A free business bank account is specifically designed for new businesses or switchers who want to avoid paying a monthly charge.
It is called a “free” account because you won’t be charged monthly/yearly account fees or be required to maintain a minimum balance.
This contrasts with traditional high-street business bank accounts, which often charge ongoing fees for transactions, deposits, and other services.
Some accounts are free for a certain period (6-30 months), while others are free for life.
Explore the features below to decide if a free account is the right entry point for your new business.
>>Read our main page on the best business bank accounts
The 8 Best Free Business Bank Accounts
£50 cashback with promo code EXPERT£50
Tide Free Business Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Tide account via the web or the mobile app
Tide’s Free Business Account is a digital business bank account serving 10% of the UK’s small business market, particularly suited for small businesses and freelancers looking for minimal costs.
It offers free UK and international transfers, invoicing tools, card payments, and real-time expense tracking, with optional integration into accounting software.
Tide is FCA regulated, though not a licensed bank, and has recently introduced a business savings account.
With the acquisition of Funding Options, Tide also provides users with quick access to financing, making it a top contender for cost-conscious entrepreneurs.
- No fees to join
- 1 Free Business Card included
- Free card payments in the UK and abroad
- In-App invoice creation
- Fast and easy access to finance
- £1 to withdraw cash
- £1 to deposit cash at Post Office, or 3% at Paypoint
- No cheque deposits
- £5/month per employee card
- Limited customer support for free account
– You must be at least 18 years old.
– You must have a valid UK phone number.
– You must have a device that can access the UK Apple App Store or Google Play Store.
– You must be either the director of an active company registered with UK Companies House or a sole trader/freelancer registered with HMRC.
– Charities/trusts and other high-risk industries are not eligible.
– Businesses operating from outside the UK are excluded.
Mettle Business Bank Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Mettle account via the web or mobile app
Mettle by NatWest is a free digital business bank account that truly stands out as the only account on this list that is 100% free, with no hidden charges.
It’s an excellent option for small businesses and freelancers who want a completely free service, though it comes with limitations like the inability to make or receive international payments.
Mettle is FCA regulated and operates under NatWest’s banking license, offering integration with accounting software and invoicing tools.
This makes it a straightforward, cost-effective solution for domestic business banking needs.
- No fees to join
- Savings of up to 1.46% on balances as low as £10
- Automatically set aside a percentage of income for tax in money pots for
- Free ATM withdrawals
- One free business card
- Cash deposits at the Post Office or any Paypoint
- Prepaid card is a Mastercard
- No international payments
- No overdrafts or loans
- No cheque deposits
– You must be a UK resident and at least 18 years of age.
– You must be a sole trader or a limited company with a maximum of two owners.
– You must have a main account balance not exceeding £1m.
– You must have a UK phone number.
– You must have an iOS device running iOS 13 or later or an Android device running Android 7.0 or later.
– You must pay tax and only be a tax resident in the UK.
– Businesses operating from outside the UK are excluded.
– PLCs, charities and high-risk organisations are not eligible.
ANNA Money Pay as You Go Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
NoApp Access
Access your ANNA Money account via the web or the mobile app
ANNA Money is an e-money service, not a traditional bank, tailored for startups and freelancers.
Its Pay As You Go account offers free UK and international transfers, a built-in tax app, and the ability to set up direct debits and standing orders.
ANNA also includes invoicing tools and can integrate with accounting software, along with access to various business resources.
Although it is FCA regulated, ANNA is not a licensed bank, making it a practical, low-cost option for small business owners.
- No fees to join
- 1% cashback on select categories
- Free invoicing software with automatic invoice reconciliation
- 24/7 customer support
- £300 deposit limits (£1000 every month)
- £1 ATM withdrawals
- No cheque deposits, overdrafts or loans
- £3/month per employee card
- £1/month per pot
– You must be at least 18 years old.
– You must be a sole trader, a director of a limited company (and listed on Companies House) or a partner in a Limited Liability Partnership (LLP).
– You must have a UK residential address.
– Charities/trusts and other high-risk businesses are not eligible.
– Businesses not based in the UK are excluded.
No annual fee
Zempler Bank Business Go Account
Monthly Fee
£0Bank Transfers
30p
Card Purchases
£0Overdraft
YesFSCS Protection
NoAccessibility
Access your Zempler Bank account via the web or the mobile app
Zempler Bank’s Business Go account is a fully regulated, free business bank account designed for freelancers, sole traders, SMEs, and growing businesses.
It comes with FSCS protection and features a full UK banking licence, which contributed to a 60% increase in customer accounts in 2023.
The Business Go account offers seamless integration with accounting software like Xero, QuickBooks, and Sage, 24/7 online and app access, instant payment notifications, and the ability to deposit cash at any UK Post Office.
As an FCA-regulated and licensed bank, Zempler provides a secure and efficient solution, though it does not include invoicing tools.
