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- How many business bank accounts can you have in the UK?
Can you have more than one UK business bank account?
You can open more than one business bank account as a sole trader or limited company. But the more accounts you have, the harder it can be to keep track of your money, payments and records.
At a glance
Under UK law, businesses can have multiple business bank accounts, either with the same bank or with different ones
Having more than one business bank account can provide better returns and enable tighter financial management
Opening too many accounts could cause confusion and add to the overall cost of running your business
Find the right bank account for your business
How many business accounts can you have?
There’s no UK law that limits the number of business bank accounts a company or sole trader can hold.
Business bank accounts can be current accounts or savings accounts, and you can open as many as you like, with the same bank or with different banks.
However, while many of the most popular digital account providers offer free basic business bank accounts, you generally have to pay for extra features such as invoice management and international payments.
Having lots of business bank accounts could therefore cost you more than running your business finances via a single account.
There are some advantages to having more than one business bank account, though. These include:
Earning more interest on your savings
Separating money for different purposes, such as day-to-day expenses, tax or payroll
Keeping your business running if one account gets frozen, closed or hit by a technical issue
Using different account features such as lower transfer fees or international payments
How many bank accounts should a business have?
There’s no single “right” number of business bank accounts for a company – it depends on your specific needs and circumstances.
While some business owners prefer the simplicity of having one business account, others choose to take advantage of the benefits offered by different business bank accounts to manage their finances.
You don’t have to open more than one account to benefit from the services on offer from a rival bank, of course. If you prefer to have just one account, you can switch to a new business bank account rather than keeping both the new and existing accounts.
However, while sole traders can use a personal current account for their earning and expenditure, limited companies must have at least one business bank account by law.
What different types of business bank accounts can you get in the UK?
In the UK, business bank accounts are usually one of the following:
Current accounts which you use for everyday transactions, such as receiving payments and buying supplies
Savings accounts that pay interest on the balance, usually at a variable rate that may change based on how much you have in the account
Whatever type of business bank account you want, remember that making lots of applications in a short time can damage your credit rating, so it’s best to spread them out by a few months where possible.
Do all banks allow customers to have multiple business bank accounts?
Some business bank account providers limit the number of business accounts you can open with them. However, you can still open additional business bank accounts with other banks, as long as you meet their application criteria.
What’s more, many digital business bank account providers allow you to link accounts held elsewhere to their business bank accounts, meaning you can see all your balances and transactions in one place.
Policies vary between providers, so we’ve summarised the terms and conditions of three of the most popular:
How many Monzo business accounts can I have?
Monzo offers three levels of business current account:
Lite, which has no monthly fees
Pro at £9 a month
Team, from £25 a month.
As a business account holder, you can open an instant access savings pot to separate savings from general cash flow. You can also open a further two business current accounts with Monzo, although each one must be for a different business.
There are no restrictions on how many business accounts you have elsewhere, and you can link Pro or Team accounts to your other business accounts via the Monzo app.
How many Starling business accounts can I have?
Starling has a basic account with no monthly fees that you can tailor to your company’s needs, with add-ons such as its Business Toolkit at £7 a month.
You can open multiple Starling business accounts, as long as they are for different businesses that meet the bank’s criteria.
However, sole traders aged under 25 can only have one account, while older sole traders can have up to two. The bank does not currently offer a business savings account, but you can view accounts held elsewhere online.
How many Tide business accounts can you have?
Tide offers four levels of business current account to choose from:
Free - (£0 per month)
Smart - (£9.99 + VAT per month)
Pro - (£18.99 + VAT per month)
Max - (£49.99 + VAT per month)
A Tide Instant Saver account is available across all subscription tiers, offering tiered interest rates that pay up to 4% AER (variable). New Tide members automatically receive the top promotional savings rate free for their first four months, after which the interest rate reverts to the standard rate dictated by your specific plan
Paid members can also open additional sub-accounts under their main profile to help segment business expenses like payroll or tax. Smart plan holders get one free additional account, Pro plan holders get two, and Max customers can open up to three.
Free tier account holders do not have the option to add sub-accounts.
There are no restrictions on linking or viewing external accounts. All Tide customers can securely connect, sync or remove their third-party business bank accounts inside the app at any time.
Why should I open more than one business bank account?
There are lots of reasons to open more than one business bank account. These include:
Financial management
Having several business accounts enables you to separate funds for different purposes, such as payroll and supplier payments. Having a business savings account alongside your business current account can also help you maximise your returns
Cash flow
Splitting money into different pots can give you a greater understanding of your business' cash flow, enabling you to manage it more efficiently
Risk
Spreading your money across different institutions can help mitigate the impact of a bank going under. Having no more than £120,000 with each UK-authorised banking group also means you get full protection under the Financial Services Compensation Scheme (FSCS)
Benefits
You may choose to open one account that pays interest on your balance, and another that offers cashback on business spending or access to an accounting tool
Why shouldn’t I open more than one business bank account?
Potential reasons to avoid opening more than one business bank account include:
Cost
You often have to pay for business banking via monthly fees, transaction charges or both. Having more than one business bank account can therefore increase the cost of running your business
Time management
While some apps enable you to see all your accounts in one place, having several accounts can be confusing and increases the time you spend managing your business banking
Conditions
Ensure you are aware of any conditions, such as maintaining a minimum balance, because you may face penalties for failing to do so
FAQs
Does having more than one business bank account affect my credit score?
Having more than one business bank account won’t usually affect your credit score on its own.
However, your score could be affected if you apply for several accounts in a short space of time and the providers run hard credit checks. Before you apply, check whether the provider runs a hard or soft search.
Missed fees, unpaid overdrafts or poor account conduct could also cause problems.
Do I need to tell HMRC about all my business bank accounts?
You don’t usually need to tell HMRC every time you open a new business bank account.
However, you must keep accurate records of your business income and expenses across all accounts. HMRC can ask to see these records if it checks your tax return or conducts an audit on your business.
Using separate accounts can help you organise your money, but it can also make your bookkeeping more complicated - especially if you don’t track everything properly.