Do you even need one? Yes
A limited company is legally separate from you, so its money must sit in its own account, not your personal one. Mixing the two makes your bookkeeping a nightmare and can blur the liability protection that made you incorporate in the first place. Open a business account before you take your first payment.
What actually matters when choosing
- Speed to open — some accounts are live the same day, others take weeks.
- Monthly fee — plenty of good accounts start free; paid tiers add allowances and perks.
- Whether it is a bank (FSCS-protected) or an e-money account (funds safeguarded instead).
- Free transfers and cash-deposit options if you handle either.
- Built-in tools — invoicing, expense cards, accounting integrations — that save you buying them separately.
Bank vs e-money — the one distinction to understand
A full bank account is covered by the FSCS deposit guarantee. An e-money account is not — instead your money is safeguarded in a separate ring-fenced account. Both are legitimate and regulated; the e-money players are often faster to open and packed with software features. If FSCS protection matters to you, favour a bank; if speed and built-in tools matter more, an e-money account is fine.
A sensible shortlist by need
- Trading today, admin in one place: a fast e-money account with invoicing and expense cards.
- Want a full bank with FSCS cover: a challenger bank built for business.
- Paying overseas suppliers or holding currencies: a multi-currency account.
- Free accounting thrown in: some accounts bundle software worth hundreds a year.
How to open one
- Have your company number and director ID ready.
- Most applications are online and take minutes to hours.
- Fund it, then point your invoices and card payments at it from day one.
Frequently asked questions
Can I use a personal account for my limited company?+
You should not. A limited company is a separate legal entity and its money must be kept separate. Using a personal account causes accounting problems and can undermine the liability protection of incorporating.
Is an e-money account safe?+
Yes — e-money firms are regulated and must safeguard customer funds in ring-fenced accounts. The difference from a bank is that safeguarding replaces FSCS protection, so it is worth knowing which you are getting.
How fast can I open an account?+
Some e-money accounts are live the same day; traditional banks can take longer. If you need to trade immediately, a fast digital account is usually the quickest route.