BUSINESS BANK ACCOUNT

Starling Bank—Personal & Business

When I started, one of the biggest light bulb moments was realising I didn't need to jump through hoops just to set up a business or ministry bank account. I found that Starling Bank was a great way to separate my personal bank account from my ministry.

Whether you're running a small side business or laying the groundwork for your ministry, the goal is the same: separate your finances! 

For me, Starling made this easy. Right now, I use a Starling account specifically for my business income and ministry expenses (even though it's set up as a personal account). Having that clear boundary is a game-changer when it comes to dealing with things like HMRC. It helps you instantly know what expenses are business-related, where your income is coming from, and makes that yearly finance report of your income and outgoings seamless. Let’s look at how a separate Starling account can help you move forward and establish a solid financial foundation.

Pros & Cons

• Facial ID: They use facial recognition to set up and sign back into your account if you switch devices. This eliminates fraud or your account being used without your consent.

• No Monthly Fees: There are no charges for using the standard personal current account or for basic banking services. 

• No Physical Branches: Starling is a digital-only bank, which means you don't have to queue up in store. If you prefer digital banking, this is a good interface. Instead of in-person, they have online customer service, which some recent reviews indicate has a potential decline in quality and responsiveness.

• Processing Cheques: If it is over £1,000, it can take time to process

• Account Switching: You can switch accounts at any time (business or personal)

• Digital Experience: A user-friendly app provides tools for budgeting, saving with "Spaces," and managing your account 24/7. 

• Security: You can sign up using your phone (about 5-10 minutes); all you need is ID

• Business Setup: Create a sole trader account (this is free to apply and set up—but you need to have a consistent income)

• Teams or Partnerships: You can set up a joint account with a business partner or give someone on your team access to your account by creating a separate virtual card, which can be used for business or ministry purposes.

What are they good for?

• Small businesses: Starling offers a feature that allows a fee-free business account. 

• Digital-savvy: If you're comfortable with managing your finances via a smartphone app, Starling is a user-friendly tool. 

• Travelling and Freelance Work: The fee-free spending and withdrawals abroad, as well as multi-currency features, are beneficial when doing transactions outside of the UK. 

Revolut—Personal & Business

If you're thinking of Revolut for your finances whether it's for your business or ministry—Revolut offer a different way to handle your money, and they can be a great starting point, especially if you deal with multiple currencies. Using a platform like this, even if you start with a separate personal account or their Revolut Pro account for self-employed individuals, it can help you put a clear boundary between your business income and your personal income. That separation is invaluable when dealing with HMRC and when you need to add up your income and expenses at the end of the tax year.

Pros and Cons

Like any financial tool, Revolut has its strengths and its weaknesses. It’s about figuring out if the pros align with what you need right now.

• Multi-Currency Management: This is massive. If you're dealing with income or expenses from overseas, you can manage and spend in over 160 countries with features for 28+ currencies. Free international transfers on weekdays?

• User-Friendly Tools: It's got a really clean, modern app with a comprehensive financial toolkit. This includes great budgeting and savings features that can help you break down your expenses and see where your money is actually going.

• Security Focus: The AI system is fast to block suspicious activity, even if its customer service can be slow (more on that later). Plus, the option for virtual cards gives you extra security when you’re shopping online.

• Accessible Start: The Free Standard Plan gives you a good set of core services, letting you test the water before you commit to a monthly subscription.

• Business Feature: Their Revolut Pro accounts are specifically designed for self-employed people, offering cashback and invoicing tools, which can really help you formalize the business side of things. Premium Plan Dependence: This is the main catch. Many of the most valuable features and benefits—the ones that really make Revolut shine—are often locked behind the more expensive premium plans (Plus, Premium, Metal, or Ultra).

• Weekend Fees: They charge markups on currency exchange during the weekends. If you're moving or spending money internationally on a Saturday or Sunday, you'll be paying more.

• Customer Support: This is a recurring issue. Some users report that support can be slow or unhelpful, meaning you're often relying on a chatbot. While their AI is good at security, getting help from a person can be difficult.

• Security Issues: While it’s for security, some users have reported their accounts being temporarily frozen. It's a common practice across financial institutions, but it’s something to be aware of—this can be disruptive, especially if you rely on that account for everything.

• Traditional Limits: You won't find many traditional banking services here, like overdrafts. It's not a full-service, high-street bank replacement yet.

Does Revolut Charge Fees?

Yes, Revolut charges fees, but how much you pay depends entirely on how you use the account and which plan you’re on. The Standard plan is free, but you'll hit limits faster.

Here are the main areas where you might incur a cost:

• ATM Withdrawals: You get a certain number of free ATM withdrawals monthly on the Standard plan, but after you exceed that limit, you'll typically pay a fee (often around 2%).

• Currency Exchanges: Exchanges on weekends incur a fee for almost all plans. Also, if you’re a Standard or Plus customer, you'll face fair usage fees on currency exchanges after you pass a specific monthly limit.

• International Payments: Sending money to banks outside of your home country can result in a fee, particularly on the free Standard plan.

• Monthly Plan Fees: If you want all the perks—higher free limits, better insurance, etc.—you’ll have to pay the monthly subscription fee for the Plus, Premium, Metal, or Ultra plans.

Revolut vs. Monzo: Which is Better?

This is a choice that comes down to your primary financial focus:

•  Choose Monzo if you want a simple, straightforward day-to-day banking experience with effective, easy-to-use budgeting tools. It's great for clear, simple UK-focused banking.

•  Choose Revolut if your focus is on a broader range of financial services. If you need investment access, crypto exposure, or frequent multi-currency management and travel, Revolut is probably the better fit.

The most important step is always your research. Figure out your current banking needs and see which one checks the most boxes for you right now. Question to ask yourself: Do you have a lot of international transactions, or is your spending mostly local?