Opening a HSBC business bank account: Everything you need to know

If you’re setting up your own business, or are a business owner already, you might be interested in commercial banking services from HSBC. There’s a range of products and services available, such as HSBC sole trader account, business debit cards and services designed for registered companies which are already established in the UK market.

When you’re choosing the right account for your business, it’s crucial to look at the full list of features and fees, and consider what services you might need now, and in the future. Compare the business bank accounts available from traditional banks, with modern alternatives such as the multi-currency account from Wise Business.

Besides all that you can even earn a return on the money you hold in multiple currencies. With Wise Interest, you can get a 4.82% variable rate on your GBP balance held in your Wise Business multi-currency account.

Capital at risk. Current rates do not guarantee future growth.

Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds

Here’s a handy guide to help you decide if a HSBC business bank account is right for you, the relevant fees and how to open a HSBC business account.

What are the different account types for businesses with HSBC bank?

HSBC Bank offers a few different account options suited to business owners. There are also accounts available for community associations and charities, as well as corporate banking for very large business customers. Here are a few of the more popular options for UK businesses.

HSBC sole trader account¹

Best for: sole traders and single director shareholders. You can apply online in minutes and most accounts are open within 48 hours.

HSBC sole trader account features

Free first 12 months monthly fee	Yes ✅
Debit card	Yes ✅
Overdraft application	Yes ✅ (subject to credit check)
Categorised spending	Yes ✅
Deposit cheques in app	Yes ✅
Accept card and contactless payments	Yes ✅
Make international payments in-app	No ❌
Foreign currency account	No ❌
Multi-user access	No ❌

If you are a sole trader doing business overseas, a Wise Business multi-currency account can be a better option for you. With Wise you can get paid with local account details for 9 major currencies, including EUR and USD. You can hold money in over 40 currencies and spend abroad with your Wise Business debit card.

💡Learn more about Wise Business

Small business account HSBC²

Best for: small business that require everyday banking services. Apply online and get 12 months fee free.

HSBC small business account features

Account management through app	Yes ✅
Debit card	Yes ✅
Overdraft and business loans application	Yes ✅ (subject to credit check)
Integration with Sage	Yes ✅
Employee expense cards	Yes ✅
International payments	Yes ✅
Foreign currency account	Yes ✅
Relationship manager	No ❌

HSBC Business Banking account³

Best for: medium sized companies, including non-profit organisations, that require a dedicated relationship manager and a large set of banking services.

HSBC business banking features

Account management through app	Yes ✅
Debit card	Yes ✅
Credit card	Yes ✅ (subject to credit check)
Overdraft and business loans application	Yes ✅ (subject to credit check)
Integration with Sage	Yes ✅
Employee expense cards	Yes ✅
International payments	Yes ✅
Foreign currency account	Yes ✅
Specialist support teams	Yes ✅

HSBC international business account⁴

Best for: small and medium sized companies doing business overseas.

International account features

International current account	Yes ✅
Instant access savings account	Yes ✅
Fixed term deposit account	Yes ✅
Account management online	Yes ✅

HSBC offers a couple of different account options which may work for your business if you trade in a currency other than sterling. A foreign currency account can be opened in any major world currency, and you might earn interest on the money held in the account, depending on the currency you choose. Accounts are offered for day to day banking, and also for fixed term deposits if you wish to leave a sum of money for a period, and don’t need to make any withdrawals.

Alternative to HSBC international business account

Doing business overseas and need to pay or get paid internationally? Wise Business could be a cheaper and more convenient option.

When you have to pay suppliers overseas it might seem logical to do this with your bank. You already have an account there, they have all your information, so it just seems easier. Although these are valid reasons, easier certainly doesn’t mean cheaper.

Most banks won’t convert your money at the mid-market exchange rate when you make an international payment. Instead they add a mark-up and charge you a hidden fee that way. Wise Business is different and always converts your money using the real mid-market rate, no hidden fees.

