Business Bank Account Fees Explained

The seven fee types you'll meet

Every UK business account uses some combination of these. When comparing, list them side by side rather than just looking at the monthly fee.

1. Monthly account fee

Ranges from £0 (Tide standard, Mettle, Starling, Monzo Business Lite) to £25–£40 a month on premium high-street accounts. High-street banks (HSBC, Lloyds, Barclays, NatWest, Santander) typically offer a free introductory period of 12–25 months, then default to a monthly fee plus per-transaction charges. App-based paid plans (Tide Plus/Pro, Monzo Business Pro) sit in the middle at roughly £5–£35/month and bundle expense management, accounting integrations and higher allowances.

2. Bank transfer and standing order fees

The unit-economics of most accounts. Free-tier app accounts often charge 10–20p per UK transfer once a small included allowance is used. Paid tiers usually include several hundred free transfers. High-street accounts vary: post-introductory pricing typically includes 25–50 free items a month then 30–50p each.

3. Cash and cheque fees

The category where pricing varies most. App-based providers typically charge per cash deposit at Post Office or PayPoint (£1–£3 each, plus a percentage on larger amounts) with daily and monthly limits. High-street banks charge a percentage of the cash deposited (commonly 0.7%–1.2%) once an included allowance is used. Cheque deposits are usually included on high-street accounts and not supported at all on most app-based ones.

If your business takes any meaningful cash, this single fee category can dominate the total. A £20,000-a-month cash business paying 0.85% gives away £170 every month — far more than the £15 monthly account fee that account also has.

4. FX fees and margins

Two layers: an explicit FX fee (sometimes 0.5%–2%) and an implicit margin built into the exchange rate (often 0.4%–1.5% vs interbank). A 1% all-in cost on £10,000 of euro spending is £100 — worth comparing before defaulting to whichever account you opened first.

Wise Business and Revolut Business typically offer the keenest FX rates. Some app-based providers (Starling) include a no-margin spend rate up to a daily limit. If FX is more than a tiny share of your spending, a multi-currency account is usually cheaper than converting at the wrong moment.

5. ATM and card fees

Most UK business debit cards are free for in-app or online use. ATM withdrawals carry fees of £1–£2 each, sometimes with a free monthly allowance. Replacement cards usually £5–£10. Additional cardholders are free on some accounts and £5–£10 a month on others — relevant if you'll equip employees with cards.

6. Hidden extras that catch people out

• CHAPS payments — same-day large transfers cost £20–£30 at most banks; Faster Payments is free up to ~£1 million at most banks now, so use it where you can.
• Returned Direct Debits and bounced standing orders — £10–£15 each.
• Statements on paper if you opt out of digital.
• Account closure fees rarely apply now but check the terms.
• Premium account upgrades bundled in at sign-up but auto-charging after the trial.

Worked example — a freelancer vs a café

The freelancer is cheaper on the digital account. The café is roughly even — and would do better still with a high-street relationship if it negotiates lower cash rates or uses a third-party cash deposit service.