feel like there’s so much to consider, and yet not enough time to do it. 

However, you don’t want to cut any corners or make the wrong decision – especially when it comes to handling your business’ finances.

To make your decision easier, we’ll break down some of the key players in business banking. Along with some new banks on the rise. 

Consider some of the benefits and downsides when deciding which bank to trust with your hard-earned profit.

We have also included the ‘Which?’ Security rating for banks whose online security was tested and scored by them in 2019. These scores were given based on several factors, such as log-in and log-out, account management, navigation and encryption when accessing and managing your finances online.

Remember that this is simply an overview of each bank, with the correct information at the time of writing. 

Before making a final decision on your choice of business bank, we would highly recommend making a trip into your local branch and discussing any questions or queries with them in person.

An Overview and Comparison of The Best Banks for British Business Owners:

CONTENTS

  1. BARCLAYS BUSINESS BANKING
    BARCLAYS BANK CHARGES
  2. TSB BUSINESS BANKING
    TSB BANK CHARGES
  3. HSBC BUSINESS BANKING
    HSBC BANK CHARGES
  4. SANTANDER BUSINESS BANKING
    SANTANDER BANK CHARGES
  5. YORKSHIRE BUSINESS BANKING
    YORKSHIRE BANK CHARGES
  6. METRO BUSINESS BANKING
    METRO BANK CHARGES
  7. NATWEST BUSINESS BANKING
    NATWEST BANK CHARGES
  8. MONZO BUSINESS BANK
    MONZO BANK CHARGES
  9. LLOYDS BUSINESS BANK
    LLOYDS BANK CHARGES
  10. TIDE BUSINESS BANKING
    TIDE BANK CHARGES
  11. REVOLUT BUSINESS BANKING
    REVOLUT BANK CHARGES
  12. THE-CO-OPERATIVE BUSINESS BANKING
    THE CO-OPERATIVE BANK CHARGES
  13. CLYDESDALE BUSINESS BANKING
    CLYDESDALE BANK CHARGES
  14. COMPARE BUSINESS BANK ACCOUNTS
  15. WHICH BANK IS BEST FOR MY BUSINESS?
  16. REFERENCES:


BARCLAYS BUSINESS BANK ACCOUNT

Barclays Business Bank Account

Barclays offers a wide range of benefits for business owners and provide a business account tailored especially for start-up businesses. 

Your first 12 months as a Barclays business account holder are free, and still, allow you access to their helpful tools and services to support your business’ growth within that first year. 

After that, you have two different price plans to choose from – the mixed payments plan, and the e-payment plan. 

The mixed payments plan is for businesses which accept payment through cash, card, cheque, and other sources, while the e-payment plan is for those who receive payments predominantly through online banking and credit or debit card.

The mixed payment plans charge electronic payments at £0.35 per transaction, cheques, and other assisted payments at £0.65 per transaction, and cash payments at £0.90 per £100. 

The e-payment plan charges slightly higher for more traditional payment methods, with cash payments charged at £1.50 per £100, and cheque payments charged at £1.50 per transaction. 

With the e-payment plan, however, card and other electronic payment methods are free to the business. 

There is a tool on the Barclays website which allows you to input your regular number of payments per payment method to work out which of these accounts would be cheaper for you.

Other tools available include their free comprehensive guides to business banking, and specialist UK Business Direct team, available to advise customers over the phone from 7 am to 8 pm, Monday to Friday.

Main Benefits: first year free, easily accessible customer support

Which? Security Rating: 73% (4th of 12)

TRUSTPILOT RATING: BAD

Barclays Trustpilot review

Compare their 2 available business bank account plans below

MIXED PAYMENT PLAN CHARGES

Free Period12 Months
Electronic Payments (in or out)£0.35p Per Transaction
Cheques and other assisted payments£0.65p Per Transaction
Cash Payments£0.90p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£6.00

E-PAYMENTS PLAN CHARGES

Free Period12 Months
Electronic PaymentsFree
Cheques and other assisted payments£1.50 Per Transaction
Cash Payments£1.50p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£6.50

TSB BUSINESS BANK ACCOUNT

TSB Business Bank Account Logo

TSB offers a great list of benefits to new business account holders, and also provides 25 months of free business banking, with a low monthly tariff after this period ends. 

