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
Airwallex Business Account
Tide Free Business Account
ANNA Money Pay as You Go Account
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. New customers who open a Tide account using code BCA100 will also get £100 cashback.
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 Name | Monthly Fee | Bank Transfers | Card Purchases | FSCS Protection | Learn More |
| Tide Free Business Account | £0 | 20p | £0 | Yes (ClearBank for eligible deposits) | Visit Tide |
| Mettle Business Bank Account | £0 | £0 | £0 | Yes (NatWest banking license for deposits) | Visit Mettle |
| ANNA Money Pay As You Go Account | £0 | 20p | £0 | No | Visit ANNA Money |
| Zempler Bank Business Go Account | £0 | 35p (3 free/month) | £0 | No | Visit Zempler Bank |
| Starling Bank Business Current Account | £0 | £0 | £0 | Yes | Visit Starling |
| Monzo Business Lite Account | £0 | £0 | £0 | Yes | Visit Monzo |
| Allica Bank Business Rewards Account | £0 | £0 | £0 | Yes | Visit Allica Bank |
The 7 Best Free Business Bank Accounts
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.
Offer: New customers who open an account using code BCA100 will get £100 cashback
Tide’s Free Business Account is a smart, no-monthly-fee solution for small businesses, freelancers, and sole traders who want simple, low-cost banking. It offers essential features like UK payments, personalised invoicing, and real-time expense tracking, all accessible via an easy-to-use app.
Users can connect their Tide account to accounting software like Xero, FreeAgent, and QuickBooks for seamless bookkeeping. The account also includes tools like payment links, direct debit management, and Apple/Google Pay support, helping businesses streamline their finances.
Tide goes beyond banking by offering integrated business services. Following its acquisition of Funding Options, users can explore financing options directly within the platform. Businesses can earn 3.81% AER variable interest on savings with the Tide Instant Saver Account.
While Tide provides a fully regulated financial platform, it is not a bank. However, balances in Tide’s e-money accounts (managed by PrePay Solutions) are safeguarded under FCA regulations rather than FSCS protection.
- No fees to join
- 1 Free Business Debit Card (Expense Cards cost £5 per month per employee)
- Free card payments in the UK and abroad
- In-App invoice creation
- Accounting integrations with Xero, FreeAgent, and QuickBooks
- Signed up with CASS (Current Account Switching Service)
- Fast Account Setup
- No Credit Check to Open
- £1 ATM withdrawal fee + 1.75% charge for foreign withdrawals
- £1 cash deposit fee at the Post Office, or 3% at PayPoint
- No cheque deposits
- £5 per month for each additional employee card
- No Overdrafts
- 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: £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
Mettle by NatWest is a free digital business account ideal for sole traders and limited companies with up to two owners. What sets it apart is that it has no UK transaction fees, making it a truly free option. You’ll find built-in invoicing tools that let you create and send invoices right from the app, as well as tax-saving pots that automatically set aside money for tax; making managing your finances that much easier.
It also integrates with FreeAgent, Xero, and QuickBooks for seamless accounting, and savings pots earn interest at 1.46% AER on balances over £10. While Mettle offers a lot, it doesn’t support international payments and doesn’t have an IBAN, which can be a deal-breaker for some. Plus, there’s no access to credit, overdrafts, or loans.
It’s perfect for small businesses and freelancers looking for a straightforward, low-cost business account with everything you need to manage finances on the go.
- No UK transaction fees (free bank transfers, card payments, and ATM withdrawals)
- Savings pot with 1.26% AER interest on balances of £10+ (max £1 million)
- Automatically set aside income for tax with ‘Tax Pots’
- FreeAgent subscription included if at least one transaction is made per month
- One free business debit card (Mettle does not issue additional cards)
- Cash deposits are accepted at the Post Office (max £500 per transaction, £23,000 annually)
- No international payments (cannot send or receive money outside the UK)
- No loans, overdrafts, or credit options available
- No cheque deposits
- Only one account holder per business (no multi-user access)
- £1m balance cap
- 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: £0
Bank Transfers: 20p
Card Purchases: £0
Overdraft: No
FSCS Protection: No
Accessibility: Access your ANNA Money account via the web or mobile app
ANNA Money is an e-money service designed for startups, freelancers, and small businesses seeking a simple, low-cost financial solution. The Pay As You Go account charges just 20p per UK bank transfer and offers direct debits, standing orders, and integrated tax and expense management tools.
ANNA also includes automated invoicing, invoice reconciliation and integrates with accounting platforms like Xero, QuickBooks, and FreeAgent. The business cashback credit card provides up to 40% cash back on over 150 products.
