TL;DR
Lloyds Business Account charges £7.00/month after a 12-month free period - the lowest monthly fee among the major high street banks. FSCS protection to £85,000. FCA authorised 119278.
- £7.00/month after 12 months free banking - sourced from Lloyds editorial fallback - verify at lloyds.co.uk
- FCA authorised and PRA regulated - FSCS protection to £85,000 per legal entity
- Integrates with Xero, QuickBooks, Sage and FreeAgent via open banking
- Lloyds operates a UK branch network for cash handling and in-person support
- Overdraft available subject to separate credit application and assessment
How Lloyds 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 Lloyds business account for
The Lloyds 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.
Lloyds business account fees in detail
The standard monthly account fee is £7.00 after the initial 12 months free banking period. Electronic payments cost 27p per transaction. Cash deposits are charged at £0.90 per £100 at a branch.
FSCS protection and regulatory status
Lloyds Bank UK PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority under FCA registration number 119278. Business deposits are eligible for FSCS protection up to £85,000 per legal entity.
Open banking and accounting software integration
Lloyds 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 Lloyds business account FSCS protected?
Yes. Lloyds 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 Lloyds free business banking period?
The Lloyds free banking period is 12 months for new business customers. After this the standard monthly fee of £7.00 applies.
Can I open a Lloyds business account online?
Lloyds offers online business account applications. Sole traders and simple limited companies can typically complete the process digitally.
What is the Lloyds business overdraft rate?
The arranged overdraft EAR is 14.9%. Subject to separate application and credit assessment.
Sources: Lloyds editorial fallback - verify at lloyds.co.uk (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)
