Best Free Business Bank Accounts

A free business bank account can help keep everyday banking costs down, especially if your business mostly receives digital payments and does not need regular branch services. But free business banking does not always mean fee-free banking. Many accounts with no monthly fee still charge for cash deposits, international payments, ATM withdrawals, CHAPS payments, extra users, accounting add-ons, card readers or transactions above an allowance.

This guide focuses on business accounts with no ongoing monthly account fee. We have not included accounts that are only free for a temporary introductory period, or accounts where the monthly fee is only waived if you meet a balance or usage condition.

Best Free Business Bank Accounts Summary

• Best overall free business account: Starling Bank Business Current Account
• Best for sole traders wanting bookkeeping included: Mettle Business Bank Account
• Best free app-based account with an upgrade path: Monzo Business Lite
• Best free-plan account for add-ons: Tide Business Current Account
• Best free account with cash deposits: Zempler Bank Business Go
• Best free high-street options: HSBC, NatWest/RBS, Virgin Money, The Co-operative Bank
• Best free account for established SMEs: OakNorth Bank Business Current Account, if your business meets the eligibility criteria
• Best free account for merchants: SumUp Free Business Account
• Best free account with built-in admin: ANNA Pay As You Go, if the usage-based charges fit your business

We ordered these providers based on how useful they are likely to be for businesses specifically looking for no-monthly-fee banking. We looked at whether the free pricing is ongoing, what still costs money, how easy the account is to use without upgrading, cash deposit options, transaction costs, eligibility, FSCS protection or safeguarding, integrations and suitability for different business types. Commercial partnerships do not determine the order of this list.

This page is for information only and is not financial advice. Account fees, eligibility and features can change, so always check provider terms before applying.

Starling Bank Business Current Account

Best for: Businesses that want a genuinely free core account for everyday UK digital banking, with room to add paid tools later.

Potential drawbacks: The core account has no monthly fee, but cash deposits, business toolkit features, bulk payments and foreign currency accounts can add cost. It is less suitable if you need branch banking or regular over-the-counter cash handling.

Key free-account features: Free core GBP account, free everyday UK transfers, app and desktop access, spaces, invoicing, accounting integrations and optional paid add-ons.

• No-monthly-fee position: The core GBP business account has no ongoing monthly account fee. This is not just an introductory free banking period.
• What is included without paying monthly: Everyday digital banking, UK payments, app access, desktop banking, card spending and basic account management are available without a monthly account charge.
• Main costs to check: Cash deposits, foreign currency use, Business Toolkit, Bulk Payments and additional currency accounts can add costs.
• Cash deposits: Available through the Post Office, usually with a percentage fee and minimum charge. This matters if your business handles cash frequently.
• International use: Possible through paid EUR and USD account add-ons and currency conversion, but it may not be the cheapest option for heavy international trading.
• Accounting and admin: Accounting integrations are available, while more advanced bookkeeping tools may require the paid Business Toolkit.
• Protection: FSCS protection applies to eligible deposits because Starling is a UK-authorised bank.
• When a paid account may be better: A business making bulk payments, holding foreign currencies or relying on advanced bookkeeping tools may need paid add-ons or a different account.

Eligibility criteria: Suitable for sole traders, limited companies and LLPs, subject to checks. Some sectors, cash-intensive businesses or complex ownership structures may be restricted.

See more on the Starling Bank website

More info

Mettle Business Bank Account

Best for: Sole traders, freelancers and very small limited companies that want a simple free account with bookkeeping support built in.

Potential drawbacks: Mettle is not designed for larger teams, complex ownership structures, branch banking, regular cash handling or international payments.

Key free-account features: No monthly fee, FreeAgent access, invoicing, receipt capture, tax pots, savings pots, app banking and web banking.