If you choose to bank with TSB for your business, you’ll also receive a free Square Reader, so that you can take card payments anywhere, which is especially helpful to any business owner who operates from multi brick and mortar stores.

What’s more, you pay no transaction fees using this reader for your first £1,000 worth of payments, which will, of course, give a much-needed head-start to business owners in their early days or weeks of operation.

TSB also offers a wealth of information to business banking customers on their website, providing a great resource to help answer any questions that you may have while banking with them.

Their tariff after your initial 25 months for free is also very simple and competitively priced. 

All electronic payments, including credit/debit cards and standing orders, are free of charge, while the fee per cheque payment or for every £100 worth of cash payments is just 70p each. 

The monthly fee is just £5 and waived if your business account’s average balance that month is over £10,000.

However, it should be noted that TSB ranked the lowest in the Which? Bank security ranking. 

‘Which?’ explained that this was due to the fact it was the only bank which did not log the customer out of their account on one computer after logging into another and TSB are missing security headers which prevent specific cyberattacks.

Main Benefits: low monthly tariff, free card reader

Which? Security Rating: 50% (12th of 12)

TRUSTPILOT RATING: BAD

TSB Trustpilot review

TSB BUSINESS BANK CHARGES

Free Period25 Months
Electronic PaymentsFree
Cheques and other assisted payments£0.65p Per Transaction
Cash Payments£0.70p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£5, Free if balance above £10k in month

HSBC BUSINESS CURRENT BANKING ACCOUNT

HSBC Business Bank Account Logo

Eurobank named HSBC the world’s best bank for small to medium enterprises (SMEs) in 2019 – and there is plenty of evidence as to why. 

HSBC offers additional support to its business banking customers, with a dedicated support service for both face-to-face and over the phone queries. 

They also offer add-ons for growing businesses, such as arranged overdrafts and small business loans from £1,000 to £25,000, subject to status and application.

The most significant factor working in favour of HSBC, however, is their tariff after the first free 18 months. 

Your second year with an HSBC business account will cost just £6.50 per month in fees, with all transactions free, including cash payments of up to £3,000 in total – any cash payments above this for the month will cost just 0.5% of the value deposited.  

After 30 months with HSBC, you have a choice of a few different tariffs. The two most popular of these is the Electronic Banking Tariff and Small Business Tariff. 

The Electronic Banking Tariff – most suited to businesses that handle most payments digitally and bank either online or by phone – costs £6.50 per month, with online and card payments free, while cheque deposits stand at 50p, and cash payments charged at 1.1% of the value deposited. 

The Small Business Tariff is also charged at £6.50. While online payments charged at 23p per transaction, cash and cheque deposits are cheaper with this tariff, with cheque payments charged at 40p each, and the business owner is charged 0.7% of the value being

 deposited for any cash payments.

Main Benefits: 18 months free and excellent second-year rate

Which? Security Ranking: 73% (4th of 12)

TRUSTPILOT RATING: BAD

HSBC Trustpilot review

There are two business bank account plans to compare

SMALL BUSINESS TARIFF CHARGES

Free Period18 Months
Electronic PaymentsFree
Cheques and other assisted payments£0.50p Per Transaction
Cash Payments1.1% Of Deposited Amount
ATM cash out and Electronic internal transferFree
Monthly Charge£6.50

ELECTRONIC BANKING TARIFF

Free Period18 Months
Electronic Payments£0.23 Per Transaction
Cheques and other assisted payments£0.40p Per Transaction
Cash Payments0.7% Of Deposited Amount
ATM cash out and Electronic internal transferFree
Monthly Charge£6.50

Source: https://www.business.hsbc.uk/en-gb/everyday-banking/business-accounts?DCSext.nav=foot-mat

SANTANDER BUSINESS BANKING

Santander Business Bank Account Logo

Santander has earned the title Best Business Current Account Provider, according to Moneyfacts, for the last 17 years. 

Perhaps this is to do with the range of different business accounts available to new businesses, including their award-winning ‘123’ Business Current Account, which includes up to £300 cashback per year to account holders.

