Free business bank accounts

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.

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

Best free business bank accounts UK

Bank	Duration of free use	Monthly fee outside free offer	Other transaction fees?
Airwallex	Forever	£0	Yes (exchange rates)
Allica Bank	Forever	£0	Yes
Anna Bank	Dependent on turnover	£14.90 – £49.50	Yes (when income is above £500 per month)
Bank of Scotland	12 months	£0	No
Barclays	12 months	Up to £8.50	No
Cater Allen Private Bank	Forever	£0	Yes (when exceeding 30 transactions per month)
Co-operative Bank	30 months	£7	Yes (when balance falls below £1000)
Countingup	Forever	£4.95 – £9.95	Yes (when income is above £500 per month)
HSBC	12 months	£6.50+	No
Lloyds	12 months	£0	No
Mettle	Forever	£0	No
NatWest	18 months	£0	Yes (when turnover exceeds £1m)
Revolut	Forever	£7 – £100	No
Royal Bank of Scotland	24 months	£0	Yes (when turnover exceeds £1m)
Starling Bank	Forever	£0	Yes
Tide	Forever	£9.99 + VAT	Yes
TSB	25 months	£5 – £40	No
Ulster Bank	18 months	£8.00 per quarter	No
Wise	Forever	£0	Yes

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.