ComparisonLast checked 8 November 2026

HSBC vs Lloyds

A high-street business current account with no monthly fee, free UK digital banking, branch and Post Office access, and borrowing up to £100,000. A high-street business account for UK businesses with turnover up to £3 million, including sole traders and limited companies, with electronic payments included and a monthly fee after the first year. We also show Incard, our pick for businesses whose main costs go on cards.

By the editorial team. How we make money.

Where Incard beats both

You spend thousands a month on cards, especially on advertising, software or travel
You want card cashback, which HSBC or Lloyds don't list
You want a US dollar account, which HSBC or Lloyds don't list
You're comfortable with safeguarding instead of FSCS cover

cashback a year on Incard's £0 Free plan from £5,000 a month of eligible ads, software and travel spend. Simple arithmetic, not a forecast.

£600

Apply for Incard on incard.co

We may earn a commission if you apply.

What a year of card spending earns you

Incard Free against HSBC's cheapest plan, at your monthly spend on ads, software and travel.

Monthly card spend on ads, software and travel£5,000

£600 a year better off with Incard

Incard Free: £600 cashback, £0 fees
HSBC's cheapest plan: no cashback, £0 fees

Simple arithmetic, not a forecast: 1% on eligible ads, software and travel spend at merchants on Incard's eligible brand list, and each plan's published monthly fee. Other fees, such as FX and ATM charges, aren't included. HSBC's cheapest plan: £0 a month.

HSBC suits you if

You want branch and Post Office access for cash and cheques
You may need to borrow up to £100,000
You want a free high-street bank account with FSCS cover

Lloyds suits you if

Your turnover is £3 million or less and you want a high-street bank with FSCS cover
You pay in cash at Lloyds deposit machines or the Post Office
You need a euro account alongside your sterling account
You're a sole trader who wants Lloyds' free Making Tax Digital software

At a glance

**Table notes:** correct as of 8 November 2026, from each provider's own pages listed under Sources. “Not listed” means the provider's pages we checked don't say.
	HSBC	Lloyds	Incard
Type and protection	Bank · FSCS cover	Bank · FSCS cover	E-money · safeguarded, no FSCS
Who can open one	UK sole traders, UK limited companies and LLPs	UK sole traders and UK limited companies	UK sole traders, UK limited companies, LLPs, Swiss GmbHs and AGs and Swiss sole traders
Cheapest plan	£0 a month	Free for 12 months for businesses new to Lloyds, then £10 a month	Free: £0 a month
Plans (monthly)	One account, £0 a month	One plan: £10 a month after 12 months free for new customers	Free £0, Grow £49, Plus from £199
Card cashback	Not listed	Not listed for the debit card	Free: 1% on ads, software and travel, 0.5% on other eligible spend. Higher on Grow and Plus. Uncapped
Card payments in other currencies	2.75% of the converted amount	2.75% non-sterling transaction fee	1.8% on Free, 1.5% on Grow and Plus
Domestic transfers	Standard UK digital transfers free	Included	100 included on Free, 250 on Grow, then £0.30 each
International transfers	Not part of free digital banking; see the Business Price List	£15 in internet banking; SEPA £5	3 included on Grow; otherwise from £5 (SHA) or £20 (OUR)
ATM withdrawals	25p plus 0.6% (free from 14 December 2026)	Free in the UK; abroad 2.75%, plus 1.5% (minimum £1.50) for non-euro cash	2% in the UK, 2.5% abroad
Cash deposits	Branch or Post Office: 1.5% of the value, plus £1.50 per counter visit	£0.85 per £100 at an Immediate Deposit Machine, £1.60 per £100 at the counter or Post Office	Not listed
Currencies you can hold	International Business Account at £96 a year each	GBP; separate Euro Current Account and Foreign Currency Account	GBP, EUR and USD, with IBANs
Accepting card payments	Not listed	Tap to Pay, card readers, terminals and online payments offered; pricing not on the account page	Not listed

Where they differ

Based on what each provider lists on its own pages. If a feature isn't listed, check with the provider before you rule it out.

Only Lloyds lists card payments from customers.
Only Incard lists card cashback, a US dollar account, accounts for Swiss GmbHs and AGs and accounts for Swiss sole traders.

What each one is, and who can open one

HSBC

A business current account from HSBC UK, a high-street bank. Eligible deposits with a UK bank fall under the FSCS limit of £120,000 per eligible depositor, per bank. Use the FSCS checker to confirm.

Who can open one: Startups, small businesses and switchers that are UK tax resident, and HSBC says it suits all legal entities. Businesses that need to borrow over £100,000 are pointed to the Business Banking Account (£10 a month after 12 months free for start-ups and switchers). Subject to eligibility and a credit check. Full HSBC profile.

Lloyds

Lloyds Bank plc, authorised by the PRA and regulated by the FCA and PRA (registration number 119278). Lloyds says the FSCS protects up to £120,000 of the eligible money you hold with it. Not every business customer meets the FSCS eligibility criteria.

Who can open one: Owners or directors aged 18 or over who are UK resident with a UK mobile number, applying for a UK business with a UK trading address and annual turnover of £3 million or less. Limited companies must be registered in the UK, active, on the Companies House register for at least 4 days and unchanged there in the past 4 days. Full Lloyds profile.

Incard

Incard Ltd is authorised by the FCA as an electronic money institution (firm reference number 1027309). It is not a bank. Safeguarded: Incard keeps customer funds separate from its own money, in accounts with authorised credit institutions, and doesn't lend or invest them. Funds are not protected by the FSCS.

Who can open one: UK limited companies and LLPs, UK sole traders and freelancers registered with their local authority, and Swiss GmbH, AG and sole-trader businesses. EEA onboarding is paused until an expected restart in 2027. Public sector bodies, cooperatives, charities, foundations and trusts aren't accepted, and a long list of industries is restricted. Full Incard profile.

Our e-money vs bank account guide explains what safeguarding and FSCS cover mean if a provider fails.

When Incard isn't the answer

Incard isn't the right account if

Your business is registered outside the UK and Switzerland. EEA onboarding is paused until an expected restart in 2027
You're a charity, cooperative, foundation, trust or public body, or work in one of Incard's restricted industries