You can create money-saving pots for taxes or salaries, use a virtual business debit card for instant payments, and pay cash at PayPoints across the UK.
While ANNA is FCA-regulated, it’s not a bank, and customer funds are safeguarded but not FSCS-protected.
- No fees to join
- Cashback on select business spending categories
- Free invoicing software with automatic invoice reconciliation
- 24/7 customer support
- Virtual business debit cards are available immediately after signup.
- Pay in cash at PayPoints across the UK.
- Money pots that offer manual or automatic top-ups.
- 1.5% ATM withdrawal fee (min £1 fee)
- No cheque deposits or loans
- 2% Cash deposit fees
- 29p bank transfer fees
- No FSCS protection
- 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.
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
Zempler Bank’s Business Go Account offers a straightforward, secure banking option designed for sole traders, small businesses, and growing enterprises. With no monthly account fee, it’s well-suited to businesses looking to minimise overheads while accessing essential features. Applications can be completed online in minutes, with fast account number and sort code issuance, and UK-based customer support available by phone and app messaging.
The account includes practical tools such as accounting integrations (with Xero, QuickBooks, and Sage), real-time alerts, and cash flow insights. You can also upload receipts digitally and benefit from 24/7 fraud monitoring, plus the ability to freeze or unfreeze your card instantly from the app. Cash deposits are accepted at over 11,500 UK Post Office branches, with funds credited instantly. Businesses can make up to three free transfers or payments per month.
There are some usage fees to be aware of. UK ATM withdrawals cost £2, and international ATM withdrawals are £3, with a daily limit of £500. Cash deposits are subject to a fee of 0.55% of the deposit amount (minimum £4). Outgoing international payments are not available, and incoming foreign payments incur a fee of £15 (or £22 for non-Euro currencies). Cheque deposits are not supported, which may limit suitability for businesses that regularly receive cheques.
- No monthly fee for the Business Go account
- No credit check required to open an account
- Integrated accounting with Xero, QuickBooks, and Sage
- Fast, online application process with instant sort code and account number
- UK-based telephone and in-app customer support
- 3 free UK bank transfers per month (35p per transfer thereafter)
- Cash deposits accepted at over 11,500 UK Post Office branches with instant fund access
- 24/7 fraud monitoring and instant card freeze/unfreeze in the app
- Optional Creditbuilder feature available to help improve business credit score
- £9.95 fee to issue the first business Mastercard; £5.95 for each additional card
- £2 fee per UK ATM withdrawal (daily limit: £500), £3 for international withdrawals
- Minimum cash deposit fee of £4 or 0.55% of the deposit amount
- 2.99% non-sterling transaction fee for card use abroad
- No support for cheque deposits
- Maximum account balance limited to £500,000
- 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.
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
The Starling Bank Business Current Account is a fully regulated UK business account that offers fee-free banking with no hidden charges. This account is designed for ease of use and offers seamless integration with accounting tools such as Xero, QuickBooks, and FreeAgent.
With features like real-time payment notifications, businesses can easily stay on top of their finances and manage expenses. The account also allows cheque deposits via the mobile app, with limits of up to £1,000 per cheque, £2,000 daily for sole traders, and £5,000 daily for limited companies. For cash deposits, businesses can use the Post Office for a small fee, providing added convenience.
While the account offers excellent flexibility and essential banking features, it does have some limitations. Cash deposits at the Post Office come with a fee, and the account does not support multi-user access for non-directors, meaning accountants or other team members cannot access the account. Additionally, international payments are somewhat limited on the basic plan, which may be a drawback for businesses dealing with cross-border transactions.
- Fee-free international payments
- Free UK bank transfers, direct debits, standing orders and ATM Withdrawals
- Cheque deposits available via mobile app (£1,000 per cheque, £5,000 daily limit for businesses)
- Free business debit cards for the account holder (additional cards available at no extra cost)
- Multi-director account access with user permissions
- Spaces feature for budgeting and separating funds
- 0.7% cash deposit fee (minimum £3 per transaction) at the Post Office
- International Payment Fee; 0.4% currency conversion fee + SWIFT/local network delivery fees apply
- No third-party access
- No invoicing tools included (requires Business Toolkit add-on for £7/month)
- Does not support cheque deposits above the £1,000 per cheque or £5,000 daily limits for limited companies.
- 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: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: Yes
FSCS Protection: Yes
Accessibility: Access your Monzo account via the web or mobile app
The Monzo Business Lite account is a free, FCA-regulated business account that offers key features for small businesses. Sign-up is fully mobile, and you get 24/7 support from real humans.