- No Fees to Join
- No credit check required
- Dedicated telephone support team
- £9.95 to issue your contactless Mastercard and £5.95 per additional card
- £2 per ATM withdrawal, £500 daily limit
- No cheque deposits
- 0.5% fee for cash deposits
- No free business cards
– You must be at least 18 years old and have a UK residential address.
– You must be a sole trader, director of a limited company, a charity or a partnership based in the UK.
– Sole traders cannot be registered at UK Companies House. Limited companies must have no more than 4 PSCs registered with Companies House.
– High-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.
Revolut Business Basic Account
Monthly Fee
£0Bank Transfers
20p
Card Purchases
£0Overdraft
NoFSCS Protection
NoAccessibility
Access your Revolut account via the web or mobile app
The Revolut Business Basic account is a free banking solution ideal for businesses looking to support growth and manage global operations.
It offers support for over 25 currencies and allows payments in more than 100 countries, making it perfect for international businesses.
The account includes tools for instant payments to suppliers and employees, easy worldwide payment acceptance, and quick access to funds.
Additionally, it provides smart company debit cards, automated expense management, and detailed analytics, with seamless integration into popular accounting software like Xero and QuickBooks.
While FCA regulated, Revolut is not a licensed bank, and the account does not include invoicing tools.
- No fees to join
- £1,000/month of international transfers at the inter-bank rate
- Every authorised team member receives a free plastic business card
- 2% charge to withdraw cash
- No cheque deposits
- £3,000 daily withdrawal limit
- £5 per international transfer
– You must be at least 18 years old.
– Your business must have a physical presence in the UK, EEA or Switzerland.
– You must be a private limited company, public limited company, Limited Liability partnership or partnership.
– Charities/trusts and other high-risk organisations are not eligible.
– Businesses operating from outside the supported countries are excluded.
Starling Bank Business Current Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Starling Bank account via the web or mobile app
The Starling Bank Business account is a free option that’s highly suitable for limited companies, limited liability partnerships, and sole traders, including startups.
As a fully licensed bank, Starling offers FCA-regulated services with seamless integration into accounting software, making it a robust choice for businesses seeking a reliable and straightforward banking solution.
This account is particularly well-regarded for its ease of use and comprehensive features tailored to small businesses and entrepreneurs.
- Free international payments
- Easy, free cheque deposits
- Free business cards for you and your employees
- Free multi-director access
- Free ATM withdrawals
- Savings options
- 0.7% or £3 fee on cash deposits
- No third-party access
- No invoicing tools
– All directors with access to the account must be at least 16 years old and UK residents.
– All Persons of Significant Control must be UK residents and natural persons.
– You must be either a sole trader or the director of a limited company or LLP registered with Companies House.
– The business must not be a holding company, dissolved, or in liquidation.
– Businesses operating from outside the UK are excluded.
– Charities/trusts and high-risk businesses are not eligible.
Monzo Business Lite Account
Monthly Fee
£0Bank Transfers
£0
Card Purchases
£0Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Monzo account via the web or mobile app
The Monzo Business Lite account is a free, fully licensed, and FCA-regulated digital banking option, ideal for small businesses.
It offers free UK and international transfers, real-time expense tracking, and the ability to issue invoices and take card payments.
Monzo’s commitment to quality banking services was recognized when they won the Best Business Banking Provider at the British Bank Awards 2022.
While it’s a strong contender for small businesses, it does not support integration with accounting software.
- No fees to join
- Free international card payments
- Free ATM withdrawals
- Cheque deposits (up to £500)
- One free business card
- Monzo offers its own dedicated account switching service
- £300 deposit limits (£1000 every 6 months)
- £1 cash deposit fee at any Post Office or PayPoint
- 1% (up to £1,000) inbound international transfer fee
- No invoicing tools
– You must be at least 16 years of age.
– You must be a sole trader or the director of a limited company registered with Companies House, you must be based in the UK.
– You must be a tax resident in the UK only.
– LLPs, PLCs, charities and high-risk organisations are not eligible.
– Businesses operating from outside the UK are excluded.
Allica Bank Business Rewards Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Allica Bank account via the web or the mobile app
The Allica Bank Business Rewards Account is a free business account tailored for established businesses with a minimum turnover of £500k per year, making it unsuitable for startups.
It offers a relationship manager for personalized service, a 4.33% AER variable interest rate on instant access Savings Pots, and up to 1.5% cashback on eligible card spending.
This account is FCA regulated, backed by FSCS protection up to £85,000, and supported by UK-based customer service.
It also integrates with accounting software, providing a robust solution for growing businesses without monthly fees.
- 1.5% cashback on eligible card purchases
- Free ATM withdrawals
- Free employee cards
- Multi-director access and bank cards
- Savings pot on current account with 4.33% AER and instant access
- Dedicated Relationship Manager
- Requires annual turnover of £500k or more
- No cash or cheque deposits
- Overdraft only available to AIB customers
- No invoicing tools
– You must be a UK resident and aged 18 or older.
