Free Business Bank Accounts
Best Free Business Bank Accounts UK
A free business bank account can save you money and make it easier to manage your business finances. The crucial part is finding the best free account for you and your business.
Opening a free business bank account means you can organise your business’s finances without being weighed down by monthly fees. Whether you’re a startup, sole trader or have a small business, saving money should appeal. And with a free business account, you’ll get access to essential banking features while keeping costs to a minimum. Having a clear divide between your personal and business finances will make your life easier too. Here you can compare free business bank accounts and apply today.
Promotion
Virgin M Account for Business
For businesses with a turnover of less than £1 million, the M Account for Business gives you free day-to-day online business banking for all your everyday needs.
Our Top Free Business Bank Accounts Compared
Each of these products may be one of a range offered by the provider. Always check terms & conditions for suitability before applying. Only affiliated products are shown. Other products are available. Read our guide to ratings.
Provider | NerdWallet’s Rating | Monthly Fee | UK Card Purchase Fees | UK Bank Transfer Fees | |
|---|---|---|---|---|---|
 | 4.8 / 5 Best Online | Free | Free | Free | |
 | 4.7 / 5 Best All-Rounder | Free | Free | From free | |
 | 4.6 / 5 Best for Ethical Banking | Free | Free | From free | |
 | 3.9 / 5 Best for Taking Payments | Free | Free | Free | |
 | 3.8 / 5 No Monthly Fees for 2 Years | Free | Free for 24 months | Free for 24 months | |
 | 2.7 / 5 Best for Global Payments | Free | Free | Free | |
 | 2.4 / 5 Best for Tracking Real Time Expenses | Free | Free | Free |
Our Best Free Business Account Providers
Monzo Lite Business Account
Free
Free
Free
n/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
NerdWallet's Review Summary
Monzo’s Lite account is an online business bank account with no monthly fees and free basic UK transactions. Cash and cheques can be deposited at Post Offices and PayPoints for a fee, while cheques can also be paid in via app (if under £500) or by post for free.
Most accounts are opened the same day, while payments can be accepted in various ways, including contactless using your phone, by Apple Pay, Google Pay and payment links.
Round the clock support, digital receipts and instant access savings pots are included too.
Eligibility criteria: To apply for Monzo’s Lite account, you must be a sole trader or representing a limited company by shares. You must also be based and registered in the UK.
For further details, read NerdWallet’s Monzo Business Account Review.
Monzo key features:
- Quick set-up: After applying on the mobile app, most accounts are up and running on the same day.
- 24/7 support: All hours in-app and in-person support.
- FSCS protection: Deposits of up to £120,000 are protected by the Financial Services Compensation Scheme.
- International capabilities: Spend abroad fee-free and make international transfers to more than 70 countries.
NerdWallet's Pros & Cons
Pros:
- No monthly fee on Lite account
- Free basic transactions
- Highly-rated mobile app
- Most accounts opened same day
Cons:
- No phone or branch banking
- No integrated accounting software for the Lite account
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Virgin Money M Account for Business
- Available for eligible businesses with up to £1m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
NerdWallet's Review Summary
Virgin Money’s free M Account for Business has no monthly fees, and no charge for basic UK transactions. Cheques can be paid for free via Virgin’s app, but there are charges for cash deposits in branches or through the Post Office.
You can get six months free access to Xero if you sign up for an account, while integration with Sage and QuickBooks is possible too. Payment collection via Apple and Google Pay, realtime cashflow tracking, and instant payment notifications are part of the package as well.
Eligibility criteria: To qualify for the M Account for Business, you must have a UK-based business with an annual turnover below £1 million (excluding Northern Ireland, the Channel Islands and the Isle of Man). You’ll also need to be at least 18 years old.
For further details, read NerdWallet’s Virgin Money Business Account Review.
Virgin Money key features:
- Account perks: Benefits include cashback when using the business debit card, as well as potential discounts with selected retailers and merchants.
- FSCS protection: Deposits of up to £120,000 are protected by the Financial Services Compensation Scheme.
- Free banking for charities: Virgin Money’s account for charities offers free everyday banking for groups with turnover of less than £1 million per year.
