Compare free business bank accounts

Free business bank accounts can be particularly beneficial if your business is just starting out. Here’s how they work.

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By

Rachel Wait

Updated

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.

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Name Product Account fee Bank transfers Requires credit check Accounting integrations Arranged overdraft Account management Key benefits Business bottom txt Link
Revolut Business Free Account
Finder Award
OFFER
Revolut Business Free
Free
5/month then 20p per transfer
FreeAgent, Xero
Online & app
Sign up today and unlock 1 month of a paid plan without subscription fees. T&Cs apply.
Go to site
View details
ANNA Pay As You Go Account
CASHBACK
ANNA Pay As You Go
Free
£0.20
Sage, Xero
App
Earn 1% cashback for paying with your ANNA card in selected categories.
Go to site
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Tide Free Account
Finder Award
EXCLUSIVE
Tide Free
Free
£0.20
Free if both accounts are with Tide
Clear Books, FreeAgent, KashFlow, QuickBooks, Reckon One, Sage, Xero
Online & app
Open a business account with no monthly fees.
Go to site
View details
Mettle by NatWest - Mobile business bank account Account
Finder Award
OFFER
Mettle by NatWest - Mobile business bank account
Free
Free
FreeAgent, QuickBooks, Xero
Online & app
A free business account with no monthly fees.
Go to site
View details
The Co-operative Bank Business Current Account
Finder Award
FREE TRIAL
The Co-operative Bank Business Current Account
Free
Free
QuickBooks, Sage, Xero, Multiple providers

On application (subject to status, eligibility and The Co-operative Bank's Lending policy)
Branch, online, app & phone
Free everyday digital business banking with the original ethical bank, plus access to the free ‘Go Get Paid’ app from BankiFi to help you get paid faster, rated 4.9 stars. Sole traders or Single Directors only. Charges apply for cash and cheque transactions. Apply online. T&Cs apply.
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Monzo Business Lite Account
OFFER
Monzo Business Lite
Free
Free
N/A
Online & app
Get a free business account with no monthly fees
Go to site
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Cashplus Business Go Bank Account
OFFER
Cashplus Business Go Bank Account
Free
£0.30
Free for first 3 payments sent each month (£0.30 for every transfer thereafter)
Clear Books, FreeAgent, KashFlow, QuickBooks, Sage, Xero

By invitation
Online & app
No annual or monthly fee when you apply using the Finder link
Go to site
View details
Floodlight Account
Floodlight
Free
Free
QuickBooks, Xero
Online & app
View details
Start Up Bank Account
OFFER
Start Up Bank
Free
£0.35
FreeAgent
Branch, online, app & phone
Use the digital accounting tool FreeAgent to make invoicing, payroll and managing your cash flow easy. It’s worth more than £145 + VAT a year (based on annual fee as of Aug 2021), but free for you.
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Reserve Account for Pensions
Reserve Account for Pensions
Free
Free
N/A
Online & phone
View details
Business Banking Clients' Call Account
Business Banking Clients' Call Account
Free
Free
N/A
Branch, online, app & phone
View details
Sole Trader Current Account
Finder Award
Sole Trader Current Account
Free
Free
FreeAgent, QuickBooks, Xero
Online, app & phone
View details
Business Current Account
Business Current Account
Free
Free
N/A
Branch, online & app
View details
Business Account - Standard Tariff
OFFER
Business Account - Standard Tariff
Free
£0.35
FreeAgent
Branch, online, app & phone
Use the digital accounting tool FreeAgent to make invoicing, payroll and managing your cash flow easy. It’s worth more than £145 + VAT a year (based on annual fee as of Aug 2021), but free for you.
View details
Multi-Currency Business Account
CASHBACK
Multi-Currency Business Account
Free
Free
Xero
Online & app
Earn 0.5% cashback when you exchange currencies during your first 3 months with us. T&Cs apply.
View details
Community Account - Turnover £100K and over - standard tariff
Community Account - Turnover £100K and over - standard tariff
Free
£0.35
FreeAgent
Branch, online, app & phone
View details
Charity and Impact Account
Charity and Impact Account
Free
Free
Multiple providers
Branch, online, app & phone
View details
Business Current Account
Finder Award
OFFER
Business Current Account
Free
Free
FreeAgent, QuickBooks, Xero

Up to £50,000 subject to eligibility and application
Online, app & phone
Add the new Business Toolkit onto your free Starling account, and get the first month free of charge (RRP £7pcm)
View details
Corporate Current Account
Corporate Current Account
Free
Free
N/A
Online & phone
View details
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What is a free business bank account?

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.

Do free business bank accounts really exist?

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.

What is the difference between free and paid-for business accounts?

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.

How to open a free business bank account

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.

How to choose the best free business bank account

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:

  • What are the fees for everyday banking transactions? Consider the types of transactions you’re most likely to carry out, whether bank transfers, cash payments or cash withdrawals, and look for the account with the lowest fees.
  • Do you need to carry out international transactions? If so, you’ll want an account that allows you to do this, ideally for a low or no fee.
  • Do you need accounting integration and invoicing tools? If you do, look for a free account that offers these features.
  • Do you need an overdraft? Some business bank accounts let you request an overdraft when you apply, while others won’t offer an overdraft.
  • Is there FSCS protection? If the provider has a UK banking licence, your money will be protected up to £85,000 under the Financial Services Compensation Scheme.
  • Do you qualify? Some free business bank accounts require you to have been trading for a set time and might have a maximum annual turnover requirement.
  • How is the account managed? Check whether you can bank online, via an app, over the phone or in branch.

Bottom line

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.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.

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