Business banking is critical for sending invoices, accepting payments, and reducing accounting. Today, business bank accounts offer everything from integrated invoicing to automatic tax savings.
In addition, you’ll get accounting and finance tools, higher spend limits, and much more. Many business bank accounts also come with options for business lending for assets, property, and seed funds.
Today, there are hundreds of banks in the UK. Many offer business bank account options. The following list includes 25 of the best business accounts in the UK as of this year.
Bank | Rating | Savings | Lending | Monthly Fees |
---|---|---|---|---|
Wise | 4.1 | 4.2% | No | Transaction-based fees + startup fee of £50 |
Tide | 4.1 | 3.92%-4.07% | No | £0-£49.99 |
Shawbrook | 4.7 | 3.56%-4.60% | Yes | None |
Allica | 4.7 | 3.35%-4.70% | Yes | None |
UBL UK | 4 | 3%-4.46% | Limited | None |
The Bank of London | 3.7 | 3.56%-4.39% | None | £250-£500 |
3S Money | 4.4 | None | None | £25-£300 |
Cynergy | 3.9 | 4%-4.5% | None | £5 |
Hampshire Trust Bank | 4.3 | 3.95%-4.51% | Yes | None |
Charity Bank | 4.0 | 3.04%-4.26% | Yes | None |
OakNorth | 4.8 | 3.35%-4.5% | Yes | None |
Virgin Money | 3 | 1.91%-4.33% | Yes | £0-£6.50 |
Barclays | 3.8 | 1.36%-1.81% | Yes | £8.50 |
Mettle | 4.6 | 1.26% | No | None |
HSBC | 3.7 | 1.69%-1.90% | Yes | £6.50-£10 |
Revolut | 4.3 | 2.25%-3.51% | No | £0-£79 |
Cumberland BS | 4.3 | 2.95%-3.85% | Yes | £0-£5 |
Recognise Bank | 4.5 | 3.15%-4.50% | Yes | None |
Oxbury | 4.6 | 3.66%-4.61% | Yes | None |
Monzo | 4.4 | 1.60% | Yes | £0-£25 |
TSB | 4.3 | 1.50%-3.30% | Yes | £0-£5 |
Unity Trust | 3.8 | 2.52%-4.25% | Yes | £0-£6 |
Zempler | 3.7 | None | Yes | £0-£19 |
Starling Bank | 4.2 | None | Yes | £0-£14 |
1. Wise Business
Wise is an e-money institution, offering banking services including current accounts and savings. The “neobank” focuses on offering services on an “as-needed” basis, meaning you pay fees for transfers and withdrawals, rather than a monthly fee.
Local non-SWIFT/non-wire transfers are also free. Otherwise, you’ll pay a flat rate per transaction. In addition, you’ll pay a 0.56% annual fee for a Wise savings account and a 0.61% annual fee for a Wise stock investment account.
- No monthly fees
- Fees per transaction, like 0.47% for sending money and 1.75% for withdrawing from an ATM
- Savings available with 4.2% AER
- Debit cards but not credit cards
- No loans
- Support for 23 currencies
- Startup fee of £50
- FSCA member
Website: https://wise.com/
2. Tide
Tide is another neobank offering mobile-first banking to small to medium-size businesses. The bank specializes entirely in business banking.
As a result, it’s one of the best options in the UK for business bank and serves some 10% of UK-based SMEs. Plus, it’s one of the best rated on this list.
Tide also offers other business tools like savings, business registration, tap to pay, and accounting tools. Plus with extras like team management, team access, and business bank cards, and Tide is a full-service bank for business.
- Fees from £0- £49.99 per month
- Fees per transaction on free accounts
- Savings available with 3.92%-4.07% AER
- Debit, credit, and expense cards available
- No loans
- Flat fees for ATM withdrawals
- FSCA member
Website: https://www.tide.co/
3. Shawbrook
Shawbrook is a commercial and retail bank offering a range of business banking services. It’s also located in the UK, with local offices. It also has strong offerings in the form of lending and private equity, making this a great choice for businesses looking to scale.
