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Published 15 March 2024
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Best Free Business Bank Accounts March 2024

Business account providers may offer free banking services. However, details can vary greatly between products and providers. Compare the top 9 free business accounts in the UK to find one that best suits your needs.

Many 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 9 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.

Nerdwallet Logo Partner Spotlight

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.

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Editor’s Picks

Business Bank Accounts

Editor’s Pick

UK Card Purchase Fees

UK Bank Transfer Fees

Monthly Fee

 

Monzo Lite Business Account
Overall
Free
Free
Free

Virgin Money M Account for Business
High street
Free
From free
Free

Mettle Business Bank Account
Transactions
Free
Free
Free

Revolut 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 9 Best Free Business Bank Account Providers

This top 9 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.

4.8

Monzo

Monzo Lite Business Account

Monzo Lite Business Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free
  • UK Bank Transfer Fees
    Free
  • Offer
    n/a
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • Available to sole traders, or the director of a registered limited company by shares (Ltd)
  • Must be based in the UK
NERDWALLET'S REVIEW SUMMARY

Ideal for anyone just starting out, Monzo Business makes it easy for you to set up a new account and start managing your money. 

Monzo offers a wide variety of business banking services, but you won’t have access to all of them unless you pay for its Pro account. 

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.
Monthly feeFree
Transaction feesYes (cash deposits, plus ATM withdrawals outside EEA*)
Account managementVia a mobile app
Online
FSCS protectionYes
Set-up timeSame day
Cash depositsYes (£1 at PayPoint)
Cheque depositsYes (free by post)
Pros and cons

Pros:

  • 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.
  • Monzo business accounts can be integrated with multiple leading brands of accounting software, and business customers can get a six-month free trial with Xero.

Cons:

  • It is not possible to manage the account over the phone or at a branch.
  • Business accounts are not available to charities or partnerships.
  • Cash deposits come with a fee of £1 at PayPoint. This may not be a huge amount of money, but it could have an impact on businesses that frequently need to deposit cash.

4.7

Virgin Money

Virgin Money M Account for Business

Virgin Money M Account for Business
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free
  • UK Bank Transfer Fees
    From free
  • Offer
    n/a
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • 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
NERDWALLET'S REVIEW SUMMARY

Virgin Money has a free account for start ups and small businesses with an annual turnover of less than £1 million. 

Additional features include cashback on debit card purchases and the possibility of obtaining an overdraft. 

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 £85,000 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.

Monthly feeFree
Transaction feesNo, for day-to-day banking. Yes, for other transactions.
Account managementAt a branch, in-app, online and over the phone
FSCS protectionYes
Set-up timePotential for same-day set-up
Cash depositsYes (90p per £100)
Cheque depositsYes (free via app)
Pros and cons

Pros:

  • 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.

4.7

Starling Bank

Starling Bank Business Account

Starling Bank Business Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free
  • UK Bank Transfer Fees
    Free
  • Offer
    n/a
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • Must be a Limited Company or LLP registered at Companies House. General partnerships or charities that aren’t registered as a Limited Company aren’t supported yet
  • All directors with access to the account must be UK residents
NERDWALLET'S REVIEW SUMMARY

Sole traders, limited companies and limited liability partnerships can use Starling’s free business bank account.
The account has no fees for basic transactions, and Starling’s mobile apps have some of the highest review scores out there.
For further details, read NerdWallet’s Starling Account Review.

Starling key features:

  • Free transactions: Everyday transactions, such as direct debits and standing orders, will not cost you a penny.
  • FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 

Business Fixed Saver: Every Starling business bank account allows you to open a Business Fixed Saver, which can help your business to earn interest.

ing for groups with turnover of less than £1 million per year.

Monthly fee£0
Transaction feesNo for Faster Payments, direct debits and standing orders, but fees may apply for other transactions.
Account managementOnline and via the app
FSCS protectionYes
Set-up timeAverage one day (95% same day)
Cash depositsYes (Post Office)
Cheque depositsYes (free by post)
Pros and cons

Pros:

  • 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.

