Free Business Bank Accounts
“Free” doesn’t always mean free. Compare business accounts with no monthly fee, and see what’s actually included.
Tide Business Bank Account
- The all-in-one platform for managing your business.
- Get £150 Cashback when you open a tide business bank account. T&C's apply.
We may earn a commission if you click through or open an account. This never affects the price you pay. How we rank
Business Rewards Bank Account
A business current account designed for established UK businesses, offering cashback on card spend, competitive savings rates, dedicated relationship support and integrated accounting tools. Great For
0.25% extra AER for 3 months on Savings Pot.
WorldFirst Global Business Account
Pay overseas suppliers fast . Competitive FX rates, same-day payment delivery, and multi-currency accounts purpose-built for UK businesses.
0.3% FX rate automatically unlocked on sign-up.
The Financial Services Compensation Scheme (FSCS) protects up to £120,000 of eligible deposits per person or company, per firm, which is authorised and regulated by the Financial Conduct Authority (FCA). The limit is the total of all deposits held with one firm. For more information visit www.fscs.org.uk.
The basics
What “free” actually means on a business account
Many business accounts advertise no monthly fee, but free usually applies to the account itself — not everything you do with it. It’s worth checking a few things before assuming a free account stays free in practice.
Watch for transaction limits (many cap free transfers, card payments or transactions per month), cash and cheque deposits (often more expensive with digital-only providers), international payments (FX and transfer fees can apply even on a fee-free account), and charges for additional debit cards or team-member access.
None of this makes free accounts a bad choice. For businesses with low transaction volumes and no need for cash handling or international payments, a genuinely free account can be the most cost-effective option — just check your typical monthly activity against a provider’s specific terms rather than assuming free covers everything.
Behind the scenes
How free business accounts make money
A free account isn’t free to run, so it helps to understand how providers earn elsewhere. The main mechanism is interchange fees: every time you use your business debit card, the merchant’s payment processor pays a small fee, part of which goes to your bank. Individually tiny, these add up across millions of transactions — a large part of how digital banks offer fee-free accounts.
Most free providers also offer paid upgrade tiers. Monzo pairs a free “Lite” account with a paid “Pro” tier, Tide offers “Tide Plus”, and Revolut offers higher tiers — giving providers revenue from businesses that need more than the free tier covers.
“Free” means no monthly fee, not no fees at all: international payments often carry a conversion fee, and overdrafts, wire transfers and paper statements typically still cost extra even on a fee-free account.
Free vs paid
Free vs paid: when to upgrade
A free account is often the right starting point, but a paid tier can save money as your needs grow. If you regularly make more transfers than a free tier’s allowance, a flat monthly fee can beat accumulating per-transaction charges. If you frequently pay or get paid in foreign currency, a paid tier’s reduced international fees can outweigh conversion charges on free tiers.
Overdraft access is often only available on paid tiers or a different provider entirely. Accounting-software integration, by contrast, is sometimes included even on free tiers — so check per provider rather than assuming. As a rule: if you make few transactions, rarely deal in foreign currency and don’t need an overdraft, a free account can stay the cheaper option as you grow; once any of those become regular, compare the free tier’s per-transaction charges against a paid tier’s flat fee.
Important Information
The accounts listed on this page are selected based on a combination of editorial merit and commercial relationships. We aim to keep all information accurate and up to date, but we recommend checking each provider's website for the latest rates, fees, and terms before applying. HowMuch may receive a referral fee if you apply for a product through our links. This does not affect our editorial independence.
What is a Business Bank Account?
A business bank account is a dedicated account for your business finances, kept separate from your personal money. In the UK, all limited companies are legally required to hold a separate business account. Sole traders are not required by law to have one, but it is strongly recommended — it makes your accounting simpler, VAT returns cleaner, and presents a more professional image to clients and suppliers.
