Best Free Business Bank Accounts December 2024

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

Cash deposits cost £1 each and are limited at £1,000 every six months at Post Offices and PayPoints, while cheques can be deposited via app or post. A small overdraft of £2,000 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 account. 

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 £85,000 are protected by the Financial Services Compensation Scheme.
• Low upgrade fee: If you want additional features, upgrading to Monzo’s premium account is cheaper than at many competitors.
• 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
• Free ATM withdrawals in the UK and European Economic Area (EEA)

Cons:

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

Starling’s business bank account has no monthly fee and also offers free basic UK transactions. Account holders can deposit cash at the Post Office for a 0.7% fee (minimum £3 fee) and cheques through the Starling app or by post. 

Customers can access an overdraft with Starling, with the provider offering between £1,000 and £50,000. However, an annually recurring arrangement fee of 1.75% applies along with representative EAR of 11.50%.

Customers can plug in accounting software to their Starling business accounts, with Xero, QuickBooks and FreeAgent all available for integration. 

Eligibility criteria: This account is for sole traders, limited companies and limited liability partnerships. Persons of significant control should be UK residents.

For further details, read NerdWallet’s Starling Account Review.

Starling key features:

• Saving spaces: Funds for upcoming expenses fenced off in separate pots.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
• Bring it abroad: No fees for overseas card payments or ATM withdrawals.
• Multi-user access: Account access for multiple directors.

Pros:

• Free basic UK transactions
• Well-received app
• Accounts usually open within one day
• 24/7 customer support via app, phone or email
  

Cons:

• Some account features require £7-a-month Business Toolkit
• No phone or branch account management
• £3 minimum fee for cash deposits at the Post Office

The Co-operative Bank offers a wealth of choice to customers, including its Business Current Account. This is an option with no monthly fee and free basic UK transactions, including free ATM withdrawals. Cash deposits cost £1.50 per £100 and cheque deposits are £1.50 a go. 

Sizeable business overdrafts are available with The Co-operative Bank, with the standard borrowing limit sitting at £250,000. Arrangement fees of 1.5% (£50 minimum fee) and representative EAR of 11.3058% apply.

Accounting software products from providers such as Xero and QuickBooks can be integrated with business accounts from the Co-operative Bank. 

Eligibility criteria: Sole traders and limited companies with a UK-based director and business address can apply for this account. In addition, applicants should be UK residents aged 18 or above. 

Find out more from NerdWallet’s Co-Operative Bank account review.

The Co-operative Bank key features:

• FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
• Credit options: A Co-op business account will allow you to apply for an overdraft, charge card, credit card, and variable rate business loan.
• Merchant software: Free access to merchant software from Clover and discounted card payment terminals.
• Customer support options: Manage your account online, over the phone, via the app and at a branch.

Pros:

• Manage account online, by phone, app or at a branch
• Business overdraft of up to £250,000
• No monthly fees
• Free basic transactions
  

Cons:

• Average account opening time of 12 days
• No branches in Northern Ireland
• Poorly received mobile app

Mettle offers completely free banking, with no monthly fee or transaction charges at all. However, cheque deposits are not possible and cash deposits are capped at £500 per day and £23,000 annually. 

There is no overdraft available from Mettle, though the account does integrate with accounting software from FreeAgent. In fact, a free subscription to FreeAgent accounting software is bundled with a Mettle account.

Eligibility criteria: UK-based sole traders and limited companies can apply for accounts with Mettle, as long as applicants are aged 18 and over and only pay tax in the UK.

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features:

• Top app: Mettle’s business banking app is very strongly reviewed.
• Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.
• Money pots: Mettle’s Money pots feature allows you to set aside funds for tax or upcoming expenses, or earn 1.46% AER on savings.
• Business tools: Mettle includes tools for business owners to make custom invoices, upload paper receipts and see a running total of the tax they owe.

Pros:

• Zero monthly fees 
• No transaction charges
• Strong customer reviews of Mettle’s app
• Customer support available daily
• Free accounting software from FreeAgent

Cons:

• No branch access
• No cheque deposits
• No international payments 
• No borrowing options
• Not available for partnerships or charities

Allica Bank’s Business Rewards Account has no monthly fee and basic UK transactions cost nothing. However, customers cannot deposit cash or cheques.

While some lending products are available, Allica Bank does not offer a business overdraft. Xero and Sage accounting software can be integrated with accounts. 

Eligibility criteria: Allica Bank serves business customers with a balance of more than £50,000 in their current account and these businesses should have been incorporated for a minimum of one year. In addition, some customers with an Allica Bank loan product may be eligible for a current account.

For more details, read NerdWallet’s Allica Bank Business Account review.

Allica Bank key features:

• Instant access savings pot: Customers earn 4.08% AER on their business savings with Allica.
• Cashback: Account holders can earn up to 1.5% cashback on eligible debit card purchases.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Multi-user access: Multiple directors can access the account and use an Allica Bank card.

Pros:

• No monthly fee
• No fees for basic UK transactions
• Relationship managers in England, Scotland and Wales
• Earn interest with 4.08% AER savings pots
• Cashback of up to 1.5% on eligible debit card purchases

Cons:

• No option to deposit cash or cheques
• No phone or branch access
• Opening an account usually takes three to five days

RBS offer two different free accounts, one for start ups and another for more established businesses. Both accounts also charge 35p for automated payments in or out (including direct debits, standing orders and ATM withdrawals) following two years of free banking for start ups and eligible switchers.

