A free business bank account is specifically designed for new businesses or switchers that 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.
The Best Free Business Bank Account: Our Verdict
- Best free business bank account for small businesses: 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 6 Top Free Business Bank Accounts
We compare six free business bank accounts providers: Mettle, Monzo, Anna, Tide, Cashplus, and Revolut.
| Provider | No Monthly or Annual Account Fees | Free UK & International Transfers | Free Invoicing & Card Payments | Real-Time Expense Tracking | Free Direct Debits & Standing Orders | Cash Deposits | Other Features | Sign Up |
|---|---|---|---|---|---|---|---|---|
| Tide | ✔ | Yes | Yes | Yes | Yes | ✓ | 2 free expense cards are included | Visit Tide |
| Revolut | ✔ | Yes | Yes | Yes | Yes | X | Multi-currency accounts | Visit Revolut |
| Cashplus | ✔ | Yes | Yes | No | Yes | ✓ | Contactless Mastercard | Visit Cashplus |
| Anna | Free on the Pay as You Go Account | Yes | Yes | No | Yes | ✓ | Tax return reminders | Visit Anna |
| Monzo | ✔ | Yes | Yes | Yes | Yes | ✓ | Card payments with Stripe | Visit Monzo |
| Mettle | ✔ | Yes | Yes | No | Yes | ✓ | In-App invoicing | Visit Mettle |
Tide: the best overall free small business account
Tide is a digital business bank account specifically designed for small businesses and freelancers. It offers free UK and international transfers, the ability to issue invoices and take card payments, and real-time expense tracking.
REASONS TO CHOOSE
- No Fees to Join or monthly fee
- Some of the best reviews of any bank
- In-APP invoice creation
REASONS TO AVOID
- £1 to withdraw cash
- £1 to deposit cash at Post Office, or 3% at Paypoint
- No branches or cheque deposits
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | Yes (with ClearBank) |
| Free UK transfers | 20p per transfer |
| Cash deposits | 3% of the total transaction value |
| Free ATM withdrawals | No (£1 fee) |
| Integration with accounting software | Yes |
| International transfers | No |
| Create and send invoices | Yes |
- One of the best Apps in the sector
- No Monthly or Annual Fees
- Easy Invoice Creation Functionality
- 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.
REASONS TO CHOOSE
- No Fees to Join
- Free invoicing software with automatic invoice reconciliation
- 24/7 customer support
REASONS TO AVOID
- £300 deposit limits (£1000 every 6 months)
- £1 ATM withdrawals after 3 free per month
- No branches, cheque deposits, overdrafts or loans
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | No |
| Licensed bank | No |
| Free UK transfers | Yes (with paid plans, limits apply) |
| Cash deposits | Yes |
| Free ATM withdrawals | Yes (with paid plans, limits apply) |
| Integration with accounting software | Yes |
| International transfers | Yes (through a partner) |
| Create and send invoices | Yes |
- Instant Invoice Generation
- Good customer service via Live Chat
- Xero Integration
- Easy VAT submission to HMRC via App
- 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 is a prepaid debit card and business bank account provider. It offers various business banking services, including setting up direct debits, standing orders, and taking card payments. The Cashplus business account is free to open and use, but some services may carry a fee.
REASONS TO CHOOSE
- No Fees to Join
- No Credit Check Required
- FSCS Regulated, with FCA Protection
REASONS TO AVOID
- Account comes with some monthly fees
- £2 per ATM Use
- No branches or cheque deposits
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | Yes |
| Licensed bank | Yes |
| Free UK transfers | Yes (with limits) |
| Cash deposits | Yes (0.5% fee) |
| Free ATM withdrawals | No (fees apply) |
| Integration with accounting software | Yes |
| International transfers | Inbound only |
| Create and send invoices | No |
- Business Credit Builder Add-On
- Overdrafts of up to 2k
- Pay in via any Post Office
- £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
Revolut is a digital banking platform that offers a range of banking services for individuals and businesses, including a business bank account. The Revolut 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.
REASONS TO CHOOSE
- No Fees to Join
- Great for international currencies and transfers
- Crypto-friendly
REASONS TO AVOID
- Best features come with paid accounts
- 2% charge to withdraw cash
- No branches or cheque deposits
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | No |
| Licensed bank | No |
| Free UK transfers | Yes (with limits) |
| Cash deposits | No |
| Free ATM withdrawals | No (2% fee) |
| Integration with accounting software | Yes |
| International transfers | Yes |
| Create and send invoices | No |
- 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
- Available for Limited Companies Only
- Accounts do not support cash or cheque deposit
Mettle
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.
