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- Free day-to-day online business banking*
- Designed for businesses with a turnover of less than £1million
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
16 Products Compared
Tide Business Bank Account- Monthly Fee:Free
- Monthly Fee Offer:Ongoing
- Bank Transfers:Free for one year*
- Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- 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
Virgin Money M Account for Business-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Free online business banking (excluding CHAPS & international)
- 0.25% cashback on debit card purchases. Terms apply
- For businesses with less than £1m annual turnover
- Virgin Money offers 24/7 self-service but not 24/7 customer support
- Free day-to-day online business banking (excluding CHAPS and international payments)
- Earn 0.25% Cashback on debit card purchases. Terms and exclusions apply
- Manage all your business data in one place using Virgin Money’s M-Track insights platform. Link up your business to market leading tools, such as Sage, Xero, Google, Shopify and more, to track them from one simple dashboard
- 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
- For limited companies, please allow up to 72 hours from registering your business with Companies House, before starting an application
HSBC UK Small Business Banking Account-
Monthly Fee:£0
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Monthly Fee Offer:None
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Bank Transfers:Free*
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Overdraft:Yes
- No monthly account fee and free UK digital banking*
- Comprehensive features: A full range of business banking services.
- *Free UK digital banking means day-to-day standard electronic transfers made through Business Internet Banking and HSBC UK Business Banking app are free. Other charges apply e.g. cheques and CHAPS. See Business Price List for details. Subject to application, eligibility, credit check and T&Cs.
- **You must be an HSBC Business Banking customer to access free accounting tools through My Business Finance. Once you’ve opened your account, you’ll need to set up Business Internet Banking to get access. This is not available for HSBC Kinetic customers. T&Cs apply. Find out more here.
- No monthly account fee and free UK digital banking*
- Free accounting tools to stay on top of invoices, cashflow and tax.**
- A full list of prices and charges applicable can be found in HSBC UK’s Business Price List at business.hsbc.uk/legal
- Sole traders, limited companies, partnerships, limited liability partnerships and non-charitable clubs/associations/societies can all apply
- Must be a tax resident in the UK but not the Channel Islands or the Isle of Man
- Available to Small Business Banking customers who are typically small enterprises with borrowing needs of up to £100k and whose everyday banking needs don’t need the support of a Relationship Manager. Please note, government lending schemes are subject to different limits.
- Borrowing is subject to application, eligibility, affordability and credit check. T&Cs, fees, charges and rates apply. For loans, you don’t need to open or maintain an HSBC Business Current Account unless a debenture or fixed charge over book and other debts is required.
Tide Savings Business Bank Account & Savings Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free for one year*
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Overdraft:No
- Apply online in minutes with no credit checks or paperwork needed
- This account comes with no monthly maintenance fees
- 20p per bank transfer
- Single director access only
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
- 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
Airwallex Explore Business Account-
Monthly Fee:Free*
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- Open local currency accounts in 60+ countries
- Make international transfers to 150+ countries at interbank rates
- Deposit £10,000 p/month or hold £10,000 to be free, if not £19 p/month
- An e-money product with no branch access
- Open multiple accounts per entity. Collect and hold in 20+ currencies
- Expense management for cards and reimbursements
- Free local transfers to 120+ countries and domestic transfers. Access to interbank FX rates and batch transfers
- Multi-currency and employee cards with zero international fees
- Includes 5 free employee card users and up to 10 company cards
- Online card and local payment method acceptance globally
- Bank feeds sync with Xero. ApprovalMax, WorkflowMax by BlueRock Integrations
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
Monzo Business Lite-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- For sole traders and small businesses wanting a free, simple digital current account
- Get instant notifications for all account activity to stay in control of your cash flow
- Online account management only, no phone or branch access.
- Not currently available for charities or partnerships.
- Free, instant UK bank transfers
- 24/7 customer support
- Mobile and web access
- The Monzo banking essentials
- Only sole traders or limited company directors in the UK can apply. Ts&Cs apply.
Barclays Start-up Business Bank Account-
Monthly Fee:£8.50
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Monthly Fee Offer:12 months free
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Bank Transfers:Free
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Overdraft:Yes
- Free digital banking and no monthly account fee for the first 12 months*
- Access to discounted services via key partners, worth over £5,000**
- After 12 months, the monthly account fee is £8.50 per month*
- **T&Cs apply to each partner service, see partner website for details.
- No monthly account fee* plus access to discounted services via key partners to help you set up and run your business effectively, worth over £5,000**
- A UK-based team of business managers to help you manage and grow your business
- Simple and secure online banking with group payments and cash collection booking tools
- Businesses with existing Barclays business current accounts aren’t eligible for this offer. After 12 months, you’ll pay £8.50 per month. Fees and charges will apply in line with the business account tariff which may be subject to change.
