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 best free business bank accounts in 2023 illustration
Tide

The 8 Best Free Business Bank Accounts

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.

Pros

  • No fees to Join
  • Some of the best reviews of any bank
  • In-APP invoice creation
  • Easy Access to Finance
  • FSCS Protected
  • Fast Access to Finance

Cons

  • £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

Features

Eligibility Criteria

ANNA Money: The best free Bank Account for Freelancers

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.

Pros

  • No Fees to Join
  • Free invoicing software with automatic invoice reconciliation
  • 24/7 customer support

Cons

  • £300 deposit limits (£1000 every month)
  • £1 ATM withdrawals
  • No branches, cheque deposits, overdrafts or loans

Features

Eligibility Criteria

Zempler Bank: the Best Free no Credit Check Bank Account

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.

Pros

  • No Fees to Join
  • No Credit Check Required
  • FSCS Regulated, with FCA Protection
  • Create invoices
  • UK phone support

Cons

  • £9.95 to issue your contactless Mastercard
  • £2 per ATM Use
  • No branches or cheque deposits
  • 0.5% fee for cash deposits

Features

Eligibility Criteria

Revolut Business: 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.

Pros

  • No Fees to Join
  • Great for international currencies and transfers
  • Crypto-friendly
  • Expense Cards
  • Accounting Integrations
  • Contactless payments with an iPhone
  • Smart Invoicing

Cons

  • Best features come with paid accounts
  • No FSCS protection
  • 2% charge to withdraw cash
  • No branches or cheque deposits
  • Daily withdrawal limit
  • No overdraft

Features

Eligibility Criteria

Starling Bank: Best for Overdraft

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.

Pros

  • Fewer fees
  • Easy cheque deposits
  • Multiple Director Access
  • Savings options
  • FSCS protection

Cons

  • Fees on cash deposits
  • No third-party access

Features

Eligibility Criteria

Mettle by Natwest: A Completely Free ‘No Fees’ Business Account

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.

Pros

  • No Fees to Join
  • The account is Completely Free
  • In-App invoicing
  • Pay in cash at the Post Office or a PayPoint

Cons

  • Prepaid card is a mastercard
  • No branch banking
  • No overdrafts or loans
  • It’s not possible to pay cheques into a Mettle account
  • You cannot make or receive international payments

Features

Eligibility Criteria

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.

Pros

  • 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.

Cons

  • £300 deposit limits (£1000 every 6 months)
  • No accounting integrations unless you get the pro account
  • No overdrafts on the business account
  • Monzo accounts can’t receive international payments, except for euro transfers.

Features

Eligibility Criteria

Allica Bank: Best Free Account for Established Businesses

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.

Pros

  • Dedicated relationship manager.
  • 1.50% cashback on card purchases.
  • Mobile app and desktop management.
  • Deposits covered by the FSCS.
  • Multiple director access and bank cards.
  • Savings pot on current account with 4.33% AER and instant access.
  • International transfers powered by Wise.

Cons

  • Requires annual turnover of £500k or more.
  • Does not support cash and cheque deposits.
  • Overdraft only available to AIB customers.
  • No physical branches.

Features

Eligibility

Monthly Fee
Free
Bank Transfers
Free
Card Purchases
Free
Overdraft
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  • Dedicated Relationship Manager
  • 1-1.5% Cashback on Card Purchases
  • Multiple Business Savings Options up to 5.05% AER
Access
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Pros
  • Protected by the FSCS
  • Asset finance available
  • Mobile app and desktop management
Cons
  • Overdraft only for AIB customers
  • No cash or cheque deposits
  • No physical branches

Eligibility Criteria

  • 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.

FSCS Protection: Yes, Allica Bank is protected by the FSCS.

Trustpilot Score: 889 total reviews with an average rating of 4.4

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?

  1. Research and compare: Research the different free business bank account options available to you.
  2. Application: Once you’ve identified a bank that meets your needs, open an account.
  3. Business identification: Provide a copy of your business’ registration or business tax identification number.
  4. Personal identification: You must provide proof of your identity, such as a passport or driver’s license.
  5. Business information: You will need to provide information about your business, such as your business name, contact information, and the nature of your business.
  6. Financial information: You may need to provide financial information such as your projected revenue or average monthly transactions.
  7. 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?

What Should I Consider When Researching Free Business Accounts?

Do Free Business Bank Accounts Have any Fees?

Are there any limitations to a free business bank account?