Free Business Bank Accounts

Monzo’s Lite account offers business banking with no monthly fees. In addition, basic UK transactions carry no cost. 

Sole traders can deposit up to £3,000 a month in cash in total, while limited companies can deposit up to £10,000 a month. Monzo’s business customers can pay in cash for £1 at Post Offices and PayPoints. Post Office deposits cannot be more than £3,000 per deposit for sole traders, or £4,000 per deposit for limited companies. Cash deposits at PayPoint cannot exceed £300 per deposit. Meanwhile, cheques can be deposited via app or post. A small overdraft of £3,000 is available for sole traders, though a representative EAR of 39% applies.

Accounting software integrations are not available with Monzo’s free Lite account, with integrations for FreeAgent, Xero and QuickBooks only available through its paid Pro and Team accounts. 

Eligibility criteria: To apply for Monzo’s Lite account, the applicant must be a sole trader or representing a limited company by shares. Applicants 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. 
• 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.

Pros:

• High-scoring mobile app
• Online banking within 24 hours for most customers
• No monthly fee
• Free basic transactions

Cons:

• No phone or branch banking
• Not for charities or partnerships
• No integrated accounting software for the Lite account

Virgin Money’s M Account for Business is a free account with no charges for basic UK transactions. Both cash and cheque deposits can be made, with the former costing 90p per £100 and the latter possible for free via the mobile app. If you’re looking for an overdraft, Virgin Money offers unsecured limits of £25,000 with a 2.5% establishment fee (at a minimum of £120) and a representative EAR of 13.3%.

Accounting software integrations are available for this account too, including Sage, Xero and QuickBooks. You can get six months free access to Xero if you sign up for an account.

Eligibility criteria: The M Account for Business is for applicants with an annual turnover below £1 million. Businesses that apply should be UK-based (excluding Northern Ireland, the Channel Islands and the Isle of Man), while any owners, directors, senior management and account signatories need to be over 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.

Pros:

• Over a third of business accounts open on the day you apply
• 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 only for businesses with annual turnover below £1 million
• No branches in South of England, Wales or Northern Ireland

Tide offers a variety of different business bank accounts, including one with no monthly fee. Inbound and outbound transfers normally cost 20p but are free for 12 months if you apply through NerdWallet. Cash deposits cost a minimum of £2.50 or 0.99% at Post Office branches and 3% at PayPoint. Cheque deposits can be made through the Tide app.  

In addition, Tide does not offer an overdraft. However, customers looking to integrate accounting software have many options to choose from, including Sage, QuickBooks, and Xero.

Eligibility criteria: Tide’s free business bank account is for UK-based businesses and applicants must be at least 18.

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).
• All-hours customer support: Tide customers can enjoy 24/7 access to customer services.
• Business lending: Tide offers business lending options, including a government-backed loan for start ups. 
• Business savings: Access to a Tide Instant Saver Account with rates starting at 2.52% AER, but potentially as high as 4.00% for the first six months for new customers.

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 in-branch banking available

Zempler Bank offers a free business bank account called the Business Go account. With this account, you can make three payments and transfers for free each month, though transfers cost 35p each outside this allowance.

While cheque deposits are not possible, cash deposits can be made at a Post Office branch for a £4 minimum fee or 0.55% charge. A business overdraft of £2,000 may be available to eligible businesses.

Zempler customers can integrate Sage, Xero or QuickBooks accounting software with their account.

Eligibility criteria: Sole traders, limited companies and partnerships can apply for this account.

For more details, check out NerdWallet’s Zempler Bank Business Account review.

Cashplus key features:

• Credit and overdraft facilities: An account can offers the chance to apply for a business overdraft, or a business credit card.
• Business Creditbuilder: If you open an account, you can upgrade to boost your credit score with the Zempler Bank Business Creditbuilder.
• No maintenance fee: There is no monthly charge for having this account.
• FSCS protection: Zempler Bank is a fully licensed bank, so your eligible deposits of up to £120,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Business tools: Zempler offers cash-flow tracking, money pots and help crafting invoices.

Pros:

• Almost all accounts open the day you apply 
• Overdraft and credit facilities available
• No monthly fee

Cons:

• No option to cash cheques
• No branches
• Transfers out cost 35p each after monthly allowance of three free transactions

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.

Pros:

• No monthly fees
• Sign-up bonus and cashback potential
• Fast international payments

Cons:

• Some outgoing payments have fees
• No overdraft facility
• No FSCS protection

Airwallex offers a global business account designed to make transacting internationally as simple as possible. Payments are accepted from more than 180 countries, while free local transfers can be made to over 120 countries. Virtual and physical payment cards can be issued too. If you retain a minimum balance of £10,000, or deposit £10,000 each month, there’s no monthly fee. 

Eligibility criteria: Limited companies, LLPs, sole traders and partnerships in the UK can all apply. 

Airwallex key features:

• Global account: Collect payments like a local in over 70 countries.
• Currency exchange: Get interbank exchange rates with no hidden FX fees.
• Company cards: Easily issue physical and virtual multi-currency cards.
• Integration: Integrate with software such as Xero, QuickBooks, NetSuite and Amazon.

Pros:

• No monthly fees if balance/deposit threshold met
• Save on international payments and FX fees
• Expense management tools

Cons:

• No FSCS protection
• No cheque or cash deposits
• No overdraft or loan options

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.

Pros:

• No monthly fee
• Instantly issue expense cards 
• Budget tracking and management tools

Cons:

• No overdraft or loan options
• Mobile app receives mixed reviews
• No FSCS protection