• No-monthly-fee position: The core Mettle account has no monthly account fee. Mettle+ and some additional features may be paid.
• What is included without paying monthly: Everyday UK digital payments, app and web banking, invoicing, receipt capture and FreeAgent access are the main free-account attractions.
• Main costs to check: The bigger issue is not usually a monthly charge, but whether the account has the features your business needs at all.
• Cash deposits: Not a good fit for businesses that regularly deposit cash or cheques.
• International use: Not supported as a core feature, so businesses with overseas suppliers or clients may need another account.
• Accounting and admin: This is Mettle's strongest free-account point, because FreeAgent and simple tax/admin tools can reduce bookkeeping workload.
• Protection: FSCS protection applies to eligible deposits because Mettle is part of the NatWest banking group.
• When a paid account may be better: If you need multiple users, international payments, regular cash deposits or a broader banking service, a different free account or paid account may be more suitable.

Eligibility criteria: Suitable for sole traders and limited companies with up to two owners, subject to residency, tax and business checks. It is not suitable for larger companies, partnerships, complex ownership or branch-heavy banking needs.

See more on the Mettle website

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Monzo Business Lite Account

Best for: Sole traders and single limited company directors who want a simple free business account in a familiar app, with the option to upgrade later.

Potential drawbacks: The free Lite plan is deliberately simpler than Monzo Pro or Team. Invoicing, accounting integrations, more users and some advanced tools sit behind paid plans.

Key free-account features: No monthly fee on Lite, free UK transfers, app-based account management, pots and an easy upgrade path to paid business features.

• No-monthly-fee position: Monzo Business Lite has no ongoing monthly fee. Monzo Pro and Team are paid plans, starting from £9 per month.
• What is included without paying monthly: Simple app-based business banking, UK bank transfers, standing orders, Direct Debits and basic spending management.
• Main costs to check: Cash deposits, some foreign currency activity and any upgrade to Pro or Team can add cost.
• Cash deposits: Cash can usually be paid in through supported retail routes for a fee, but it is not as convenient as a branch-led account for cash-heavy businesses.
• International use: International transfers and currency conversion may involve Wise-powered payments and related fees.
• Accounting and admin: Lite is basic. Businesses wanting integrations, invoicing and extra management tools are likely to consider Pro or Team.
• Protection: FSCS protection applies to eligible deposits because Monzo is a UK-authorised bank.
• When a paid account may be better: If you need integrated invoicing, accounting software connections, multiple users or more control features, the paid Monzo plans may be more realistic.

Eligibility criteria: Available to sole traders and single-director limited companies, subject to checks. It is generally not suitable for partnerships, charities, trusts, public companies, complex ownership structures or restricted sectors.

See more on the Monzo website

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Tide Business Current Account

Best for: Freelancers, contractors, startups and small businesses that want no monthly plan fee plus business admin tools in one app.

Potential drawbacks: Tide's free plan can become less free in practice if you make lots of transfers, withdraw cash, deposit cash regularly or rely on international payments. There is no overdraft on the account.

Key free-account features: Free plan, invoicing, expenses, payment links, team cards, integrations, app-based account management and paid-plan upgrade routes.

• No-monthly-fee position: Tide free plan has no monthly fees. Tide Smart, Pro and Max are paid plans, starting from £12.49 plus VAT.
• What is included without paying monthly: Core app-based business banking, selected business admin tools and a route into Tide's wider payments and finance ecosystem.
• Main costs to check: Transfer charges after any free allowance, ATM withdrawal fees, cash deposit fees, international payment costs and paid-plan upgrades.
• Cash deposits: Available through Post Office and PayPoint routes, with fees. Cash-heavy businesses should compare this carefully.
• International use: Available, but costs vary and may be more competitive on higher paid plans or dedicated multi-currency accounts.
• Accounting and admin: Useful for businesses that want invoicing, expenses and integrations, but some allowances and features improve on paid plans.
• Protection: FSCS protection can apply where the account is provided through Tide's banking partner ClearBank. Check account terms.
• When a paid account may be better: If you make many transfers each month, regularly deposit cash or need lower FX costs, a paid Tide plan or another provider may cost less overall.

Eligibility criteria: Suitable for sole traders, freelancers, contractors, small limited companies and startups, subject to identity, business and sector checks. Some restricted industries may not be eligible.

See more on the Tide website

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Zempler Bank Business Go

Best for: Small businesses that want a no-monthly-fee account with digital banking and a practical cash deposit route.

