Compare Free Business Bank Accounts 2024

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 recurring 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 Best Free Business Bank Account: Our Verdict

Here’s our choice of the best banks which do not charge for their monthly bank account. Just because there is no monthly fee, however, does not mean it’s entirely free. Some of these charge for transfers, ATM withdrawals and cash deposits, so you’ll want to double-check that before signing.

• Best free business bank account overall: Tide
• Best free business bank account for freelancers or contractors: Anna
• Best free business bank account for poor credit: Cashplus
• Best free business bank account for businesses operating internationally: Revolut
• Best free business bank account mobile APP: Tide

The 8 Top Free Business Bank Accounts

Here are my detailed comparisons of seven free business bank account providers: Mettle, Monzo, Anna, Tide, Cashplus, Starling and Revolut. These accounts represent what I feel are the best currently available in the UK market, and can all be opened very quickly over the internet.

They are trustworthy, with well-designed APPS and solid Trustpilot reviews. How you choose will come down to specific features that appeal to you.

Tide: The Best Overall Free Small Business Account

Tide is a digital business bank account specifically designed for small businesses and freelancers and currently serving 10% of the SMB market. It offers free UK and international transfers, the ability to issue invoices and take card payments, and real-time expense tracking.

Clearly, on a mission to be the best challenger bank in the UK, Tide is continually evolving. They’ve recently launched a business savings account, plus their purchase of Funding Options means users can get very quick access to finance.

Tide Free Business Account £50 cashback when you open a Tide account *

Monthly Fee

£0

Bank Transfers

20p

Card Purchases

Free

Overdraft

• Our top rated account for small business
• No monthly or annual fees
• Connects with virtually every accounting software

Access

APP & Online

See Deal

More info

Great For

• One of the best Apps in the sector
• No Monthly or Annual Fees
• Easy Invoice Creation Functionality

But be aware that

• Post Office Deposits Cost £1
• 20p charge for transfers between accounts
• 3% charge for cash deposits at Paypoints

Eligibility Criteria 

You must be 18 years or over, a UK resident, and have a valid UK phone number.

To qualify for Tide’s Black Friday Deal and get £100 cashback, all you need to do is spend £500 or more via your new account with them within the first 90 days of opening. This deal is valid from 20/11/2023 – 30/11/2023.

Anna: The best free Bank Account for Freelancers

Anna is an e-money service provider rather than a bank, with an offering aimed at startups and freelancers. Anna offers free UK and international transfers, a built in tax-APP, the ability to set up direct debits and standing orders, and access to a range of business tools and resources.

ANNA Money Business Pay as You Go Account

Monthly Fee

£0

Bank Transfers

20p

Card Purchases

Free

Overdraft

• All in one business account and tax App
• Sign up in 10 minutes
• Pay as You Go Account is Free
• £1 per cash withdrawal

Access

App Only

See Deal

More info

Great For

• Instant Invoice Generation
• Good customer service via Live Chat
• Xero Integration
• Easy VAT submission to HMRC via App

But be aware that

• To open a business account, you’ll need a photo of your full driving licence or a photo of your valid passport.
• You can apply from outside the UK, but only if you’re a UK resident
• Anna carry out an identity check for new acccounts but not a credit check

Eligibility Criteria

You need a UK residential address to open an account. This account isn’t open to charities.

Cashplus: the Best Free no Credit Check Bank Account

Cashplus offers fully regulated business bank accounts that are quick and simple to set up, providing FSCS protection for peace of mind. With a full UK banking licence, they are growing fast, signing up 60 per cent more customer accounts in 2023.

Their accounts are designed for freelancers, sole traders, SMEs, and growing businesses. Cashplus features include 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.

Cashplus Business Go Account No annual fee!

Monthly Fee

£0

Bank Transfers

30p

Card Purchases

Free

Overdraft

• No Credit Checks Needed
• Free introductory offer saves you £9.95 card issue fee
• UK Based Customer Services

Access

App & Online

See Deal

More info

Why Choose Cash Plus?

