HSBC vs Starling Business Account: Comparison for the UK

Starling Bank¹ is a popular and well liked digital bank with a full UK licence, while HSBC² is a banking powerhouse with a global presence. Both offer services for UK business owners, freelancers, sole traders and corporate customers - but which wins when it comes to an HSBC vs Starling business account comparison?

Join us as we walk through some key facts, features and fees for the Starling bank business account, the HSBC business account and the HSBC Kinetic business account. Plus, we’ll also touch on Wise Business as an alternative, non-bank provider, which may suit you if you have customers, colleagues, or contractors overseas.

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HSBC vs Starling business account - comparison overview

To kick off our HSBC business banking vs Starling bank business account review let’s look at some key features side by side. It’s useful to know that both HSBC and Starling have several different business products and accounts, so while we’ll look at the most popular ones here, you’ll need to head over to their websites to get the full lowdown on everything that’s available.

Here’s how Starling and HSBC Business measure up on some key comparison points - we’ll look at the costs of using an HSBC small business account versus Starling bank business account fees in more detail in a moment.

Starling bank business account

Starling Bank has several account options and services for business customers. You’ll need to apply first for a GBP Business account, which has no monthly fee. Once you’ve got this account set up you can also choose to add in a Starling Bank euro account and a Starling Bank USD account for business which have monthly costs, but which allow you to hold, send and receive EUR and USD payments.

If you have contractors or suppliers overseas, and need to settle invoices or run payroll, you’ll be able to manage that through Starling too. Starling international payments can be sent to 35 countries in major currencies, and the Starling Bank international fees you pay depend on the details of the transfer. Many destinations qualify for a low network payment which can cost as little as 0.3 GBP, but there’s a higher fixed fee of 5.5 GBP if you need to send a transfer via the SWIFT network. Currency exchange has a 0.4% fee.

Other options from Starling include add ons like bulk payments, invoicing and tax services, which you can pay a monthly fee to use.

No Starling bank business account review would be complete without mentioning that Starling Bank is genuinely well liked by customers, scoring an impressive 4.3 out of 5 from 37,000+ reviews on Trustpilot^³.

Starling bank business account fees

Starling bank business account - pros and cons

Let’s look at some pros and cons for the Starling Business account.

HSBC business account

HSBC offers UK businesses a complete suite of services, including a business bank account^⁷ and the HSBC Kinetic app^⁸ which is good for entrepreneurs, sole traders and startups.

As you’d expect from a global banking brand, you’ll be able to manage pretty much every financial need through HSBC, from international payments to loans, and support as your company grows. You can also get an HSBC business debit card for convenient spending and withdrawals, although the fees applied for using your card may vary depending on the specific account package you pick.

HSBC accounts have ongoing fees, although you may qualify for some free banking initially as a new customer. It’s also good to note that some international services from HSBC have fairly high fees - making it important to read the account fee schedule carefully before you sign up.

Over on Trustpilot, HSBC doesn’t fare quite as well as Starling, with a 1.4 star rating out of 5, from just over 8,000 reviews^⁹.

HSBC business banking

HSBC’s primary business account is aimed at SMEs and not-for-profits which would benefit from dedicated support from a relationship manager. The HSBC business bank account is intended for businesses with established needs, rather than very new or micro businesses, and comes with an overdraft, card services and easy ways to deposit cash and cheques. Fees apply, including monthly maintenance fees and card charges.

HSBC business banking fees

HSBC business banking - pros and cons

Not sure if it’s right for you? Here are some pros and cons for the HSBC business banking account to help you decide.

HSBC Kinetic business account

If you’re thinking more of an HSBC small business account, the HSBC Kinetic app might be a better fit. It doesn’t have quite the same range of options and features as the full account, but it does come with a lower monthly fee and a linked card for easy payments and withdrawals. This account option is aimed more at new business owners, entrepreneurs and sole traders, looking for a flexible way to bank.

HSBC Kinetic business banking fees

HSBC Kinetic business banking - pros and cons

Here are some important pros and cons for the HSBC Kinetic business banking app and account.

Wise Business Account: alternative to Starling and HSBC

Starling Bank and HSBC have helpful products and services for UK businesses - but if your business is looking to connect easily with customers and suppliers overseas, you may need a straightforward and simple multi-currency account to pay and get paid with low fees.

Check out Wise Business - a non-bank alternative for companies looking for ways to hold 40+ currencies, send payments to 140+ countries and get paid with local bank details in 8+ currencies. Wise is a digital account provider which allows you to manage all your business finances right from your phone, with extras like bulk payments, accounting integrations, expense cards and more.

Over 195,000 customers have rated Wise on Trustpilot, with an aggregate score of 4.2 out of 5¹¹.

Wise Business account fees

Open Wise Business account

You’ll be able to apply for a Wise Business account online or by downloading the Wise app. All you need to do is upload clear images of some documents for verification, pay a one time fee of £45, and then you’re good to go.

With your Wise account you’ll be able to hold and exchange 40+ currencies, and get paid in 8+ currencies - making it a simple and straightforward way to pay and get paid internationally. You can also order a debit card for yourself and linked expense cards for team members, for low cost spending and withdrawals in 150+ countries. Whenever you need to convert from one currency to another you’ll get the mid-market exchange rate with low fees from 0.43%.

The UK market is well served for business accounts and services, which means that no matter what you need, you’ll be able to find it with a little research. Use this guide to help pick apart the pros and cons of HSBC vs Starling Bank for businesses - and don’t forget to also check out alternative services like Wise Business as a useful addition for those times you need to send, receive or spend money internationally.

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Sources used in this article:

Sources last checked October 18, 2023