Business Bank Account Fees Explained: What You’ll Actually Pay
Starling charges nothing per month and nothing per UK payment. ANNA’s 0.95% inbound charge — invisible in most comparisons — costs £2,280 a year at £20k monthly inbound.
- No monthly fee, no per-transaction charge for UK payments — unlimited.
- Free cash deposits at the Post Office. No percentage fee on amounts deposited.
- FSCS-protected up to £120,000. No introductory period that expires.
Business Bank Account Fees at a Glance
Business bank account fees fall into six categories: monthly account charges, per-transaction fees, cash deposit rates, international payment costs, overdraft charges, and miscellaneous fees most providers don’t headline.
The table below covers the providers we see most businesses comparing. We verified every figure against each provider’s published pricing in May 2026. We flagged where tariff documents differ from the main pricing page.
Business Bank Account Monthly Fees
Several UK business bank accounts carry no monthly fee: Starling, Mettle, Zempler Go, Monzo Lite, and ANNA’s PAYG plan. “Free” means different things depending on which fee category you look at next.
Revolut Business starts at £10/month for the Basic plan (10 free local transfers) and rises to £30/month for Grow (100 free transfers, dual authorisation, multi-currency). Tide’s free account is genuinely free on the monthly line but charges £0.20 per transfer.
Tide Plus costs £9.99/month and includes 20 free monthly transfers. Monzo Pro is £9/month and adds accounting integrations absent from the free Lite plan. If your accountant uses Xero or QuickBooks and you’re on Monzo, that £9/month is not optional.
Traditional banks offer introductory free banking periods, after which standard tariffs apply. We cover those periods — and what switches on when they end — in a dedicated section below.
Business Bank Account Transaction Fees
A transaction fee is charged each time you send or receive a UK payment. The structure varies significantly across providers.
Free, unlimited: Starling and Mettle charge nothing per domestic transfer, in or out, on their standard accounts. If you send 200 payments a month, the cost is the same as sending two.
Per-payment charges: Tide charges £0.20 per transfer on the free account. If you pay 50 suppliers a month, that’s £10 — more than Tide Plus at £9.99. At that volume, upgrading to Plus is immediately cheaper.
Threshold models: Zempler Go gives 3 free payments per month, then £0.35 each. Revolut Basic gives 10 free local transfers, then £0.20. If your payment volume regularly exceeds those thresholds, these aren’t free accounts in practice.
Inbound percentage fees: ANNA’s PAYG plan charges 0.95% on every payment received into the account. If a client pays you £10,000, £95 goes to ANNA. At £20,000 inbound per month, that’s £2,280 a year in inbound fees alone.
Business Bank Account Cash Deposit Fees
Cash deposit fees are the most underestimated business banking cost. If you take payments in cash — a market stall, a cafe, a tradesperson taking cash on site — the cost of depositing that cash into your business bank account can add up quickly.
Starling: Free deposits at the Post Office. No percentage charge, no per-item fee, no monthly limit. We confirmed this against Starling’s published terms in May 2026.
Mettle: Free deposits at the Post Office via NatWest’s arrangement. Same terms as Starling for cash-depositing businesses.
Tide: £1 flat fee per deposit at PayPoint locations. There’s no percentage charge on top. For frequent small deposits, the flat fee is generally better than a percentage model.
Traditional banks: Barclays charges 0.70% plus £0.43 per item at branch or Post Office. NatWest charges 0.70% plus £0.35 per item. If you deposit £2,000 in cash, that’s £14.43 at Barclays and £14.35 at NatWest, every time.
Monzo: Has no cash deposit facility. If your business regularly handles cash, Monzo is not a suitable primary account.
ANNA: Cash deposited via PayPoint attracts the same 0.95% inbound fee. Depositing £500 costs £4.75.
International Payment Fees for Business Bank Accounts
International transfer fees have two components: a flat sending fee and an FX margin (the difference between the rate you receive and the interbank mid-market rate). Both can be significant on business-sized transfers.
Traditional banks typically charge £15–£25 per international transfer plus an FX margin of 2–3.5% on the converted amount. If you pay a European supplier £5,000 every month, that’s up to £175 in combined fees per transfer — over £2,000 a year on one supplier.