What’s the catch? Shawbrook does not have a current account. Instead, it specializes in savings and lending. That means you’ll need at least one other bank.
However, Shawbrook is one of the best rated business banks on the UK market and offers extremely competitive rates on savers.
- No monthly fees
- Savings available with 3.56%-4.60% AER
- Automated yes for asset-based loans up to £250,000
- Diverse range of funding, startup capital, and loan options
- 16 savings options
- FSCA member
Website: https://www.shawbrook.co.uk/
4. Allica
Allica has made a splash as one of the best business accounts in the UK since it first launched in 2019.
This neobank delivers business banking, savings, asset finance, commercial mortgage, and more. That makes this one of the best full-service banks you can choose.
Plus, with highly competitive rates on loans, savings rates, and fees, Allica really is one of the best business bank accounts in the UK.
- No monthly fees
- Savings available with 3.35%-4.70% AER
- Fees per transaction
- Up to 1.5% cashback on spend
- Debit cards available
- Loans, commercial mortgage, and asset purchasing available
- Loans from £25,000-£1 million with maximum 7-year term
- Multiple savings options available
- FSCA member
Website: https://www.allica.bank/
5. UBL UK
United National Bank UK is a business bank account offering current accounts, currency exposure and risk management, saver accounts, and business finance for real estate. However, its finance business is designed around property investments for residential applications, meaning it’s more limited for many businesses.
Otherwise, UBL is highly rated by users, offers great rates on savers, and low monthly fees. However, with custom charges like £20 per CHAPS UK payment and £25 per international payment in other currencies, this account is not for everyone.
- Monthly fees from £5
- Savings account available with 3%-4.46% AER
- Fees per transaction
- Limited lending and finance options
- Cards available
- Cheques available
- Multiple saver options available
- FSCA Member
Website: https://www.ubluk.com/
6. The Bank of London
The Bank of London is another neobank offering modern banking services. It’s one of 6 clearing banks in the UK.
It’s also the only bank committed to not trading or investing your funds. This means that when you deposit funds with The Bank of London, they stay in your account and are fully accessible at any time. Unless, of course, you have a notice savings account.
What’s the catch? The Bank of London is not cheap. With fees starting at £250 per month, this is not a starter business account.
- Monthly fees at £250 to £500 per month
- Savings accounts available with 3.56%-4.39% AER
- Low transaction fees (most are under £0.20)
- Segregated client accounts available
- Debit cards
- No lending options
- FSCA member
Website: https://thebankoflondon.com/
7. 3S Money
3S Money is a neobank offering simple digital banking services to the UK and 160 other countries.
The bank specializes in sending and receiving money with currency exchange, SEPA and SWIFT and support for payroll in the UK and 36 European countries. You also don’t have to be a UK resident to qualify for a UK IBAN, making this the perfect choice for businesses with members residing outside the UK.
In addition, 3S Money offers fees per transaction based on account level, meaning you pay from 0% to 1.5% for outgoing payments and 0% to 1.25% for incoming payments.
- Monthly fees at £25- £300 per month
- No savings options
- Transaction fees at flat rates and percentages
- No cards
- No lending
- FSCA member
Website: https://3s.money/
8. Cynergy
Cynergy is a UK-based specialist bank offering business banking to small and scaling UK businesses.
Cynergy offers current accounts with interest, savings accounts, and options to accept and make payments. It also offers highly competitive saver rates.
In addition, with up to 2.5% AER on current accounts, it’s one of the best options if you keep larger volumes of capital in your current account. You’ll also get no fees for the first 12 months.
What else? Cynergy offers accounts in USD and Euro to save you currency conversion fees – although you’ll want to keep in mind interest rates vary per currency.
- Monthly fees at £5 per month
- Transaction fees applied
- Free bulk payment processing
- 2.5% AER on current accounts
- Savings accounts available with 4% to 4.6% AER
- No lending
- Debit cards
- FSCA member
Website: https://www.cynergybank.co.uk/
9. Hampshire Trust Bank
The Hampshire Trust Bank (HTB) is a specialist bank delivering deposits, savings, and funding to select industries. HTB also offers leasing and finance for asset acquisition.
