For freelancers, managing finances effectively is crucial for success and you’re often on your own in this department. A dedicated business account is the foundation and a decision not to be taken lightly as it provides clarity, professionalism, and simplifies your processes, including tax returns and invoicing.
Most freelancers are specialists and didn’t set out to become finance experts, marketing gurus or HR professionals, but it’s all part of the job!
With the rise of digital-first challenger banks, freelancers now have a wealth of options, each with its own unique set of features and fee structures. This post provides a comprehensive comparison of four of the most popular choices for UK-based freelancers: ANNA Money, Tide, Monzo, and Starling Bank. We will delve into their fees, key features, and the speed at which you can get started, helping you make an informed decision to open a business account for your business.
ANNA Money: The AI-Powered Assistant – Your Ultimate Admin Solution
ANNA (Absolutely No-Nonsense Admin) Money positions itself as more than just a business account; it’s a proactive financial assistant designed to tackle the administrative burdens of running a small business with unparalleled efficiency. Its standout feature is its cutting-edge AI-powered app that intelligently handles invoicing, meticulously tracks expenses, and even provides timely tax reminders, freeing up valuable time for freelancers to focus on their core work.
Fees
ANNA offers a flexible tiered pricing structure. The Pay As You Go plan has no monthly fee, making it an exceptionally attractive and low-risk option for those just starting out. While it includes a 0.95% commission on all incoming payments, this model ensures that costs are directly tied to income, proving highly economical for freelancers with fluctuating or lower transaction volumes. For more established freelancers, the Business plan, at £19.90 per month (plus VAT), offers 60 free local transfers and other valuable perks. International payments on all plans have a competitive 1% currency conversion fee.
Key Features
ANNA’s key strength lies in its robust and intelligent automation features. The app can effortlessly create and send professional invoices, and its advanced receipt capture tool utilizes AI to automatically categorize expenses with precision, significantly reducing manual effort. For limited companies, the +Taxes add-on (£24.00/month + VAT) provides a comprehensive, integrated solution for bookkeeping, VAT, and payroll, a feature that truly sets ANNA apart. This makes ANNA an indispensable tool for freelancers who demand a highly streamlined and automated financial administration system.
Account Opening Speed
ANNA boasts one of the fastest and most convenient account opening processes in the market. You can open an account in under 10 minutes through their intuitive app, and you’ll receive your Mastercard debit card within a swift 3-4 business days, allowing you to get started almost immediately.
Tide: The Scalable Business Account
Tide is a popular choice for freelancers and small businesses, offering a range of plans that can scale as your business grows. It provides a straightforward and user-friendly platform with a focus on core business banking features.
Fees
Tide’s Free plan has no monthly fee, but charges 20p for transfers to and from other bank accounts. This can be a significant consideration for freelancers who make frequent payments, potentially leading to higher cumulative costs compared to ANNA’s transparent fee structure. As your business grows, you can upgrade to their paid plans – Smart (£12.49/month + VAT), Pro (£24.99/month + VAT), or Max (£69.99/month + VAT) – which offer a set number of free transfers and other benefits. International transactions on the free plan come with a 2.75% FX fee for card payments and a 1.50% FX fee for transfers, which is notably higher than ANNA’s consistent 1% fee.
Key Features
Tide provides all the essentials a freelancer needs, including a business Mastercard, automatic transaction categorization, and invoicing tools. Their paid plans unlock more advanced features like expense cards for team members, dedicated support, and even legal assistance. The ability to integrate with accounting software like Xero and QuickBooks is a valuable feature for all users.
Account Opening Speed
Tide’s account opening process is generally quick, with most accounts set up within minutes. However, depending on the complexity of your business, it can take a few days for your account to be fully verified and operational.
Monzo: The All-Rounder
Monzo has gained a loyal following for its user-friendly personal accounts, and its business accounts offer the same intuitive experience. With a strong focus on transparency and customer service, Monzo is an excellent all-round option for freelancers.
Fees
Monzo’s Lite plan is free and includes free UK bank transfers, which is a major advantage for freelancers. The Pro plan, at £9 per month, adds features like Tax Pots, which automatically set aside a percentage of your income for taxes. The Team plan, at £25 per month, is geared towards small businesses with employees and includes expense cards.