Cash can be deposited for 70p per £100 and cheques for 70p each. RBS account holders can get an overdraft of up to £50,000, with representative EAR standing at 14.36% for an overdraft of £25,000. In addition, arrangement fees of between £300 and £375 will apply on the above overdraft. Finally, accounting software can be integrated with an RBS account, with customers receiving free access to FreeAgent’s software.

Eligibility criteria: Accounts are for UK-registered businesses and applicants must be at least 18 years of age. The start-up account is for businesses trading for under 12 months with less than £1 million in annual turnover. One person on each application must be a UK resident.

For more details, see NerdWallet’s RBS business account review.

RBS key features:

• Fee-free period: Customers do not need to pay transaction fees for the first 24 months after opening a Start-Up account.
• Borrowing: RBS offers business overdrafts, credit cards and loans.
• Extras: Free access to FreeAgent accounting software and a dedicated relationship manager are among the perks of an RBS account.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• In-branch support: Manage your account and access help face to face.

Pros:

• Two years of free basic transactions for start ups and switchers
• Speedy set-up – 80% of RBS business customers can access their accounts on the day they apply
• Manage accounts in a branch, by phone, online and via the app
• Free accounting software

Cons:

• Best suited to customers in Scotland
• Promotional offer not for businesses with over £2 million turnover
• Fees for all transactions

NatWest offers a free start-up account and a variant for more established businesses. Automated payments (including direct debits, standing orders and card payments) in or out of these accounts cost 35p each following a two-year promotional period. Cash deposits cost 70p per £100 and cheque deposits are 70p each.

A business overdraft of up to £50,000 is available through NatWest. An arrangement fee of between £50 and 1.5% applies, along with a representative EAR of 14.36% on an example £25,000 overdraft. Customers can integrate FreeAgent accounting software, which comes free with an account.

Eligibility criteria: Applicants must be aged 18 or older and at least one person on the application form should be UK-based. Start up accounts are for UK businesses which have been trading for under 12 months, with annual turnover below £1 million.

For more details, see NerdWallet’s NatWest business account review.

NatWest key features:

• Fact-to-face support: Customers across England and Wales can get customer service in a branch.
• FSCS protection: Eligible deposits up to £85,000 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: Overdrafts, business loans and credit cards are all available with NatWest.

Pros:

• No monthly fee
• Bank online, via app, by phone, at a branch or Post Office
• Free integrated accounting software from FreeAgent
• Account typically open within one day
  

Cons:

• No branches in Scotland or Northern Ireland
• Fees for every transaction

Tide offers a variety of different business bank accounts, including one with no monthly fee. However, all inbound and outbound transfers cost 20p. Cash deposits cost a minimum of £2.50 or 0.5% at Post Office branches and 3% at PayPoint, while cheque deposits can be done through the Tide app but are restricted to account holders who are sole traders.  

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

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 £85,000 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, as well as a business creditbuilder feature to help with future borrowing. 
• Business savings: Automatic access to a Tide Instant Saver Account with 3.55% AER is granted when you open a business account with Tide.

Pros:

• No monthly fee
• Well-reviewed mobile app
• Over half of applicants open accounts in just 10 minutes
  

Cons:

• Transfers in and out cost 20p each on Tide’s free business account
• 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 transfers for free each month, though transfers cost 30p each outside this allowance.

While cheque deposits are not possible, cash deposits can be made at a Post Office branch for a £3 minimum fee or 0.5% charge. A business overdraft of £2,000 is available in exchange for a £50 annual fee. While the first £5 of this overdraft is interest free, interest will apply on anything further. These rates are detailed upon application.

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 £85,000 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 outbound international payments
• No branches
• Transfers out cost 30p each after monthly allowance of three free transactions

ANNA Money’s Pay As You Go business account charges no monthly fee, but basic UK transactions cost 20p each. Users can deposit up to £500 cash per day and £1,000 per month for a 1% fee, but cheque deposits are not available. 

In the place of an overdraft, ANNA Money offers customers access to a pot of funds worth up to £10,000 through its ANNA Credit tool. Customers pay 3% per month interest on any funds they draw down from this pot. 

ANNA Money accounts integrate with accounting software from providers like Xero and QuickBooks.

Eligibility criteria: ANNA Money accounts are for sole traders, freelancers, limited companies and limited liability partnerships (LLPs).

For more information, check out NerdWallet’s ANNA Money Business Account Review.

ANNA Money key features:

• Quick start: New accounts can be opened in as little as three minutes.
• Money pots: Users can distribute their money into different pots to easily keep on top of saving or meeting regular expenses like salaries.
• Cashback: Earn up to 40% cashback on eligible business expenses with your ANNA Money debit card.
• Not FSCS Protected: Deposits with ANNA Money are not protected by the FSCS as it is an e-money institution rather than a bank.

Pros:

• No monthly fee
• New accounts take just minutes to open
• Earn as much as 40% cashback on eligible purchases
  

Cons:

• No FSCS protection
• 20p cost for basic transactions
• No cheque deposits
• No branches