The Best Free Business Bank Accounts: June 2025
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22 min read
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A free business bank account is perfect for new businesses or those switching banks, helping you avoid monthly fees.

Unlike traditional accounts, you won’t face charges for maintaining a balance or paying annual fees. Some free accounts last for a set period (6-30 months), while others are free for life.

Read on to see if a free account is the right choice for your new business.

>>Read our main page on the best business bank accounts

Best Overall

Tide Free Business Account

Bank Transfers
20p
Card Purchases
£0
FSCS Protection
Yes
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Best for Expense Management

Wallester Business Account

Bank Transfers
£0.00
Card Purchases
£0.00
FSCS Protection
No
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Best for Growing Businesses

Zempler Bank Business Go Account

Bank Transfers
35p Tooltip
3 free per month
Card Purchases
£0
FSCS Protection
Yes Tooltip
Your eligible deposits with Zempler Bank are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS)
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the best free business bank accounts in 2024
Featured Partners
International Transfers

Airwallex Business Account

Monthly Fee
£19 Tooltip
£0/month if you deposit at least £10k per month or hold a minimum balance of £10k with Explore Plan
Card Purchases
£0
Bank Transfers
£0
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£150 Cashback Offer

Tide Free Business Account

Monthly Fee
£0
Card Purchases
£0
Bank Transfers
20p
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Freelancers

ANNA Money Pay as You Go Account

Monthly Fee
£0
Card Purchases
£0
Bank Transfers
20p
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Our Verdict

The best free business bank account is the one that fits the way you trade and grow.

For lean start-ups and side hustles, Tide is hard to beat. Its app is intuitive, it plugs straight into Xero, QuickBooks, and FreeAgent, and it charges no monthly fee. You lose a few of the extras you would find at a high-street bank, but the day-to-day experience is effortless.

If peace of mind matters more than every new feature, look at Starling Business. As a fully licensed UK bank, it gives you FSCS coverage of up to £85,000, unlimited free UK payments, and the same smooth software integrations. It feels as secure as a branch, just without the queues.

Established firms with larger cash cushions may prefer Allica Bank. A dedicated relationship manager, tailored lending and up to 4.33 % AER on sizeable balances reward businesses that can keep at least £50,000 on hand (or hold an Allica loan). Smaller outfits may find that threshold a stretch.

Free Business Bank Account Comparison

Account NameMonthly FeeBank TransfersCard PurchasesFSCS ProtectionLearn More
Tide Free Business Account£020p£0Yes (ClearBank for eligible deposits)Visit Tide
Mettle Business Bank Account£0£0£0Yes (NatWest banking license for deposits)Visit Mettle
ANNA Money Pay As You Go Account£020p£0NoVisit ANNA Money
Zempler Bank Business Go Account£035p (3 free/month)£0NoVisit Zempler Bank
Starling Bank Business Current Account£0£0£0YesVisit Starling
Monzo Business Lite Account£0£0£0YesVisit Monzo
Allica Bank Business Rewards Account£0£0£0YesVisit Allica Bank

The 7 Best Free Business Bank Accounts

Tide Free Business Account

Tide Free Business Account

Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes (for eligible deposits in Tide Business Accounts provided by ClearBank)
Accessibility: Access your Tide account via the web or the mobile app.

Account Summary

Pros & Cons

Eligibility Criteria

Mettle Business Bank Account

Mettle Business Bank Account

Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes (for deposits held under NatWest’s banking license)
Accessibility: Access your Mettle account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

ANNA Money Pay As You Go Account

ANNA Money Pay As You Go Account

Monthly Fee: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your ANNA Money account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

Zempler Bank Business Go Account

Zempler Bank Business Go Account

Monthly Fee: £0
Bank Transfers: 35p (3 free per month)
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Zempler Bank account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

Starling Bank Business Current Account

Starling Bank Business Current Account

Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes (available from £1,000 to £50,000, subject to eligibility)
FSCS Protection: Yes
Accessibility: Access your Starling Bank account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

Monzo Business Lite Account

Monzo Business Lite Account

Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Monzo account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

Allica Bank Business Rewards Account

Monthly Fee: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Allica Bank account via the web or mobile app

Account Summary

Pros & Cons

Eligibility Criteria

Will My Business Bank Account Stay Free?