- Virgin Startup: Access podcasts, tutorials, events and mentoring through Virgin’s collaborative network.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Free day-to-day banking transactions
- Overdrafts and business loans available
- 0.25% cashback on eligible debit card purchases
Cons:
- The M Account is only for businesses with annual turnover below £1 million
- No branches in South of England, Wales or Northern Ireland
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
The Co-operative Bank Business Bank Account
NerdWallet's Review Summary
The Co-operative Bank Business Bank Account has no monthly fee and free basic UK transactions. ATM withdrawals are free as well, but charges apply for cash and cheque deposits.
There’s free access to Go Get Paid, an app designed to help manage invoicing and payment collection, while accounting software can be integrated at no extra cost too.
Eligibility criteria: The Co-operative Business Bank Account is for limited companies, sole traders, partnerships, or limited liability partnerships with up to 10 key individuals. To apply, you and any key people within the business must be aged 18 or over and UK residents, with a business address in the UK.
Find out more from NerdWallet’s Co-operative Bank account review.
The Co-operative Bank key features:
- FSCS protection: Eligible deposits, up to £120,000 across all your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
- Credit access: Option to apply for an overdraft, charge card, credit card, and variable rate business loan (subject to status and eligibility).
- Merchant software: Access to Clover payment terminals for £1 a month for the first 12 months (fees apply).
- Customer support options: Manage your account online, over the phone, via the app (subject to eligibility) and at a branch.
NerdWallet's Pros & Cons
Pros:
- No monthly fees
- Free basic transactions
- Free payment collection app
- Business overdraft of up to £250,000 (subject to status)
Cons:
- No branches in Northern Ireland
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Tide Business Account – Free
- For registered business accounts: Must be a director of a UK company registered with Companies House.
- For sole trader accounts: Must be a UK-based sole trader or freelancer with a valid UK home address and be registered with HMRC
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold a compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary
Tide’s Free Business Account has no monthly fee and allows free UK card transactions. There’s also the chance of £100 cashback and free bank transfers for a year if you apply through NerdWallet. However, cash and cheque deposits both carry fees.
Tide business accounts offer a variety of payment options, including payment links, card reader and smartphone. Accounting software from providers such as Sage, QuickBooks and Xero, can be integrated into accounts as well.
Eligibility criteria: To apply for Tide’s free business account you’ll need to be at least 18 years old and have a UK-based business.
For more details, read NerdWallet’s Tide Business Account Review.
Tide key features:
- Protected: Eligible deposits of up to £120,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
- Registration discount: Register as a limited company for £24.99 instead of £100 via Companies House.
- Customer support: Tide customers can enjoy 24/7 access to customer services.
- Business savings: Earn interest using the Tide Instant Saver Account.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Free bank transfers for 12 months if you apply via NerdWallet
- Great mobile app
- Most accounts opened in minutes
Cons:
- No branches
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
NatWest Start Up Business Account
- Available to eligible customers over 18, who have the right to be self employed in the UK
- This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
NerdWallet's Review Summary
NatWest business accounts have no monthly fees and free basic transactions for two years. However, every transaction comes with a fee once the introductory period ends.
Accounts include free access and integration with FreeAgent accounting software, while the vast NatWest branch network offers direct access to in-person support.
Eligibility criteria: You must be aged 18 or older to apply for a NatWest business account and at least one person on the application form should be UK-based. You can apply for the NatWest Startup account if your business has been trading for under 12 months, or has an annual turnover below £1 million. You’ll need a standard NatWest business account if your business is over a year old or turns over in excess of £1 million.
For more details, see NerdWallet’s NatWest business account review.
NatWest key features:
- Face-to-face support: Customers across England and Wales can get customer service in a branch.
- FSCS protection: Eligible deposits up to £120,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Entrepreneur hub: Access free tools, programmes and experts through NatWest’s programme to help small businesses grow.
- Lending options: Potential access to overdrafts, business loans and credit cards.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Basic transactions free for two years
- Free integrated accounting software from FreeAgent
- Bank online, via app, by phone, at a branch or Post Office
Cons:
- Fees for every transaction after two years
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
WorldFirst Business Account
NerdWallet's Review Summary
WorldFirst’s multi-currency business account has no set up or monthly fees, and offers various features that make it a good option if your business transacts abroad. Payments can be taken in over 20 currencies with no fees, there’s no foreign exchange fees on 15 major currencies, and cashback can be earnt on card payments. A sign-up bonus is on offer too.
Eligibility criteria: You must be at least 18 years old, but don’t need a UK address.
WorldFirst key features:
- Fast opening: Most accounts are up and running in the space of an hour.
