Free business bank accounts

Last updated on 10 August 2023

Are you looking to set up a business bank account? Choosing a free business bank account in the UK can be an overwhelming process, as there’s a lot of choice out there.

Compare business bank accounts What are you looking for?

In partnership with Tide

Co-Op Business Banking
✓ Business Current Account
✓ Online, App & High Street Banking
✓ Quick & Easy Application Process

HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected

Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected

Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process

Monzo Business Banking
✓ Business Current Account
✓ Dedicated mobile app experience
✓ FSCS Protected

Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts

Virgin Money
✓ Business M Account
✓ In-Store, Online & App Banking
✓ Insights & Forecasting Platform

With so many banks offering different options and benefits, how do you decide which one is best for you and your business?

Video: Getting started with business bank accounts

Best free business bank accounts UK

BankDuration of free useMonthly fee outside free offerOther transaction fees?


Forever£0Yes (exchange rates)

Allica Bank


Anna Bank

Dependent on turnover£14.90 – £49.50Yes (when income is above £500 per month)

Bank of Scotland

12 months£0No


12 monthsUp to £8.50No

Cater Allen Private Bank

Forever£0Yes (when exceeding 30 transactions per month)

Co-operative Bank

30 months£7Yes (when balance falls below £1000)


Forever£4.95 – £9.95Yes (when income is above £500 per month)


12 months£6.50+No


12 months£0No




18 months£0Yes (when turnover exceeds £1m)


Forever£7 – £100No

Royal Bank of Scotland

24 months£0Yes (when turnover exceeds £1m)

Starling Bank



Forever£9.99 + VATYes


25 months£5 – £40No

Ulster Bank

18 months£8.00 per quarterNo


Best free business bank accounts compared

Which UK banks offers a free business account?

Several UK banks offer free business accounts, including Lloyds Bank, Barclays, HSBC, NatWest and Nationwide. Each of these banks offers different features and benefits for its customers.

For instance, Lloyds Bank offers up to £80 cashback every month as well as access to a dedicated Business Manager who can help you manage your finances.

Barclays also offers free business banking, as well as a range of other services such as invoicing and international payments.

HSBC is another great choice for businesses, offering an array of services such as online banking and secure money transfers. NatWest provides up to £150 cashback every month, while Nationwide offers up to £500 cashback when you open a business account.

It is important to research the different banks available and compare their features and benefits before choosing the best option for your business. It is also advisable to read up on any terms and conditions associated with opening an account, as well as any fees or charges that may apply.

How to open a free business bank account?

To open a free business bank account, you will need to provide the bank with certain information about your business, such as its name and address. You may also be asked to show proof of ownership or partnership in the company, and provide a copy of your business license. Depending on the type of account you open, you may also need to show evidence that you have sufficient funds to cover the amount of money you plan to deposit.

No monthly fee versus per-transaction fees

When it comes to business bank accounts, you typically have the option of either opening an account with no monthly fee or one that charges a per-transaction fee.

The advantage of having a no monthly fee account is that you won’t have to worry about any ongoing fees and you can make as many transactions as you like without incurring additional charges. However, the downside is that these accounts don’t often come with additional features or benefits such as cashback rewards.

On the other hand, per-transaction fees can be more expensive in the long run but they also come with access to extra services and features. It is important to consider both options carefully before deciding which is best for your business.

Free business bank account for sole traders

If you are a sole trader looking to open a free business bank account, then you may want to consider opening an account with either Lloyds Bank or Barclays. Both offer no monthly fees and a range of features such as invoicing, money transfers and access to dedicated Business Managers.

These accounts also come with the added benefit of cashback rewards, with Lloyds Bank offering up to £80 per month and Barclays providing up to £150.

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Business Financed provides general information, but not financial advice. Always speak to a qualified expert to get personalised advice for your business.

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