This account is charged differently for start-ups and switchers, so it is essential to check which of these you are eligible for when you consider banking with Santander. 

For start-ups – meaning your business is in the first year of trading, has not held a business account with Santander in the past – the account fee is just £5 per month for the first 18 months. 

At the end of the first 18 months, the fee is charged monthly at £12.50. You also are not charged for any cash deposits at Santander ATMs, or any Santander branches or Post Office counters, up to £1000, at which point you are charged just 70p per £100 deposited.

Unfortunately, there is limited information beyond this available on Santander’s website, but they do have a digital assistant feature on their website to answer any queries you may have.

Main Benefits: low monthly fee for start-ups, unlimited free cash deposits at Santander ATMs

Which? Security Rating: 59% (9th of 12)

TRUSTPILOT RATING: BAD

Santander Bank Account Trustpilot Review

1|2|3 BUSINESS CURRENT ACCOUNT CHARGES

Free PeriodNIL, £5 For first 18 Months
Electronic Payments£0.19p – £0.58p Per Transaction
Cheques and other assisted payments£0.50p Per Transaction
Cash PaymentsFree up to £1k then £70p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£12.50 After First 18 Months

Source: https://www.santander.co.uk/business/current-accounts/123-business-current-account

YORKSHIRE BANK BUSINESS BANK CURRENT ACCOUNT

Yorkshire Business Bank Account Logo

Yorkshire Bank offers it’s business account holders 25 months of free day-to-day business banking. 

Which means no monthly fees, no charges for cash deposits or withdrawals (though this is limited to £250,000 per annum), no charges for cheque deposits and no charges for card payments, direct debits and standing orders. 

Any business owner who has a turnover of under £2,000,000 can switch to this account, and any business owner can open a business account with Yorkshire Bank within their first year of trading to receive this free banking offer. 

Their website even states that you can apply for this account online within just fifteen minutes.

Yorkshire Bank claims to take a ‘personal approach to Banking’, and their website states that they provide their business account holders with the following benefits: 

Dedicated customer support, an introduction to financial specialists, quick decisions on borrowing requests, and keep their business account holders up to date with products and services that could help them grow and maintain their businesses. 

There is also a wide range of informative guides available on their website, including a business health check and advice on starting and running a successful small business.

Main Benefits: 25 months free day-to-day banking, good range of support services available

Which? Security Rating: 68% (8th of 12)

TRUSTPILOT RATING: BAD

Yorkshire Bank Account Trustpilot Review

YORKSHIRE BUSINESS BANK ACCOUNT CHARGES

Free Period25 Months
Electronic Payments£0.30Per Transaction
Cheques and other assisted payments£0.70p Per Transaction
Cash Payments£65p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£6.50 After First 25 Months

Source: https://secure.ybonline.co.uk/interest-rates/business/business-banking-tariff

METRO BANK BUSINESS ACCOUNT

Metro Business Bank Account Logo

Metro Bank’s business account information page welcomes you with the claim that they are ‘built for small businesses’, and the promise that their accounts are designed to take the hassle out of business banking.

The monthly charges for a small business account with Metro Bank (most businesses with a turnover of under £2,000,000 is eligible) vary depending on whether your balance falls under or exceeds £5,000 that month.

 If you fall beneath the £5000 benchmark, you’ll pay a £5 monthly fee, and cheque deposits and payments, card payments, direct debits and standing orders and ATM withdrawals will all be charged at £0.30 per transaction, with cash handling being charged at 0.50%.

However, if you exceed £5,000 in a month, there will be no fee, and any combination of up to 50 cheque deposits and payments, card payments, direct debits and standing orders and ATM withdrawals will be free, with the £0.30 fee per transaction is charged after that. The cash-handling amount remains the same.

Metro Bank also employs a dedicated business support service, available for all business account holders, 24 hours a day and 7 days a week.

