Monzo Business vs high-street banks: Barclays, HSBC, Lloyds, NatWest and Santander compared

The short answer

For a sole trader or small limited company that gets paid by bank transfer and spends by card, Monzo Business costs the same as or less than any of the big five to run, and does more in the app. The high-street banks earn their fees in four situations: you handle a lot of cash, you want a branch, you are a partnership or LLP, or you need to borrow as a limited company. If one of those describes you, a high-street account is the better choice, or a sensible second account.

We bank with Monzo Business ourselves, and it is the only referral link on this site. That is a reason to be careful with this page, so every high-street figure links to the bank’s own tariff or account page.

Monzo Business and the big five, side by side

Entry accounts only: the Barclays Business Account, the HSBC UK Small Business Banking Account, the Lloyds Business Account, the NatWest Start-up Business Account and the Santander Business Current Account Classic. “Not stated: check with provider” means the page we read does not say. Scroll sideways on a phone.

Eligibility criteria apply. The £50 is for people who have never had a Monzo account and complete the steps within 30 days.

Fees after the free period

The headline “free” on three of the five accounts lasts 12 months. What you pay from year two is the better comparison, because you will probably keep a business account for years. The table shows the monthly account fee alone, over a year, once any introductory period has ended.

The account fee is only part of it. NatWest has no monthly charge on its Standard Tariff, but once the two free years end, everyday items are charged: £0.35 per automated payment, so a business making 40 electronic payments a month would pay £168 a year on payments alone. Barclays charges assisted electronic payments £1.50 each. HSBC’s free UK digital banking excludes cheques and CHAPS.

Monzo’s paid plans are not free either. Pro and Team cost more per year than Barclays or Lloyds. The difference is what the fee buys: Tax Pots, invoicing, accounting sync and, on Team, expense cards and approvals. If you only need a place for money to arrive and leave, Lite and HSBC are the two accounts with no monthly fee at all. For every Monzo charge, see Monzo Business fees, and to model your own pattern of use, try the business bank account cost calculator.

Cash handling

This is where the high street has a real advantage, though not always on price. Monzo charges a flat £1 per deposit at any PayPoint or Post Office. Each high-street bank charges a percentage of the amount, sometimes plus a per-item fee.

Take a business paying in £2,000 of notes a month in 4 deposits, on standard tariffs after any free period:

At that level Monzo is the cheapest. The catch is the limit: Monzo accepts £10,000 a month (limited companies) and £3,000 a month (sole traders). A café, market stall or takeaway banking several thousand pounds a week will hit that quickly, and none of the high-street banks has a cap anywhere near as low. HSBC is also changing its tariff: From 14 December 2026: £1.50 credit fee dropped, branch rate 2%. NatWest’s free banking also has a cash ceiling. In NatWest’s words: Free banking ends if cash deposits exceed £200,000 in 12 months (accounts opened from 20 April 2026).

Coins, bagged takings and night safes are branch services, and app-only accounts do not offer them. If that is how your business handles cash, the high street wins outright. Our page on Monzo Business cash deposits explains how paying in works and where the limits bite.

Branches and in-person help

Monzo has no branches. Everything happens in the app or on the web, with support by in-app chat, phone and email (24/7 in-app chat, phone and email). Cash goes in at a PayPoint or Post Office.

Barclays, HSBC, Lloyds, NatWest and Santander all have branches, though fewer than they did, and all take cash at the Post Office. A branch matters if you deposit cheques and cash in bulk, prefer to discuss lending face to face, or need documents certified in person. It matters less if your business is mostly online, and branch opening hours are rarely kinder to a working day than a chat window. Check the nearest branch to you before choosing a bank for its branches.

Lending

If borrowing is part of the plan, look hard at this row. Monzo lends to sole traders directly: an overdraft up to £3,000 at a representative 39.0% EAR (variable) and loans £200 to £25,000, 19.9% APR representative over £10,000 or 29.9% up to £10,000. For limited companies, Monzo’s own overdraft page is contradictory: it describes £500 to £5,000 at a representative 35.9% EAR (variable), with an annual fee and a personal guarantee, and also says Monzo does not offer overdrafts to limited companies. Company loans go through partner iwoca (through partner iwoca: £500 to £35,000 at a representative 33.1% APR). Check in the app before you rely on it; our Monzo Business overdrafts and loans page tracks the position.

