Rhiannon Philps
Kristina FoxMany or all of the products and brands we promote and feature including our ‘Partner Spotlights’ are from our partners who compensate us. However, this does not influence our editorial opinion found in articles, reviews and our ‘Best’ tables. Our opinion is our own. Read more on our methodology here.
A free business bank account is exactly what it sounds like – a bank account for your business that doesn’t cost any money to open.
They can be great if you are a new business looking for your first dedicated account or only need to make a small number of transactions a month. However, what goes into a free business bank account can vary greatly from provider to provider. This means it can be difficult to pick the right account for your business.
That is why we have ranked the top 10 free UK business bank accounts, based on what business owners say are the most important criteria when searching for an account. That includes easy account access, quick set-up and protection through the Financial Services Compensation Scheme (FSCS).
We have only included providers that currently do not charge a monthly or annual fee. It does not include business bank accounts that offer a fee-free introductory period; require a special status, such as a charity account; or have minimum turnover or balance requirements.
Virgin M Account for Business
For businesses with a turnover of less than £1million, the M Account for Business gives you free day-to-day online business banking for all your everyday needs. Open an account today and get 3 months of QuickBooks or Xero fee-free. T&Cs apply.
Editor’s Picks
Business Bank Accounts |
Editors Pick |
UK Card Purchase Fees |
UK Bank Transfer Fees |
Monthly Fee |
|
|---|---|---|---|---|---|
Monzo Lite Business Account |
Overall
|
Free
|
Free
|
Free
|
|
Mettle Business Bank Account |
Transactions
|
Free
|
Free
|
Free
|
|
Revolut Free Business Account |
International
|
Free
|
5 free per month
|
Free
|
Important information about Editor’s Picks
The Editor’s Picks listed above are based on NerdWallet’s editorial team’s analysis of products reviewed by us and is not a whole of market view. The team evaluates which brands offer standout features that may be important to you.
Editor’s Picks exclude any assessment of a providers’ rates, fees or product suitability, which must always be a priority when considering any financial product. Always consider others in the market and obtain professional advice.
Editor’s Picks are our own opinions and don’t constitute advice, recommendation or suitability of your financial circumstances. They are editorially independent of any partnerships with NerdWallet.
Top 10 Best Free Business Bank Account Providers
This top 10 is from 23 business bank accounts that NerdWallet evaluated and reviewed. Others are available. Find out how we use ‘best’ and our guide to ratings.
Monzo Lite Business Account
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFree
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Offern/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
Pros:
- There is a free business account available (Monzo Business Lite).
- Accounts can be accessed online or via Monzo’s mobile app.
- Your eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
- You may be able to get access to online banking on the same day as you apply.
Cons:
- It is not possible to manage the account over the phone or at a branch.
- Aside from euro transfers, you can’t receive international payments into a Monzo account.
- Business accounts are not available to charities or partnerships.
Virgin Money M Account for Business
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFrom freeDirect debits, Faster Payments, BACS: Free | CHAPS: £17.50 via Business Internet Banking, £25 via Store and telephone banking
-
Offer3 months’ free QuickBooks or XeroGet three months’ totally fee-free QuickBooks or Xero accountancy software (terms and conditions apply)
- 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
Pros:
- Virgin Money offers a free business account, M Account for Business.
- Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Virgin Money claims that over a third of customers are able to open its business account on the same day as their application.
Cons:
- Although Virgin Money offers 24-hour self-service over the phone, it does not offer 24/7 customer support.
- Virgin Money’s completely free M Account is only available for businesses with an annual turnover of less than £1 million.
Starling Bank Business Account
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFrom free
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Offern/a
- Must be a Limited Company or LLP registered at Companies House
- All directors with access to the account must be UK residents
Pros:
- The standard Starling business account comes with no monthly fee.
- You can make Faster Payments, direct debits and standing orders for free.
- Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
- The Starling app is one of the best reviewed in the banking market.
- Starling offers 24/7 customer support through its app, over the phone and via email.
Cons:
- Some account features are only available through the Business Toolkit, which costs £7 a month.
- You cannot manage your account over the phone or at a branch.
- Cash deposits at the Post Office carry a £3 minimum fee.
Bank of Scotland Small Business Bank Account
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Monthly FeeFree for 12 monthsNo monthly fee for first 12 months, then £7 thereafter
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFree
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Offer12 months’ free day-to-day business banking for new businessesApplies to small businesses, including individuals setting up their first business bank account.