Main Benefits: transparent charges, round-the-clock customer support

Which? Security Rating: 57% (10th of 12)

TRUSTPILOT RATING: AVERAGE

Metro Bank Account Trustpilot Review

METRO BANK ACCOUNT BUSINESS CHARGES

Free PeriodNIL
Electronic PaymentsUnknown
Cheques and other assisted payments£0.30p Per Transaction
Cash Payments0.50% on deposit amount
ATM cash out and Electronic internal transfer£0.30p
Monthly Charge£5 If balance below £k in month

Source: https://www.metrobankonline.co.uk/help-and-support/businessaccount-questions/what-are-my-business-account-charges/

NATWEST BUSINESS BANKING

NatWest Business Bank Account Logo

NatWest proudly offers 18 months fee-free banking, with business account holders charged on a pay-as-you-go basis after that. 

During this initial 18-month period, you will only be charged for unarranged borrowing, additional services, Bankline charges and international payments, which is, of course, hugely beneficial to businesses within their first year of trading. 

After this period, you will be charged £0.35 per transaction for automatic payments, such as direct debits and standing orders. 

Standard fees, such as by debit or credit card or cheque are charged at £0.70 per transaction, and cash handling charged at £0.70 per £100.

NatWest also offers its business banking customers the opportunity to apply for FreeAgent, an accounting software designed specially to meet the needs of small businesses. 

FreeAgent is designed to help account holders take care of the day-to-day business admin, from managing expenses, running payroll and tracking time, through to creating and sending estimates and invoices to clients. 

The software is free for NatWest business account holders for as long as they hold the account.

It’s also worth mentioning that NatWest ranked first place in the Which? Bank security rating, due to tightened security across the board, and requiring a customer to log-in securely when making changes to the account, such as changing the password for the account or adding payees.

Main Benefits: 18 months fee-free everyday banking, access to Free Agent software

Which? Security Rating: 83% (1st of 12)

TRUSTPILOT RATING: BAD

NatWest Bank Account Trustpilot Review

NATWEST BANKING BUSINESS ACCOUNT CHARGES

Free Period18 Months
Electronic Payments£0.35p Per Transaction
Cheques and other assisted payments£0.70p Per Transaction
Cash Payments£70p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£6.50 After First 18 Months

Source: https://www.business.natwest.com/content/dam/natwest_com/Business_and_Content/downloads/Current-Accounts/Charges/NW-current-account-charges-NWB7829.pdf

MONZO BUSINESS BANK CURRENT ACCOUNT

Monzo Business Bank Account Logo

Monzo is quite a new player in the banking world, and one which operates slightly differently – there are currently no Monzo branches, and seemingly none are being planned. 

However, being an online-only bank doesn’t stop them offering an appealing business account service.

Monzo’s business account service offers two separate payment plans. 

Their Lite package includes no monthly fee but can be used in many of the ways that a traditional business account can be, and comes with a free business debit card, round-the-clock customer support and a myriad of other attractive features. 

Their paid option, Pro, is just £5 per month and offers the same services and features as the free option. 

It also provides access to tax pots, integrated accounting, invoicing, the use of Xero, a cloud accounting service which would usually set you back by £180, and several other services and offers. 

With a Monzo business account, you can deposit cash into your business account at a PayPoint for just £1, and there are no other hidden fees.

Despite being online-only, Monzo is regulated in the same way as other traditional high street banks, yet allows you to bank entirely from your phone or computer.

Main benefits: a low monthly fee, a wide range of features, no hidden costs

Which? Security Rating: Monzo was not included in the Which? security ranking

TRUSTPILOT RATING: EXCELLENT

Monzo Bank Account Trustpilot Review

MONZO BUSINESS BANKING PRO AND FREE CHARGES

Free PeriodNO LIMIT/ PRO £5
Electronic PaymentsNO FACILITY AVAILABLE
Cheques and other assisted paymentsNO FACILITY AVAILABLE
Cash PaymentsNO FACILITY AVAILABLE
ATM cash out and Electronic internal transferFree
Monthly Charge£5 for Pro

Source: https://monzo.com/blog/monzo-business-banking

LLOYDS BUSINESS BANK ACCOUNT

Lloyds Business Bank Account Logo

Lloyds Bank offers 12 months of free day-to-day business banking, with the charge after that being just £7.00 per month

Electronic payments – in or out of your account – are free, with cheque deposits charged at £0.85. 

Cash deposited or withdrawn costs £1 per transaction for the first £1500 worth of transactions, with the cost being brought down to £0.90 for any cash handling after that. 

