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

Choose your business current account options

4 products found
  • Tide logo

    Tide Business Bank Account

    • Monthly Fee
      Free
    • Card Purchases
      Free
    • Bank Transfers
      20p
    • Overdraft
    • Access
      App & Online
  • Starling Bank logo

    Starling Business Bank Account

    • Monthly Fee
      Free
    • Card Purchases
      Free
    • Bank Transfers
      Free
    • Overdraft
    • Access
      App & Online
  • Countingup logo

    CountingUp Starter

    • Monthly Fee
      Free
    • Card Purchases
      Free
    • Bank Transfers
      20p
    • Overdraft
    • Access
      App only
  • CardOneMoney logo

    CardOneMoney Business Account

    • Monthly Fee
      £12.50*
    • Card Purchases
      Free
    • Bank Transfers
      30p
    • Overdraft
    • Access
      App & Online

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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Last updated on 30 March 2021.

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
  • Overdrafts

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.

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