4.3

The Co-operative Bank

The Co-operative Bank Directplus Business Account

The Co-operative Bank Directplus Business Account
  • Monthly Fee
    Free for 30 months
  • UK Card Purchase Fees
    Free for 30 months
  • UK Bank Transfer Fees
    Free for 30 months
  • Offer
    Free everyday business banking for first 30 months + free access to the Go Get Paid app
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • Must be aged 18 or over
  • Must be a UK resident with a business address in the UK
  • Must be either a Sole trader or partnership, Limited liability partnership, Limited company
NERDWALLET'S REVIEW SUMMARY

This is a bank that puts ethical and sustainable concerns at the forefront of its mission statement, so it might appeal if you share similar values. It also offers a range of free and paid accounts, so you may well find an account that is tailored to your needs.

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

The Co-operative Bank key features:

  • Range of accounts: The Co-op Bank’s choice of business accounts could suit a range of organisations, including small businesses and charities.
  • FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
  • Additional features: Having a Co-op business account will allow you to apply for overdrafts, a charge card, a credit card, and a variable rate business loan.

Customer support options: Manage your account online, over the phone, via the app and at a branch.

Monthly feeFree
Transaction feesNo (standing orders, Faster Payments, direct debits). Yes for other transactions.
Account managementOnline, over the phone, in a branch and via the mobile app
FSCS protectionYes
Set-up time14 days
Cash depositsYes (£1,000 free a month, then 80p per £100)
Cheque depositsYes (25 free a month, then 75p per cheque)
Pros and cons

Pros:

  • Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
  • You can manage your business account online, over the phone, via the mobile app and in a branch.
  • You can apply for a business overdraft, credit card, charge card and loan.

Cons:

  • The Co-operative Bank says that it can take, on average, 14 days to open an account.
  • 24/7 customer service is not available.
  • There are no branches in Northern Ireland.

4.2

RBS

RBS Start Up Business Account

RBS Start Up Business Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free for 24 months
  • UK Bank Transfer Fees
    Free for 24 months
  • Offer
    24 months free banking
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying

Eligibility Criteria
  • 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
NERDWALLET'S REVIEW SUMMARY

RBS offers three accounts that only charge for what you use, meaning there is no fixed monthly fee. 

In addition, the RBS Start-Up Account carries no transaction fees for the first 24 months, making it well-suited to new businesses. 

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

RBS key features:

  • Transaction fees: Opening a Start-Up Account means you will not have to pay transaction fees for the first 24 months.
  • Additional features: You can also apply for a business overdraft, credit card or loan through an RBS business account.
  • Account perks: Benefits include free access to FreeAgent accounting software and access to a dedicated relationship manager.
  • Charities included: A range of charities and not-for-profit organisations can have access to RBS business accounts.

FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Monthly feeFree
Transaction feesNo, for the first 24 months. Yes, once the opening offer has elapsed.
Account managementOnline, via an app, in a branch and over the phone
FSCS protectionYes
Set-up timeSame day
Cash depositsYes (70p per £100 outside free period)
Cheque depositsYes (70p per £100 outside free period)
Pros and cons

Pros:

  • There are no transaction fees for the first 24 months when using a Start-Up Account.
  • RBS claims that 87% of its customers open their business account on the same day as their application.
  • 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, with customer service available from call centres 24/7.

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.
  • After the end of fee-free promotional periods, all transactions from RBS business accounts carry a cost.

4.1

NatWest

NatWest Start Up Business Account

NatWest Start Up Business Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free for 24 months
  • UK Bank Transfer Fees
    Free for 24 months
  • Offer
    24 months free banking
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • 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
NERDWALLET'S REVIEW SUMMARY

NatWest offers three different accounts for business customers. These are an account for start ups, an account for more established businesses, and a community account for charities and societies. For sole traders and small businesses searching for a free mobile business account, there is also NatWest’s Mettle app.

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

NatWest key features:

  • Fact-to-face support: Customers across England and Wales can head to branches for customer service in person.
  • Customer support: Support can be accessed in several ways 24/7.

FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Monthly feeFree
Transaction feesYes, after 24-month introductory offer
Account managementOnline, over the phone, in a branch or Post Office and via the mobile app
FSCS protectionYes
Set-up timeOne day
Cash depositsYes
Cheque depositsYes
Pros and cons

4.0

Mettle

Mettle Business Bank Account

Mettle Business Bank Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free
  • UK Bank Transfer Fees
    Free
  • Offer
    FreeAgent Included
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • For sole traders or limited companies with up to two owners
  • Maximum balance of £1million
  • You’ll need an iOS or Android device to open and manage the account
  • For UK-based companies with owners who are UK residents and pay tax in the UK only
NERDWALLET'S REVIEW SUMMARY

Mettle business accounts are explicitly aimed at the self-employed and have no monthly fees or transaction charges. It also has one of the best reviewed apps on the market, making for a cheap and simple-to-use account for everyday business banking. 

