Rhiannon Philps
Kristina FoxMany or all of the products and brands we review are from our partners who compensate us. This may influence which products we write about and the product we choose in our ‘promotions’. However it doesn’t influence our reviews or ratings. Our opinions are our own. Read more on our methodology, ratings and what our use of the word ‘Best’ means.
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 five free business bank accounts in the UK, 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 offer period.
Top 5 Best Free Business Bank Account Providers
This top five only contains business account providers reviewed by NerdWallet UK. Others are available. Find out how we use ‘best’ and our guide to ratings.
Virgin Money – 4.8 stars
Promotion
Virgin Money M Account for Business
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFrom freeDirect debits/automated payments: Free | CHAPS payments: £17.50
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OfferFree insights dashboard M-TrackManage all your business data in one place, including data from Sage, Xero, Google, Shopify and more.
Pros:
- Virgin Money offers a free business account, M Account for Business.
- Eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
- Over a third of customers were able to open a Virgin Money business account on the same day as their application.
- Virgin Money business banking app available on Android and iOS.
Cons:
- Although Virgin Money offers 24-hour self-service over the phone, it does not offer 24/7 customer support.
- Virgin Money’s completely free M Account is only available for businesses with an annual turnover of less than £1 million.
Starling – 4.7 stars
Promotion
Starling Bank Business Account
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFrom freeFree UK bank transfers (£250,000 limit per transaction) | International transfers to 36 countries, for a fee.
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Offern/a
Pros:
- Starling’s standard business account has no monthly fee.
- This account can be accessed on the bank’s website and via a mobile app.
- Deposits up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
Cons:
- You cannot bank in a branch or over the phone with Starling Bank.
- There is a 0.7% fee (minimum £3) to deposit cash at the Post Office.
Monzo – 4.5 stars
Promotion
Monzo Lite Business Account
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer FeesFree
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Offern/a
Pros:
- There is a free business account available (Monzo Business Lite).
- Accounts can be accessed online or via Monzo’s mobile app.
- Deposits of up to £85,000 may be protected by the Financial Services Compensation Scheme (FSCS).
Cons:
- Aside from euro transfers, you can’t receive international payments into a Monzo account.
- Business accounts are not available to charities or partnerships.
Cashplus – 4.5 stars
Promotion
Cashplus Business Account
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Monthly FeeFreeOne-off card fee of £9.95
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Card Purchase FeesFree
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Bank Transfer Fees30pFree for first 3 payments sent each month | £0.30 for every transfer thereafter | Direct debits: free
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Offern/a
Pros:
- Cashplus offers a business bank account with no monthly fees.
- Accounts can be accessed online and through Cashplus’s mobile app, on iOS and Android.
- Cashplus business accounts are FSCS protected.
- Cashplus claims that 99.95% of its customers open an account on the same day as their application.
- Cashplus business customers can potentially access overdraft and credit facilities.
Cons:
- You cannot cash cheques with a Cashplus business account.
- You cannot send international payments through your Cashplus account.
- Cashplus doesn’t have any physical branches.
- Cashplus does not have 24/7 customer service.
Tide – 4.3 stars
Promotion
Tide Business Account – Free
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Monthly FeeFree
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Card Purchase FeesFree
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Bank Transfer Fees20p
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OfferFREE Tide Accounting + VAT Manager until end of MayTide Accounting is available to non-VAT registered Sole Traders. VAT manager is available to VAT registered sole traders and limited companies (LTDs).
Pros:
- A business account with no monthly fee is available.
- You can access the account digitally via a mobile app and on the Tide website.
- Accounts provided by ClearBank are eligible for protection through the Financial Services Compensation Scheme (FSCS).
Cons:
- Currently, it is not possible to deposit cheques into a Tide account.
- Tide has no physical branches you can visit.
This top five only contains business account providers reviewed by NerdWallet UK.
The pros and cons featured here are chosen by us based on a combination of our expert, research-based opinions and an exclusive survey of UK business owners and decision makers. The survey was conducted on behalf of NerdWallet UK in December 2022 to identify the business bank account features that people feel are most important. They are unlikely to be the only product features and restrictions that you should consider. Pros and Cons are subjective and you should align them to your own personal and business circumstances. Information was correct at the time of publication but may have changed since.
What is the difference between free and paid for business accounts?
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 who 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.
Do free business bank accounts have any fees?
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.
Will my bank account stay free?
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 five on this page currently do not charge a monthly or annual fee, regardless of how long you have the account.
How to open a free business bank 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:
- your Companies House registration number (if applicable)
- details of company owners and directors, including their names, addresses, and national insurance numbers
- information about your business, including evidence of what your business does, its turnover, and its trading history
» MORE: How to open a business bank account
How to choose the best free 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.
- FSCS protection
- UK bank transfers
- direct debits and standing orders
- cash deposits
- cheque deposits
- international payments
- overdrafts, business credit cards or loans
- creating and sending invoices
- multiple user account access
- integrating accounting software, and other apps
- a dedicated account manager
Free Business Bank Account Methodology
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.
Frequently asked questions about free business bank accounts
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.
Are free business account funds FSCS protected?
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.
Review methodology
At NerdWallet Ltd UK we base our reviews & ‘Best Of’ pages’ on the results of surveys we undertook about what was important to people that 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 and which forms 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 of’ pages. Best does not mean it’s best for you, nor does it mean the ‘cheapest’.
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 it is likely there are others available that we have not reviewed. The review is our opinion, but it does not constitute advice, recommendation or suitability of your financial circumstances.
You can view our full review methodology here.
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