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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.
For businesses with a turnover of less than £1 million, the M Account for Business gives you free day-to-day online business banking for all your everyday needs.
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.
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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:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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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:
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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:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Allica Bank’s Business Rewards Account caters for established small and medium-sized enterprises (SMEs). This account offers customers a chance to earn interest on savings and take advantage of other rewards features, all while paying no monthly fees.
For more details, read NerdWallet’s Allica Bank Business Account review.
Allica Bank key features:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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Mettle’s offering is specifically designed for self-employed workers and limited companies with up to two owners. Its account lets customers bank without any monthly fees or transaction charges, while the app is one of the best around.
For more details, read NerdWallet’s Mettle Business Account review.
Mettle key features:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
All three accounts offered by RBS only charge customers for what they use, meaning there is no fixed monthly fee. Customers who go for the RBS Start-Up Account will not have to pay transaction fees for two years.
For more details, see NerdWallet’s RBS business account review.
RBS key features:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
The Zempler Bank’s 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, which costs £9 per month, can bolster your credit score using the Business Creditbuilder feature.
For more details, check out NerdWallet’s Zempler Bank Business Account review.
Cashplus key features:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
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Tide offers a lot of variety in its business accounts, which include Free, Plus, Pro and Cashback options. Tide’s Free account gives customers access to accounting software integration, free invoicing a free company card and much more. In addition, its quick set-up times and well-reviewed app make Tide a potentially attractive option.
For more details, read NerdWallet’s Tide Business Account Review.
Tide Key features:
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This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
This top 10 only contains business account providers reviewed by NerdWallet UK.
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.
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.
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.
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.
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
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.
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.
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.
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.
The business bank accounts listed on this page have no monthly fees, meaning it costs nothing to maintain them. In addition, some include free basic transactions, such as standing orders and direct debits. While most accounts will charge for some services, such as depositing cash or cheques. At the moment, Mettle is the only totally free business bank account, but it does lack some features, such as international payments and cheque deposits.
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.
While we try to provide you with accurate information, the providers can change the terms of their products at any time, therefore it is advisable to check the terms before you proceed.
You can view our full review methodology here.
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