Starling offers international transfers via a partnership with Wise. The sending fee is small and the FX rate is close to mid-market. For businesses with regular foreign currency outgoings, this is among the cheapest options available.
Revolut applies the interbank FX rate on weekdays with no markup on the Grow plan. The Basic plan (£10/month) includes international transfers at the same rate, though transfer limits apply outside working hours when rates are frozen.
Tide charges a 0.5% FX fee on international payments. There’s no flat transfer fee. For smaller transfers, this compares favourably with traditional banks.
Business Bank Account Overdraft Fees
Overdraft facilities are only available from PRA-authorised banks — e-money institutions cannot offer them. If your cash flow is unpredictable and you need a buffer, this is one concrete reason to choose a bank over an EMI.
Starling offers overdrafts from £250 up to £150,000 (limited companies). Interest rates are 5%, 10%, or 15% EAR (variable) depending on Starling’s assessment; representative 15% EAR.
An annual fee of 1.5% of the agreed limit (minimum £50) applies, charged on acceptance and each anniversary. No separate monthly overdraft fee — interest accrues only on the drawn balance each day.
Monzo offers overdrafts on the Pro and Team plans. The rate and limit depend on your business profile. The free Lite account is not eligible.
Barclays and NatWest offer arranged overdraft facilities with interest rates that vary by business profile. Both charge a separate arrangement fee to establish the facility, plus interest on the drawn balance.
ANNA, Tide, Zempler, and Revolut do not offer traditional overdrafts. Revolut offers a revenue-based advance on some plans, but that is a separate product with different terms.
Other Business Bank Account Fees Worth Checking
These business bank account fees appear less prominently in provider marketing but are worth confirming before you commit to an account.
Card Fees
Most providers issue one free debit card per account. Additional cards or replacement cards typically cost £5–£10 each. Revolut includes multiple employee cards on paid plans. Tide charges for additional team cards.
Inactivity Fees
Some e-money accounts charge a monthly fee if no transactions occur for a defined period. This is more common with prepaid-style business accounts than with mainstream providers. Confirm the inactivity policy if you plan to use the account seasonally.
Chargeback and Dispute Fees
Traditional banks may charge £10–£15 to investigate a disputed transaction. Digital banks typically handle disputes without a charge. If you take card payments and occasionally face chargebacks, check whether your bank account charges separately from your card terminal provider.
CHAPS and Same-Day Transfer Fees
Faster Payments (FPS) covers most UK transfers up to £1 million and is free at most providers.
CHAPS — same-day settlement for high-value transfers such as property completions — typically costs £17–£25 at traditional banks. Starling and Monzo include CHAPS without a surcharge.
Business Bank Account Free Banking Periods
NatWest, Barclays, HSBC, and Lloyds offer introductory free banking periods for new businesses. These are genuine — you pay no monthly fee and most transaction charges are waived. The critical question is what happens when the period ends.
How Long They Last
NatWest: 24 months free for new businesses with turnover under £1 million. After month 24, the standard Business Current Account tariff applies: no fixed monthly fee, but transactions are charged at £0.35 per automated payment and 0.70% on cash. We verified this against NatWest’s current account terms in May 2026.
Barclays: 12 months free for new businesses. After month 12, Business Banking Essentials costs £8.50/month plus transaction charges.
HSBC Kinetic: 12 months free. After month 12, the standard rate is £6.50/month.
Lloyds: 12 months free for new businesses. Business Current Account charges £7/month after the introductory period.
What Switches On After the Period
Monthly fees restart automatically — there is no opt-in step. Cash deposit fees, international transfer charges, and over-limit transaction fees all apply at the standard tariff from day one after the period ends.
If your VAT registration date or year-end falls near the end of your introductory period, review your account before that date. Switching at the right moment avoids paying a full year of fees at a traditional bank for transactions you could route through a free digital account.
What Your Business Bank Account Actually Costs Over 12 Months
The table below models a typical small business: 50 outgoing payments per month, £2,000 cash deposited per month, no international transfers, no overdraft used. We based all figures on published tariffs verified in May 2026.
Zempler’s cash deposit fee in this model (0.5% on £2,000/month = £12, plus £1 per item, assuming 2 deposits/month = £24/year = £144 total) and transaction fees make it materially more expensive than Starling at this volume.
