Opening a business bank account can help to keep your business and personal finances separate. Plus, you might benefit from perks such as cashback and accounting tools. Even better, these accounts won't charge a monthly or annual fee.
We currently don't have that product, but here are others to consider:
How we picked theseTo make comparing even easier we came up with the Finder Score. Fees, features and customer service across 20+ of the most popular banks are all weighted and scaled to produce a score out of 10. The higher the score the better the account – simple.
Read the full methodologyOpening a business bank account can help to keep your business and personal finances separate. Plus, you might benefit from perks such as cashback and accounting tools. Even better, these accounts won’t charge a monthly or annual fee.
A free business bank account is simply one that doesn’t charge a monthly or annual fee, and there are no fees for opening the account either. This can be ideal if your business is new and needs to keep overheads low or if you only need to carry out a few transactions each month. However, the remaining account features depend on the provider, so you’ll need to compare them carefully.
Sole traders and freelancers are not legally obliged to open a business bank account as their business isn’t legally separate from them. But if you’re a limited company, you need to open a business bank account. This is because you’ve registered your business with Companies House, which means it’s a separate entity to you legally and financially.
A number of business bank accounts don’t charge a monthly or annual fee. But some of these might only offer this for a limited time, say, 12 months. Even if your bank account never charges a monthly or annual fee, you might still have to pay for certain banking transactions.
For example, some business bank accounts might allow you to make a certain number of free bank transfers or payments each month but charge a fee if you exceed this limit. Others might let you carry out certain transactions for free, say UK transfers, but will charge a fee for others. And others still might charge for all banking transactions on a pay-as-you-go basis.
The key difference between free and paid-for business accounts is that free accounts don’t charge a monthly or annual fee.
How they differ beyond this depends on the provider. You might find free business accounts don’t offer as many perks as paid-for accounts. For example, you might not benefit from features such as invoicing tools or integrated accounting, or you might not earn cashback on your purchases.
Other free business bank accounts might offer the same features as paid-for options but could charge more for everyday banking transactions or have stricter monthly limits. This could suit smaller businesses that only carry out a handful of business banking transactions each month. But a larger business that carries out high volumes of business transactions will likely be better off with an account that charges a monthly fee but offers unlimited free banking transactions in return.
Many free business bank accounts can be opened online. You’ll usually need to fill in an online form, providing a few personal details and some information about your business. Alternatively, you might be able to open the account through the provider’s app, in a branch (if your provider has one) or over the phone.
You usually need to provide your business’ registered address and contact details, and if you’re a limited company, you’ll need to provide details of your company’s registration at Companies House. You’ll also need to provide proof of address and proof of ID for all company directors.
When comparing business bank accounts, you should think about the features most likely to benefit your business, as well as the features you can do without. Consider the below to help you with this:
Free business bank accounts can be particularly beneficial for small businesses just getting off the ground. However, many free accounts come with other charges or limited benefits, so you’ll need to consider exactly what you want from your business bank account to be sure of choosing the right one for your business.
Looking for sign-up deals and bonus codes for a new Tide account? Check out your latest options.
Most banks let you apply for a business account entirely online — you might even have your account open in a matter of minutes.
By switching your business bank account, you may be able to reduce your monthly fees or take advantage of different features like smart bookkeeping tools.
Learn more about Juni’s business account for ecommerce and online marketing entrepreneurs.
Lloyds offers a range of business accounts for both startups and established businesses. Compare deals, find the one for you and check how to apply.
Compare all the business accounts offered by Barclays and learn how much it costs and which documents you need to open one.
Considering a Cashplus business account, which you can open without a credit check? We take a closer look at who it is best suited to.
Challenger Countingup draws accounting and business banking together in one account. Our review looks at how it works and what it costs.
Considering a Revolut Business account? We take a closer look at the features and price plans available with these digital-only accounts.
Is Tide’s current account for businesses right for your company? We take a closer look at all of the fees and features of a Tide account.