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 monthly/yearly account 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 8 Best Free Business Bank Accounts
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Tide Free Business Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Tide account via the web or the mobile app
- No fees to join
- Some of the best reviews of any bank
- In-App invoice creation
- Easy access to finance
- Fast access to finance
- £1 to withdraw cash
- £1 to deposit cash at Post Office, or 3% at Paypoint
- No branches or cheque deposits
- Fees on transfers
- Technical limitations
- FCA regulated
- Not a licensed bank
- Cash deposits (3% fee)
- No free ATM withdrawals (£1 fee)
- Integration with accounting software
- International payments (EUR)
- Invoicing tools
– 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.
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.
ANNA Money Pay as You Go Account
Monthly Fee
£0Bank Transfers
20pCard Purchases
£0Overdraft
NoFSCS Protection
NoApp Access
Access your ANNA Money account via the web or the mobile app
- No fees to join
- Free invoicing software with automatic invoice reconciliation
- 24/7 customer support
- £300 deposit limits (£1000 every month)
- £1 ATM withdrawals
- No branches, cheque deposits, overdrafts or loans
- FCA regulated
- Not a licensed bank
- Cash deposits
- No free ATM withdrawals (£1 fee)
- Integration with accounting software
- International payments (through a partner)
- Invoicing tools
– 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.
ANNA Money 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.
No annual fee
Zempler Bank Business Go Account
Monthly Fee
£0Bank Transfers
30p
Card Purchases
£0Overdraft
YesFSCS Protection
NoAccessibility
Access your Zempler Bank account via the web or the mobile app
- No Fees to Join
- No credit check required
- Create invoices
- UK phone support
- £9.95 to issue your contactless Mastercard
- £2 per ATM Use
- No branches or cheque deposits
- 0.5% fee for cash deposits
- FCA regulated
- Licensed bank
- Cash deposits (0.5% fee)
- No free ATM withdrawals (£2 fee)
- Integration with accounting software
- Inbound international payments
- No invoicing tools
– 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.
Zempler Bank 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.
Zempler 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.
Revolut Business Basic Account
Monthly Fee
£0Bank Transfers
20p
Card Purchases
£0Overdraft
NoFSCS Protection
NoAccessibility
Access your Revolut account via the web or mobile app
- No fees to join
- Great for international currencies and transfers
- Crypto-friendly
- Expense Cards
- Accounting Integrations
- Contactless payments with an iPhone
- Smart Invoicing
- Best features come with paid accounts
- No FSCS protection
- 2% charge to withdraw cash
- No branches or cheque deposits
- Daily withdrawal limit
- No overdraft
- FCA regulated
- Not a licensed bank
- No cash deposits
- No free ATM withdrawals (2% fee)
- Integration with accounting software
- International payments
- No invoicing tools
– You must be at least 18 years old.
– Your business must have a physical presence in the UK, EEA or Switzerland.
– You must be a private limited company, public limited company, Limited Liability partnership or partnership.
– Charities/trusts and other high-risk organisations are not eligible.
– Businesses operating from outside the supported countries are excluded.
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.
Starling Bank Business Current Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Starling Bank account via the web or mobile app
- Fewer fees
- Easy cheque deposits
- Multiple Director Access
- Savings options
- Fees on cash deposits
- No third-party access
- FCA regulated
- Licensed bank
- Cash deposits (£3 or 0.7% fee)
- Free ATM withdrawals
- Integration with accounting software
- International payments
- No invoicing tools
– 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.
Starling Bank offers a great free business account that stands out for several reasons
It’s an excellent choice for limited companies, limited liability partnerships, and sole traders, including startups.
Mettle Business Bank Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
NoFSCS Protection
YesAccessibility
Access your Mettle account via the web or mobile app
- No fees to join
- In-App invoicing
- Pay in cash at the Post Office or a PayPoint
- Prepaid card is a mastercard
- No branch banking
- No overdrafts or loans
- It’s not possible to pay cheques into a Mettle account
- FCA regulated
- Licensed bank via Natwest
- Cash deposits
- Free ATM withdrawals
- Integration with accounting software
- No international payments
- Invoicing tools
– 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.
Mettle by Natwest 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 Business Lite Account
Monthly Fee
£0Bank Transfers
£0
Card Purchases
£0Overdraft
Yes
FSCS Protection
YesAccessibility
Access your Monzo account via the web or mobile app
- No fees to join
- They can close your old account for you and move over your money
- £300 deposit limits (£1000 every 6 months)
- Monzo accounts can’t receive international payments, except for euro transfers.
- FCA regulated
- Licensed bank
- Cash deposits (£1 fee)
- Free ATM withdrawals
- No integration with accounting software
- International payments (EUR)
- No invoicing tools
– 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.
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 Bank Business Rewards Account
Monthly Fee
£0Bank Transfers
£0Card Purchases
£0Overdraft
NoFSCS Protection
NoAccessibility
Access your Allica Bank account via the web or the mobile app
- Dedicated Relationship Manager
- 1.5% Cashback on Card Purchases
- Multi-director access and Bank cards
- Savings pot on current account with 4.33% AER and instant access.
- Requires annual turnover of £500k or more.
- Does not support cash and cheque deposits.
- Overdraft only available to AIB customers.
- No physical branches.
- FCA regulated
- Licensed bank
- No cash deposits
- Free ATM withdrawals
- Integration with accounting software
- International payments
- No invoicing tools
– 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.
– Your business must be incorporated for at least 12 months.
– Businesses operating from outside the UK are excluded.
The Allica Bank 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 personalised 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.
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. They should notify you before any changes to your account’s fee structure take effect.
How Do I Open a Free Business Bank Account?
- Research and compare: Research the different free business bank account options available to you.
- Application: Once you’ve identified a bank that meets your needs, open an account.
- Business identification: Provide a copy of your business’ registration or 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 such as your projected revenue or average monthly transactions.
- Update your payment details: Once you’ve opened your account, ensure you change your payment information for suppliers, customers, and other stakeholders.
How to Choose a Free Bank Account for Your Business?
Here’s a breakdown of the various features to consider when choosing a business account:
- Protection: Consider what level of protection suits your business needs.
- UK Bank Transfers: Consider the frequency and volume of your transfers compared to the fees.
- Direct Debits and Standing Orders: Check that the account offers these features at no extra charge.
- Cash Deposits: If your business handles cash, consider the account’s policy on cash deposits, including any limits or fees.
- Cheque Deposits: If your business deals in cheques, ensure cheque deposits are an option.
- International Payments: For businesses dealing internationally, assess the account’s capabilities and fees for making and receiving payments from abroad.
- Financing Options: If your business requires access to overdrafts, business credit cards, or loans, keep an eye out for accounts offering these and consider the 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: If you have experience with integrated accounting software
- Dedicated Account Manager: If your business would benefit from a dedicated account manager,
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 or a rewards system.
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 personalised assistance available with paid accounts.
FAQ’s
How Do I Switch to a New Business Bank Account?
- Research and compare: Research the different free business bank account options available to you.
- Application: Once you’ve identified a bank that meets your needs, open an account.
- Notify your current bank: Once you’ve opened a new account, inform your current bank that you’ll be closing your old account.
- Transfer Payments and Funds: Ensure all pending transactions with the old account are completed and transfer all funds to your new account.
- Close Your Old Account: Confirm there are no pending transactions in your old account, then contact your old bank to close the account and be sure to get a confirmation.
- Update your payment details: Once you’ve switched your account, ensure you change your payment information for suppliers, customers, and other stakeholders.
What Should I 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.
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.
Are there any limitations to a free business bank account?
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.
