Neobank Business Accounts with Sub Accounts Feature

What Are Sub-Accounts in Business Banking?

Sub-accounts are virtual pockets within a single business account that allow you to segregate funds for different purposes. Unlike separate bank accounts, they share the same main account number and balance but keep money organized. For neobanks, sub-accounts are a digital-native feature, often free or low-cost, and can be created instantly.

Common Use Cases

• Tax savings: Set aside VAT or income tax automatically.
• Expense categories: Allocate budgets for marketing, travel, or supplies.
• Project funding: Reserve funds for specific client projects or investments.
• Multi-currency management: Hold different currencies in separate sub-accounts without opening multiple accounts.

Key Features to Look For

• Number of sub-accounts allowed (some limit to 5, others unlimited).
• Real-time transfers between main and sub-accounts.
• Ability to assign unique IBANs or virtual card details.
• Integration with accounting software like Xero or QuickBooks.
• No additional monthly fees for sub-account usage.

Top Neobanks Offering Sub-Accounts

Revolut Business

Revolut Business offers up to 5 free sub-accounts on the Free plan, and unlimited on paid plans (starting at £25/month). Each sub-account gets its own IBAN and can be used for multi-currency holdings. Transfers between accounts are instant. Revolut also allows you to assign virtual cards to specific sub-accounts, perfect for expense control.

N26 Business

N26 Business (EU focus) provides Spaces, which function as sub-accounts. You can create up to 10 Spaces on the Business You plan (€9.90/month). Spaces help with saving goals or setting aside taxes. They do not have separate IBANs, but you can move money instantly. N26 integrates with popular accounting tools.

Tide

Tide, popular in the UK, offers unlimited sub-accounts (called Pots) on all plans. Each Pot has a unique sort code and account number, making them like separate accounts for invoicing purposes. Tide also provides automated rules to split income into Pots based on percentages, ideal for VAT savings.

How Sub-Accounts Affect Fees and Pricing

Most neobanks include sub-accounts in their subscription tiers, but some may charge extra for additional accounts beyond a free limit. For example, Revolut’s free plan includes 5 sub-accounts; after that, you need a paid plan. Tide includes unlimited Pots for free. Always check if there are transaction fees for moving money between accounts, most are free, but some older neobanks may apply a small charge.

Sub-accounts can also help you avoid fees by keeping funds separate for specific purposes. For instance, by holding a foreign currency in a sub-account, you can avoid conversion fees when paying international invoices.

How to Choose the Right Account

Start by listing your needs: how many sub-accounts do you require, and for what purposes? If you manage multiple currencies, look for neobanks that offer sub-accounts with exchange at interbank rates (e.g., Revolut, Wise Business). If tax saving is your priority, choose one with automated rules like Tide. Consider integration with your accounting software and whether you need virtual cards linked to each sub-account.

Also compare monthly fees. For freelancers or micro-businesses, a free plan with limited sub-accounts may suffice. Growing businesses might benefit from a paid plan with unlimited sub-accounts and higher transaction limits.

Finally, read the fine print on deposit protection. Neobanks often hold funds with partner banks, so your money is protected up to €100,000 (EU) or £85,000 (UK) per account. Sub-accounts under one main account share the same protection limit, not multiplied.