However, HTB does not offer a current account offering. This means you’ll want to pair HTB with another bank.
Still, with deposit accounts, specialist savings and deposits for charities, and custom solutions for credit unions and communities, HTB has a lot to offer.
- No monthly fees
- Deposit savings accounts available
- Specialist accounts for charities, community, and credit unions
- No Current accounts
- Lending and finance available
- Asset finance available
- FSCA member
Website: https://www.htb.co.uk/
10. Charity Bank
Charity Bank is a UK-based business bank specializing in accounts for charities, trusts, and clubs. As such, it’s a business bank for registered charities and non-profits.
Charity Bank commits to only investing in non-profit and social good with funds. However, it doesn’t offer a current account. This means you can turn to Charity Bank for loans and for a savings account.
Still, those offerings are quite good and highly competitive, so if you qualify, this is a top choice for a savings bank.
- No monthly fees
- No current account
- Savings accounts with 3.04%-4.26% AER
- No cards
- Lending and startup financing available
- FSCA member
Website: https://www.charitybank.org/
11. OakNorth
OakNorth is one of the best rated business banks in the UK. It also offers a full-service solution. That means current accounts, savings, loans, brokers, and accounting services. You’ll get everything you need to manage finances for your business from one institution.
However, it’s only available for established businesses with a turnover over at least £1 million or an initial deposit of at least £100,000. In addition, every member with significant control of the company must be a tax resident of the UK.
- No account fees
- Minimal to no transaction fees
- Minimum deposit of £100,000
- Savings available with 3.35%-4.5% AER
- Debit and credit cards available
- Full selection of loans and funding available
- FSCA member
Website: https://oaknorth.co.uk/
12. Virgin Money
Virgin Money is a big bank with one of the most diverse and complete business bank offerings in the UK. It’s also consistently one of the highest rated.
Plus, with a portfolio including current accounts, savings, finance, and insurance, you can cover most of your needs in one place.
Rates also start at free, making this a great option for starters. Extras like money management, tap to pay, and chequing also help if you need payment solutions as well.
- Monthly fees from £0- £6.50 per month
- Transaction fees typically flat rate but 0.65% for inbound/outbound payments
- Savings available with 1.91%-4.33% AER
- Minimum deposits start at £1
- Debit cards available
- Financing and loans available
- FSCA member
Website: https://uk.virginmoney.com/
13. Barclays
Barclays is one of the largest and oldest banks in the UK. As a high street bank, it comes with a reputation, hundreds of locations, and a strong online portal and app support.
You also get plenty of options for accounts, lending, and savings. As a new business, you also get 12 months of no account fees, after which you pay £8.50 per month.
Barclays also offers asset lending, loans, financing, and more. Plus, with foreign currency and charity options, you’re covered no matter what you want to do.
Barclays stands out with low account fees and low transaction fees, making this a good fit for starters. However, with lower rates on savings, it’s less ideal if you have capital.
- Monthly fee of £8.50
- Savings with 1.36%-1.81% AER
- Checks and debit cards
- 0.60% fee for cash in, no fee for cash out. Electronic payments are free
- Financing and loans are available
- FSCA member
Website: https://www.barclays.co.uk/
14. Mettle
Mettle by NatWest is a banking solution designed around the needs of freelancers and small businesses. The business bank account comes complete with invoicing, payment options, receipts, and accounting.
Essentially, it allows you to simplify business, banking, invoicing, and accounting software into a single app. Plus, you can auto-save for tax with interest.
And with no monthly fees or transaction fees, it can save you on banking over many other alternatives.
- No monthly fees
- Savings available with 1.26% AER
- No minimum deposit
- No credit
- No financing
- Virtual cards
- FSCA member
Website: https://www.natwest.com/
15. HSBC
HSBC is another high street bank offering a range of business finance solutions. This includes current accounts, borrowing, savings, and more.
