- Compare free business bank accounts with NerdWallet
- Get access to essential banking features while keeping costs to a minimum
- Good option if your business mainly involves basic UK-based transactions
Opening a free business bank account means you can organise your business’s finances without being weighed down by monthly fees. Whether you’re a startup, sole trader or have a small business, saving money should appeal. Having a clear divide between your personal and business finances will make your life easier too. Here you can choose from our selection of the best free business accounts and apply today.
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Virgin M Account for Business
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.
Compare our Best Free Business Bank Accounts
Each of these products may be one of a range offered by the provider. Always check terms & conditions for suitability before applying. Only affiliated products are shown. Other products are available. Read our guide to ratings.
Monzo Lite Business Account
Free
Free
Free
n/a
- Available to sole traders, or the director of a registered limited company by shares (Ltd)
- Must be based in the UK
NerdWallet's Review Summary
Monzo’s Lite account offers business banking with no monthly fees. In addition, basic UK transactions carry no cost.
Sole traders can deposit up to £3,000 a month in cash in total, while limited companies can deposit up to £10,000 a month. Monzo’s business customers can pay in cash for £1 at Post Offices and PayPoints. Post Office deposits cannot be more than £3,000 per deposit for sole traders, or £4,000 per deposit for limited companies. Cash deposits at PayPoint cannot exceed £300 per deposit. Meanwhile, cheques can be deposited via app or post. A small overdraft of £3,000 is available for sole traders, though a representative EAR of 39% applies.
Accounting software integrations are not available with Monzo’s free Lite account, with integrations for FreeAgent, Xero and QuickBooks only available through its paid Pro and Team accounts.
Eligibility criteria: To apply for Monzo’s Lite account, the applicant must be a sole trader or representing a limited company by shares. Applicants must also be based and registered in the UK.
For further details, read NerdWallet’s Monzo Business Account Review.
Monzo key features:
- Quick set-up: After applying on the mobile app, most accounts are up and running on the same day.
- FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
- International capabilities: Spend abroad fee-free and make international transfers to more than 70 countries.
NerdWallet's Pros & Cons
Pros:
- High-scoring mobile app
- Online banking within 24 hours for most customers
- No monthly fee
- Free basic transactions
Cons:
- No phone or branch banking
- Not for charities or partnerships
- No integrated accounting software for the Lite account
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Virgin Money M Account for Business
- Available for eligible businesses with up to £1m annual turnover
- Must be based and operated in the UK (excluding Channel Islands, Isle of Man and Northern Ireland)
- All owners, directors, senior managers and account signatories must be over 18 years old
NerdWallet's Review Summary
Virgin Money’s M Account for Business is a free account with no charges for basic UK transactions. Both cash and cheque deposits can be made, with the former costing 90p per £100 and the latter possible for free via the mobile app. If you’re looking for an overdraft, Virgin Money offers unsecured limits of £25,000 with a 2.5% establishment fee (at a minimum of £120) and a representative EAR of 13.3%.
Accounting software integrations are available for this account too, including Sage, Xero and QuickBooks. You can get three months free access to Xero and QuickBooks if you sign up for an account.
Eligibility criteria: The M Account for Business is for applicants with an annual turnover below £1 million. Businesses that apply should be UK-based (excluding Northern Ireland, the Channel Islands and the Isle of Man), while any owners, directors, senior management and account signatories need to be over 18 years old.
For further details, read NerdWallet’s Virgin Money Business Account Review.
Virgin Money key features:
- Account perks: Benefits include cashback when using the business debit card, as well as potential discounts with selected retailers and merchants.
- FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
- Free banking for charities: Virgin Money’s account for charities offers free everyday banking for groups with turnover of less than £1 million per year.
- Virgin Startup: Access podcasts, tutorials, events and mentoring through Virgin’s collaborative network.
NerdWallet's Pros & Cons
Pros:
- Over a third of business accounts open on the day you apply
- No monthly fee
- Free day-to-day banking transactions
- Overdrafts and business loans available
- 0.25% cashback on eligible debit card purchases
Cons:
- The M Account only for businesses with annual turnover below £1 million
- No branches in South of England, Wales or Northern Ireland
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
The Co-operative Bank Business Bank Account
NerdWallet's Review Summary
The Co-operative Bank offers a wealth of choice to customers, including its Business Current Account. This is an option with no monthly fee and free basic UK transactions, including free ATM withdrawals. Cash deposits cost £1.50 per £100 and cheque deposits are £1.50 a go.
Sizeable business overdrafts are available with The Co-operative Bank, with the standard borrowing limit sitting at £250,000. Arrangement fees of 1.5% (£50 minimum fee) and representative EAR of 10.75% apply.
Accounting software products from providers such as Xero and QuickBooks can be integrated with business accounts from the Co-operative Bank.
Eligibility criteria: Sole traders and limited companies with a UK-based director and business address can apply for this account. In addition, applicants should be UK residents aged 18 or above.
Find out more from NerdWallet’s Co-Operative Bank account review.