Wise also has a lot of additional features for business users. You can connect your account with accounting solutions, send bulk payments all at once or even automate your payments by integrating with our API, all to make your life easier and more convenient, even when doing business abroad.

Get started with
Wise Business 🚀

What are the requirements to open a HSBC business bank account?

The business account and small business account are available for registered companies in the UK. The sole trader account, however, has more specific account requirements, as follows:

HSBC sole trader account requirements¹

Company type	Other than sole trader or sole director and sole shareholder of a limited company
Tax residency	UK tax resident (not included Channel Islands or Isle of Man)
Mobile device	Iphone 6 or newer, Android handset

How to open a HSBC business account?

For the sole trader and small business accounts you can apply with HSBC online. To do so you will need to provide the following information:

• Companies house registration number (for partnership and limited company)
• Full business address
• Business contact details
• Estimated business turnover
• Personal details such as: full name, date of birth, contact details and address
• Account number, if current personal customer
• Details of debit and credit card

To open a business account you'll need the same information listed above, however you can't do it online. You may need to start a live chat at HSBC website or call the number 03457 606 060.

If you are already a HSBC business customer and need to close your account head to your guide.

HSBC business account fees

The fees charged by HSBC for your business account will vary depending on a number of different factors.

New customers may get a fixed term fee-free banking period, which is then followed by a further option of a reduced fee product, before switching to the regular prices. There are also different tariffs for existing customers, depending on the exact services you choose, so it’s worth looking carefully at the pricing details to make sure you select the right package for your business.

Here are some of the main fees for each account type present in this article:

HSBC sole trader account⁵

Services	Cost
Monthly fee	£6.50 (free for the first 12 months)
Local payments in and out	Free
SEPA international payments in	£0.20
SEPA international payments out	Free
Local transactions with debit card	Free
Local ATM withdrawals	0.60% of the amount
International transactions with debit card	2.75% of the amount
International ATM withdrawals	2.75% of the amount + 1.5% withdrawal fee
International payments (outside SEPA)	£6 for payments above £100, free otherwise

Small business account HSBC²

Services	Cost
Monthly fee	£8 (free for the first 12 months)
International account annual fee	£96.00
Local payments in and out	Free
SEPA international payments in	£0.20
SEPA international payments out	£0.24
Local transactions with debit card	Free
Local ATM withdrawals	£0.25 + 0.60% of amount (free for the first 12 months)
International transactions with debit card	2.75% of the amount
International ATM withdrawals	2.75% of the amount + 1.5% withdrawal fee
International payments (outside SEPA)	£17

HSBC business banking fees³

Services	Cost
Monthly fee	£10 (free for the first 12 months)
International account annual fee	£120.00
Local payments in and out	Free
SEPA international payments in	£0.20
SEPA international payments out	£0.24
Local transactions with debit card	Free
Local ATM withdrawals	£0.25 + 0.60% of amount (free for the first 12 months)
International transactions with debit card	2.75% of the amount
International ATM withdrawals	2.75% of the amount + 1.5% withdrawal fee
International payments (outside SEPA)	£17

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Getting the right banking option for your organisation is essential, to make sure you’re not paying more than you need to, and allow you to focus on running your business.

Doing some research in advance can pay big dividends, as the functionality and costs of different accounts can vary widely. HSBC offers a range of products for UK business customers.

However, if you need a multi-currency account, or expect to send and receive international payments frequently as your business grows, it’s worth comparing the products available against a specialist multi-currency business account such as Wise, to see which will work best for you.

Start saving today with Wise Business

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Sources used:

1. HSBC Kinetic Current Account | Business Banking | HSBC
2. Business account for start-ups | Business Banking | HSBC
3. Business Banking Account | HSBC
4. Foreign Currency Account | International Business | HSBC
5. HSBC Kinetic | Price list

Sources last checked on June 26, 2023.