HSBC also offers specialist accounts for charity, corporate, and other setups. You can also opt for insurance, funding, and much more.
Of course, HSBC has a wide range of products, which may be difficult to navigate. On the other hand, with hundreds of branches across the UK, a strong app, and strong self-service solutions, HSBC offers easy access to your bank and services.
- Monthly fee of £6.50-£10
- Banking options per income bracket and registration type
- Savings accounts available with 1.69%-1.90% AER
- Wide range of savings accounts available
- Support for multiple currencies
- Credit and debit cards
- Lending available
- Online transactions are free
- FSCA member
Website: https://www.business.hsbc.uk/
16. Revolut
Revolut is one of the largest neobanks. It also operates in 160+ countries, making it a great choice for multi-national and international organizations.
It’s also built around the needs of business, with cards, invoicing, and business transfers built in. Plus, with invoicing, accounting, and export features, you can replace most of your accounting services.
Revolut does charge monthly but also offers integrated savings and low-cost transaction fees. Plus, as of 2025, it has a full banking license, meaning you get full fraud protection.
- Monthly fees of £0-£79+ per month
- Savings accounts with rates of 2.25%-3.51% AER
- Multiple banking options tiered by features
- Support for multiple currencies and multinational business
- Accounting tools
- Debit cards
- No credit or credit cards
- Payment acceptance frees start from 0.8% + £0.02
- Most local transfers are free
- FSCA member
Website: https://www.revolut.com/
17. Cumberland BS
Cumberland Building Society is one of the few UK building societies to offer a business current account. That makes this a great choice for a bank if you want to keep your money local and invest it locally.
In addition, you can also get an e-savings account with rates of up to 3.85%. Of course, Cumberland also has a max balance of £250,000 so this won’t be a great fit for everyone. On the other hand, local businesses can also apply for commercial mortgages.
- Monthly fees of £0-£5
- Savings accounts available at 2.95%-3.85% AER
- Multiple current account options
- Multiple savings account options
- 35p transaction fee for local online banking transfers
- Mortgages available
- Debit cards
- FSCA member
Website: https://www.cumberland.co.uk/
18. Recognise Bank
Recognise Bank is a business savings and business loans bank. However, it does not offer current accounts.
On the other hand, it offers short-term loans from £250,000-£10,000,000. You can also get commercial mortgages for up to £7,500,000.
In addition, with savings accounts including industry-leading rates on easy access accounts, Recognise is a top choice for businesses looking for financing. Recognise also works with brokers, so you can often negotiate rates through your existing broker.
- No monthly fees
- Savings accounts available at 3.15%-4.50% AER
- No current accounts
- Multiple savings account options
- Multiple loan and mortgage options
- FSCA member
Website: https://www.recognisebank.co.uk/
19. Oxbury Bank
Oxbury Bank is a business bank specialising in farming and agriculture. Like many specialist banks it doesn’t offer a current account.
However, with one of the highest rates available on easy access accounts, it offers close-to a current account. That’s ideal for farmers who have expenses that are spaced further apart rather than daily expenses.
In addition, you can get very good rates on easy access savings accounts for personal use as well, bringing all your banking under one roof.
What’s the catch? You’ll need a CHP or SBI number to register.
- No monthly fees
- Savings accounts from 3.66% to 4.61% AER
- Extremely competitive short term and short-term notice rates
- Loans and mortgages available including asset financing
- No cards
- No current accounts
- FSCS member
Website: https://www.oxbury.com/
20. Monzo
Monzo is a London-based bank that’s part of the neobank movement. However, it’s had its full banking license since 2017.
That means you get all of the benefits of modern banking with the protection of a traditional bank. You get spending accounts, cards, and payroll options.
In addition, you get options for loans. Businesses also benefit from tax and accounting tools including outbound connections to professional apps. Finally, business savers deliver up to 1.60% AER.