You can send unlimited, fee-free instant UK bank transfers, accept payments via Tap to Pay, and use Apple Pay or Google Pay abroad without extra charges.
Although it doesn’t offer full accounting software integration or advanced features like multi-user access and payment approvals, the Lite account still covers the basics with categorised spending, digital receipts, instant notifications and mobile/web access.
- No fees to join
- Free international card payments
- Free ATM withdrawals
- Cheque deposits (Up to £500)
- Unlimited UK bank transfers
- Budgeting and spending tools
- £300 deposit limits (£1,000 every 6 months)
- £1 cash deposit fee at any Post Office or PayPoint
- 1% (up to £1,000) inbound international transfer fee
- No overdraft or loan options
- No accounting software integration
- 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: £0
Bank Transfers: £0
Card Purchases: £0
Overdraft: No
FSCS Protection: Yes
Accessibility: Access your Allica Bank account via the web or mobile app
The Allica Bank Business Rewards Account is a no-fee account designed for established businesses with balances of £50,000 or more. It offers up to 4.33% AER (variable)* interest on an Instant Access Savings Pot and up to 1.5% cash back on eligible card spending, rewarding businesses for both savings and spending.
Key features include a dedicated relationship manager, multi-director access, mobile and web banking, and integration with Xero and Sage. Businesses can also benefit from free Faster Payments, BACS, bulk payments, and no monthly fees.
However, the account does not support cash or cheque deposits, and international payments are limited to Euro and USD. It’s best suited for larger businesses, as eligibility requires maintaining a £50,000 balance or having an Allica loan.
*Rate includes standard rate of 3.33% AER (minimum balance applies) plus a 0.5% boost each month if you make 15 bank transfers out of the account in the previous month and a 0.5% boost for six months if you complete a switch with CASS. Eligibility criteria and T&Cs apply.
- 1.5% cashback on eligible card purchases (1% standard, increasing to 1.5% after £10,000 monthly spend)
- Free ATM withdrawals in the UK and abroad (ATM provider fees may apply)
- Free additional business debit cards and expense cards
- Multi-director account access with role-based permissions
- Instant access savings pot on current account with up to 4.33% AER (variable)*
- Dedicated relationship manager for personalised support
- Requires an annual turnover of £500k or businesses must maintain a balance of £50,000 or more
- No cash or cheque deposits supported
- Overdraft not available to Business Rewards account holders, only to AIB customers
- No built-in invoicing tools or payment processing options
- Interest on the Instant Access Savings Pot varies depending on account usage
- International payments are limited to Euro and USD transactions
- 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. Businesses keeping less than £50,000 in their account will earn a reduced rate of interest and may incur fees.
- Your business must be incorporated for at least 12 months.
- Businesses operating from outside the UK are excluded.
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:
- Research & Compare: Research different free business accounts to find one that fits your needs.
- Choose a Bank: Once you’ve found the right bank, begin the application process.
- Provide Business Identification: Be ready to submit proof of your business registration or tax identification number.
- Personal Identification: You’ll also need to verify your identity, typically with a passport or driver’s license.
- Business Information: Prepare details about your business, including your name, contact info, and the nature of your operations.
- Financial Information: Some banks may ask for your expected revenue or average monthly transactions.
- 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
The best free business bank account depends on your needs. Tide, for example, is a top contender, perfect for small businesses seeking simplicity, while Allica Bank is great for established businesses looking for more advanced support. It all comes down to your business’s size and transaction needs.
Depending on the provider, a business account can be free. Some banks offer no-monthly-fee accounts, especially for new businesses or small enterprises, while others may charge a monthly fee or have conditions like maintaining a minimum balance. It’s essential to check for hidden costs, such as transaction fees or charges for additional services, even with a “free” account.
Switching to a new business account is usually straightforward. First, choose a new provider that meets your business needs. Then, open the new account and transfer any necessary funds. Inform your clients and suppliers of the change and update your details with HMRC, payroll services, and other relevant parties. Many banks offer a switch service, which can help transfer direct debits and standing orders. Finally, close your old account once everything is transferred and settled.
While free business bank accounts don’t charge a monthly fee, they may still have other costs. For example, there could be charges for certain transactions like cash deposits, international transfers, or using ATMs outside the bank’s network. It’s essential to check the terms to understand any additional fees based on your business’s activities.
Free business bank accounts often have limitations, such as fewer features or restrictions on the number of monthly transactions you can make. Some may also have lower customer support levels or limited access to business loans. These accounts are typically designed for smaller businesses, so if your needs grow, you might need to upgrade to a paid account for more advanced features.