Not all free business bank accounts remain free permanently. Some offer genuinely fee-free banking, while others only waive charges for an introductory period, usually between 6 and 12 months.

After this period, you might need to meet certain conditions to avoid charges. These could include keeping a minimum balance, making a set number of transactions each month, or using specific features like direct debits.

Most banks will notify you before any fees begin, but it’s still worth checking the terms in advance. That way, you’ll know whether the account can stay free for your business in the long run or if you may need to switch later to avoid paying charges.

What’s The Difference Between Paid and Free Business Bank Accounts?

The main difference between free and paid business accounts comes down to the level of features, flexibility and support.

Paid accounts usually come with a monthly or annual fee. In return, you may get higher transaction limits, advanced tools like invoicing or cash flow forecasting, and more responsive support, sometimes with a dedicated account manager. Some also offer perks such as cashback or discounts on business services. These accounts tend to suit businesses that need extra functionality or more hands-on help.

Free accounts, on the other hand, give you the essentials without a regular fee. You’ll typically get online banking, a debit card, and standard UK payments. However, you may face lower limits, fewer features, and basic customer support, often through email or live chat.

If your business has simple banking needs and you’re keeping costs tight, a free account could be all you need. But if you want more tools or tailored service, it may be worth looking at paid options.

Pros & Cons of Free Business Accounts

Pros ✅

  • No monthly fees
  • Easy to apply for
  • Basic banking essentials
  • Good for low-volume businesses
  • No commitment

Cons ❌

  • Limited advanced features
  • Lower transaction limits
  • Less personalised support
  • Potential hidden costs
  • May not scale well

Is a Free Business Account Right for You?

A free business bank account can be a smart option if you’re just starting out, running a small operation or handling a low volume of transactions. It’s especially useful for sole traders, freelancers and businesses looking to minimise overheads while covering the basics.

If you mainly need a place to send and receive payments, track expenses, and manage your account online, a free option should do the job without adding extra costs.

However, if your business deals with larger volumes, frequent international payments or needs more advanced tools like bulk payments or detailed reporting, a free account might not go far enough. In that case, a paid account with higher limits and added features could be a better fit.

How to Choose a Free Bank Account for Your Business

When comparing free business bank accounts, look at the features that matter most to how you run your business. Here are the key things to check:

  • Protection: Make sure the account offers the level of financial security you need, such as FSCS protection.
  • UK Bank Transfers: Confirm that the account supports the number of transfers you expect to make, and check if any fees apply.
  • Direct Debits and Standing Orders: These are essential for regular payments, so look for accounts that include them at no extra cost.
  • Cash and Cheque Deposits: If your business handles cash or cheques, check how and where you can deposit them, and whether fees apply.
  • International Payments: If you deal with overseas clients or suppliers, see if the account offers international transfers and what they cost.
  • Financing Options: Some accounts give you access to credit or loans, which can be useful as your business grows.
  • Invoicing Tools: Built-in invoicing features can save time and help keep payments organised.
  • Multiple User Access: If others on your team need access, look for secure multi-user options.
  • Software Integration: Check whether the account connects with your accounting tools for easier financial management.
  • Dedicated Account Manager: This is rare with free accounts, but worth checking if you want more personalised support.

The right account depends on how your business operates and which features you value most. It’s worth listing your day-to-day needs before making a decision.

How Do I Open a Free Business Bank Account?

To open a free business bank account, follow these simple steps:

  1. Research & Compare: Research different free business accounts to find one that fits your needs.
  2. Choose a Bank: Once you’ve found the right bank, begin the application process.
  3. Provide Business Identification: Be ready to submit proof of your business registration or tax identification number.
  4. Personal Identification: You’ll also need to verify your identity, typically with a passport or driver’s license.
  5. Business Information: Prepare details about your business, including your name, contact info, and the nature of your operations.
  6. Financial Information: Some banks may ask for your expected revenue or average monthly transactions.
  7. Update Payment Details: After opening your account, update your payment information with suppliers, customers, and other stakeholders.

The process is straightforward—ensure you have the necessary documents and details to avoid delays.

FAQs

Which is the best free business bank account?

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