- Global account: Spend in over 100 currencies across 210+ countries.
- Marketplace payouts: Receive payments from over 130 online marketplaces.
- Cashback: Earn up to 1.2% cashback on card payments.
NerdWallet's Pros & Cons
Pros:
- No monthly fees
- Sign-up bonus and cashback potential
- Fast international payments
Cons:
- Some outgoing payments have fees
- No cash or cheque deposits
- No FSCS protection
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Wallester Business Free Account
- Must be a legally registered business entity (Ltd, LLP, PLC, Sole Trader or Freelancer) in the UK, European Economic Area (EEA), Switzerland, USA, Canada, or other supported regions
- All account holders and authorised users must be 18 years or older
- Suitable for businesses of any size and industry, including individual entrepreneurs
NerdWallet's Review Summary
Wallester offers a business account with no monthly fees that could help businesses better manage their expenses. Real and virtual debit cards can be issued to employees, while you get to set spending limits, track expenditure and receive notifications when cards are used. Invoice tracking, accounting integration and multi-currency transactions are part of the package too.
Eligibility criteria: You can apply if you have a UK, Swiss, or EEA-registered business.
Wallester key features:
- Debit cards: Issue unlimited physical cards and up to 300 free Virtual Cards.
- Global payments: Use anywhere that accepts Visa.
- Software integration: Integrate with accounting software such as QuickBooks and Xero.
- Cost control tools: Real-time expense tracking and budget control measures.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Instantly issue expense cards
- Budget tracking and management tools
Cons:
- No cash or cheque deposits
- Mobile app receives mixed reviews
- No FSCS protection
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
What is a free business bank account?
A free business bank account is a current account for businesses that has no monthly or annual fees. It usually won’t have an opening fee or charges for making basic transactions either.
However, it is unlikely these business bank accounts will be completely fee-free – in particular, there may still be charges for certain transactions and features.
You may also find an account is only free for a certain period of time, perhaps due to a promotion, or if you keep within a set amount of transactions. Make sure you check the terms carefully.
What fees could a free business account still have?
- Standard transactions: Some free business accounts may charge for basic transactions, including simple electronic payments and bank transfers. Alternatively, there may be a limit on the number of free transfers that can be made, with charges applying thereafter.
- Cash handling: There may be a specific charge for paying in or withdrawing cash from accounts. This is particularly the case if a provider doesn’t have a branch network, and deposits must be made through a third party such as the Post Office or PayPoint. ATM withdrawals might also have additional fees, both at home and almost certainly abroad.
- International payments: It’s common for any business account to charge fees for international transactions, currency exchange and card payments made abroad.
- Cheque deposits: There may be charges for depositing cheques, whether made at a branch, Post Office or via a provider app.
- Additional features: While some no-fee accounts might include accounting software for free, others may charge for access. Similar fees could apply on invoicing and payment tools, expense cards and other advanced features not included as standard.
- Overdrafts: With business accounts with overdrafts, fees and interest could apply if you use the facility.
How do free business accounts work?
Free business bank accounts tend to work the same way as most business accounts. This means they can be used to receive customer payments, and pay suppliers, bills and employee wages. Depositing and withdrawing cash, and setting up direct debits and standing orders, should be possible as well.
The main difference is that free accounts tend to have more limits and restrictions, and offer fewer features, tools and extras than accounts you pay for. However, this could be a sacrifice worth making if you’re looking to keep costs low.
What are the pros and cons of a free business bank account?
There are several reasons why a fee-free business account can work to your advantage, but some potential drawbacks to be aware of too.
Pros
- No monthly or annual fees: No regular payments can only help your business’ bottom line.
- Access to banking services: Ideal if your business mainly involves standard everyday transactions.
- Keep your business and personal finances apart: Makes it easier to monitor business performance, keep track of payments, and complete your self-assessment tax return.
- Looks professional: Having your business name next to payments and invoices enhances credibility.
- Builds credit history: Using a separate business account should help build your business’s credit score.
Cons
- Transaction fees: Fees or limits might apply to even basic transactions, with charges applying if exceeded.
- Limited features: Advanced tools and features are less likely to be included.
- Less support: Provider support may be lighter compared with paid accounts.
- Credit facilities: Access to overdrafts and other borrowing may be limited.
» MORE: What are the benefits of a business bank account?
