Compare Free Business Bank Accounts
- Many business banking providers offer free banking deals to new customers
- Free banking durations and details vary between products and providers
- Compare free banking deals from various types of business banking specialists
- Instant Account Number and Sort Code
- No credit checks to open an account
- Business cash advance facility available to eligible customers
- UK Businesses
- Application to be made by UK Director over age of 18
- Overdraft available subject to eligibility
- Contactless MasterCard - with unlimited free purchases in any currency, plus add up to 35 team cards for free
- Instant invoicing directly from your Tide app
- FSCS protected
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
- Business account and tax app for your small business
- This plan has monthly limits of £500 income, £5,000 maximum balance, 2 UK transfers (in or out) and £100 ATM withdrawals
- Instant Invoicing, Receipt Scanner, Automated Bookkeeping, Business expense cards for employees, virtual debit cards
- You can open an account if you are a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Your business should be located within the UK and you also need to have a UK residential address
- Not available to charities
- Open an account in 5 minutes - instant account number, sort code and Mastercard in days
- Business account and accounting software in one app - instant automated bookkeeping, receipt tracker and invoice management
- £500 maximum monthly deposit on this plan
- To open an account you must be a UK resident, at least 18 years old and running a small business (Sole Trader/Director of a limited company)
- If your maximum monthly deposit is exceeded, then your account will automatically upgrade to the appropriate subscription plan. You will not be able to downgrade from this plan.
- No monthly fees or fees overseas
- Automate expenses and link your account with QuickBooks, Xero and FreeAgent
- Deposit cash easily at your local Post Office and deposit cheques of £500 or less via the Starling app
- User must be 18 or over
- Must be a UK resident
- Starling Bank is not currently accepting overdraft applications outside of the government-backed lending schemes
Our comparison service features a selection of providers from whom we receive commission. This table is initially ordered according to our commercial arrangements. Use the drop down menu at the top of the page to order by other criteria.
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Free Business Bank Accounts
What is a business bank account?
A business bank account is similar to a personal current account but is specifically designed for business use. You can open a business bank account to help keep your business transactions separate from your personal finances. This will enable you to keep track of your business income and outgoings, as well as helping you when it comes to doing your accounts and working out the tax you owe at the end of the year.
What is a free business bank account?
Most business bank accounts will charge you in some shape or form. However, some do not carry an annual or monthly fee. Business bank accounts that don’t charge monthly or annual fees regardless of how you use the account, are often marketed as free, but you will usually still be required to pay some fees for transactions, such as making deposits or using your card.
Some ‘free’ business bank accounts will waive annual or monthly fees for an initial period, while others may not charge these fees on a permanent basis.
Do I have to open a business bank account?
If you are a sole trader, you can continue to use your personal account for your business transactions. This is because your business finances and your personal finances are one and the same, in the eyes of HMRC. However, if you have registered your business at Companies House and it is, therefore, a separate legal entity, you must set up a business bank account by law.
What features do free business bank accounts offer?
Most free business bank accounts will allow you to carry out your daily banking needs and will also offer additional tools to help you track your business’s finances, such as a mobile app. The precise features offered by business bank accounts will vary, however, and you’ll need to do some research to find the right bank account for your business needs.
Here are some of the features often offered by business bank accounts:
- Accepting deposits
- Bill payments
- Cash withdrawals
- Debit card transactions
- Direct debits
- Standing orders
- Writing cheques
- Bank transfers
- Online purchases
- Financial tracking app
Often, these services and transactions will carry fees.
How do I choose the right free business bank account?
Consider the ways in which you are most likely to use your business bank account. If you are not likely to perform many transactions, you may find a free business bank account is the best option for you. However, if you are likely to use your business bank account regularly, performing numerous transactions that carry fees, opting for a business bank account that charges an annual or monthly fee, but carries smaller transaction charges, might be more sensible.
Do free business bank accounts pay interest on balances?
Yes, most do pay interest on balances, but at different levels, so it pays to do your homework if this is something that is of interest to you. If you have large balances held in your business bank account, however, it might be sensible to open a business savings account. Business savings accounts are likely to pay more in terms of interest on balances than free business bank accounts, which operate like current accounts for your business.
Acorn Business Bank Accounts
The Acorn Business Account provides straightforward online business banking that is suitable for people with poor credit ratings.Read more
ANNA Business Bank Accounts
App-based business current account with a debit Mastercard from Absolutely No Nonsense Admin Ltd.Read more
CardOneMoney Business Bank Accounts
App-based business current account designed for small businesses with a prepaid Mastercard and no credit checks required.Read more
Cashplus Business Bank Accounts
Alternative to traditional business bank account that can be opened with instant online decision and no credit check.Read more
Countingup Business Current Accounts
Business current account mobile app with automated bookkeeping features and corporate contactless MasterCard.Read more
HSBC Business Bank Accounts
Major high street bank offering comprehensive business banking services with full online, telephone and in-branch access.Read more
Lloyds Bank Business Bank Accounts
Comprehensive business banking products from the high street bank.Read more
Mettle Business Bank Accounts
A digital business account by NatWest and provided by Prepay Solutions.Read more
Revolut Business Bank Accounts
Global, multi-currency business current account with a range of price plans for businesses of different sizes.Read more
Starling Bank Business Current Accounts
Straightforward, app-based business banking service for UK firms and sole traders.Read more
Tide Business Bank Accounts
Business current account app with contactless business Mastercard, quick setup and straightforward fees.Read more