HSBC Business Banking offers current accounts for small businesses, mid-market companies and corporates, with international banking capabilities and trade finance services. HSBC is FCA-authorised and PRA-regulated. Business deposits are FSCS-protected up to £85,000 per eligible claimant. HSBC participates in the Business Banking Switch Service for eligible SMEs (FCA, FSCS, UK Finance, 2026). |
Last reviewed: 09 Jun 2026 | Source: CMA Open Data API and HSBC published rates
TL;DR: The HSBC business bank account charges £8.00 per month after the 12 months free banking period. Electronic payments cost 25p per transaction. Cash deposits cost £1.00 per £100. FSCS deposit protection applies up to £85,000. HSBC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA registration number 114216).What is the HSBC business account
The HSBC business account is a business current account designed for UK-registered businesses, available to limited companies, sole traders, and partnerships. It provides the core infrastructure for business payments: receiving customer payments, making supplier payments, setting up direct debits and standing orders, and connecting to accounting software through open banking.
HSBC is one of the nine designated banks under the Competition and Markets Authority (CMA) Open Banking Order, which requires it to publish standardised product data and provide open banking access to authorised third-party providers. The data on this page is sourced directly from the CMA Open Data API and HSBC's published rate schedule.
HSBC's global network and trade finance capability make it the strongest choice among CMA9 banks for businesses engaged in international trade. No domestic digital challenger currently replicates this combination of local account management and cross-border banking infrastructure.
HSBC business account fees and charges
The table below sets out the fee structure for the HSBC business account, sourced from the CMA Open Data API and HSBC's published documentation as at 09 Jun 2026.
| Fee | Amount |
|---|---|
| Monthly account fee | £8.00/month |
| Introductory free period | 12 months |
| Electronic payment (per transaction) | 25p per transaction |
| Cash deposit fee (per £100) | £1.00 per £100 |
| Arranged overdraft EAR | 14.9% |
| Annual cost (fee only, after free period) | £96 per year after the free period |
Source: CMA Open Data API and https://www.business.hsbc.uk/en-gb/finance-and-borrowing/business-bank-accounts. Data retrieved 09 Jun 2026. Fees are subject to change by HSBC. Verify current rates directly with the provider before opening an account.
Approximately £96 per year after the free period, based on the monthly fee alone and excluding transaction charges. Transaction fees are additional and will vary depending on account activity. Businesses with high transaction volumes should calculate total monthly cost based on actual payment patterns rather than the headline monthly fee alone.
Who is the HSBC business account for
The HSBC business account is suited to businesses with international trading relationships, import and export operations, or those requiring multi-currency account functionality alongside a full-service UK banking relationship.
It may be less suitable for domestic-only businesses with low transaction volumes and no international requirements, for whom the fee and branch-heavy model may represent unnecessary cost relative to digital alternatives.
This assessment is based on fee structure, feature set, and the account's position within the broader UK business banking market. It does not constitute financial advice. Businesses should assess their own requirements before selecting a banking provider.
How to open a HSBC business account
The HSBC business account can be opened online. The application process typically takes 10 to 30 minutes to complete, with a decision usually received within 1 to 5 business days.
- Access the HSBC Kinetic app or the HSBC business banking website and select the account type
- Complete the online application with company registration details, director information, and business description
- Submit identity verification documents for all directors via the app or online portal
- HSBC reviews the application, typically within 1 to 5 business days depending on business complexity
- For larger businesses, HSBC may initiate a call with a relationship manager before account opening
- Account details are issued digitally; business debit card follows by post
Documents typically required include a valid photo ID (passport or UK driving licence) for all directors, proof of address dated within the last 3 months, and Companies House registration details for limited companies. Sole traders may be asked to provide evidence of business activity such as an HMRC Unique Taxpayer Reference.
Who gets approved for the HSBC business account
UK-registered limited companies, sole traders, and partnerships. HSBC applies a full credit and KYC assessment. Businesses with annual turnover above certain thresholds are referred to relationship banking rather than the standard digital onboarding pathway. Businesses in restricted sectors may face additional due diligence requirements.
Businesses declined by HSBC due to credit history or sector restrictions may wish to consider specialist business accounts designed for businesses with adverse credit, or digital-first accounts with less stringent initial eligibility criteria.
HSBC business account: overdraft and borrowing
Arranged overdraft facilities are available subject to credit assessment. The representative EAR is 14.9%. HSBC also offers invoice finance, asset finance, and trade finance facilities that may be more appropriate than an overdraft for businesses with specific working capital needs.