Lloyds also offer card payment services with CardNet, allowing you to take deposit card payments directly into your business account, and provide a range of card payment machines, including those for countertop use and portable devices.

One aspect of Lloyd’s business banking that could be beneficial to anyone starting a small business is how the business account pages on their site are organised – pricing is transparent and clear. 

Information is incredibly easy to find, which will be appreciated by any new business owner who has any questions or queries regarding their business finances. 

They also offer a range of helpful guides and resources for business account holders, as well as dedicated customer support from their UK-based business team.

Main Benefits: transparent prices, CardNet

Which? Security Rating: 74% (3rd of 12)

TRUSTPILOT RATING: POOR

Lloyds Bank Account Trustpilot Review

LLOYDS BUSINESS CURRENT ACCOUNTS

Free Period12 Months
Electronic PaymentsFree
Cheques and other assisted payments£0.85p Per Transaction
Cash Payments£1 Up to £1500 then £0.90P Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£7 After First 12 Months

Source: https://www.lloydsbank.com/business/retail-business/current-accounts.html
Second Source: https://www.lloydsbank.com/business/retail-business/rates-and-charges.html?WT.ac=lloyds-bb-business_accounts-hub-banner-FOM-rates_charges

TIDE BUSINESS BANKING

Tide Business Bank Account

Tide, like Monzo, is a new player in the banking industry – and designed explicitly to provide hassle-free banking for small to medium business enterprises. 

A visit to Tide’s website could be a breath of fresh air to new business owners looking to start a business account, as their pricing is displayed, easily comparable and, overall, somewhat competitive.

Tide offers three payment plans with varying prices and features – Free, Plus and Premium. The Free program carries no monthly fees, includes scheduled payments, integration with third-party accounting apps, and charges all in/out transactions at £0.20. 

The Plus plan is charged at £9.99 per month and includes all the features of the Free plan, as well as in-app priority supports, phone support and a 24/7 legal helpline. 

The Premium plan is charged at £49.99, includes all the features and perks of the previous two tiers, but also includes a dedicated account manager and £1000 flexible balance

Eligibility criteria do apply to the Premium plan, but not to the ‘Free’ and ‘Plus’ plans.

With Tide, you can open a business account and register as a limited (LTD.) company for free, as they cover the £12 incorporation fee on your behalf.

Main Benefits: free and low-cost payment plans

Which? Security Rating: Tide has not been rated by Which?

TRUSTPILOT RATING: AVERAGE

Tide Bank Account Trustpilot Review

FREE TIDE BUSINESS BANK ACCOUNT FEES

Free PeriodUNLIMITED
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted paymentsNo Facility Available
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transferFree
Monthly ChargeFREE

 Source: https://www.tide.co/business-current-account/

REVOLUT BUSINESS BANKING

Revolut Business Bank Account Logo

Revolut is another alternative bank, like Monzo and Tide. They offer a business account which has many of the same features that you would have access to with a traditional bank, with the options for three different payment plans. 

These plans are the Free plan, which carries no monthly fee, the Grow plan, charged at £25 a month, and the Scale plan, charged at £100 per month.

Revolut’s features aren’t quite as extensive as those offered by its mobile-based banking rivals; it appears Revolut are still establishing themselves in the way Tide and Monzo already have. 

The payment plan overview states that, in the future, all three plans will offer loans and overdrafts, which could be useful for new businesses that may need a little helping hand from time to time. 

The real downside of Revolut is that you can only accept card payments when signed up to their £100 per month Scale plan.

Main Benefits: the future availability of loans and overdrafts, which are not always offered by online-only banks

Which? Security Rating: Revolut does not have a Which? security rating

TRUSTPILOT RATING: EXCELLENT

Revolut Bank Account Trustpilot Review

REVOLUT FREE BUSINESS BANK ACCOUNT CHARGES

Compare business bank accounts below, we have 3 to make comparisons currently.