- Monthly fees from £0-£25
- Savings accounts to 1.60% AER
- Payment links and tap to pay included
- Invoicing included
- Multiple banking and savings options
- Lending and financing
- FSCS member
Website: https://monzo.com/
21. The Co-operative Bank
The Co-operative Bank is an ethical bank offering ethical investments for businesses. Here, you get business current accounts, savings, and lending.
The Co-operative Bank also offers savings and lending. This includes multiple savings accounts with instant access and notice accounts.
In addition, you can get credit, including credit cards, overdraft, growth loans, and mortgages. That makes this a great choice, even for small and short-term loans.
- No monthly fees
- 1.5% inbound/outbound fee
- Savings accounts from 1.44% to 2.32% AER
- Lending and mortgages available
- Credit cards available
- Straightforward fees
- FSCA member
Website: https://www.co-operativebank.co.uk/
22. TSB
TSB is a full-service business banking solution.
It offers everything from current accounts to insurance, partnerships, funding, loans, savings, and even accepting payments. That means you can simplify your entire portfolio down to one financial institution.
Plus, if you’re a startup, you get all fees waived for the first 30 months. Afterwards, your account costs just £5 per month, unless your balance is over £10,000, in which case it’s free.
TSB also stands out with low or zero transaction fees no matter how big your business grows.
- Monthly fees £0-£5
- Savings with rates from 1.50%-3.30% AER
- No fees for the first 30 months
- Very low to no transaction fees
- Lending and mortgages available
- Credit and debit cards
- Payroll and invoicing support
- FSCA member
Website: https://www.tsb.co.uk/
23. Unity Trust
Unity Trust Bank is another ethical bank, dedicated to using funds to make a difference. That means your funds will be invested into community growth and projects at a local level across the UK.
In addition, you can apply for loans and mortgages, providing you’re local. Unity Trust also offers payment acceptance services, multi-currency, and bulk payments. That makes this a great option for SMEs looking to consolidate banking services into one place. Most accounts also have a £6 per month fee.
- Monthly fee of £0-£6
- Savings accounts with 2.52%-4.25% AER
- Lending and mortgages available
- Ethical banking with local-only investing
- Accounting services included
- FSCA member
Website: https://www.unity.co.uk/
24. Zempler Bank
Zempler Bank is a neobank dedicated to supporting microbusinesses, startups, and freelancers. Fees start at £0.
In addition, you can choose a tier that works for your needs, with options for free payments and transfers with some tiers. You can also opt for business credit cards, however, with 19.9% interest rates, credit is pricey.
Otherwise, Zempler stands out with a range of small business tools including receipt capture, invoicing, payments, and more, making it a great all-in-one accounting solution for freelancers.
- Monthly fees £0-£19
- No savings accounts
- Transaction fees 35p per after account limit
- Receiving funds is always free
- Credit cards available
- No lending
- FSCA member
Website: https://www.zemplerbank.com/
25. Starling Bank
Starling Bank is an award-winning UK bank offering simplified banking for small to medium businesses. Accounts start at £0 with add-on costs for additional services.
For example, business tools and accounting cost £7 per month. You’ll also pay £2 per month if you want to pay in Euros and £5 per month if you want to pay in USD. Otherwise, there are no fees for UK-based transactions, which could save your business a great deal.
Starling does not currently offer a business savings account.
- Monthly fees from £0- £14 per month
- No savings options
- Loans and credit card options
- Accounting and tax tools available
- No transaction fees
- FSCA member
Website: https://www.starlingbank.com/
How Do I Open a Business Bank Account in the UK?
Opening a business account in the UK will depend on which bank you choose. For example, most allow online registration. Others will require that you go into the branch or even a local post office.
In any case, you’ll need:
- Business registration documents such as Certificate of Incorporation, Unique Taxpayer Reference, or HMRC registration
- Personal ID for all business owners/directors and all individuals accessing the account
- Be prepared to do Know Your Customer (KYC) checks, where you take selfies or videos with your ID
- Proof of address for the above-listed persons. Some banks require records over the past 3-5 years, but most will accept current records.