Revolut Basic excludes cash deposits entirely. For a business handling regular cash, Revolut is not a complete solution without a second account.
How to Choose a Business Bank Account Based on Fees
Three questions determine which business bank account is cheapest for your situation.
Do You Handle Cash?
If you take cash regularly and need to deposit it, your shortlist narrows to Starling, Mettle, and Tide. Starling is free; Tide charges £1 per deposit. Traditional banks charge a percentage and cost more than Tide above around £80 per deposit — and more than Starling at every level.
If your clients pay exclusively by bank transfer or card, cash deposit capability is irrelevant and the full range of accounts is open to you.
How Many Payments Do You Send Each Month?
Below 10 payments per month, most accounts — including Revolut Basic — cover you within their free allowance. Between 10 and 50 payments, per-transaction pricing at Tide or Zempler adds up. Starling remains free at any volume.
If you pay 50 or more suppliers, staff members, or contractors each month, unlimited-transfer accounts (Starling, Mettle) are the lowest-cost option on transaction fees alone.
Do You Make Regular International Payments?
If you pay foreign suppliers, receive payments in foreign currencies, or convert currency regularly, the FX margin matters more than the monthly fee. A £10/month account with interbank FX rates will cost less than a free account with a 2.5% FX margin on £5,000 of monthly foreign payments.
Revolut (on any paid plan) and Starling (via Wise) are the lowest-cost options for regular currency conversion. Traditional banks are the most expensive by a significant margin.
Frequently Asked Questions
Which UK business bank account has the lowest fees?
Starling Bank has the lowest fees for most businesses: no monthly fee, no per-transaction charge for UK payments, and free cash deposits at the Post Office. Mettle (powered by NatWest) matches Starling on these three metrics. Both are FSCS-protected. The right choice between them usually comes down to whether you need FreeAgent (bundled with Mettle) or accounting integrations beyond FreeAgent.
Are traditional bank free banking periods worth it?
For the introductory period, yes — especially for new businesses that are building a banking relationship for future credit applications. The watch-out is what happens after: Barclays charges £8.50/month plus cash deposit fees from month 13. For businesses without credit needs, a free digital account like Starling is cheaper over three years even without any introductory period.
What is the cheapest business bank account for cash-based businesses?
Starling: free deposits at the Post Office with no percentage charge. Mettle offers the same. Tide charges £1 per deposit at PayPoint, which is manageable for low-frequency deposits. Traditional banks charge 0.70% or more per deposit — on £5,000/month in cash, that’s £35 per month in deposit fees before you count transactions.
Does ANNA Money charge for business account transactions?
On the PAYG plan, ANNA charges 0.95% on every payment received, including cash deposits. Outgoing payments are free. At high inbound volumes this becomes significant: £20,000 received per month costs £190 in inbound fees. ANNA also offers fixed monthly plans (£22.90/month + VAT for the Business plan, £59.90/month + VAT for Big Business) that replace the percentage fee with a flat charge.
Are Faster Payments free for business bank accounts?
At most UK business banks, yes. Faster Payments (FPS) handles the vast majority of UK transfers up to £1 million. Starling, Mettle, Monzo, and ANNA include FPS at no charge. Some providers, including Tide on the free plan, charge per-transfer regardless of payment type. CHAPS — same-day settlement above the FPS limit — costs £17–£25 at traditional banks; Starling and Monzo include it without a surcharge.
Do I pay more in fees as a sole trader vs a limited company?
The fee structures are the same. The practical difference is in FSCS aggregation: as a sole trader, your personal and business accounts at the same bank share a single £120,000 FSCS limit. That doesn’t affect transaction fees, but it may influence which bank you choose to hold reserves at. Limited companies get a separate £120,000 limit independent of director personal accounts.
How We Reviewed Business Bank Account Fees
Data sources. We verified all fees directly from each provider’s published pricing pages in May 2026. Where fees are listed in tariff documents rather than the main pricing page, we sourced from the tariff document. We cross-checked key figures against each provider’s help centre where tariff pages were ambiguous.
Cost model assumptions. We modelled: 50 outgoing UK transfers/month, £2,000 cash deposited in 2 deposits/month, no international transfers, no overdraft use. These are representative of a small service or retail business. Businesses with higher volumes or international needs should recalculate against live tariffs.
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