Free PeriodUNLIMITED
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted paymentsNo Facility Available
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transfer2% on all withdrawals
Monthly ChargeFREE

REVOLUT GROW BUSINESS BANK ACCOUNT

Free PeriodNO
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted paymentsNo Facility Available
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transfer2% on all withdrawals
Monthly Charge£25 per month

REVOLUT SCALE BUSINESS BANK ACCOUNT

Free PeriodNO
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted paymentsNo Facility Available
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transfer2% on all withdrawals
Monthly Charge£100 per month

REVOLUT SCALE BUSINESS BANK ACCOUNT CHARGES

Free PeriodNO
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted paymentsNo Facility Available
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transfer2% on all withdrawals
Monthly Charge£1000 per month

Source: https://www.revolut.com/legal/business-fees

THE CO-OPERATIVE BUSINESS BANK ACCOUNT

The Co-operative Business Bank Account Logo

The Co-operative Bank’s Business DirectPlus Current Account offers 30 months of free day-to-day banking. Quite a considerable extension on free banking period compared to most large banks. 

After which you are switched to the £7 per month Standard Business DirectPlus tariff. 

Their free period, however, does potentially come with charges for some businesses. 

It is free to deposit up to £2,000 cash and 100 cheques, and you must maintain a credit balance of £1,000 each month – charges do apply to anyone who exceeds these limits within any of the 30 free months.

The Standard Business DirectPlus tariff charges are easy to access on The Co-Operative Bank’s website and are reasonably clear. 

As mentioned, there is a £7 monthly fee. You may still pay in £2,000 cash each month, but cash deposits are charged at £0.75 per £100 thereafter, and there is a £0.25 fee per cheque deposited beyond the first 100 free cheque deposits. 

Automated debits and debit card purchases are £0.35 per transaction, and cash withdrawals and ATM services are free (unless stated otherwise by the ATM itself).

Banking with The Co-Operative Bank for your business also gives you access to a range of different resources, loan and borrowing options and customer support.

Main Benefits: 30-month free banking period (longer than the periods offered by many other large banks)

Which? Security Rating: 56% (11th of 12)

TRUSTPILOT RATING: POOR

The Co-operative Trustpilot review

CO-OPERATIVE BUSINESS BANK ACCOUNT CHARGES

Free Period30 Months maintain £1000 credit
Electronic PaymentsNo Facility
Cheques and other assisted payments£0.25p Per Transaction
Cash Payments£75p Per £100
ATM cash out and Electronic internal transferFree
Monthly Charge£7 After Free Period

Source: https://www.co-operativebank.co.uk/business/products/current-accounts#!

CLYDESDALE BUSINESS BANK ACCOUNT

Clydesdale Business Bank Account Logo

Despite not being quite as instantly recognisable as other names on this list, Clydesdale Bank still offers an appealing business banking current account. 

Clydesdale Bank’s free everyday banking period lasts 25 months, after which you are switched to their standard business tariff.

The standard tariff carries a monthly fee of £6.50. With this tariff, direct debits, standing orders and other automated debits are charged at £0.30, with cheques and other manual debits charged at £0.70. 

Cash, whether being paid in or paid out, costs £0.65 per £100. Debit cards, whether payments are being made or received by the business owner, are free using cards from the UK, or within the European economic area. 

For cards outside of this area, payments being made are charged a fee of 2.75% of the transaction value, minimum £1.50

Clydesdale Bank is also helpfully transparent with their charges for overdrafts and unplanned borrowing, with an unplanned borrowing fee of 29.25% per year, and a daily unplanned borrowing charge of £25.00.

Main Benefits: tariffs and charges are clear and simple

Which? Security Rating: Clydesdale Bank was not included in the Which? Security Ranking

TRUSTPILOT RATING: BAD

Clydesdale Truspilot Review

CLYDSEDALE BUSINESS BANK ACCOUNT CHARGES

Free Period25 Months
Electronic PaymentsNo Facility connects with payment gateways
Cheques and other assisted payments0.70p Per Transaction
Cash PaymentsNo Facility Available
ATM cash out and Electronic internal transferFree
Monthly Charge£8.50 Month after free period

COMPARE BUSINESS BANK ACCOUNTS

In this table, we compare their trust, security against the monthly charges.