Potential drawbacks: Lower-tier plans can have tighter transfer allowances and usage costs. Businesses with high payment volumes or frequent cash deposits should compare total monthly cost, not just the £0 fee.

Key free-account features: Business Go plan with no monthly fee, app and online banking, Post Office cash deposits, accounting integrations, invoicing and upgrade options.

• No-monthly-fee position: Business Go has no monthly account fee. Business Extra and Business Pro are paid plans, starting from £9 per month.
• What is included without paying monthly: Basic digital business banking, account access, card use and selected app features without a monthly subscription.
• Main costs to check: Outgoing payment charges after allowances, cash deposit fees, ATM charges and any upgrade to a paid plan.
• Cash deposits: Available at the Post Office, typically with a percentage fee and minimum charge. This is a key reason to compare Zempler on this page.
• International use: International payments may be available depending on plan and route, with fees to check.
• Accounting and admin: Accounting integrations and invoicing-style tools can be useful for small businesses, with more value on some paid plans.
• Protection: FSCS protection applies to eligible deposits because Zempler Bank is a UK-authorised bank.
• When a paid account may be better: If payment volumes are high, a paid Zempler plan with larger allowances may be cheaper than paying per transaction.

Eligibility criteria: Suitable for sole traders, limited companies, partnerships and some charities, subject to checks. Applicants usually need to be UK resident and operate in an accepted sector.

See more on the Zempler Bank website

More info

HSBC Small Business Banking Account

Best for: Smaller businesses that want a no-monthly-fee account from a high-street bank with branch, Post Office and wider banking services.

Potential drawbacks: The account may be free monthly, but manual, cash, cheque, international and some branch-based services can add cost. The tariff is less simple than many app-first accounts.

Key free-account features: No monthly fee on the Small Business Banking Account, branch and Post Office access, app banking, lending options and wider HSBC business services.

• No-monthly-fee position: The Small Business Banking Account has no monthly account fee. Other HSBC business accounts have different fees or introductory offers.
• What is included without paying monthly: Access to a mainstream bank account with digital banking and wider high-street banking support.
• Main costs to check: Cash handling, cheques, international transfers, CHAPS, manual transactions and branch services.
• Cash deposits: Available through branches and Post Office routes, but fees and limits should be checked.
• International use: HSBC has strong international capability, but international services may carry fees.
• Accounting and admin: Useful where a business values a full-service bank more than app-only automation.
• Protection: FSCS protection applies to eligible deposits because HSBC is a UK-authorised bank.
• When a paid account may be better: If your business outgrows the small-business product or needs more complex banking, another HSBC business account or a different bank may be appropriate.

Eligibility criteria: Aimed at startups, switchers and small businesses, subject to product criteria and checks. HSBC may also be relevant for businesses that need cash handling, charity banking, lending or international services.

See more on the HSBC website

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The Co-operative Bank Business Bank Account

Best for: SMEs, charities, community organisations and ethically minded businesses that want a no-monthly-fee account from a traditional bank.

Potential drawbacks: The best-value Co-operative Bank account depends heavily on transaction pattern. A paid account can be better for some businesses that use cash, cheques or higher volumes of payments.

Key free-account features: No monthly fee on the Business Bank Account, ethical positioning, online and app banking, payment tools, overdraft availability and specialist account routes.

• No-monthly-fee position: The Business Bank Account has no monthly account fee. Other Co-operative Bank business products may charge monthly fees.
• What is included without paying monthly: A traditional business current account structure with digital access and wider bank support.
• Main costs to check: Transaction fees, cash deposits, cheques, branch services and any paid account alternatives.
• Cash deposits: Cash and cheque services are available, but charges can vary significantly by account and usage.
• International use: Available, with fees to compare if overseas payments are important.
• Accounting and admin: Accounting integrations may be available, but this account is more traditional than app-first admin-focused providers.
• Protection: FSCS protection applies to eligible deposits because The Co-operative Bank is a UK-authorised bank.
• When a paid account may be better: If cash and cheque usage is regular, a paid Co-operative Bank account with different charges could be cheaper overall.