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

Mettle key features: 

  • Business banking app: Mettle’s business banking app has excellent reviews on both iOS and Android devices.
  • Sole traders and limited companies: You can only get a Mettle business account if you are a UK-based sole trader or a limited company with up to two owners.

Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Monthly feeFree
Transaction feesNo
Account managementOnline and via the mobile app
FSCS protectionYes
Set-up timeWithin 72 hours
Cash depositsYes (via Post Office or PayPoint)
Cheque depositsNo
Pros and cons

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 (and also at a PayPoint for e-accounts).
  • 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.

3.8

Allica Bank

Allica Bank Business Rewards Account

Allica Bank Business Rewards Account
  • Monthly Fee
    Free
  • UK Card Purchase Fees
    Free
  • UK Bank Transfer Fees
    From free
  • Offer
    Up to 1.5% cashback
Learn More

This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

Eligibility Criteria
  • For UK-based businesses only
  • You must have a minimum estimated annual turnover of £700k OR at least 7 employees to open a Business Rewards Account
  • NERDWALLET'S REVIEW SUMMARY

    With a single product – its Business Rewards Account – Allica Bank is targeting established small and medium-sized enterprises (SMEs). The account carries no monthly fees and allows free bank payments. It could be of particular interest to those looking to earn interest on savings, thanks to dedicated rewards features.

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

    Allica Bank key features:

    • Instant access savings pot: You can earn 4.33% AER on business savings, as well as depositing or withdrawing from these at any time.
    • Cashback on eligible purchases: Earn 1% cashback on eligible monthly debit card aggregate purchases up to £10,000, and 1.5% on monthly aggregate purchases above £10,000. Aggregate purchases are when all the smaller sums you’ve spent are added together.

    FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

    Monthly feeFree
    Transaction feesNo
    Account managementOnline and via the mobile app
    FSCS protectionYes
    Set-up timeThree to five days
    Cash depositsNo
    Cheque depositsNo
    Pros and cons

    Pros:

    • There are no transaction fees for incoming or outgoing bank payments or card payments, or for outgoing direct debits.
    • Allica Bank’s business banking customers in England, Scotland and Wales have access to local relationship managers who can provide tailored expertise.
    • Each Business Rewards Account provides an instant access savings pot with 4.33% 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.

    3.8

    Cashplus

    Cashplus Bank Business Go Account

    Cashplus Bank Business Go Account
    • Monthly Fee
      Free
    • UK Card Purchase Fees
      Free
    • UK Bank Transfer Fees
      3 free per month
    • Offer
      n/a
    Learn More

    This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.

    Eligibility Criteria
    • 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
    NERDWALLET'S REVIEW SUMMARY

    The Cashplus business account may appeal to customers with bad credit, as there is no credit check when you apply for this account. Additionally, its paid-for Business Extra account can bolster your credit score using the Business Creditbuilder feature.

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

    Cashplus key features:

    • Credit and overdraft facilities: An account offers the chance to apply for a business overdraft, a business credit card, and a merchant cash advance.
    • Business Creditbuilder: If you open an account, you can upgrade to boost your credit score with the Cashplus Business Creditbuilder.
    • No maintenance fee: There is no monthly charge for having this account.

    FSCS protection: Cashplus is a fully-licensed bank, so your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

    Monthly feeFree
    Transaction feesYes (payments outside free allowance, ATM withdrawals, cash deposits)
    Account managementOnline and via the mobile app
    FSCS protectionYes
    Set-up timeSame day
    Cash depositsYes (0.5% fee, minimum £3)
    Cheque depositsNo
    Pros and cons

    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 99.90% 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 branches.
    • Cashplus does not have 24/7 customer service.

    This top 9 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 9 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.

    ProviderStar rating
    Monzo
    Virgin Money
    Starling
    The Co-operative Bank
    RBS
    NatWest
    Mettle
    Allica Bank
    Cashplus

    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 9 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:

    » 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.

    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

    Do free business bank accounts have any restrictions?

    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. 

    Can I use a personal account for my small business?

    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.

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