- Proof of business address
- Business contact information
- Estimated business turnover/funding and details/records where they exist
- Some banks need a detailed business plan
In most cases, you can submit data via an online portal. Here, you might get immediate access to the account. However, the bank won’t likely fully approve your account for 24 hours to 7+ days. That’s because you’ll have to go through a credit check and business background check.
Once your account is finalized, you’ll receive a notification with everything you need to get started. Neobanks tend to be faster and easier to set up an account with than traditional banks. However, both are bound by Know Your Customer Regulation and will have to ask for the above details.
How Do You Switch Business Bank Accounts?
Most banks in the UK work with the Current Account Switch Services scheme (CASS) which you can spot from the Switch Guarantee logo on their website. This means you can easily migrate all your banking to the new bank.
If both your new bank and old bank are eligible for CASS, you’ll qualify for an easy switch that is entirely handled by the new bank. This means that all your banking details including funds will seamlessly be transferred to the new bank within 7 working days.
If you’re using CASS, you’ll have to agree on a switch date with your new bank when setting up your account. If you’re not, you’ll want to transfer your funds manually.
- Transfer funds from your old account to your new account
- Alert stakeholders including suppliers, vendors, and clients that your bank details have changed. CASS guarantees that all inbound payments to your account will automatically redirect to your new account for a certain period. However, you’ll still want to ensure you update details wherever is necessary.
- If you’re not using CASS, check direct debits and standing orders and transfer them over manually
- If you’re not using CASS, manually close your old account after transferring everything.
Finally, you’ll want to double-check that you’ve updated everyone relevant, have transferred all relevant bills and standing orders, and that everything is in place.
Is Money Protected in UK Business Bank Accounts?
Most UK banks are part of the FSCS or Financial Services Compensation Scheme. This scheme protects eligible deposits up to £85,000.
That’s per financial institution, which means that if you have £200,000 in your bank, only £85,000 is protected under this scheme. Large corporations are not generally covered by FSCS. However, many banks allow you to take out insurance or offer insurance as well.
What else? You’ll want to pay attention to Electronic Money Institutions if you’re looking into risk management.
For example, eMoney institutions are not banks. They are not bound under the same anti-fraud or financial conduct regulation as a full bank. This means you may not receive compensation in some cases with an eMoney institution where you would with a registered bank.
However, EMIs are required to keep customer funds separate from organization funds. This means that if the organization fails, your money is still there.
What Types of Business Bank Accounts Are There?
There are many different types of business accounts. However, the big differences are savings accounts and current accounts.
- Current Account – You use this account daily for incoming and outgoing finances. Your business might fund small expenses like pens or coffee for the office from this account. A current account typically has a monthly fee and you will not usually earn interest on it. However, there are no limits on transactions, and you’ll normally be able to make transfers in the UK for free or very low cost. The big perk? Your funds are always available.However, some banks will limit the amount of funds you can withdraw and use at once. What about account tiers? Depending on the bank, tiers add services and features, allow you to keep more money in your account, or reduce fees for transactions. So, if your account offers a free option with a 0.65% transfer fee, you might want to check if your total fees are higher than the account option that makes that free. In most cases, the more and the higher the volume of transactions you make, the more you want a higher tier account because it will be cheaper.While most banks don’t offer interest on current accounts, some do. If you frequently use your money and don’t want to bother transferring it back and forth or limiting it in a savings account, looking for a current account with interest may be the best call.
- Savings Accounts – Savings accounts are designed for holding money for a longer period. These accounts are normally geared towards larger capital volumes, although some allow for deposits of as little as £1. Others might require as much as £250,000 as an opening deposit. Still, there are plenty of reasons to opt for a savings account. For example, if you have slow or non-moving capital, you can earn interest. That’s quite high in the UK as of 2025, competing with most stock investments. For example, the highest rates on a fixed-term business saver in 2025 is over 4.5%! But, there are also different types of savings accounts:
- Easy/Instant Access – These saver accounts allow you to immediately access and spend funds with no real limitations. However, you may pay high transaction fees over a certain volume. E.g., many UK business easy access savers limit transactions to 2 per month. Afterwards, you pay a fee. Still, you money is available to withdraw whenever you like.