Eligibility criteria: Suitable for startups, sole traders, partnerships and ethically minded small businesses that are UK-based, have directors over the age of 18 and have no CCJs within the last six months, subject to checks.

See more on the The Co-operative Bank website

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Virgin Money M Account for Business

Best for: Smaller businesses that want a no-monthly-fee account with digital tools and more traditional banking support.

Potential drawbacks: Suitability depends on turnover and product criteria. Businesses should also consider FSCS limits and brand/licence arrangements following Virgin Money's transfer to Nationwide.

Key free-account features: No monthly fee on M Account for Business, digital banking, accounting integrations, cheque deposit tools and access to wider Virgin Money business products.

• No-monthly-fee position: M Account for Business has no monthly subscription. Other Virgin Money business current accounts may charge monthly fees after introductory periods.
• What is included without paying monthly: A basic business account route for smaller businesses that want no monthly fee and digital account access.
• Main costs to check: Transaction charges, cash and cheque services, international payments and whether your business fits the M Account criteria.
• Cash deposits: Cash and cheque services may be available, including digital cheque deposit tools, with fees to check.
• International use: Available, but not as specialised as dedicated multi-currency providers.
• Accounting and admin: Accounting integrations such as Xero and Sage may be useful for businesses that want a more traditional account with digital links.
• Protection: FSCS protection applies to eligible deposits, but businesses should check how FSCS limits apply across relevant Virgin Money and Nationwide brands.
• When a paid account may be better: Businesses with higher turnover or broader banking needs may fit a different Virgin Money product, even if it has a monthly fee.

Eligibility criteria: Suitable for UK-based businesses that turnover less than £1 million per annum. Other Virgin Money business current accounts serve businesses with broader needs or higher turnover.

See more on the Virgin Money website

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NatWest Business Bank Accounts

Best for: Businesses that want a high-street business account with 2 years’ free banking on everyday transactions, FreeAgent accounting software and access to online, app, branch and Post Office banking.

Potential drawbacks: The free banking offer is temporary and only applies to everyday transaction/service charges, after 2 years you have to pay for every bank transfer to and from the account and for ATM withdrawals.

Key free-account features: 2 years’ free banking on everyday transactions, Online Banking, mobile app banking, branch access, Post Office banking, FreeAgent accounting software and wider NatWest business support.

• No-monthly-fee position: Comes with no monthly fee and offers 2 years’ free banking on everyday transactions.
• What is included without paying monthly: Access to NatWest’s online banking, mobile app, branch network and local Post Office banking, plus FreeAgent accounting software.
• Main costs to check: Bank transfers both in and out of the account after the 2 years free banking, cash withdrawals, charges for unarranged borrowing, Bankline, international payments, and additional services.
• Cash deposits: Cash and cheque services are available over the counter but for 95p per £100 of cash or for each cheque. ATM withdrawals are charged 35p each.
• International use: International payments are available, but they are not part of the free banking offer.
• Accounting and admin: FreeAgent is one of NatWest’s strongest features. It can help with invoicing, expenses, tax and cash-flow visibility.
• Protection: FSCS protection applies to eligible deposits because NatWest is a UK-authorised bank.
• When a paid account may be better: A paid account, app-based account or specialist provider may be better if your business needs cheaper international payments, lower cash deposit costs, advanced app features, or free bank transfers.

Eligibility criteria: The Start-up Account suits newer businesses that have been trading for less than a year. The Business Account is for established businesses that have been trading for more than a year or higher-turnover SMEs (£1 million+) that have been trading for less than a year.

See more on the NatWest website

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Royal Bank of Scotland Business Bank Accounts

Best for: Scottish businesses that want a traditional business bank account with 2 years’ free banking on everyday transactions, FreeAgent accounting software and access to digital, branch and Post Office banking.

Potential drawbacks: The free period does not cover every possible charge, and the account moves to the Standard Tariff when the free banking period ends, meaning you will be charged for bank transfers and ATM withdrawals.

Key free-account features: 2 years’ free banking on everyday transactions for eligible start-ups, digital banking, mobile banking, branch and Post Office access, FreeAgent accounting software, business support programmes and access to wider RBS/NatWest Group business services.