– You must have a minimum balance of £50,000 or more in your account or must have a loan product with Allica.
– Your business must be incorporated for at least 12 months.
– Businesses operating from outside the UK are excluded.
Will My Bank Account Stay Free?
Some banks offer accounts that are free indefinitely, but others might have a fee-free initial period, after which charges apply.
This introductory offer can last from a few months to a year or more, designed to attract new customers.
After this period, you might be required to pay a monthly fee or meet certain conditions, like maintaining a minimum balance or meeting transaction volume requirements, to keep the account free.
Keep an eye on any communication from your bank. They should notify you before any changes to your account’s fee structure take effect.
How Do I Open a Free Business Bank Account?
- Research and compare: Research the different free business bank account options available to you.
- Application: Once you’ve identified a bank that meets your needs, open an account.
- Business identification: Provide a copy of your business registration or business tax identification number.
- Personal identification: You must provide proof of your identity, such as a passport or driver’s license.
- Business information: You will need to provide information about your business, such as your business name, contact information, and the nature of your business.
- Financial information: You may need to provide financial information such as your projected revenue or average monthly transactions.
- Update your payment details: Once you’ve opened your account, ensure you change your payment information for suppliers, customers, and other stakeholders.
How to Choose a Free Bank Account for Your Business?
Here’s a breakdown of the various features to consider when choosing a business account:
- Protection: Consider what level of protection suits your business needs.
- UK Bank Transfers: Consider the frequency and volume of your transfers compared to the fees.
- Direct Debits and Standing Orders: Check that the account offers these features at no extra charge.
- Cash Deposits: If your business handles cash, consider the account’s policy on cash deposits, including any limits or fees.
- Cheque Deposits: If your business deals in cheques, ensure cheque deposits are an option.
- International Payments: For businesses dealing internationally, assess the account’s capabilities and fees for making and receiving payments from abroad.
- Financing Options: If your business requires access to overdrafts, business credit cards, or loans, keep an eye out for accounts offering these and consider the costs associated with these services.
- Invoicing Tools: Accounts that allow you to create and send invoices directly can save time and streamline your financial processes.
- Multiple User Access: If you need several team members to access the account, check for multi-user capabilities and security measures.
- Integration with Software: If you have experience with integrated accounting software
- Dedicated Account Manager: If your business would benefit from a dedicated account manager,
Choosing the right account involves evaluating these features against your business operations and financial practices to ensure the account supports your needs effectively and affordably.
What is the Difference Between Paid and Free Business Bank Accounts?
The key difference between paid and free business bank accounts lies in the range of features and services offered.
Paid accounts often come with a monthly or annual fee but provide extensive benefits, including higher transaction limits, advanced cash management tools, and access to a dedicated account manager.
They might also offer perks like discounted financial products or a rewards system.
Free accounts, while cost-effective, typically offer basic services like payments, online banking, and a debit card, but with more limited functionality, such as lower transaction limits and simpler cash management options.
Customer support in free accounts may also be less comprehensive compared to the personalised assistance available with paid accounts.
FAQ’s
How Do I Switch to a New Business Bank Account?
- Research and compare: Research the different free business bank account options available to you.
- Application: Once you’ve identified a bank that meets your needs, open an account.
- Notify your current bank: Once you’ve opened a new account, inform your current bank that you’ll be closing your old account.
- Transfer Payments and Funds: Ensure all pending transactions with the old account are completed and transfer all funds to your new account.
- Close Your Old Account: Confirm there are no pending transactions in your old account, then contact your old bank to close the account and be sure to get a confirmation.
- Update your payment details: Once you’ve switched your account, ensure you change your payment information for suppliers, customers, and other stakeholders.
What Should I Consider When Researching Free Business Accounts?
- Double check if the account is truly free: Some accounts may be advertised as free but have features that incur fees, such as a certain number of monthly transactions or minimum balance.
- Is all the functionality you need covered? Some free business bank accounts may not have monthly maintenance fees, but they may not offer specific features you need, such as the ability to deposit cash.
- Read the fine print carefully and understand the terms and conditions of the account; this will help you to identify any hidden fees or charges.
Do Free Business Bank Accounts Have any Fees?
Yes, free business bank accounts may still have fees for certain transactions or services.
While the basic account functions might be free, banks often charge for additional services such as wire transfers, exceeding a certain number of transactions, depositing more than a set amount of cash monthly, or using an overdraft facility.
It’s important to read the account’s terms and conditions carefully to understand any potential fees.
Are there any limitations to a free business bank account?
Most free business bank accounts have limitations, such as a limited number of monthly transactions per month or ATM fees. Some accounts are only free for a certain period before the monthly fee kicks in.