REASONS TO CHOOSE
- No Fees to Join
- Account is Completely Free
- In-App invoicing
REASONS TO AVOID
- The prepaid debit Mastercard which isn’t quite as widely accepted as a normal debit card.
- No branch banking
- No overdrafts or loans
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | No |
| Licensed Bank | No |
| Free UK transfers | Yes |
| Cash deposits | Yes |
| Free ATM withdrawals | Yes |
| Free Accounting Software | Yes |
| International transfers | No |
| In APP Invoicing | Yes |
Monzo
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.
REASONS TO CHOOSE
- No Fees to Join
- They can close your old account for you and move over your money
- FCA Regulated, and carries FSCS Protection up to 85,000 per account.
REASONS TO AVOID
- £300 deposit limits (£1000 every 6 months)
- No accounting integrations unless you get the pro account
- No overdrafts on the business account
| Features | Available |
|---|---|
| FCA regulated | Yes |
| FSCS protection | Yes |
| Licensed bank | Yes |
| Free UK transfers | Yes |
| Cash deposits | (£1 fee) |
| Free ATM withdrawals | Yes |
| Integration with accounting software | Yes (with paid account) |
| International transfers | Outbound only |
| Create and send invoices | Yes (with paid account) |
How to Choose a Free Bank Account for Your Business?
- Location: It may be convenient to choose a bank with branches or ATMs near your business if branch services are a necessity.
- Account features: Look for a bank that offers the features and services you need for your business. This may include online banking, mobile banking, accepting debit and credit card payments, invoicing tools, and expense tracking.
- Customer service: Good customer service can be essential for a small business, especially if you are new to running a business and may have questions or need assistance. Look for a bank with helpful and responsive customer support.
- Fees for additional services: Some free business bank accounts may charge fees for other services such as international transactions, cash deposits, or wire transfers. Read the fine print and understand any fees that may apply to your account.
Choosing a bank that meets your business needs and offers good value for money is essential. Feel free to shop around and compare different banks to find the best fit for your business.
What is the difference between paid and free business bank accounts?
The main difference between paid and free business bank accounts is that paid accounts typically offer additional features and benefits, while free accounts may have more limited services.
Paid business bank accounts typically charge a monthly or annual fee in exchange for a range of features and benefits, such as higher transaction limits, more advanced cash management tools, and personalized support from a dedicated account manager. They may also offer additional perks, such as discounted rates on loans, credit cards, and other financial products.
On the other hand, free business bank accounts generally offer basic services such as making and receiving payments, access to online banking, and debit cards. However, they may have lower transaction limits and fewer cash management tools compared to paid accounts. Additionally, customer support may be less robust, with fewer options for personalized assistance.
Ultimately, the decision between a paid or free business bank account will depend on the specific needs and priorities of the business. If advanced cash management tools, higher transaction limits, and dedicated customer support are important, a paid account may be the better choice. However, a free account may be sufficient if the business primarily requires basic banking services and wants to minimize costs.
How to 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:
- 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.
- 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 about your business, such as your projected revenue or average monthly transactions.
Which Free Business Account Gets the Best Reviews?
Here is a comparison table of the customer reviews and ratings for Mettle, Monzo, Anna, Tide, Cashplus, and Revolut:
| Other Features | Reviews | Ratings |
|---|---|---|
| Mettle | Positive reviews mention helpful customer support and a user-friendly app | 4.5 out of 5 stars |
| Monzo | Positive reviews mention good customer support and a convenient mobile app | 4.5 out of 5 stars |
| Anna | Positive reviews mention excellent customer service and a user-friendly app | 4.7 out of 5 stars |
| Tide | Positive reviews mention easy account setup and good customer support | 4.5 out of 5 stars |
| Cashplus | Positive reviews mention convenient online account management and good customer support | 4.5 out of 5 stars |
| Revolut | Positive reviews mention a convenient mobile app and good customer support | 4.5 out of 5 stars |
8 Points to 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.
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:
- 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.
- 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.
- 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 by visiting a branch in person, calling their customer service line, or sending a secure message through online banking.
- 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.
- 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.
- 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
Yes, it is possible to open a free business bank account in the UK. Many banks offer free business bank accounts that do not charge monthly fees or require a minimum balance to be maintained.
Mettle, Monzo, Anna, Tide, Cashplus, and Revolut offer business bank accounts with no fees. These accounts are specifically designed for small businesses and do not charge monthly fees or require a minimum balance to maintain.
Most banks will ask for proof of your business registration and tax identification number, personal identification and proof of address.
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.
It isn’t easy to give a definitive answer on the best free business bank account, as it depends on your business’s specific needs and requirements. We think any of the accounts we’ve reviewed: Mettle, Monzo, Anna, Tide, Cashplus or Revolut, are contenders.