• No-monthly-fee position: Comes with no monthly fee and offers free banking on everyday transactions for 2 years, then moves customers onto the Standard Tariff, where you pay for automated payments (35p) and manual payments (95p).
• What is included without paying monthly: Access to digital banking, mobile banking, branch and Post Office banking, plus FreeAgent accounting software.
• Main costs to check: The free banking offer does not include charges for unarranged borrowing, Bankline, international payments or additional services. Businesses should also check the Standard Tariff before applying so they know what may happen after the free period.
• Cash deposits: Cash and cheque services are available over the counter but for 95p per £100 of cash or for each cheque. ATM withdrawals are charged 35p each.
• International use: International payments are available, but they are outside the free banking offer.
• Accounting and admin: FreeAgent is the standout admin feature. It can help manage invoicing, tax, expenses and cash flow.
• Protection: FSCS protection applies to eligible deposits because Royal Bank of Scotland is a UK-authorised bank.
• When a paid account may be better: A different account may be better if you want cheaper international payments, more advanced app tools, or lower costs once the 2-year free banking period ends.

Eligibility criteria: The Start-up Account suits newer businesses that have been trading for less than a year. The Business Account is for established businesses that have been trading for more than a year or higher-turnover SMEs (£1 million+) that have been trading for less than a year.

See more on the Royal Bank of Scotland website

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OakNorth Bank Business Current Account

Best for: Established SMEs, growth businesses and companies with higher turnover or larger balances that want no monthly fee and advanced online controls.

Potential drawbacks: This is not a mass-market free account for very small businesses or early-stage startups. Cash and cheque deposit support was not identified as a core feature in the draft research.

Key free-account features: No monthly fee, multi-entity management, approval flows, user permissions, bulk payments, accounting integrations and savings vaults.

• No-monthly-fee position: The core account is positioned as fee-free with no monthly account fee.
• What is included without paying monthly: More advanced online banking features than many small-business free accounts, including permissions and approval workflows.
• Main costs to check: Replacement card fees, any non-standard services, eligibility thresholds and separate business lending costs.
• Cash deposits: Not a core feature. Businesses that handle cash should compare other free-account options.
• International use: Not primarily positioned as an international payments account; detailed costs should be checked.
• Accounting and admin: Integrations such as Xero, Sage and NetSuite make it more relevant for established businesses with finance processes.
• Protection: FSCS protection applies to eligible deposits because OakNorth is a UK-authorised bank.
• When a paid account may be better: If you do not meet OakNorth's criteria or need branch/cash services, another provider may be more suitable.

Eligibility criteria: Aimed at established businesses, larger SMEs and companies with more complex financial needs. Businesses usually need to meet turnover (£1 million+) or planned deposit criteria (£50,000 minimum), so it is not designed for very small businesses, sole traders or new startups.

See more on the OakNorth Bank website

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SumUp Free Business Account

Best for: Sole traders, small merchants, market traders and businesses already using SumUp payment products.

Potential drawbacks: It is strongest inside the SumUp payments ecosystem and is less comprehensive as a standalone business current account. It is not FSCS protected.

Key free-account features: No monthly fee for the core account, Mastercard, next-day payouts from SumUp payments, invoicing and simple account tools.

• No-monthly-fee position: The core SumUp Business Account has no monthly fee. SumUp Plus is £15 per month and some payment services may carry separate costs.
• What is included without paying monthly: A simple account route for receiving SumUp payment payouts and managing merchant cash flow.
• Main costs to check: Card reader fees, payment processing fees, ATM withdrawal fees after allowances and paid Plus features.
• Cash deposits: No traditional cash or cheque deposit functionality.
• International use: Not a core strength for businesses focused on multi-currency trading.
• Accounting and admin: Useful for simple merchant workflows, especially where payment acceptance is more important than full banking features.
• Protection: SumUp is an e-money account, so funds are safeguarded rather than FSCS protected.
• When a paid account may be better: If your business needs broader banking, overdrafts, branch access, multiple users or cash deposits, a bank account may be a better main account.

Eligibility criteria: Best suited to small merchants, sole traders, market traders, mobile businesses and firms already using SumUp card readers or payment services.

