The 7 Best Free Business Bank Accounts in the UK (2025)

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.

• 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 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.

• 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 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.

• 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’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.

• 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.

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.

• 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.

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. 

• 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.

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.

• 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.

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.