Wise Business vs Mettle for UK Sole Traders: Which Account Should You Choose?
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The Whole Comparison Turns on One Fact, and It Is Not £85,000
Most write-ups of Wise Business vs Mettle hedge on the single question that decides the answer: whether your money is protected if the provider fails. It is a knowable fact, so here it is.
Mettle is FSCS protected up to £120,000. The account is provided by National Westminster Bank plc trading as Mettle, so it sits under NatWest’s banking licence. The £85,000 figure quoted almost everywhere is out of date — the FSCS limit rose to £120,000 on 1 December 2025.
Wise is not FSCS protected at all, and never has been. It is an FCA-regulated electronic money institution, which safeguards your funds rather than insuring them.
That is the real distinction, and one more thing shifts the conclusion: Mettle cannot send money abroad. Not expensively, not inconveniently — it has no outbound international payment function. Which turns running both accounts from a nice-to-have into the only workable setup if you ever pay someone overseas.
Mettle: What It Is and What It Covers
Mettle is a free business current account from NatWest Group, launched in 2019 for freelancers, sole traders and small limited companies. It has a UK sort code and account number and works for Faster Payments, BACS and direct debits.
The Protection, Properly Stated
Eligible deposits are protected up to £120,000 per eligible person per authorised firm.
The catch nobody mentions: that limit is shared across NatWest Group brands. Balances you hold with NatWest, Ulster Bank or NatWest Boxed count toward the same £120,000 cap. If you already bank personally with NatWest, your Mettle balance is not separately protected — it adds to a single total. For most sole traders this is academic. If you hold substantial sums across NatWest brands, it is not.
Who Can Actually Open One
The eligibility rules are narrower than most reviews suggest, and they rule out some readers of an article like this:
- Sole traders and UK-registered limited companies only
- LLPs and partnerships are excluded
- Owners must be UK tax residents
- Limited companies may have up to two owners, but only one owner can access the account
- No multi-user access, so no bookkeeper logging in alongside you
If you trade in a partnership, Mettle is not available to you and the rest of this comparison is moot.
FreeAgent, and the Condition Attached
Mettle includes a full FreeAgent subscription — not a trial. FreeAgent is genuinely good accounting software, and bought directly a sole trader pays £19 a month excluding VAT.
The condition the draft version of this comparison always omits: you must make at least one transaction a month from your Mettle account to keep FreeAgent free. Stop transacting and FreeAgent’s own fees apply. For a sole trader with seasonal or sporadic income, that is worth knowing before you rely on it.
Note also that NatWest’s own Mettle page states the saving as “up to £150 per year”, not the £228 you would get by multiplying FreeAgent’s list price by twelve. The saving is real and substantial either way, but do not plan your year around £230. Our FreeAgent review covers what the software does, and Zoho Books against FreeAgent covers the alternative if you end up paying for accounting software anyway.
It Does Have Savings
Mettle offers a savings pot paying 0.95% AER (variable) on balances from £10 up to £1m. Worth correcting, because “no savings account” appears in most comparisons including earlier versions of this one. Rates move, so check the current figure.
Where Mettle Stops
- It cannot send money internationally. There is no outbound international transfer, at any price. This is the single most important limitation and it is usually described as merely uncompetitive.
- It can receive in 30 currencies, at £4 per payment over £10, plus 1.5% if converted to sterling
- No overdraft, loan or credit facility at any level
- Cash is expensive: £2.75 per Post Office deposit regardless of amount, and £1 per ATM withdrawal. Banking weekly cash takings runs to roughly £143 a year, which makes it a poor fit for cash-heavy trades.
- There is a paid tier. Mettle+ at £4 a month adds features including quote-to-invoice conversion, so “entirely free” describes the base account rather than the product.
- Accounts can be restricted or paused during identity checks, which can delay payments
Wise Business: What It Is and What You Give Up
Wise, formerly TransferWise, is an FCA-regulated electronic money institution — not a bank. It was built to make cross-border money movement cheap and transparent, and at that it is very good.
