NatWest Business Banking offers current accounts for sole traders and limited companies, with 18 months free banking for start-ups and FreeAgent accounting software included for some account types. NatWest is FCA-authorised and PRA-regulated. Deposits are FSCS-protected up to £85,000. NatWest 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 NatWest published rates
TL;DR: The NatWest business bank account charges £7.50 per month after the 18 months free banking period. Electronic payments cost 35p per transaction. Cash deposits cost £0.90 per £100. FSCS deposit protection applies up to £85,000. NatWest is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority (FCA registration number 121878).What is the NatWest business account
The NatWest 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.
NatWest 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 NatWest's published rate schedule.
The 18-month free banking period is the longest introductory offer currently available among CMA9 banks. Combined with the inclusion of FreeAgent accounting software, NatWest represents a strong cost proposition for businesses in their first two years of trading.
NatWest business account fees and charges
The table below sets out the fee structure for the NatWest business account, sourced from the CMA Open Data API and NatWest's published documentation as at 09 Jun 2026.
| Fee | Amount |
|---|---|
| Monthly account fee | £7.50/month |
| Introductory free period | 18 months |
| Electronic payment (per transaction) | 35p per transaction |
| Cash deposit fee (per £100) | £0.90 per £100 |
| Arranged overdraft EAR | 14.9% |
| Annual cost (fee only, after free period) | £90 per year after the 18-month free period |
Source: CMA Open Data API and https://www.natwest.com/business/bank-accounts.html. Data retrieved 09 Jun 2026. Fees are subject to change by NatWest. Verify current rates directly with the provider before opening an account.
Approximately £90 per year after the 18-month 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 NatWest business account for
The NatWest business account is suited to new businesses and startups that want the longest introductory free banking period among CMA9 banks, combined with full branch access, business lending options, and FreeAgent accounting software included at no extra cost.
It may be less suitable for businesses that have already passed the startup phase and are evaluating ongoing fees, for whom NatWest's standard transaction charge of 35p per electronic payment may be higher than some 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 NatWest business account
The NatWest 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.
- Apply online via the NatWest business banking website or visit a NatWest branch
- Provide Companies House registration number, director details, and estimated annual turnover
- Complete identity verification online or in branch
- NatWest reviews the application, typically within 3 to 5 business days
- Account details and debit card are issued by post within 5 to 7 working days of approval
- Online banking and the NatWest mobile app are activated separately using the credentials issued
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 NatWest business account
UK-registered limited companies, sole traders, and partnerships. NatWest accepts businesses with no prior trading history, making the account accessible to genuine startups. Businesses with significant adverse credit history may be declined or referred. Hard credit checks apply where an overdraft or lending facility is requested.
Businesses declined by NatWest 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.
NatWest business account: overdraft and borrowing
Arranged overdraft facilities are available subject to credit assessment. NatWest also offers business loans, invoice finance, and asset finance. Mettle, NatWest's free digital account, does not include an overdraft facility.
NatWest business account: cash handling
Cash deposits are accepted at NatWest branches. The 90p per £100 charge applies. NatWest also supports cash deposits at Post Office counters, which extends coverage for businesses in areas affected by branch closures.
NatWest business account: international payments
NatWest supports international payments through its standard business banking platform. SWIFT payments are available and foreign currency accounts can be arranged through its relationship banking team. FX margins and transfer fees apply and are disclosed at the point of transaction.
NatWest business account: accounting software integrations
The NatWest business account supports open banking connections to major UK accounting software platforms, enabling automatic bank feed synchronisation. Supported integrations include Xero, QuickBooks, Sage, FreeAgent, and FreshBooks. Connections operate under the CMA Open Banking Order, which requires NatWest 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
NatWest 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: 121878.
Business deposits held with NatWest 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 NatWest as a banking partner. Businesses considering challenger bank alternatives should verify the regulatory structure of any account they are evaluating.
How NatWest compares to other UK business bank accounts
The table below shows the NatWest 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 |
|---|---|---|---|---|---|
| NatWest | £7.50/month | 18 months | 35p per transaction | Yes | Full CMA9 bank. Branch access. |
| Starling Business | Free | Permanent | 30p | Yes | Permanently free, no introductory period needed. Digital only. FSCS protected. |
| Mettle (NatWest) | Free | Permanent | Free | No | NatWest's own free digital account for sole traders and small limited companies. No transaction fees. |
| Monzo Business | £5.00/month | N/A | 20p | Yes | Monthly fee with no free period. Digital only. FSCS protected. |
| Tide | £9.99/month | N/A | 20p | Yes | E-money institution. Not FSCS protected. Broad feature set for small businesses. |
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 NatWest business banking
NatWest has continued its branch network consolidation programme through 2024 and 2025, with further closures announced across the UK. The bank has expanded its digital banking capability and now includes FreeAgent accounting software at no additional cost for qualifying business current account holders.
Customer ratings
NatWest holds a Trustpilot score of 3.7 out of 5 across its customer base. The NatWest mobile banking app carries an average rating of 4.3 out of 5 on the Apple App Store. These ratings reflect the full NatWest 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 NatWest business account
What is the monthly fee for the NatWest business account?
The NatWest business bank account charges £7.50 per month. This fee does not apply during the 18 months free banking period available to new business customers.
Is the NatWest business account FSCS protected?
Yes. NatWest 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 121878.
How long does it take to open a NatWest 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 NatWest business account?
Yes. NatWest accepts sole trader applications. Sole traders need to provide proof of identity, proof of address, and details of their business activity. The standard 18 months free banking period applies to sole trader accounts.
What electronic payment fee does NatWest charge?
The NatWest business bank account charges 35p 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 NatWest 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 NatWest business account connect to?
The NatWest business account supports open banking connections to Xero, QuickBooks, Sage, FreeAgent, and FreshBooks. 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 NatWest business account right for your business type
Different business structures have different requirements from a current account. The following sets out how the NatWest business account maps to common business types.
Limited companies: A separate business account is a legal requirement for limited companies. The NatWest 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 NatWest 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 NatWest business account supports multi-signatory business accounts, though the specific arrangements should be confirmed with NatWest at the point of application.
Startups and new businesses: The 18 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 NatWest business account
Before opening the NatWest business account, businesses should verify the following directly with NatWest:
- Transaction volumes: Calculate the likely monthly transaction fee based on actual payment patterns. At 35p per electronic payment, a business making 100 payments per month will incur £35 in transaction charges on top of the monthly fee.
- Cash handling requirements: At £0.90 per £100, a business depositing £5,000 in cash per month will incur £45 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 NatWest business account
Businesses switching from another bank to the NatWest 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.
NatWest 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 NatWest business account operates within the CMA Open Banking framework. Under the Competition and Markets Authority Open Banking Order, NatWest 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 NatWest 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 NatWest 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.
NatWest 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 NatWest 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.