- Must be a sole trader, partner or company director and be aged 18 or over
- Must have a turnover of less than £3m
- Must not already have a Bank of Scotland business account for this business
- Security may be required
- A Guarantee may be required for Limited Companies and Limited Liability Partnerships
Pros:
- There is an introductory period of 12 months with no monthly or transaction fees for certain transactions for new customers.
- The account can be managed via the mobile app, online via Business Internet Banking or over the phone.
- Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- The account comes with access to a UK-based business management team.
- Customers in Scotland can access support at a branch.
- There is 24/7 customer support via X (formerly Twitter).
Cons:
- There is a monthly fee after the introductory fee-free period.
- With few branches outside Scotland, Bank of Scotland may not be best suited to those who don’t reside there, though you don’t have to be based in Scotland to apply.
RBS Start Up Business Account
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Monthly FeeFree
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UK Card Purchase FeesFree for 24 monthsFree for first 24 months, then 35p thereafter
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UK Bank Transfer FeesFree for 24 monthsFree for first 24 months, then 35p thereafter
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Offer24 months free bankingEligibility criteria apply. Other fees and charges may apply. Full Current Account Switch Service completed within 7 business days, Criteria Apply. Offer may be withdrawn. The RBS switch offer is not available to existing NatWest or Ulster Bank business current account customers switching to RBS
- 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
Pros:
- All three RBS business accounts are free – there is no minimum monthly charge for keeping an account open.
- There are no transaction fees for the first 24 months when using a Start-Up Account.
- RBS claims that 80% of its customers open their business account on the same day as their application.
- RBS call centres are open 24/7 for basic banking enquiries.
- Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- You can manage your account in a branch, over the phone, online and via the app.
Cons:
- RBS is less well-suited to a business based in England or Wales, as unless you have an existing RBS business or personal account, you will be directed to open a NatWest account instead. Businesses in Northern Ireland, meanwhile, are directed to open an account with Ulster Bank.
- The RBS Start-Up Account – which offers 24 months’ transaction fee-free banking – is only available to businesses that have been trading for less than a year, and have a turnover of less than £1 million.
NatWest Start Up Business Account
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Monthly FeeFree
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UK Card Purchase FeesFree for 24 monthsFree for first 24 months, then 35p thereafter
-
UK Bank Transfer FeesFree for 24 monthsFree for first 24 months, then 35p thereafter
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Offer24 months free bankingEligibility criteria apply. Other fees and charges may apply. Full Current Account Switch Service completed within 7 business days, Criteria Apply. Offer may be withdrawn. The NatWest switch offer is not available to existing Royal Bank of Scotland or Ulster Bank business current account customers switching to NatWest
- 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
Pros:
- NatWest does not charge a monthly fee for business accounts on the standard tariff.
- Accounts can be accessed online, via a mobile app, in a branch or Post Office or over the phone.
- NatWest’s call centres are open 24/7 via its digital assistant for basic banking queries.
- Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Accounts come with free access to integrated accounting software from FreeAgent.
- Accounts can potentially be opened on the same day.
Cons:
- There are no NatWest branches in Scotland or Northern Ireland.
- NatWest’s start-up account is only available to businesses that have been trading for less than a year and have a turnover of less than £1 million.
Mettle Business Bank Account
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFree
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OfferFreeAgent IncludedTo get FreeAgent included you'll need to make at least one transaction a month from your Mettle account. A saving of £150 a year (based on FreeAgent's lowest tariff)
- For sole traders or limited companies with up to two owners
- Maximum balance of £1million
- For UK-based companies with owners that are UK residents
Pros:
- Mettle business accounts are completely free. There are no monthly fees or transaction charges.
- Mettle’s business banking app is one of the best reviewed on the market.
- You can pay in cash at the Post Office or a PayPoint.
- You can access Mettle customer support via the app or email and over the phone seven days a week.
- Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
Cons:
- You cannot access your account at a branch or via telephone banking.
- It’s not possible to pay cheques into a Mettle account.
- You cannot make or receive international payments with your Mettle account.
- You cannot access business overdrafts, credit cards or loans through Mettle.
- Business accounts are not available to partnerships or charities.
Allica Bank Business Rewards Account
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer FeesFrom freeDirect Debits – Free | BACS – Free | Faster Payments – Free | CHAPS – £20 per transaction (outgoing)
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OfferUp to 1.5% cashbackEarn 1% cashback on your card spend and unlock 1.5% cashback on additional monthly card spend after you spend £10k in a month.