Safeguarding Is Not FSCS
As an EMI, Wise must hold your money separately from its own operational funds in approved institutions. That is a genuine regulatory protection and it is not the same as deposit insurance.
The practical difference: FSCS pays out to a guaranteed limit, usually within days. Safeguarding means your money should be returned to you from the segregated pool, but through an administration process, on an uncertain timetable, with no guaranteed figure. The FSCS covers banks, building societies and credit unions — e-money institutions fall outside it by design.
So the sensible use of Wise is as money in motion rather than money at rest. Run your international flow through it and sweep balances into a protected account.
What It Costs
- Essential plan: free. Registration costs nothing.
- Advanced plan: £50 one-off, charged after approval, which unlocks local account details for receiving money plus the fuller feature set
- No monthly fee on either
What You Get
- Hold and convert 40+ currencies in one account
- Conversion from 0.24% above the mid-market rate, varying by currency and route, with a discount above £20,000 a month in conversions
- Local account details in a range of currencies — over twenty by most current counts, with free local receipt in around nine, so a US client can pay you by ACH and a European one by IBAN
- Debit card and virtual cards
- Batch payments up to 1,000 recipients from a CSV in one run
- Accounting integrations with Xero, QuickBooks and FreeAgent
- API access on higher tiers
Note that Wise changed its pricing on 26 November 2025, so the 0.33% figure still circulating in comparisons predates that. Check the live rate for your specific currency pair before budgeting.
Wise Business vs Mettle: Side by Side
| Wise Business | Mettle | |
|---|---|---|
| Monthly fee | £0 | £0 (Mettle+ £4) |
| Opening cost | £0 Essential, £50 one-off Advanced | £0 |
| Deposit protection | None — safeguarding only | FSCS to £120,000 |
| UK sort code and account | Yes | Yes |
| Send money abroad | Yes, core function | No — not supported |
| Receive foreign currency | 40+ currencies held | 30 currencies, £4 + 1.5% |
| Conversion cost | From 0.24% | Not applicable |
| Free accounting software | No | FreeAgent, with monthly transaction condition |
| Savings | No | 0.95% AER variable |
| Overdraft or credit | No | No |
| Cash deposits | No | £2.75 per Post Office deposit |
| Multi-user access | Yes | No |
| Partnerships and LLPs | Eligible | Not eligible |
| Best for | International invoicing and payments | Domestic UK trading |
Fees: What You Will Actually Pay
Mettle is free for electronic everyday use — no monthly fee, no charge on UK transfers, FreeAgent included while you transact monthly. The costs appear where you might not look: £2.75 per cash deposit, £1 per ATM withdrawal, £4 per inbound foreign payment plus 1.5% conversion, and £4 a month if you want Mettle+.
Wise is free at Essential level, £50 once for Advanced, then percentage fees on conversion from 0.24%. Converting £10,000 into euros costs around £24 at the entry rate. The same transaction through a high-street bank typically costs several times that, which is the genuine case for Wise and does not need overstating to work.
MTD for Income Tax: It Is Already Live
Most comparisons still describe this as coming. It arrived.
Making Tax Digital for Income Tax has applied since 6 April 2026 for sole traders and landlords with more than £50,000 of qualifying income, measured on gross income before expenses. The thresholds then fall:
- £30,000 from April 2027
- £20,000 from April 2028
If you are in scope you file quarterly updates by 7 August, 7 November, 7 February and 7 May, then a Final Declaration by 31 January. The End of Period Statement that appeared in earlier guidance was removed — the year end is the Final Declaration alone.
This is where Mettle has a real edge for anyone without accounting software already. FreeAgent supports MTD for Income Tax and comes bundled, so the obligation is covered at no extra cost provided you keep transacting monthly. Wise integrates with FreeAgent, Xero and QuickBooks, but you buy the software yourself.
Our guide to MTD for VAT against MTD for Income Tax sets out which applies to you, and the April 2027 threshold guide covers the next band down.