• Business Credit Builder Add-On
• Overdrafts of up to 2k
• Pay in via any Post Office

But be aware that

• £9 monthly fee for Business Extra Account
• £2 ATM Use

Eligibility Criteria

Your business must based in the UK. You’ll need verified ID such as passport or driving licence, the registration number of your company at Companies House and proof of business address.

Revolut: the best Free Bank Account for Businesses Operating Internationally

If you’re looking for a free banking solution that supports growth and global operations, Revolut Business is an excellent choice.

With support for over 25 currencies and the ability to handle payments in more than 100 countries, Revolut Business is ideal for businesses operating internationally. The platform provides tools for instant payments to suppliers and employees, easy acceptance of payments worldwide, and fast access to funds. Features such as smart company debit cards, automated expense management, and in-depth analytics help businesses gain control over their spending. Additionally, Revolut Business integrates seamlessly with popular accounting software like Xero and QuickBooks.

Revolut Business Basic Account

Monthly Fee

£0

Bank Transfers

Free

Card Purchases

Free

Overdraft

• Exchange money in 30+ currencies at interbank rates
• Fixed future FX rates
• Free International Transactions
• Crypto-friendly

Access

App & Online

See Deal

More info

Great For

• Ecommerce – Easy integration with Ecommerce via Apps and Plugins
• International payments – Send and receive money from 200 countries
• Block cards or set accounting limits with a tap

But be aware that

• Available for Limited Companies Only
• Accounts do not support cash or cheque deposit

Eligibility Criteria

Your business must have a physical presence in the EEA and Switzerland. Account works for sole traders, freelancers, limited companies, partnerships, LLPs and PLCs.

Starling: Best for Overdraft

Starling Bank offers a great free business account that stands out for several reasons, making it an excellent choice for limited companies, limited liability partnerships, and sole traders, including startups.

Starling Bank Business Account

Monthly Fee

£0

Bank Transfers

Free

Card Purchases

Free

Overdraft

• Fully regulated and FSCS protected
• Euro and Dollar accounts
• Fast account set-up

Access

App & Online

See Deal

More info

Why Choose Starling?

• Fast account set-up
• No monthly fees or fees overseas
• Integrations with Quickbooks, Xero & FreeAgent
• Fully regulated and FSCS protected
• Phone and App based customer service 24/7
• Pay Cash in via Post Office
• Euro and Dollar accounts are available

But be aware that

• There isn’t any overdraft facility
• There are no branches
• Starling charges for paying in money
• You can’t earn interest
• Depositing cash comes with a fee

Eligibility Criteria

All directors with access to the account must be UK residents. The business must not be a holding company, dissolved, in liquidation or engage in any activities set out in our terms and conditions. Evidence of your trading activities so we understand that your business does what you say it does. We can’t accept Companies House documents for this. Credit Checks May Apply

Mettle: A Completely Free ‘No Fees’ Business Account

Mettle is a free digital business bank account offered by NatWest. The emphasis is on ‘completely free’, meaning they won’t charge you for anything that is offered. In terms of it’s ‘free’ offering, it’s the only account on this list which really is 100% free, but that comes with significant limitations, such as the inability to make or receive international payments.

Monzo: Best Free Account for Switching

Monzo is a fully licensed and regulated digital bank with a competitive offering. The Monzo business account is free to open and use and offers free UK and international transfers, the ability to issue invoices and take card payments, and real-time expense tracking. They won the 2022 Best Business Banking Provider at the British Bank Awards 2022.

Allica: Best Free Account for Established Businesses

The Allica free business account, known as the Business Rewards Account, is designed for established businesses, offering a range of benefits without monthly fees. It is a ‘free’ account but it’s not for startups: it has a minimum turnover requirement of 500k p.a.

It provides a relationship manager for personalized service and features a 4.33% AER variable interest rate on its instant access Savings Pots, accurate as of 1st April 2024.