- UK-based businesses only
Pros:
- The Business Rewards Account is free to open, and there is no monthly fee for keeping it.
- There are no transaction fees for incoming or outgoing bank payments, direct debits or card payments.
- Allica Bank’s business banking customers in England, Scotland and Wales have access to local relationship managers who can provide tailored expertise.
- Allica Bank offers asset finance of between £25,000 and £1 million.
- Each Business Rewards Account provides an instant access savings pot with 3.5% AER.
- Cashback of up to 1.5% is offered on eligible purchases using the Business Rewards Account debit card.
Cons:
- Customers can’t make or receive international payments at Allica Bank.
- It isn’t possible to deposit cash or cheques into the Business Rewards Account.
- While Allica Bank’s customer service team is based in the UK, it doesn’t offer 24/7 customer support.
- It’s only possible to manage your account online or via the app, not over the phone.
Cashplus Bank Business Go Account
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Monthly FeeFreePlus a one-off card fee of £9.95
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UK Card Purchase FeesFree
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UK Bank Transfer Fees3 free per month3 free per month, then 30p thereafter
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Offern/a
- Available to UK registered companies with at least one UK resident director or UK-based sole traders and self-employed
- Applicants must be aged 18+ and have a valid UK phone number and residential address
Pros:
- Cashplus offers a business bank account with no monthly fees.
- Accounts can be accessed online and through Cashplus’s mobile app, on iOS and Android.
- Cashplus business accounts are FSCS protected.
- Cashplus claims that 99.95% of its customers open an account on the same day as their application.
- Cashplus business customers can potentially access overdraft and credit facilities.
Cons:
- You cannot cash cheques with a Cashplus business account.
- You cannot send international payments through your Cashplus account.
- Cashplus doesn’t have any physical branches.
- Cashplus does not have 24/7 customer service.
Tide Business Account – Free
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Monthly FeeFree
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UK Card Purchase FeesFree
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UK Bank Transfer Fees20p
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Offern/a
- 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
Pros:
- A business account with no monthly fee is available.
- You can access the account digitally via a mobile app and on the Tide website.
- Tide offers bank accounts provided by ClearBank, which are eligible for protection through the Financial Services Compensation Scheme (FSCS).
- Tide offers 24/7 support with the member support team.
Cons:
- E-money accounts (for some existing customers) from Tide are not protected by the FSCS.
- Currently, it is not possible to deposit cheques into a Tide account.
- Business partnerships and charities cannot open a Tide account.
This top ten only contains business account providers reviewed by NerdWallet UK.
The pros and cons featured with each brand are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision-makers. The survey identified the business product features that people felt were most important. There are other pros and cons that should be taken into account before considering a financial product. Information was correct at the time of publication but may have changed since.
Nerdwallet Survey: December 2022
Top 10 Best Free Business Bank Accounts: Summary
This selection of brands has been reviewed and evaluated by Nerdwallet, but others are available in the UK market. Find out what we mean when we say ‘best’, why we are comfortable using it, and an in-depth explanation of Nerdwallet UK’s review methodology.
We have only included providers that currently do not charge a monthly or annual fee. It does not include business bank accounts that offer a fee-free introductory period; require a special status, such as a charity account; or have minimum turnover or balance requirements.
Important Information: Our Reviews, Star Ratings and Editor’s Picks do not consider the product provider’s lending rates and therefore do not reflect how much it costs to borrow from the reviewed brand. Always compare rates from other providers when considering any type of borrowing.
What is the difference between free and paid for business accounts?
The main difference between a ‘free’ and paid business account is that with the free version there are no monthly or annual fees for simply having an account open. After that, however, the differences between free and paid accounts can vary greatly from provider to provider.
Some free business accounts may have fewer features and perks than a paid account. Others will have the same features as their paid counterpart, but charge more to use certain day-to-day banking services, or have a lower monthly free allowance limit for banking transactions. Often, the difference between a free and paid business account will be a combination of the above.
Because of this, free business bank accounts may be more suited to smaller organisations that need to make fewer day-to-day transactions, or which don’t need the full suite of banking options a larger business may require.
That is why it is important to know exactly what you want and need from your business bank account, free or otherwise. That way, you can select the account with the right configuration of features, perks and fees for your organisation.
Do free business bank accounts have any fees?
While free business bank accounts typically do not charge monthly or annual fees, there will likely be charges for certain transactions. This will differ depending on the provider, and account, in question.