Who Should Choose What
Choose Mettle If
- You are a UK sole trader or single-owner limited company with mostly UK clients
- You want FSCS protection to £120,000 on your balance
- You do not already pay for accounting software, and will transact monthly
- You never need to send money overseas
- You are not in a partnership or LLP, and do not need a second user
Choose Wise Business If
- You invoice clients outside the UK, or get paid by overseas platforms
- You pay overseas suppliers or contractors — Mettle simply cannot
- You want to hold and convert multiple currencies cheaply
- You understand that safeguarding is not deposit insurance, and will not park large balances there
Run Both If You Trade Internationally At All
This is the honest answer for most sole traders with any cross-border element, and more strongly than the usual version of this advice allows. Mettle cannot send money abroad, so if you pay a single overseas supplier you need something alongside it.
Mettle as the protected UK current account for domestic clients, direct debits, HMRC payments and bookkeeping. Wise as the international layer, holding currency and converting cheaply, sweeping into Mettle when the money is not needed abroad. Cost: £0 a month, plus £50 once if you need Wise’s local account details.
FAQ
Is Mettle FSCS protected?
Yes. The account is provided by National Westminster Bank plc trading as Mettle, and eligible deposits are protected up to £120,000. Note that the limit is shared across NatWest Group brands, so a NatWest balance counts toward the same cap.
Why do so many articles say £85,000?
Because that was the limit from January 2017 until 30 November 2025. It rose to £120,000 on 1 December 2025.
Can I send international payments from Mettle?
No. Mettle has no outbound international transfer function. It can receive in 30 currencies at £4 per payment over £10, plus 1.5% to convert to sterling. If you need to pay anyone abroad you need a second account.
Is Wise Business safe?
It is FCA-regulated and must safeguard client funds separately from its own. That is real protection, but it is not the FSCS: there is no guaranteed payout limit and recovery would run through an administration process. Wise is transparent about this. Use it for money moving rather than money sitting.
Is Mettle really free?
The base account is free for electronic use, and FreeAgent is included provided you make at least one transaction a month. Cash costs extra — £2.75 per Post Office deposit, £1 per ATM withdrawal — and Mettle+ is £4 a month.
Can a partnership open a Mettle account?
No. Mettle accepts sole traders and UK-registered limited companies. LLPs and partnerships are excluded, and owners must be UK tax residents.
Does Mettle offer savings?
Yes — a savings pot paying 0.95% AER variable on £10 to £1m. The common claim that it has no savings facility is out of date.
Can I use Wise as my only business account?
You can, and for purely domestic UK trading it is the weaker choice: no FSCS protection, no bundled accounting software, and its strengths are all currency-related. For international work it is close to essential.
Do I need to declare income received through either account?
Yes. All business income is taxable wherever it lands. Neither account files anything on your behalf, and if MTD for Income Tax applies to you, quarterly updates are due on 7 August, 7 November, 7 February and 7 May with a Final Declaration by 31 January.
The Bottom Line
For a sole trader trading entirely within the UK, Mettle is the stronger account — free, FSCS protected to £120,000, with FreeAgent included. Just know the three conditions: you must transact monthly to keep the software free, cash handling costs real money, and partnerships and LLPs cannot apply.
For anyone invoicing overseas or paying foreign suppliers, Wise Business is not optional in the way it is usually presented, because Mettle cannot send money abroad at all. The one-off £50 for local account details pays for itself quickly against high-street conversion costs.
So the “run both” recommendation holds, for a sharper reason than convenience. Two accounts, no monthly fees, deposit protection on the money at rest and fair rates on the money crossing borders. If you are still deciding whether you need a separate business account in the first place, our guide to whether sole traders need a business bank account is the place to start, and our Mettle review goes deeper on the account itself.
Pricing, fees and protection limits correct at time of writing and subject to change — confirm current details with the provider before opening an account. Interest rates are variable. This article is general information, not financial or tax advice; the regulatory status of any provider and your own tax obligations should be confirmed with the provider, HMRC or a qualified adviser before you rely on anything here.