Online accounts and neobanks in United Kingdom

Snapshot

The United Kingdom has a deep set of online business accounts. Some are licensed digital banks, such as Starling and Monzo, with FSCS cover on eligible deposits, and Revolut moved UK customers to its UK bank entity after full authorisation on 11 March 2026. Others, such as Tide and Mettle, are electronic money providers that safeguard funds rather than holding a banking licence. As of 9 February 2026.

Licensed digital banks: Starling, Monzo, and Revolut after its 11 March 2026 authorisation. As of 9 February 2026.
Electronic money providers: Tide, Mettle, and others. As of 9 February 2026.
FSCS deposit cover: Up to 120,000 pounds per person per banking licence, since 1 December 2025, at licensed banks.
Always: Check whether the provider is a bank or an electronic money provider.

Fees and features as of 9 February 2026Last reviewed 9 February 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

As of 9 February 2026, the United Kingdom has one of the deepest markets for online business accounts. The important distinction is between a licensed digital bank and an electronic money provider. Licensed digital banks such as Starling and Monzo are regulated as banks and offer cover under the Financial Services Compensation Scheme on eligible deposits, and Revolut began moving UK customers to its UK bank entity after receiving full authorisation on 11 March 2026. Providers such as Tide and Mettle run online business accounts as electronic money providers, which safeguard customer funds rather than offering FSCS deposit cover. Both models can suit a business, so weigh the protection alongside the features and the cost.

How online accounts and neobanks work in United Kingdom

An online account is opened and run through an app or website, often with quick onboarding, in app payments, card controls, and links to accounting tools. Behind the app, the provider is either a bank with a UK banking licence or an authorised electronic money provider. As of 9 February 2026, licensed digital banks such as Starling and Monzo are dual regulated by the Prudential Regulation Authority and the Financial Conduct Authority, while electronic money providers are authorised by the Financial Conduct Authority to issue electronic money. The features can look similar, but the protection differs.

Licensed digital banks and FSCS cover

A licensed digital bank holds eligible deposits with FSCS cover, which protects up to 120,000 pounds per person per banking licence as of 1 December 2025. Starling and Monzo are licensed in this way, and Revolut received full UK banking authorisation on 11 March 2026 and began onboarding UK customers to its UK bank entity, after which eligible deposits there are covered. The rollout is staged, so confirm whether your specific account sits with the bank entity, as of 9 February 2026.

Electronic money providers and safeguarding

An electronic money provider does not hold a banking licence and instead safeguards customer funds, usually by holding them in segregated accounts at a bank. Tide and Mettle offer business accounts on this basis, and Mettle is owned by NatWest and is free to use. Safeguarding is a different protection from FSCS deposit cover, so understand how your money is held before you choose. As of 9 February 2026, confirm the current arrangement with the provider.

What to check before you choose

Four points to weigh on an online account, as of 9 February 2026. Verify with the provider

Whether the provider is a licensed bank with FSCS cover or an electronic money provider that safeguards funds.
The monthly cost and any per transaction fees, including cash deposits if you handle cash.
The features you actually need, such as invoicing, accounting links, multiple cards, or multi currency.
Eligibility, since some providers serve only certain business types or require UK residency.

Compare business accounts available in United Kingdom

These providers accept business customers in the United Kingdom. Fees and eligibility shown as of 9 February 2026. Confirm current terms with the provider before applying.

Compare business accounts →

Questions about online accounts and neobanks in United Kingdom

Which neobanks offer business accounts in the United Kingdom?

Licensed digital banks include Starling and Monzo, and Revolut began moving UK customers to its UK bank entity after receiving full authorisation on 11 March 2026. Tide and Mettle offer business accounts as electronic money providers rather than banks. Features and fees vary, so check each provider, as of 9 February 2026.

Are UK neobank business accounts protected by FSCS?

It depends on whether the provider holds a UK banking licence. Licensed banks such as Starling and Monzo are covered by the Financial Services Compensation Scheme, which protects eligible deposits up to 120,000 pounds per person per banking licence as of 1 December 2025. Electronic money providers safeguard customer funds instead. Confirm how your provider protects money, as of 9 February 2026.

Is Revolut a licensed bank in the United Kingdom?

Revolut received full UK banking authorisation on 11 March 2026 and began onboarding UK customers to its UK bank entity, after which eligible deposits there are covered by FSCS. The rollout is staged, so confirm whether your specific account sits with the bank entity, as of 9 February 2026.

What is the difference between a neobank and an electronic money provider?

A neobank that holds a banking licence is regulated as a bank and offers FSCS cover on eligible deposits. An electronic money provider is authorised to issue electronic money and must safeguard customer funds, but does not provide FSCS deposit cover. Both can offer online business accounts. Check the status of your provider, as of 9 February 2026.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 9 February 2026. Confirm current terms with the provider before applying.