Key Features
Monzo’s business accounts are packed with features designed to make managing your money easier. Their signature Pots feature allows you to separate your money for different purposes, such as taxes or savings. The app also includes invoicing tools, integrations with popular accounting software, and 24/7 customer support. Crucially, Monzo is a fully regulated UK bank, which means your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.
Account Opening Speed
Monzo’s account opening process is incredibly fast, with 90% of business accounts opened on the same day you apply. You can apply in minutes through their app.
Starling Bank: The Fee-Free Champion
Starling Bank has won numerous awards for its business banking services, and for good reason. It offers a feature-rich business account with no monthly fees, making it a top choice for freelancers who want to keep their costs down.
Fees
Starling Bank’s business account has no monthly fees and no fees for UK bank transfers. This makes it one of the most cost-effective options on the market. They also offer free ATM withdrawals and no fees for using your card abroad. The only significant fees are for cash deposits at the Post Office (0.7% with a £3 minimum) and for SWIFT international payments.
Key Features
Starling Bank provides a comprehensive set of features, including a Mastercard debit card, 24/7 UK support, and FSCS protection. Their Spaces feature is similar to Monzo’s Pots, allowing you to set money aside for specific goals. The app also includes spending analytics, receipt capture, and integrations with accounting software. For those who need more advanced bookkeeping features, the Business Toolkit is available for a reasonable £7 per month.
Account Opening Speed
Starling Bank’s account opening process is swift, with most applications processed in less than 24 hours. In some cases, verification may take a few working days.
Comparison at a Glance:
| Feature | ANNA Money | Tide | Monzo | Starling Bank |
| Monthly Fee (Basic/Free Plan) | £0 (Pay As You Go) | £0 (Free Plan) | £0 (Lite Plan) | £0 |
| Transaction Fees (UK Transfers) | 0.95% commission on incoming payments (Pay As You Go), Unlimited outgoing. Business plan: 60 free, then 20p. | 20p/transfer (Free Plan) | Free | Free |
| International Payments | 1% currency conversion fee (all plans). SWIFT payments (£5 after 2 free on Business plan). | 2.75% FX fees (Free Plan card), 1.50% FX fee (Free Plan transfer). Paid plans: 0% FX fees (card), 0.50% FX fee (transfer). | No fees for using card abroad. SWIFT fees not explicitly stated for Lite. | No fees abroad for card payments. SWIFT: £5.50 delivery + 0.4% transfer fee (min £1, max £25). |
| ATM Withdrawals | Free (Pay As You Go). Business plan: 3 free, then 1% (min £1). | £1 | Fee applies (not specified for Lite, but generally £1.50 for cash deposits). | Free |
| Cash Deposits | Pay cash in (Pay As You Go). Business plan: up to £300 free, then 1% (min £1). | Post Office: 0.99% (min £2.50). PayPoint: 3%. | Via PayPoint (fee applies). | Post Office: 0.7% (min £3). |
Conclusion
Choosing the best business account for your freelance business depends on your individual needs and priorities. However, for freelancers seeking to revolutionize their financial administration through intelligent automation and a truly supportive AI assistant, ANNA Money emerges as the leading choice.
- ANNA Money is the standout choice for freelancers who prioritize cutting-edge AI-powered automation to streamline their financial admin, offering unparalleled convenience and efficiency. Its flexible Pay As You Go model is ideal for new freelancers, and its comprehensive +Taxes add-on provides an all-in-one solution for growing businesses.
- Tide offers a scalable solution that can grow with your business, but its per-transaction fees on the free plan and higher international FX fees might be less cost-effective for some compared to ANNA.
- Monzo is a fantastic all-rounder, with a user-friendly app, great features, and the security of a fully regulated bank, but it lacks the advanced AI-driven automation that defines ANNA’s offering.
- Starling Bank is highly competitive on fees, offering a feature-rich account with no monthly charges. While excellent for cost-conscious freelancers, it doesn’t provide the same level of integrated AI-powered administrative support as ANNA Money.
Ultimately, the best way to decide is to carefully consider your own business needs and compare them against the features and fees of each provider. With the information in this post, you are now well-equipped to make the right choice for your unique freelance journey, with ANNA Money offering a distinct advantage for those looking to truly optimize their financial workflow with their own AI business account in the palm of your hand.