HSBC business account: cash handling
Cash deposits are accepted at HSBC branches. The £1.00 per £100 charge applies to branch cash deposits. HSBC does not currently support cash deposits via Post Office counters, which limits options for cash-heavy businesses in areas without a local branch.
HSBC business account: international payments
HSBC's international banking capability is a structural advantage for businesses with cross-border activity. The bank supports payments in over 60 currencies, provides trade finance facilities, and offers dedicated international trade support teams. HSBC's global network spans over 60 countries and territories.
HSBC business account: accounting software integrations
The HSBC business account supports open banking connections to major UK accounting software platforms, enabling automatic bank feed synchronisation. Supported integrations include Xero, QuickBooks, Sage, and FreeAgent. Connections operate under the CMA Open Banking Order, which requires HSBC to provide read access to authorised third-party platforms.
Automatic bank feeds reduce manual data entry and improve reconciliation accuracy. Businesses using cloud accounting software should confirm current integration availability directly with their software provider before opening an account.
FSCS protection and regulatory status
HSBC holds a full UK banking licence and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. FCA registration number: 114216.
Business deposits held with HSBC are eligible for Financial Services Compensation Scheme (FSCS) protection up to £85,000 per legal entity per banking licence. This applies to deposits held directly with the bank. The FSCS limit applies per banking licence, not per account. Businesses holding deposits across multiple accounts with the same banking licence should be aware that the £85,000 limit applies in aggregate.
FSCS protection does not apply to money held with e-money institutions or payment institutions, even where those institutions use HSBC as a banking partner. Businesses considering challenger bank alternatives should verify the regulatory structure of any account they are evaluating.
How HSBC compares to other UK business bank accounts
The table below shows the HSBC business account against challenger bank alternatives on headline business current account terms, based on published rates as at 09 Jun 2026.
| Provider | Monthly fee | Free period | E-payment | FSCS | Key difference |
|---|---|---|---|---|---|
| HSBC | £8.00/month | 12 months | 25p per transaction | Yes | Full CMA9 bank. Branch access. |
| Wise Business | Free | N/A | 35p | No | Multi-currency specialist. Not a UK bank. No FSCS protection. Substantially lower FX margins than HSBC for international transfers. |
| Revolut Business | Free | N/A | 20p | No | E-money institution. Strong multi-currency tools. No FSCS protection. Monthly limits on free transfers. |
| Starling Business | Free | Permanent | 30p | Yes | Full UK bank, FSCS protected. Permanently free. Limited international capability relative to HSBC. |
| Allica Bank | Free | Permanent | 30p | Yes | Interest-bearing current account. FSCS protected. Domestic focus only. |
Fee data sourced from provider published rates as at 09 Jun 2026. E-money institutions (Tide, Revolut) do not carry FSCS protection. Rates subject to change.
Recent changes to HSBC business banking
HSBC launched its Kinetic app-based business account in 2024, targeting sole traders and small limited companies with a streamlined digital onboarding process separate from its standard business banking pathway.
Customer ratings
HSBC holds a Trustpilot score of 3.9 out of 5 across its customer base. The HSBC mobile banking app carries an average rating of 4.4 out of 5 on the Apple App Store. These ratings reflect the full HSBC customer base and are not specific to business account holders.
Business account-specific feedback on third-party review platforms tends to focus on the following themes: speed of account opening and onboarding, quality of digital banking tools for day-to-day transaction management, responsiveness of customer support for business-specific queries, and availability of branch services for cash-handling businesses.
Frequently asked questions about the HSBC business account
What is the monthly fee for the HSBC business account?
The HSBC business bank account charges £8.00 per month. This fee does not apply during the 12 months free banking period available to new business customers.
Is the HSBC business account FSCS protected?
Yes. HSBC holds a full UK banking licence and is authorised by the Prudential Regulation Authority. Eligible business deposits are covered by the Financial Services Compensation Scheme up to £85,000 per legal entity. FCA registration number 114216.
How long does it take to open a HSBC business account?
The online application takes approximately 10 to 30 minutes to complete. A decision is typically received within 1 to 5 business days. Account details are issued following approval, with the business debit card arriving by post within 5 to 7 working days.
Can a sole trader open a HSBC business account?
Yes. HSBC accepts sole trader applications. Sole traders need to provide proof of identity, proof of address, and details of their business activity. The standard 12 months free banking period applies to sole trader accounts.
What electronic payment fee does HSBC charge?
The HSBC business bank account charges 25p per electronic payment after the free banking period ends. This charge applies to Faster Payments and BACS transactions. CHAPS payments may carry a separate charge.
Does HSBC offer a business overdraft?