BANKSTRUSTPILOT REVIEWWHICH? SECURITY SCOREMONTHLY CHARGE AFTER FREE PERIOD
BARCLAYS BANKBAD73%12 MONTHS FREE THEN £6/ £6.50
TSB BANKBAD50%25 MONTHS FREE THEN £5
HSBC BANKBAD73%18 MONTHS FREE THEN £6.50
SANTANDER BANKBAD59%£5 FIRST 18 MONTHS THEN £12.50
YORKSHIRE BANKBAD68%25 MONTHS FREE THEN £6.50
METRO BANKAVERAGE57%£5 If balance below £k in month
NATWEST BANKBAD83%18 MONTHS FREE THEN £6.50
MONZO BANK EXCELLENTN/AFREE WITH FREE VERSION OR £5 FOR PRO
LLOYDS BANKPOOR74%12 MONTHS FREE THEN £7
TIDE BANK AVERAGEN/AFREE
REVOLUT BANKEXCELLENTN/A3 AVAILABLE PLANS £25/ £100/ £1000
CO-OPERATIVE BANKPOOR56%30 MONTHS FREE THEN £7
CLYDESDALE BANKBADN/A25 MONTHS FREE THEN £8.50

WHICH BANK IS BEST FOR MY BUSINESS?

When comparing the above banks, there are, of course, many different things to consider. 

What features are most important to you will vary according to the type of business you run, where you are based, what your business turnover is, and many other different factors that can mean some banks may be more suitable for you and your business over others.

One thing to consider is the free introductory period of everyday banking when you open your business account, as offered by many of the larger and more recognisable banks on our list. 

The longest of these periods is the 30 months of free banking offered by The Co-operative Bank, though this does potentially come with some charges, as discussed. 

Other banks offering more extended periods of free everyday banking are Clydesdale BankYorkshire Bank and TSB, who all offer 25 months of free everyday banking, and HSBC who offer 18 months free everyday banking, with a further 12 months and a monthly fee, but highly subsidised transaction charges.

You may also feel that an online-only bank, which has experienced a sharp rise in the past few years and seems to be growing in number, could be the best option for you and your business. 

This may benefit you especially if you are a little more well-versed in business banking and won’t get quite as much use out of the informative resources offered by many of the larger banks as part of their monthly tariffs. 

Or if you don’t need quite the number of features and support provided and are looking for a business bank with an option to bank with no monthly tariffs. 

Out of the three reviewed here, Tide appears to have the edge, as it’s designed specifically for business users and already offers a wide range of features. At the same time, Monzo is more suited to personal banking, and Revolut does not appear to be fully established just yet.

If online banking security is one of the most critical factors for you, then it could be helpful to consider the ‘Which?’ security ranking score of many of the banks reviewed above. 

NatWest came first in this ranking with an 83% security rating, due to tight security and requiring a password for the user to make any significant changes to the account or its payees. 

This was followed, in the order of most to least secure, by Lloyds (74%), HSBC and Barclays (both 73%), Yorkshire Bank and Clydesdale Bank (both 68%), Santander (59%), Metro Bank (57%) and The Co-Operative Bank (56%)

TSB ranked the lowest with a score of 50%, due to a number of factors, including not logging out an account holder from one device when they logged into their account on another.

If you consider the possibility of taking a business loan or an overdraft facility, it is vital to check the fees.

Many of the banks whose websites we visited did not display these charges clearly – though this may be due to them being subject to change. 

Lloyds did display their charges for unplanned borrowing and unplanned overdrafts clearly and stated that the costs for planned business loans are negotiable. 

This transparency may be something to consider, especially if you are a first-time business owner, as it’s essential to have a full understanding of the fees you may incur, should you find yourself needing financial assistance from your bank.

We would recommend looking at the websites of each of the banks on this list and exploring the specific services and support on offer. 

It may also be helpful to consider what your transaction fees could add up to on each tariff, depending on how much money your business turns over each month. 

Whether this paid in cash, debit or credit card, cheque, standing order or direct debit – with many of the banks listed here, each of these payment methods incurs a different fee per transaction.

Many banks, especially those offering free everyday banking periods, will require the account holder to stay with them for a specified amount of time. 

Trustpilot reviews was a disappointment for many of the high street Banks getting most of the poor reviews.

Whichever bank you do choose to bank with for your business, it is essential to take all of these factors into account and to be sure that you do your research thoroughly before making a decision. 

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