The Co-operative Bank key features:
- FSCS protection: Your eligible deposits, up to £85,000 across all your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
- Credit options: A Co-op business account will allow you to apply for an overdraft, charge card, credit card, and variable rate business loan.
- Merchant software: Free access to merchant software from Clover and discounted card payment terminals.
- Customer support options: Manage your account online, over the phone, via the app and at a branch.
NerdWallet's Pros & Cons
Pros:
- Manage account online, by phone, app or at a branch
- Business overdraft of up to £250,000
- No monthly fees
- Free basic transactions
Cons:
- No branches in Northern Ireland
- Poorly received mobile app
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Tide Business Account – Free
- For registered business accounts: Must be a director of a UK company registered with Companies House.
- For sole trader accounts: Must be a UK-based sole trader or freelancer with a valid UK home address and be registered with HMRC
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold a compatible device registered to a UK App or Google Play store
NerdWallet's Review Summary
Tide offers a variety of different business bank accounts, including one with no monthly fee. Inbound and outbound transfers normally cost 20p but are free for 12 months if you apply through NerdWallet. Cash deposits cost a minimum of £2.50 or 0.99% at Post Office branches and 3% at PayPoint. Cheque deposits can be made through the Tide app.
In addition, Tide does not offer an overdraft. However, customers looking to integrate accounting software have many options to choose from, including Sage, QuickBooks, and Xero.
Eligibility criteria: Tide’s free business bank account is for UK-based businesses and applicants must be at least 18.
For more details, read NerdWallet’s Tide Business Account Review.
Tide Key features:
- Protected: Eligible deposits of up to £85,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
- All-hours customer support: Tide customers can enjoy 24/7 access to customer services.
- Business lending: Tide offers business lending options, including a government-backed loan for start ups.
- Business savings: Access to a Tide Instant Saver Account with rates starting at 2.52% AER, but potentially as high as 4.00% for the first six months for new customers.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Great mobile app
- Most accounts opened in minutes
Cons:
- No in-branch banking available
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
NatWest Start Up Business Account
- Available to eligible customers over 18, who have the right to be self employed in the UK
- This ‘Startup business account’ is available for businesses that have been trading for less than 1 year and have a projected or existing annual turnover of less than £1m
NerdWallet's Review Summary
NatWest offers a free start-up account and a variant for more established businesses. Automated payments (including direct debits, standing orders and card payments) in or out of these accounts cost 35p each following a two-year promotional period. Cash deposits cost 95p per £100 and cheque deposits are 75p each.
A business overdraft of up to £50,000 is available through NatWest. An arrangement fee of between £50 and 1.5% applies, along with a representative EAR of 13.54% on an example £25,000 overdraft. Customers can integrate FreeAgent accounting software, which comes free with an account.
Eligibility criteria: Applicants must be aged 18 or older and at least one person on the application form should be UK-based. Start up accounts are for UK businesses which have been trading for under 12 months, with annual turnover below £1 million.
For more details, see NerdWallet’s NatWest business account review.
NatWest key features:
- Fact-to-face support: Customers across England and Wales can get customer service in a branch.
- FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Entrepreneur hub: Access free tools, programmes and experts through NatWest’s programme to help small businesses grow.
- Lending options: Overdrafts, business loans and credit cards are all available with NatWest.
NerdWallet's Pros & Cons
Pros:
- No monthly fee
- Bank online, via app, by phone, at a branch or Post Office
- Free integrated accounting software from FreeAgent
Cons:
- Fees for every transaction
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
Zempler Bank Business Go Account
NerdWallet's Review Summary
Zempler Bank offers a free business bank account called the Business Go account. With this account, you can make three payments and transfers for free each month, though transfers cost 35p each outside this allowance.
While cheque deposits are not possible, cash deposits can be made at a Post Office branch for a £4 minimum fee or 0.55% charge. A business overdraft of £2,000 may be available to eligible businesses.
Zempler customers can integrate Sage, Xero or QuickBooks accounting software with their account.
Eligibility criteria: Sole traders, limited companies and partnerships can apply for this account.
For more details, check out NerdWallet’s Zempler Bank Business Account review.
Cashplus key features:
- Credit and overdraft facilities: An account can offers the chance to apply for a business overdraft, or a business credit card.
- Business Creditbuilder: If you open an account, you can upgrade to boost your credit score with the Zempler Bank Business Creditbuilder.
- No maintenance fee: There is no monthly charge for having this account.
- FSCS protection: Zempler Bank is a fully licensed bank, so your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
- Business tools: Zempler offers cash-flow tracking, money pots and help crafting invoices.
NerdWallet's Pros & Cons
Pros:
- Almost all accounts open the day you apply
- Overdraft and credit facilities available
- No monthly fee
Cons:
- No option to cash cheques
- No branches
- Transfers out cost 35p each after monthly allowance of three free transactions
This product may be one of a range offered by this provider. Always check terms & conditions for suitability before applying.
What is a free business bank account?
A free business bank account is a current account for businesses that has no monthly or annual fees. It usually won’t have an opening fee or charges for making basic transactions either.
However, it is unlikely these accounts will be completely fee-free – in particular, there may still be charges for certain transactions, such as cash or cheque deposits, or for international payments.
