TL;DR
HSBC Business Banking charges £8.00/month after a 12-month free period. Lower transaction fees than Barclays at 25p per payment. FSCS protection to £85,000. FCA authorised 114967.
- £8.00/month after 12 months free banking - sourced from HSBC Open Data API
- FCA authorised and PRA regulated - FSCS protection to £85,000 per legal entity
- Integrates with Xero, QuickBooks, Sage and FreeAgent via open banking
- HSBC operates a UK branch network for cash handling and in-person support
- Overdraft available subject to separate credit application and assessment
How HSBC compares to other UK business bank accounts
| Bank | Monthly fee | FSCS | Branch | FCA reg. |
|---|---|---|---|---|
| Barclays Business Account | £8.50 | Yes | Yes | 122702 |
| HSBC Business Banking | £8.00 | Yes | Yes | 114967 |
| NatWest Business Account | £7.50 | Yes | Yes | 121878 |
| Lloyds Business Account | £7.00 | Yes | Yes | 119278 |
| Santander Business Account | £7.50 | Yes | Yes | 106054 |
| Nationwide Business Account | Free | Yes | Yes | 106078 |
| Starling Business | Free | Yes | No | 730166 |
| Tide | Free | e-money | No | 900843 |
| Monzo Business | £5.00 | Yes | No | 730427 |
| Revolut Business | Free | e-money | No | 791001 |
Who is the HSBC business account for
The HSBC business account suits established limited companies and SMEs that need branch access, a relationship manager for larger facilities, and a full lending relationship. The monthly fee is mid-range among high street banks. For sole traders and startups with primarily digital needs and low transaction volumes, challenger banks offer comparable functionality at lower cost.
HSBC business account fees in detail
The standard monthly account fee is £8.00 after the initial 12 months free banking period. Electronic payments cost 25p per transaction. Cash deposits are charged at £1.00 per £100 at a branch.
FSCS protection and regulatory status
HSBC Bank UK PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority under FCA registration number 114967. Business deposits are eligible for FSCS protection up to £85,000 per legal entity.
Open banking and accounting software integration
HSBC supports open banking data sharing under the CMA Order. The account connects to Xero, QuickBooks, Sage and FreeAgent via live bank feeds.
Frequently asked questions
Is the HSBC business account FSCS protected?
Yes. HSBC Bank UK PLC is a UK-authorised bank and eligible business deposits are covered by the FSCS up to £85,000 per legal entity.
How long is the HSBC free business banking period?
The HSBC free banking period is 12 months for new business customers. After this the standard monthly fee of £8.00 applies.
Can I open a HSBC business account online?
HSBC offers online business account applications. Sole traders and simple limited companies can typically complete the process digitally.
What is the HSBC business overdraft rate?
The arranged overdraft EAR is 14.9%. Subject to separate application and credit assessment.
Sources: HSBC Open Data API (fetched 09 Jun 2026) - FCA Financial Services Register (fca.org.uk) - FSCS eligibility rules (fscs.org.uk) - Bank of England base rate (bankofengland.co.uk) - PRA register (bankofengland.co.uk/prudential-regulation)
