Last Updated on November 9, 2026
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A salon’s takings arrive as daily card settlements plus a steady trickle of cash. The cash fee decides which account is cheapest, more than the monthly fee does.
We priced a standard year at 15 UK business accounts on 1 October 2026 for a beauty salon with 22 card settlements a month, four staff, and £1,500 in cash paid in eight times. For our model beauty salon, a standard year of banking cost £96 at Monzo Business Lite and £535.20 at NatWest Standard Tariff.
The accounts that suit beauty salons
- Monzo Business Lite, £96 a year. £1 per cash deposit, so eight deposits cost £8 a month whatever the takings.
- Virgin Money M Account, £162 a year. No monthly fee, free electronic payments and a branch. For turnover under £1m.
- Barclays Business Current Account, £210 a year. Cash 60p per £100 and a branch; £8.50 a month after the first 12.
Mettle caps cash at £23,000 a year and this model pays in £18,000, so it fits today but leaves little room. Starling caps business cash at £100,000 a year.
The model month
| Each month | Beauty salon (limited company) |
|---|---|
| Payments received | 22 (£9,000 in total) |
| Transfers sent | 15 (including 4 staff payments) |
| Direct Debits | 8 |
| Debit card purchases | 20 |
| Cash paid in | £1,500, in 8 deposits of £187.50 |
What a standard year cost a beauty salon with card takings and some cash
| Account | Standard year | What drives the bill |
|---|---|---|
| Monzo Business Lite | £96 | £1 per cash deposit; Team plan £25 a month if staff need access |
| Virgin Money M Account | £162 | Cash 90p per £100; turnover under £1m |
| Barclays Business Current Account | £210 | £8.50 a month after 12 free months; cash 60p per £100 |
| Mettle (NatWest) | £264 | £2.75 per cash deposit; one owner can access |
| Co-operative Bank Business Bank Account | £270 | Cash £1.50 per £100 |
| HSBC UK Small Business Banking | £270 | Post Office cash 1.5% (tariff from 14 December 2026) |
| Starling | £288 | Cash 0.7%, minimum £3, Post Office only; £100,000 a year business cash limit |
| Tide Free | £336 | 20p per transfer in or out after 5 a month |
| Santander Business Classic | £344.88 | £9.99 a month after 12 free months; counter cash £1.25 per £100 |
| Lloyds Business Account | £408 | £10 a month after 12 free months; counter cash £1.60 per £100 |
| Tide Smart | £425.88 | £12.49 a month, 30 transfers included |
| NatWest Standard Tariff | £535.20 | 35p per electronic item and card payment; cash 95p per £100 plus 95p a deposit |
Left out for this trade, and why:
| Account | Why it is not in the table |
|---|---|
| Revolut Business Basic | Takes no cash |
| Countingup | Cash fee not published |
| ANNA Free | Cash fee not on its pricing page |
What matters for beauty salons beyond the fee
Card takings
Your booking platform or card terminal sends takings as settlements. That cost sits with the card provider: see our Fresha cost page at what Fresha really costs salons and payment processors compared.
Cash tips and takings
Starling also lists “businesses that regularly make significant cash deposits” among those it does not take, and caps business cash at £5,000 a day and £100,000 a year. Paying in eight times a month costs £8 at Monzo and £24 at Starling at the £3 minimum. Saving up for one weekly deposit cuts both.
Staff and self-employed therapists
If therapists rent a room or work self-employed, keep their payments separate from wages in your bookkeeping. The bank charges the same; your accountant will not.
Before you open
- Add up a month of cash and how many times you pay it in.
- Check the account works with your booking software’s payouts.
- Price your own month: count a month of payments in, payments out, Direct Debits and cash, then use the fees on our best business bank accounts UK page.
- Check protection: who holds the money and whether it shares an FSCS limit. See FSCS protection on business accounts.
More for beauty salons: the beauty salon hub and beauty salon software and tools. Every trade we priced: business banking by trade.
For a salon, multiply your cash fee by a year of takings before you look at anything else.
Questions
What is the best business bank account for beauty salons?
In our model of a beauty salon with card takings and some cash, priced from published fees on 1 October 2026, the cheapest standard year was Monzo Business Lite at £96, then Virgin Money M Account at £162 and Barclays Business Current Account at £210. The cheapest high street bank was Virgin Money M Account at £162. Your own mix of payments and cash decides the answer.
What is the cheapest business account for a salon that takes cash?
In our model (£1,500 of cash a month in eight deposits), Monzo Business Lite cost £96 a year in cash fees and nothing else. Virgin Money’s M Account cost £162 (for turnover under £1m), Barclays £210 once its free year ended, and Starling £288.
Method, limits and legal position
This page is general information for UK businesses. It is not financial, insurance or legal advice, and it does not take account of your circumstances. Fees, rates, terms and eligibility change, so check the provider’s own current terms, and take regulated advice where you need it, before you act.
One NatWest assumption: NatWest’s business charges page says debit cards cost “0.35p” each time they are used, while its own fee table lists automated items at £0.35. We priced NatWest card use at 35p a time. If NatWest charges less for card use, its yearly figures on this page would be lower.
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