For example, an account may offer a certain number of free bank transfers or payments that then come with a fee per transaction once you exceed your allowance. Or, one may offer unlimited free UK bank transfers, but charge for services such as cash deposits and international payments.
When choosing a free business bank account, knowing what types of transactions your organisation makes in an average month, and roughly how many, can help you pick the right option for your business.
Will my bank account stay free?
Some business accounts are only free for a limited period, before then charging a monthly or annual fee. These accounts have not been included in this review. Similarly, a banking provider could always change its pricing structure in the future and start charging a fee for a previously free account.
All of the free business bank accounts in NerdWallet’s top 10 on this page currently do not charge a monthly or annual fee, regardless of how long you have the account.
How to open a free business bank account
You can open a free business account online or, with some providers, over the phone or in person. This depends on whether you choose an online-only bank or a bank with physical branches.
When you apply for a business bank account, you will likely need to provide information:
- your Companies House registration number (if applicable)
- details of company owners and directors, including their names, addresses, and national insurance numbers
- information about your business, including evidence of what your business does, its turnover, and its trading history
» MORE: How to open a business bank account
How to choose the best free business bank account
As some free business bank accounts charge for certain services, by working out what features you will use most often you can find an account that matches the needs of your business and offers the best value.
To choose a free business bank account for your organisation, you should consider if your business needs the following services and features, and how often you would use them.
- FSCS protection
- UK bank transfers
- direct debits and standing orders
- cash deposits
- cheque deposits
- international payments
- overdrafts, business credit cards or loans
- creating and sending invoices
- multiple user account access
- integrating accounting software, and other apps
- a dedicated account manager
Free Business Bank Account Methodology
NerdWallet evaluated and reviewed free business bank accounts from high street and digital-only banks. Collectively, these accounts represent the largest banks by assets and internet search traffic, along with notable or emerging players in the industry.
We considered more than 10 product features for each account, based on the criteria that matter most to users, scoring them on fees, accessibility and customer service, among other factors. This information was gathered from each financial institution’s website and company representatives. In addition, data is collected regularly and reviewed by our editorial team for consistency and accuracy.
Using the same data across all products and features, we were able to create star ratings presented on a scale of one to five stars, where a one-star score represents ‘poor’ and a five-star score represents ‘excellent’. Please read more on our business bank account methodology.
Frequently asked questions about free business bank accounts
Whether your free business bank account will have any restricted features or services will depend on your banking provider.
Some free accounts share exactly the same features as paid accounts, but with different transaction fees and free allowances.
Others, meanwhile, can differ greatly from a provider’s paid account. For example, they may not allow you to have multiple users accessing the account, create and send invoices, or integrate with external accounting software.
You could also miss out on certain perks and benefits that come with paid accounts.
Are free business account funds FSCS protected?
Not always. If your business account is with a licensed bank, then your funds will be protected by the Financial Services Compensation Scheme (FSCS) should the bank go bust. What’s more, if your business is a separate legal entity, such as a limited company, then you could be eligible to receive up to £85,000 from your business account.
However, if you are a sole trader there is no legal separation between your business and personal finances. This means, if you have a business and personal account with the same provider, you can only reclaim up to £85,000 through the FSCS in total for both accounts.
Some business account providers offer e-money accounts, which are similar to a bank account except they are not protected by the FSCS. However, providers should safeguard your money by keeping your funds separate from their own business funds. Check the terms and conditions of the provider to see what protection an account comes with.
If you are a sole trader or a freelancer, you can use a personal account for your business finances, as long as it doesn’t break any terms and conditions. However, if your business is a separate legal entity – for example, a limited company or a limited partnership – you cannot use a personal account. You will need to open a separate business account instead.
Review methodology
At NerdWallet UK, we base our reviews and our ‘Best’ pages on the results of surveys we undertook about what was important to people who use these products. This allows us to look at products impartially of any commercial arrangements we have and fairly rate the products on the same set of criteria.
Best means our ‘Best’ and is based only on what products we have aligned to our surveys, which form the basis of our reviews and ratings. This means that there will be other products on the market that we have not included in our ‘Best’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
Our reviews may display lenders’ rates. This additional information has not been included in our evaluations but is still very important when choosing a product. Rates offered can depend on circumstances, amount and term. Always check details before proceeding with any financial product.
Product details reflect the information that was available at that time but may have changed since. We strive to give you a review on as many products as possible, but there will be products not included on the market. The review is our opinion, but it does not constitute advice, recommendation or suitability for your financial circumstances.
You can view our full review methodology here.
Image source: Getty Images
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