See more on the SumUp website

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ANNA Money Pay As You Go

Best for: Freelancers, micro-businesses and company directors who want no monthly fee plus admin, invoicing and bookkeeping-style support.

Potential drawbacks: The Pay As You Go plan can become expensive because usage-based fees apply, including charges on money paid in. The main account is not FSCS protected.

Key free-account features: no monthly fee on Pay As You Go, invoicing, receipt capture, bookkeeping, tax reminders, payment links, pots, virtual cards and upgrade routes.

• No-monthly-fee position: ANNA Pay As You Go has no monthly fee. Paid ANNA plans have monthly fees starting from £22.90 plus VAT.
• What is included without paying monthly: Banking-style account features with admin tools that can appeal to freelancers and micro-businesses.
• Main costs to check: Charges on money paid in, transfer costs, ATM fees, cash deposit fees and whether a paid plan would be cheaper at your activity level.
• Cash deposits: Cash deposits may be available with fees, but cheque support is limited.
• International use: International use may involve additional fees and is less competitive than dedicated multi-currency providers.
• Accounting and admin: A major strength for businesses that want invoicing, receipt capture, bookkeeping and tax reminders in one place.
• Protection: ANNA is not a bank, so customer funds are generally safeguarded. Some separate savings products may have FSCS protection where provided by a partner bank.
• When a paid account may be better: If money paid in grows, the usage-based model can cost more than a monthly paid plan or another provider.

Eligibility criteria: Suitable for sole traders, UK company directors listed on Companies House and LLP partners, subject to checks. Joint accounts are not offered and restricted activities may not be accepted.

See more on the ANNA Money website

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What is a free business bank account?

A free business bank account is usually a business current account with no ongoing monthly account fee. It can be used to receive customer payments, pay suppliers, manage expenses, hold operating cash and connect with accounting software.

The phrase can be misleading because most free accounts still charge for some services. The monthly fee may be £0, but the true cost depends on how your business uses the account. A digital freelancer may pay very little. A cash-heavy shop, restaurant or trade business may pay more through deposit fees and transaction charges.

No monthly fee vs free banking period

A no-monthly-fee account is different from an account with a free banking period. A free banking period is temporary. A provider might waive a monthly account fee for 12, 18 or 24 months, then charge a monthly fee once the introductory period ends.

This page is about accounts where the core product has no ongoing monthly account fee. That is why we have excluded accounts that are only free for a limited period, or where a monthly fee is waived only if a balance condition is met.

Which accounts are not included and why?

We have not included accounts that are only free temporarily, or where the monthly fee may apply if the business does not meet ongoing balance or usage conditions.

Examples of accounts excluded from this free-account list include:

• Metro Bank Business Bank Account, where an £8 monthly fee can apply if the required minimum balance of £6,000 is not maintained each month.
• Allica Bank Business Rewards Account, where a monthly fee can apply if the balance condition of £50,000 is not met.
• Airwallex Explore Account, where a monthly fee of £19 can apply unless balance or deposit conditions of £10,000 are met. Plus Airwallex offer a one month free trial on all plans where fees range from £19-£999+.
• TSB Business Plus Account, where a monthly fee of £5 applies after 30 months of fee-free banking or if the monthly balance falls below £10,000.
• The Co-operative Bank Business Directplus Account, where a monthly fee of £7 applies after 30 months of fee-free banking.
• Virgin Money Business Current Account, where a monthly fee of £6.50 applies after 25 months of fee-free banking.
• Lloyds Bank/Bank of Scotland Business Bank Account, where a monthly fee of £6.50 applies after 2 years of fee-free banking.
• Barclays Business Current Account, where a monthly fee of £8.50 applies after 12 months of fee-free banking.
• Cynergy Bank Business Current Account, where a monthly fee of £5 applies after 12 months of fee-free banking.
• Countingup Business Account, where a monthly fee of £3-£18 applies after a three month free trial.
• Wise Business Account, where you need to pay a £50 setup fee.

Those accounts may still be good choices for some businesses. They are just not the cleanest fit for this specific no-monthly-fee page.