Business owner insight
“Having a separate account makes it much easier to manage my self-employed income. I use Monzo’s free business account, which is handy for setting up and sending payment links and integrates with my Stripe account to accept card payments. I also use a booking system called Setmore, which links with Stripe, so the whole process is streamlined for clients.”
Tessa Spring, founder of tessaspring.co.uk, a website which supports people through life shifts and home moves.
Who might benefit most from a free business bank account?
Free business bank accounts are often considered a good option for new and smaller businesses that want to keep costs low and wouldn’t make use of the advanced features you get with a paid account. In particular, free accounts are worth looking at if your business mainly involves basic UK-based transactions.
Some larger, more established businesses may find a free business account offers them everything they need too. Though equally, many might benefit from the extra tools and support that paid plans tend to offer, and an absence of the transaction limits that often apply to free accounts.
» MORE: How to choose the right business bank account
How are free business accounts different to paid business accounts?
| Free business account | Paid business account | |
|---|---|---|
| Fees | No monthly fees, but likely to be charges for certain transactions and services | Regular fixed monthly fee, which allows access to wider range of services |
| Transactions | May be limited, fees payable if exceeded, and restricted to the UK. Cash, cheque, debit card transactions may be chargeable | Wider range of transactions allowed, perhaps with higher or no limits and no additional fees |
| International payments | May not be allowed, be limited, have a fee, or fewer country options | Could have higher limits, fewer restrictions, and multi-currency options |
| Tools/benefits | Most likely to be focused on basic banking functions and services | More likely to include advanced features, such as integrated accounting software and payment and invoicing tools |
| Additional borrowing | May not offer access to an overdraft facility or other credit options | More likely to offer credit facilities such as a business overdraft and loans |
| Customer service | Likely to be standard customer support | Could include premium customer service option or relationship manager |
| Most suitable for | Startups and small businesses which need to keep costs low and have relatively few UK transactions | Bigger, more established businesses with higher transaction volumes, and more complex finance-related requirements |
Are you eligible for a free business bank account?
Most business accounts, without charges or paid, require you to be at least 18 years old and have a UK-registered business to apply. Beyond this, eligibility criteria can vary.
Some free accounts may require businesses to have a certain minimum turnover or been trading for a minimum length of time. But given free business accounts tend to be aimed at newer and smaller businesses, there should be an account to suit most types of business.
» COMPARE: Our best business bank accounts
How to open a free business account with NerdWallet UK
Opening a free business account through ourselves is simple.
- Decide on the account that’s the best fit for you and your business from the providers above.
- Click the ‘See Deal’ button and you’ll head straight to the provider you’ve selected.
- Apply for your account on the provider’s website – there’s nothing to complete for us.
» TAKE ME TO: NerdWallet’s best free business bank accounts
What you’ll need
When you’re ready to open a business account it’s best to have a few things to hand to ensure the process goes as smoothly as possible:
- Proof of your identity: your passport or driving licence will usually suffice
- Proof of your address: a recent bank statement or utility bill that shows your current address
- Proof of your business’s address: also a utility bill or similar, but showing the trading address of your business (if it’s different to your home address)
- Contact details: for both you and your business, if they’re different
- Business details: including when you began trading, past or predicted revenue, and tax information
- Registration documents: if you’re a sole trader, your business tax return or self-assessment registration, or if your business is ‘limited’, your Companies House registration number and certificate of incorporation
Not sure if a free business account is what you need?
Take a look at some other types of business bank accounts.
Free business bank account FAQs
Several providers in the UK offer business bank accounts with no monthly fees, including Monzo, Virgin Money and Tide.
A free business bank account is usually defined as a business account that has no annual or monthly fees. An account may be entirely free, depending on how you use it. But you should always check the terms and conditions for other fees that may apply, and any limits or restrictions that could lead to other charges.
Yes, sole traders are one of main types of business owner that free business accounts are aimed at.
» COMPARE: Sole trader business accounts
Yes, it is possible to switch to a free business bank account. The easiest way to switch business accounts is using the Current Account Switch Service.
Some free business bank accounts are covered by the Financial Services Compensation Scheme (FSCS), but some aren’t. If a free account has FSCS protection, eligible deposits are protected up to a maximum of £120,000. Alternatively, some accounts are offered by e-money firms, where different safeguards apply. Always check which applies to a given account.
Image source: Getty Images
About the Author
Dive even deeper
Compare Instant Business Accounts
Compare No Credit Check Business Bank Accounts