You may also find an account is only free for a certain period of time, perhaps due to a promotion, or if you keep within a set amount of transactions. Make sure you check the terms carefully.
How do free business accounts work?
Free business bank accounts tend to work the same way as most business accounts. This means they can be used to receive customer payments, and pay suppliers, bills and employee wages. Depositing and withdrawing cash, and setting up direct debits and standing orders, should be possible as well.
The main difference is that free accounts tend to have more limits and restrictions, and offer fewer features, tools and extras than accounts you pay for. However, this could be a sacrifice worth making if you’re looking to keep costs low.
What are the benefits of a no-fee business bank account?
There are several reasons why a fee-free business account can work to your advantage.
- No monthly or annual fees: No regular payments can only help your business’ bottom line.
- Access to banking services: Ideal if your business mainly involves standard everyday transactions.
- Keep your business and personal finances apart: Makes it easier to monitor business performance, keep track of payments, and complete your self-assessment tax return.
- Looks professional: Having your business name next to payments and invoices enhances credibility.
- Builds credit history: Using a separate business account should help build your business’s credit score.
» MORE: What are the benefits of a business bank account?
Business owner insight
“Having a separate account makes it much easier to manage my self-employed income. I use Monzo’s free business account, which is handy for setting up and sending payment links and integrates with my Stripe account to accept card payments. I also use a booking system called Setmore, which links with Stripe, so the whole process is streamlined for clients.”
Tessa Spring, founder of tessaspring.co.uk, a website which supports people through life shifts and home moves.
Free business accounts vs paid business accounts
| Free business account | Paid business account | |
|---|---|---|
| Fees | No monthly fees, but likely to be charges for certain transactions and services | Regular fixed monthly fee, which allows access to wider range of services |
| Transactions | May be limited, fees payable if exceeded, and restricted to the UK. Cash, cheque, debit card transactions may be chargeable | Wider range of transactions allowed, perhaps with higher or no limits and no additional fees |
| International payments | May not be allowed, be limited, have a fee, or fewer country options | Could have higher limits, fewer restrictions, and multi-currency options |
| Tools/benefits | Most likely to be focused on basic banking functions and services | More likely to include advanced features, such as integrated accounting software and payment and invoicing tools |
| Additional borrowing | May not offer access to an overdraft facility or other credit options | More likely to offer credit facilities such as business loans and overdraft |
| Customer service | Likely to be standard customer support | Could include premium customer service option or relationship manager |
| Most suitable for | Startups and small businesses which need to keep costs low and have relatively few UK transactions | Bigger, more established businesses with higher transaction volumes, and more complex finance-related requirements |
» COMPARE: Our best business bank accounts
How to open a fee-free business account with NerdWallet UK
Opening a free business account through ourselves is simple.
- Decide on the account that’s the best fit for you and your business from the providers above.
- Click the ‘See Deal’ button and you’ll head straight to the provider you’ve selected.
- Apply for your account on the provider’s website – there’s nothing to complete for us.
» TAKE ME TO: NerdWallet’s best free business bank accounts
What you’ll need
When you’re ready to open a business account it’s best to have a few things to hand to ensure the process goes as smoothly as possible:
- Proof of your identity: your passport or driving licence will usually suffice
- Proof of your address: a recent bank statement or utility bill that shows your current address
- Proof of your business’s address: also a utility bill or similar, but showing the trading address of your business (if it’s different to your home address)
- Contact details: for both you and your business, if they’re different
- Business details: including when you began trading, past or predicted, and tax information
- Registration documents: if you’re a sole trader, your business tax return or self-assessment registration, or if your business is ‘limited’, your Companies House registration number and certificate of incorporation
Are you eligible for a free business bank account?
Most business accounts, without charges or paid, require you to be at least 18 years old and have a UK-registered business to apply. Beyond this, eligibility criteria can vary.
Some free accounts may require businesses to have a certain minimum turnover or been trading for a minimum length of time. But given free business accounts tend to be aimed at newer and smaller businesses, there should be an account to suit most types of business.
Need more help choosing the right free account for your business?
Check out reviews of our top free business bank account providers:
Not sure if a free business account is what you need?
Take a look at some other types of business bank account.
Free business bank account FAQs
Several providers in the UK offer business bank accounts with no monthly fees, including Monzo, Virgin Money and Tide. But with providers often offering other accounts with regular charges, it’s important to make sure you choose the right one.
A free business bank account is usually defined as a business account that has no annual or monthly fees. An account may be entirely free, depending on how you use it. But you should always check the terms and conditions for other fees that may apply, and any limits or restrictions that could lead to other charges.
Yes, sole traders are one of main types of business owner that free business accounts are aimed at.
Yes, it is possible to switch to a free business bank account. The easiest way to switch business accounts is using the Current Account Switch Service.
Some free business bank accounts are covered by the Financial Services Compensation Scheme (FSCS), but some aren’t. If a free account has FSCS protection, eligible deposits are protected up to a maximum of £85,000. Alternatively, some accounts are offered by e-emoney firms, where different safeguards apply. Always check which applies to a given account.
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