Choosing an account
How to Choose a Business Bank Account
Choosing a business bank account is one of the first big decisions a business owner makes — and one of the easiest to get wrong by comparing on price alone. The right choice depends less on finding the cheapest account and more on matching an account's features, eligibility and support to how your business actually operates.
Eligibility
Who can open a business bank account?
Before comparing fees, check which accounts you're actually eligible for — criteria vary between providers and typically depend on:
Business structure — sole trader, limited company, partnership or LLP.
Turnover and trading history — some providers require a minimum trading period or turnover, while digital challengers often accept brand-new businesses with no history.
Residency and registration — some accounts require UK company registration or director residency, which matters for international or non-UK-resident directors.
Costs
Business bank account fees explained
Monthly fees are the most visible cost, but rarely the full picture. When comparing pricing, look at:
Monthly account fee
From free (common among digital challengers) to £5–£30+ for accounts with more features or dedicated support.
Transaction fees
Many free accounts cap the number of free transactions per month, then charge per transaction.
Transfer and payment fees
Domestic transfers are often free, but international, same-day and card payments can carry charges.
Cash and cheque deposit fees
Digital-only providers often charge more for these than banks with branch networks.
Overdraft and lending costs
Arranged overdraft rates vary widely, and unarranged fees can be steep.
Features
Features to look for
The right feature set depends heavily on your business model. Worth considering:
Accounting software integration
Direct links to Xero, QuickBooks or FreeAgent save significant admin time.
Expense management
Receipt capture, spend categorisation and multiple staff cards reduce manual bookkeeping.
Multi-currency and international payments
Check FX rates and transfer speed, not just whether multi-currency support exists.
API access
For larger or tech-forward businesses integrating banking data into internal systems.
Overdraft facilities
Useful for short-term gaps, though availability and rates vary, and they usually need a separate application.
Day to day
Features that matter day to day
Digital providers usually offer slicker apps and faster opening, but it is worth checking:
Customer support — in-app chat, phone support and response times differ, and matter most when something goes wrong.
Cash and cheque handling — if you deal in physical cash, branch or Post Office deposit access may matter more than app features.
Mobile app functionality — check invoicing, notifications and spending insights directly rather than assuming parity across providers.
Protection
Is your account FSCS protected?
Protections aren't the same everywhere, so it's worth checking rather than assuming:
FSCS protection — many, but not all, providers are covered, protecting eligible deposits up to £120,000 per person or company, per authorised institution.
E-money safeguarding — some digital providers are e-money institutions rather than banks, so funds are safeguarded instead of FSCS-protected — a different model, not necessarily less safe.
FCA authorisation — checking a provider's status on the Financial Services Register confirms they're authorised to operate in the UK.
Switching
Switching your business bank account
If you are moving from an existing account rather than opening your first, a few extra factors come into play:
Current Account Switch Service (CASS) — automates the transfer of direct debits, standing orders and payments, typically within 7 working days.
Overlap period — check how long your old account stays active during the switch, in case any payments are missed.
Switching incentives — weigh any cashback or fee waivers against the account's ongoing suitability, rather than choosing on the incentive alone.
Which business bank account is right for you?
There's rarely a single best business bank account — the right choice depends on your business structure, transaction volume, cash-handling needs and which features save you time day to day. Rather than starting from price, filter by eligibility and required features first, then compare costs across the shortlist that's left.
Compare business bank accountsFrequently Asked Questions
The account itself usually has no monthly fee, but most providers cap free transactions, cash deposits or international payments, with charges beyond those limits. Check a provider’s fee schedule against your expected activity.
Related articles
Do Sole Traders Need a Business Bank Account?
There is no legal requirement for sole traders to have a business bank account. But in practice, most will benefit from one, and with Making Tax Digital now in effect, the case has never been stronger.
How to Switch Your Business Bank Account
Switching your business bank account is simpler than most businesses expect. Here is how the Current Account Switch Service works and what to check before you start.
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