- Must be over 18, a UK resident and a sole trader or the director of a limited company
- Overdrafts are subject to application, financial circumstances and borrowing history.
Zempler Bank Business Bank Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:3 free per month
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Overdraft:Yes
- There are no credit checks to open an account
- Accounting integrations Inc. Xero, Quickbooks & Sage
- A one-off £9.95 card issuing fee applies
- ATM withdrawal fees apply in UK and abroad
- 24/7 app & online servicing and UK based customer service team
- FSCS protection – up to £85,000
- Deposit cash into any of the UK’s 11,500 Post Offices.
- Invoicing tools that allow you to create and send invoices easily
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18 years old plus
Cynergy Bank Business Current Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- International payments in 7 major currencies, including EUR and USD
- Online application for businesses with up to 10 directors
- £5 per month after the 12 month free period
- Fees apply for cash, CHAPS, SWIFT and SEPA transactions
- 3.50% on balances up to £10k and 0.10% for balances above £10k
- Make international payments in up to seven major currencies, with option to open EUR or USD accounts.
- Customise workflows for account management and transaction approvals requiring more than one account user to sign-off.
- Bulk payment processing.
- Online application for businesses with up to 10 directors.
- Must be a sole trader, partnership, limited liability partnership (LLP) or limited company (LTD)
- Must be registered and eligible to pay tax in the UK
- Have a maximum of 10 directors
Allica Bank Business Current Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:No
- Access to competitive savings interest rates
- Earn up to 1.5% cashback on eligible card spending
- Businesses must be trading for at least 6 months
- Must have a min balance of £50k or have an Allica loan product
- Up to 4.33% AER (variable) on integrated Instant Access Savings Pot.
- Up to 1.5% cashback on eligible card spend. View Business Rewards Account Terms and Conditions on Allica bank website
- UK based dedicated relationship manager
- Eligible customers are covered by FSCS up to £85,000
- Direct accounting integrations with Sage and Xero
- Businesses must be incorporated for at least 12 months
- Businesses keeping less than £50,000 in their account will earn a reduced rate of interest and may incur fees.
Wallester Business Expense Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:No
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Overdraft:No
- Streamlining company spending with virtual and physical cards, automation, and a real-time dashboard for complete expense control
- Open accounts and issue cards quickly without visiting a bank
- Wallester is not a business bank account, you don’t get traditional banking features like transfers, overdrafts or loans.
- Wallester is a business expense and corporate financial management account
- Free package with 300 free virtual cards and an unlimited number of free physical cards
- Free multifunctional dashboard for tracking and managing expenses
- No top-up fee (in EUR), no transaction fees, no usage fee, no issuance fee, and no fee for adding extra users
- Ten currencies, including GBP, EUR, USD and other European currencies (SEK, NOK, CZK, HUF, RON, PLN, DKK)
- App included and API for integrations with any CRM accounting software
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Must have an eligible business bank account
Anna Money Pay As You Go-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:From 20p
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Overdraft:No
- You can obtain a UK business account and sort code in 3 mins with ID
- One free debit card included (£3 per extra card)
- No joint account access
- An e-money product with no branch access
- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
The Co-operative Business Bank Account-
Monthly Fee:Free
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Monthly Fee Offer:Ongoing
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Bank Transfers:Free
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Overdraft:Yes
- Ideal for start ups and growing businesses who bank digitally
- No charges for all automated credits, cash withdrawals and debit card purchases
- Charges apply for cash and cheque transactions
- An overdraft arrangement fee applies and where security is required, additional security fees may apply
- Free everyday digital business banking. No monthly fee. No charges for all automated credits, cash withdrawals and debit card purchases
- Integrate your accountancy software like Xero, Sage or Quickbooks within your online banking
- Online and in-person banking including mobile, instant secure messaging, UK based contact centre, and in branch. Rated ‘Excellent’ based on over 12,000 reviews on Trustpilot
- Most receive their account details within three days
- Co-operative Bank business customers get free, unlimited access to the Go Get Paid app – the fast, simple, secure way to get paid. Plus access selected Clover payment terminals for £1 a month for the first 12 months (fees apply)
- The original ethical bank with a customer-led Ethical Policy
- Must be a UK resident with a business address in the UK
- Must be 18 or over
- You or your organisation must be one of the following: “a Sole Trader, Partnership, Limited Liability Partnership or Limited Company
Counting Up Business Current Account-
Monthly Fee:£3
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Monthly Fee Offer:3 months free
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Bank Transfers:30p
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Overdraft:No
- Perfect for start-ups: Pay a low monthly fee depending on how much your business earns
- Automated taxes calculates what you owe in real time
- The price increases with account usage
- An e-money product with no branch access
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
How to Compare Business Bank Accounts
Understand Your Requirements
How you do business will affect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Check Eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Compare The Latest Deals
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends.