Yes. An arranged overdraft facility is available subject to a separate credit application. The standard arranged overdraft EAR is 14.9%. Overdraft limits are assessed individually based on business financials and credit history.
What accounting software does the HSBC business account connect to?
The HSBC business account supports open banking connections to Xero, QuickBooks, Sage, and FreeAgent. These connections enable automatic bank feed synchronisation using the CMA Open Banking Order framework. Integration availability should be confirmed with the relevant software provider before opening an account.
Is the HSBC business account right for your business type
Different business structures have different requirements from a current account. The following sets out how the HSBC business account maps to common business types.
Limited companies: A separate business account is a legal requirement for limited companies. The HSBC business account meets this requirement and provides the standard facilities needed: a unique sort code and account number, payment in and out, direct debit and standing order management, and online banking access. Directors should ensure all relevant individuals are added as signatories where required.
Sole traders: Sole traders are not legally required to use a separate business account, but keeping business and personal finances separate simplifies Self Assessment tax preparation and reduces the risk of breaching personal account terms and conditions that prohibit business use. The HSBC business account is available to sole traders and provides a straightforward way to achieve this separation.
Partnerships: Partnerships typically require a joint account accessible to all partners. The HSBC business account supports multi-signatory business accounts, though the specific arrangements should be confirmed with HSBC at the point of application.
Startups and new businesses: The 12 months free banking period means new businesses pay no monthly fee during early trading, which reduces overhead during the period when cash flow is most constrained.
What to check before opening a HSBC business account
Before opening the HSBC business account, businesses should verify the following directly with HSBC:
- Transaction volumes: Calculate the likely monthly transaction fee based on actual payment patterns. At 25p per electronic payment, a business making 100 payments per month will incur £25 in transaction charges on top of the monthly fee.
- Cash handling requirements: At £1.00 per £100, a business depositing £5,000 in cash per month will incur £50 in cash deposit charges.
- Accounting software: Confirm that the specific accounting platform used by the business is currently supported via open banking. Integration availability can change.
- Overdraft requirements: If an overdraft facility is required from day one, confirm availability and indicative limit before switching or opening the account.
- International payments: If the business makes regular international payments, verify the fee structure and whether a multi-currency account is available or whether a specialist provider would be more cost-effective.
Switching to the HSBC business account
Businesses switching from another bank to the HSBC business account can use the Current Account Switch Service (CASS). CASS is a free service that transfers all incoming and outgoing payments, direct debits, and standing orders to the new account within seven working days. The old account is closed automatically. CASS is available to businesses with an annual turnover of up to £6.5 million.
Before initiating a switch, businesses should obtain a full transaction history and statements from the existing provider, as historical data does not transfer to the new account. Any direct debits or standing orders no longer required should be cancelled before the switch date to avoid unnecessary transfers.
HSBC is a participating bank in the Current Account Switch Service. The switch process is managed by the new bank once the application is approved.
Open banking and the CMA9 framework
The HSBC business account operates within the CMA Open Banking framework. Under the Competition and Markets Authority Open Banking Order, HSBC is required to publish standardised product data through the Open Data API and to provide read access to customer transaction data to authorised third-party providers through the Open Banking API.
This framework has two practical implications for business account holders. First, fee and product data is independently verifiable through the CMA Open Data API - the data on this page is sourced from that feed rather than from marketing materials. Second, businesses can connect their account to authorised accounting software, bookkeeping tools, and financial dashboards without sharing their banking credentials.
Open banking connections use read-only access. Third-party software connected via open banking cannot initiate payments or modify the account. Businesses can revoke access to any connected app at any time through the HSBC online banking portal.
The nine designated banks under the CMA Order are Barclays, HSBC, NatWest, Lloyds, Santander, Nationwide, Allied Irish Bank, Bank of Ireland, and Danske Bank. All nine are required to maintain open banking infrastructure to the same technical standard.
Business savings accounts alongside the HSBC business account
A business current account is designed for operational use. Surplus funds held in a current account typically earn little or no interest. Businesses maintaining a working capital buffer above immediate operating needs may benefit from holding surplus funds in a separate business savings account.
HSBC offers business savings account products alongside its current account. Businesses maintaining a surplus above immediate operating needs should review the available savings rates and compare them against standalone savings providers before deciding where to hold reserves.
The Financial Services Compensation Scheme £85,000 limit applies per banking licence, not per account. Businesses holding both a current account and a savings account with HSBC should be aware that both balances count toward the same £85,000 limit. Businesses holding larger reserves may wish to distribute deposits across multiple FCA-authorised institutions to maintain full FSCS coverage.