The high-street banks lend to companies directly. HSBC lists borrowing up to £100k (subject to status), Santander an overdraft £500 to £25,000 (subject to acceptance), and NatWest overdrafts and loans available; unarranged overdraft 15% p.a.. Barclays and Lloyds lend to businesses too, but the account pages we read do not give overdraft terms, so check with them. A longer banking history with the same lender can also help when you come to borrow, which is one reason some companies keep a high-street account alongside an app.

Card spending and payments abroad

Monzo charges no fee on card spending abroad. The five high-street banks charge between 2.75% and 2.95% on non-sterling card transactions, which adds up on foreign software subscriptions and travel.

International transfers are closer. The banks charge a fixed fee per payment (Barclays £15 per international payment in the app or online, HSBC £17 by Business Internet Banking, Lloyds £15 via Internet Banking, NatWest £15 per international payment online, Santander £25 fixed fee plus 1% to 3% FX mark-up). Monzo’s pricing changes on 1 November 2026: from then, under £0.80 for most currencies, up to £11 in some cases, with a margin in the exchange rate (from 1 November 2026). Details are on Monzo Business international payments.

Opening time and eligibility

Monzo says most business accounts open the same day, and you apply entirely in the app. HSBC says 65% of accounts opened within 24 hours, and NatWest says its application takes about 10 minutes. Barclays, Lloyds and Santander do not publish a typical time on the pages we read.

Eligibility is the bigger difference. Monzo accepts sole traders and private limited companies (limited by shares) only, and not partnerships, LLPs, PLCs, charities, CICs, companies limited by guarantee, trusts and funds. Barclays, HSBC and Santander accept partnerships; Santander’s Classic account allows LLPs but a maximum of two directors, owners or partners, all UK-resident and 18+. Lloyds’ account is for businesses with turnover under £3 million, and NatWest’s start-up account for businesses trading under 1 year, turnover under £1m. The Monzo Business eligibility page has the full rules.

Apps and day-to-day tools

All five banks have business apps and online banking. The difference is that Monzo Business was built as an app first, and its day-to-day tools live inside it: instant notifications for every payment, pots, Tax Pots that move a percentage of each payment automatically, invoicing with automatic matching, and sync with Xero, FreeAgent, Sage and QuickBooks.

The banks answer with bundled software instead. NatWest includes FreeAgent free while you keep the account. Barclays offers Sage free for 12 months, then 50% off. Lloyds offers Xero free for 6 months for new customers, and Free MTD software for sole traders. HSBC has My Business Finances (Sage) for non-VAT sole traders, and Santander Xero free for 6 months plus £200 gift card (new Xero customers). If free FreeAgent or Sage would otherwise cost you a subscription, that is worth counting against Monzo’s plan fee.

When the high street wins

• Heavy cash. Above Monzo’s monthly deposit limit, or if you bank coins and bagged takings, use a bank with branches and deposit machines. Santander’s free monthly allowance at its own machines is the best starting point.
• Partnerships and LLPs. Monzo does not take them. Barclays, HSBC and Santander do.
• Borrowing as a limited company. HSBC, Santander and NatWest all list company overdrafts or borrowing directly; Monzo’s own pages conflict.
• A branch relationship. If you want to sit down with someone, only the high street offers that.
• Bundled software. NatWest’s FreeAgent for as long as you bank with it is good value for a start-up.
• A current offer. Lloyds is offering £200 for opening online by 15 October 2026. See our business bank account offers page for the conditions.

When Monzo Business wins

• Low running costs. No monthly fee on Lite, free UK transfers on every plan and no fee on card spending abroad.
• Setting money aside. Tax Pots on Pro and Team, with a percentage of each payment moved automatically.
• Speed. Most accounts open the same day, and sole traders and limited companies apply in the app.
• Small teams. Team adds expense cards, payment approvals and bulk payments without per-card fees for the first five cardholders.
• Small, occasional cash. A flat £1 per deposit beats a percentage fee for modest sums, within the limits.

Many companies end up with both: Monzo Business for everyday payments and tax set-aside, and a high-street account for cash or lending. Pro and Team can show your other bank accounts inside the Monzo app (see other bank and card accounts in the Monzo app via Open Banking). For the wider field, including Starling and Tide, see the best business bank accounts comparison or our guide for limited companies.