- Notice – Notice accounts require a notice to spend money. These range from 7–90-day notice. However, the most common are 30 and 60 day. The longer you lock funds in, the higher your rate is likely to be. However, that’s not always the case and some banks will just offer better rates. Notice accounts are ideal if you have quarterly or monthly expenses and otherwise want to maximise your interest earnings. However, you won’t be able to use your savings to respond to business emergencies. 60-90-day notice accounts tend to have the highest rates on the market.
- Fixed Term – Fixed term accounts lock your funds into an account for a fixed period but also lock your interest rate in. So, if you choose a fixed term rate at a point of high interest, you could keep it long after the market rate has dropped. Fixed rate accounts normally offer lower rates than 90-day notice accounts. However, you could lock in a rate and earn for up to 5 years. In some cases, that will be monthly compounding.
Of course, there are plenty of other constructions as well, but most will fall into categories of the same.
What’s the best business bank account? Most businesses want a current account plus a saver. Which saver option you take is up to you depending on how fast-moving capital is, and how much you have to put away.
Why Have a Business Bank Account Instead of a Personal Account?
For small businesses and freelancers, business accounts can look a lot like a more expensive version of a personal account.
However, they offer plenty of perks. For example:
- Separation of business and personal finances
- Easier accounting and often accounting tools
- Invoice and billing tools
- Reduced limits on transactions and transfers
- Access to expense cards and debit cards
- Access to business credit
- Increased credibility for your business
- Bookkeeping tools
- Integration with accounting tools
- Credit options
In short, you’ll have an easier time paying your taxes, you’ll look more professional, and you’ll have additional options that are only available to businesses.
What’s the Difference Between a Bank and a Building Society and a Trust?
Banks, Building Societies, and Trusts are all very similar organizations. In fact, they may have the same license. However, they operate with different goals:
- Bank – A financial institution with a banking license and registered or backed by a UK-based foundation. Banks may operate with any goals. A full bank offers banking as well as lending opportunities. Not all registered banks will do so.
- Building Societies – These are banks or financial institutions offering banking services. However, all funds and profits are invested in local community, determined by the Building Society’s geographical location. This means funds are used for local community projects, green initiatives, home building, business investment, etc.
- Trust – Trusts are banks or financial institutions that invest money into “social good”. This may mean that customers have to be registered charities. It may also mean that the bank invests in registered charities or “for change” initiatives such as green initiatives, local community, and charities.
Essentially, the big difference is what your money is doing while it’s sitting in the bank. And, of course, there are new alternatives, like The Bank of London that simply do nothing with your money.
What’s the Difference Between a Bank and an eMoney Institution?
Banks and Electronic Money Institutions or eMoney Institutions provide roughly the same services. However, they are governed in different ways.
Bank – A bank has a banking license and is a member of the Financial Services Compensation Scheme. Banks are also part of the Contingent Reimbursement Model Scheme, which means that if the bank or the customer is defrauded, they must be reimbursed. So, going with a traditional bank means you’re more protected (up to £85,000 under the FSCA) and may be eligible for compensation in case of fraud. Banks also typically offer credit, loans, and mortgages.
EMI – An EMI operates under the Electronic Money Scheme. It functions online and typically across borders, allowing for cheaper and faster multi-currency transactions. All money kept in an EMI must be kept in a Safeguard account, meaning that if your Emoney institution goes bankrupt, your money is safe. EMIs do not offer lending.
How Do I Choose the Best Business Bank in the UK?
There’s no such thing as the best business bank in the UK. Instead, there are options for finding the best fit for your needs. That means looking at your capital flow, business size, investment model, and other details.
For example, choosing a specialist bank that serves your industry could net you an extra few percent on savings rates. At the same time, there are 328 financial institutions in the UK and making a selection can be difficult.
If you’re ready to get started, use the form below to let us know what you need from a bank, and we’ll put together a selection of the best offers that meet your needs!