Account holders can earn up to 1.5% cashback on eligible card spending, with the opportunity to increase this rate to 1.5% after exceeding £10k in monthly spend. The account is supported by UK-based customer service and is covered by the Financial Services Compensation Scheme (FSCS), protecting deposits up to £85,000.

What is a Free Business Bank Account?

A free business bank account is a type of bank account that does not charge monthly fees, transaction fees, or annual fees. These accounts are often offered by banks as a way to attract small business owners, startups, and entrepreneurs who are looking for cost-effective banking solutions.

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.

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, as they should notify you before any changes to your account’s fee structure take effect..

How to Choose a Free Bank Account for Your Business?

When selecting a free bank account for your business, understanding various features and protections is key. Here’s a clearer, more informative breakdown:

• Protection: Traditional banks provide Financial Services Compensation Scheme (FSCS) protection, safeguarding your deposits up to £85,000 if the bank fails. Alternatively, e-money institutions offer different forms of security, which might not include FSCS coverage but still protect your money under separate safeguarding rules. Consider what level of protection suits your business needs.
• UK Bank Transfers: Ensure the account supports seamless UK bank transfers, allowing you to send and receive payments efficiently without incurring additional costs.
• Direct Debits and Standing Orders: These are essential for managing recurring payments. Check that the account offers these features at no extra charge.
• Cash Deposits: If your business handles cash, understand the account’s policy on cash deposits, including any limits or fees.
• Cheque Deposits: Though less common, cheques might still be a part of your business transactions. Look into how cheques can be deposited and if there are associated fees.
• International Payments: For businesses dealing internationally, assess the account’s capabilities and fees for making and receiving payments from abroad.
• Financing Options: Some accounts may offer access to overdrafts, business credit cards, or loans, which could be beneficial for growing your business. Review the terms and any 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: The ability to integrate your account with accounting software or other business applications can enhance efficiency and financial management.
• Dedicated Account Manager: Having a specific contact at your bank can provide personalized advice and support, valuable for businesses with more complex needs or questions.

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.

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 personalized assistance available with paid accounts.

How Do you Open a Free Business Bank Account?

To open a free business bank account in the UK, you will need to provide the following documents and information:

1. Business identification: You must provide proof of your business’s identity, such as a copy of your business registration or a business tax identification number.
2. Personal identification: You must provide proof of your identity, such as a passport or driver’s license.
3. Business information: You will need to provide information about your business, such as your business name, contact information, and the nature of your business.
4. Financial information: You may need to provide financial information about your business, such as your projected revenue or average monthly transactions.

Which Free Business Account Gets the Best Trustpilot Reviews?

Here is a comparison table of the customer reviews and ratings for Mettle, Monzo, Anna, Tide, Cashplus, and Revolut:

8 Points to Consider When Researching Free Business Accounts

1. 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.
2. 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.
3. 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.

Free Business Bank Accounts: How to Make the Switch

Making the switch to a free business bank account is a relatively straightforward process. Here are the general steps you can take:

1. Research and compare: Start by researching the different free business bank account options available to you. Compare the features, fees (if any), and customer support provided by each bank.
2. Choose a new bank: Once you’ve identified a bank that meets your needs, you’ll need to open a new account with them. This may involve filling out an application online or in person at a local branch.
3. Notify your current bank: Once you’ve opened a new account, it’s time to inform your current bank that you’ll be closing your old account. You can typically do this in person by visiting a branch, calling their customer service line, or sending a secure message through online banking.
4. Transfer funds and transactions: Before you close your old account, make sure to transfer all of your funds and transactions to your new account. This may include direct debits, standing orders, and recurring payments.
5. Close your old account: Once all of your funds and transactions have been transferred, you can close your old account. Make sure to double-check that all outstanding payments and transfers have been completed before doing so.
6. Update your payment details: After you’ve switched to a new free business bank account, you’ll need to update any payment details associated with your old account. This may include changing payment information for suppliers, customers, and other stakeholders.

Free Business Account FAQ’s