Last Updated on October 1, 2026
Rent belongs to landlords and deposits to tenants. If an agent holds that client money, the first banking decision is where it sits, because in England the law sets the rules.
We priced a standard year at 15 UK business accounts on 1 October 2026 for a small agency’s office account with 50 fee payments a month, then checked which providers allow client money. For our model small letting agency’s office account, a standard year of banking cost £0 at 5 of the accounts we priced, including Monzo Business Lite and Mettle (NatWest), and £1,254 at ANNA Free.
The accounts that suit letting agents
- Monzo Business Lite, £0 a year. No fees for this model. Not for client money.
- Mettle (NatWest), £0 a year. No fees for this model. Only one of two owners can access it. Not for client money.
- HSBC UK Small Business Banking, £0 a year. No monthly fee on the office account; HSBC UK lists lettings agents among the businesses eligible for its client accounts.
Starling is left out: its eligibility rules exclude using the account for client money. Rents and deposits must sit in a separate client account.
The model month
| Each month | Letting agency, office account (limited company) |
|---|---|
| Payments received | 50 (£12,000 in total) |
| Transfers sent | 20 |
| Direct Debits | 10 |
| Debit card purchases | 20 |
| Cash paid in | None |
What a standard year cost a small letting agency
| Account | Standard year | What drives the bill |
|---|---|---|
| Monzo Business Lite | £0 | £1 per cash deposit; Team plan £25 a month if staff need access |
| Mettle (NatWest) | £0 | £2.75 per cash deposit; one owner can access |
| HSBC UK Small Business Banking | £0 | Post Office cash 1.5% (tariff from 14 December 2026) |
| Co-operative Bank Business Bank Account | £0 | Cash £1.50 per £100 |
| Virgin Money M Account | £0 | Cash 90p per £100; turnover under £1m |
| Barclays Business Current Account | £102 | £8.50 a month after 12 free months; cash 60p per £100 |
| Santander Business Classic | £119.88 | £9.99 a month after 12 free months; counter cash £1.25 per £100 |
| Lloyds Business Account | £120 | £10 a month after 12 free months; counter cash £1.60 per £100 |
| Tide Free | £180 | 20p per transfer in or out after 5 a month |
| Tide Smart | £269.88 | £12.49 a month, 30 transfers included |
| NatWest Standard Tariff | £420 | 35p per electronic item and card payment; cash 95p per £100 plus 95p a deposit |
| Countingup | £489.48 | Plan set by money paid in; 27p per transaction after 3 |
| ANNA Free | £1,254 | E-money; 0.95% of money received above £1,000 a month |
Left out for this trade, and why:
| Account | Why it is not in the table |
|---|---|
| Starling | Does not take businesses that hold client money |
| Revolut Business Basic | Says a Business account cannot hold or manage client funds |
What matters for letting agents beyond the fee
The client money account
In England, client money protection scheme rules (The Client Money Protection Schemes for Property Agents (Approval and Designation of Schemes) Regulations 2018, reg 5) require agents to hold client money in a client money account with a bank or building society authorised by the FCA, with “client” in the account title. Barclays (Clients Premium Account), HSBC UK (Clients Deposit Account), Lloyds (designated and pooled client accounts through its corporate bank), NatWest (Clients’ Monies Service for firms with 25 or more client accounts or £300,000 in balances, otherwise Client Deposit Manager), Metro Bank (Client Premium Deposit Account) and Allica Bank (pooled and designated client deposit accounts) all describe client account products on their own sites.
Who will not take it
Starling lists “businesses that hold client money, such as accountants and solicitors” among the industries it does not support. Monzo says it does not allow Monzo Business to be used as a client trust account, and Revolut says a Business account cannot be used to process money from clients.
Fees only in the office account
Your management fees move from client account to office account when earned. Fifty fee payments a month cost nothing at most accounts here, £210 a year on NatWest’s Standard Tariff in our model, and they count towards Tide’s and Countingup’s transfer allowances.
Before you open
- Open the client account first, at a bank or building society.
- Check your client money protection scheme’s own rules on account titles and reconciliation.
- 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 letting agents: the letting agent hub and letting agent software and tools. Every trade we priced: business banking by trade.
An agency’s office account is a fee decision. Its client account is a compliance one. Make the second first.
Questions
What is the best business bank account for letting agents?
In our model of a small letting agency, priced from published fees on 1 October 2026, 5 accounts tied for the cheapest standard year at £0, including Monzo Business Lite, Mettle (NatWest) and HSBC UK Small Business Banking. The cheapest high street bank was HSBC UK Small Business Banking at £0. Your own mix of payments and cash decides the answer.
Do letting agents need a client account?
If you hold client money in England, yes. Client money protection scheme rules require client money to be held in a client money account with a bank or building society authorised by the FCA, with “client” in the title.
Which banks offer client accounts for letting agents?
HSBC UK lists lettings agents among the businesses eligible for its client accounts, and Barclays names estate agents for its Clients Premium Account. Lloyds, NatWest, Metro Bank and Allica Bank describe client accounts mainly for law and accountancy firms, so ask whether they take letting agents. Starling, Monzo and Revolut do not allow client money.