What ‘Free’ Means for Business Bank Accounts
In the world of business banking, the word ‘free’ can be appealing, especially for freelancers, sole traders and small businesses looking to keep their overheads low. However, it’s important to understand what a ‘free’ business bank account offers. Generally, it means you won’t be charged a monthly or annual fee for having the account. This is the most common interpretation and the main draw for many business owners.
While the absence of a monthly fee can be a significant saving, ‘free’ rarely means that all the associated services are without cost. Most accounts will have a schedule of fees for specific account activity. These can include charges for depositing cash or cheques, making international payments, or exceeding a set number of free monthly transfers. The key is to look beyond the headline offer and examine the small print to ensure the account’s fee structure aligns with how your business operates.
Who Offers Free Business Bank Accounts?
Free business banking is available from two main types of providers in the UK:
Digital Challengers
A relatively new wave of app-based, digital-only account providers have transformed the business banking landscape. Providers like Starling Bank, Tide, and Revolut often lead with free business accounts as their standard offering. These accounts are managed entirely through a smartphone app or web portal and are known for their user-friendly interfaces, quick setup times, and innovative features like spending analytics and accounting software integration. For many freelancers and modern small businesses that operate primarily online, these accounts offer everything they need without the monthly fee or for a free introductory period.
Traditional High Street Banks
In response to the competition from digital challengers, many high street banks now provide introductory free or free banking periods for new business customers. Major banks like HSBC, Barclays, and NatWest can offer up to 2 years of free banking.
Monthly fees may or may not feature, but other types of charges will. However traditional high street banks offer a much broader range of services that you cannot access via the digital only counterpart. These might be your longer term partner if growth is a big part of your plans.
When choosing a free account, it’s vital to be aware of potential limitations and costs that may not be immediately obvious.
- Transaction Limits: Many free accounts set a limit on the number of free payments you can make or receive each month. If you exceed this, you’ll be charged per transaction or in batches of transactions.
- Cash and Cheque Handling: Digital banks, in particular, may have limited or costly options for depositing cash. If your business handles a lot of physical money, the fees for depositing it could outweigh the benefit of a free account.
- International Fees: Sending and receiving money from overseas can attract high fees and uncompetitive exchange rates if you’ve paired with the wrong account. Look for accounts designed for international payments.
- Additional Services: Access to features like overdrafts, business credit cards, or dedicated relationship managers may be limited or come at an extra cost compared to premium, paid-for accounts.
Is a Free Account Right for Your Business?
A free business bank account is an excellent choice for many, but not all, businesses. It is often best suited for:
- Freelancers and Sole Traders: Individuals with a relatively low volume of simple transactions can benefit from a no-fee account.
- Digital-First Businesses: Startups and online businesses that don’t handle cash and can manage their finances entirely through an app can find these accounts a perfect fit.
- New Startups: A free introductory period from a high street bank or digital only, can provide valuable breathing room while the business finds its feet.
However, if your business has a high transaction volume, frequently deals in cash, or requires complex international banking, a paid account with a more inclusive fee structure might prove more cost-effective in the long run, demonstrating it’s important to look beyond ‘free’ banking.
Free Business Bank Account FAQs
1. Are free business bank accounts truly free?
They are free in the sense that they don’t have a monthly account fee. However, you may still be charged for certain activities, such as depositing cash, making international payments, or exceeding transaction limits. It’s essential to read the account’s terms and conditions carefully and align to your financial profile. .
2. Is my money safe in a free business bank account?
If the provider is a fully licensed UK bank, your eligible deposits are protected by the Financial Services Compensation Scheme (FSCS). This scheme protects up to £85,000 per person, per banking institution (not per account). Not all business account providers can offer FSCS protection, but not all types of banking require the need to hold a reasonable balance, that needs that protection. You should be able to find a FSCS protection logo on a provider’s website if they are able to offer it.
3. What happens when an introductory free banking period ends?
When the fee-free period offered ends, the monthly fee will start to be debited from your account. You should be notified before this happens, giving you the opportunity to review your options and switch if you find a better deal elsewhere.
4. Can I get a free business bank account if I have a poor credit history?
It can be more challenging, but it is not impossible. While most banks will perform a credit check, some providers specialise in offering basic business accounts that are available to individuals with a less-than-perfect credit history. These accounts may have more limitations but can provide the essential banking facilities you need.
5. Can I switch to a free business bank account easily?
Potentially yes, the Current Account Switch Service (CASS) makes switching business bank accounts straightforward. For small businesses, charities, and trusts with an annual turnover of up to £6.5 million, the service is free and guarantees your switch will be completed in seven working days. Most banks are part of this service, along with some other of the newer digital account providers, which will move all your existing payments and balance for you. Check to see if this service is available before you move forward with switching.