The charges that matter when the monthly fee is £0

When comparing free business accounts, the question is not just "what is the monthly fee?" The better question is "what will this account cost based on how my business actually trades?"

The most important charges to check are:

• Bank transfers after any free allowance
• Cash deposit fees and minimum cash deposit charges
• ATM withdrawal fees
• Cheque deposit or cheque processing fees
• CHAPS and urgent payment charges
• International payment fees and exchange rate margins
• Extra cards and additional user charges
• Bookkeeping, invoicing or accounting add-ons
• Payment links, card readers and merchant service fees
• Overdraft interest and arrangement fees, where borrowing is available

A no-monthly-fee account can be excellent for a business with simple digital payments. It may be less suitable for a business that deposits cash every day, sends many payments each month or needs international transfers.

Who should consider a free business account?

A no-monthly-fee business account is most attractive when your banking needs are simple and your usage charges will stay low.

Free accounts can work well for:

• Sole traders and freelancers
• Contractors and consultants
• Side-hustle owners
• New limited companies with simple payment flows
• Online businesses with low transaction volumes
• Startups watching early cash flow
• Businesses that mostly receive bank transfers rather than cash
• Micro-businesses that want basic invoicing or admin tools

A paid account may still be better value if it includes transaction allowances, lower cash fees, advanced approval workflows, multi-user access, relationship support or international payment benefits that your business will actually use.

How to choose the best free business bank account

The best free business bank account is the one that stays low-cost once your actual usage is included. Use the monthly fee as a starting point, not the whole comparison.

1. Check that the £0 monthly fee is ongoing

Make sure the account is genuinely no-monthly-fee rather than a temporary free banking offer. Also check whether you are likely to need a paid plan for features such as integrations, multiple users, invoicing or higher payment allowances.

2. Estimate your likely transaction volume

Some free accounts include generous digital payments, while others charge per transfer after a small allowance. A business making lots of payments may find a paid plan cheaper overall.

3. Compare cash and cheque costs

A cafe, shop, salon, market trader or tradesperson may care more about cash deposit fees than monthly fees. Check Post Office, PayPoint, branch and cheque routes before choosing.

4. Check FSCS protection or safeguarding

UK-authorised banks usually provide FSCS deposit protection for eligible deposits up to the applicable limit. E-money institutions and payment firms usually safeguard customer funds instead. Safeguarding is not the same as FSCS deposit protection.

5. Check eligibility before applying

Some accounts accept sole traders and limited companies. Others exclude certain structures, sectors, ownership models or higher-risk activities. Eligibility can matter as much as price.

6. Decide whether admin tools are worth paying for

A free account may be enough for basic banking. But paid tools can still be worthwhile if they save time on invoicing, receipts, tax pots, approvals or bookkeeping.

7. Think about the next 12 months

A free account may be ideal now, but your needs can change. Hiring staff, adding directors, taking card payments, depositing cash or trading internationally can all change the best choice.

How we chose the best free business bank accounts

We considered:

• Whether the free pricing is ongoing or only introductory
• Monthly account fees and plan fees
• Transaction charges
• Cash deposit options and fees
• Cheque support
• International payment capability
• FSCS protection or safeguarding model
• Eligibility criteria
• Accounting software integrations
• Mobile and online banking features
• Number of users and cards supported
• Overdraft availability
• Suitability for sole traders, startups, limited companies and SMEs

We also considered whether each provider clearly explains its fees, eligibility, limitations and how customer money is protected.

Final verdict: which free business bank account should you choose?

There is no single best free business bank account for every UK business. If you want a strong all-round free account for everyday digital banking, Starling is a natural place to start. If you want free banking with bookkeeping support, Mettle is strong for eligible sole traders and small companies. If you want a simple app-based account, Monzo Lite is easy to compare. If you want a free plan with business admin tools, Tide Free is worth reviewing carefully. If cash deposits matter, Zempler, HSBC, The Co-operative Bank, Virgin Money and Starling deserve closer attention.

The most important point is to compare the total cost, not just the monthly fee. A no-monthly-fee account can be excellent for simple digital banking, but a paid account may be better value if you deposit cash, make high volumes of payments, need multiple users or rely on advanced tools.