What banks offer free business checking accounts

When your business is still quite new, a free bank account has lots of benefits. You’ll be able to keep at least one of your overheads down while you’re establishing yourself and your relationships with clients and customers.

Many mainstream UK banks offer a free period for new businesses and switching customers, ranging from 6 to 30 months. Many online-only bank accounts offer a free version with limited features. There are even a few banks on this list that are 100% free forever!

Featured: Tide*

• No monthly or annual fees
• Full UK sort code and account number
• Business Mastercard, with free purchases at home and abroad
• Automatic categorisation of your transactions, for easy accounting
• Instant invoice payment and creation
• Up to £150,000 of credit, straight through the app
• Mobile and web access
• Instant notifications
• Get paid by Direct Debit
• Trusted by 350,000+ UK businesses

Website: Tide Business Banking
Read the full Tide Business Account review.

Please note companies are ranked in no particular order.

1. Starling Bank

• Free electronic payments, domestic transfers and ATM withdrawals.
• No monthly fee. You’re charged for any extra features you use.
• Up to £85,000 covered by FSCS.
• Fast and straightforward to set up.
• Digital bank account that can be managed through the app or on a desktop.
• Designed for contractors, freelancers and small businesses.
• No charges for spending and withdrawing money abroad.
• Real-time notifications of money entering or leaving your account.
• Arranged overdrafts available.
• Best British Bank, Best Banking App, Best Current Account Provider & Best Business Banking Provider at the British Bank Awards 2021.

Website: Starling Bank Business Banking
Read the full Starling Bank Business Bank Account review.

2. NatWest

• New businesses get 18-months’ free business banking.
• Awarded ‘Best Banking App’ at the 2018 British Banking Awards.
• 24/7 online and mobile banking.
• Quick and easy application.
• Local Enterprise Managers to support you.
• Business Account holders can access the Business Builder and MentorDigital.
• Includes FreeAgent accounting software.
• No monthly charge, only pay for what you use at the end of the free banking period.
• Provides debit, credit and charge cards.
• Savings, borrowing, and credit cards are also available.

Website: NatWest Business Banking
Read the full NatWest Business Account review.

3. HSBC

• 12 months’ free banking for new businesses and switchers.
• Choice of bank accounts at the end of the free banking period.
• Offers a new Kinetic account that is app based.
• Awarded a Moneyfacts 5-star rating for Business Current Account in 2017.
• 24/7 online and mobile banking.
• Usually from £6.50 a month.
• Debit card and Visa Commercial Card are available.
• Telephone support available 8am-10pm every day.
• Integrate with Sage.
• Borrowing, savings, and credit cards are also available.

Website: HSBC Business Banking
Read the full HSBC Business Account review.

4. Lloyds Bank

• 12 months’ free banking for new businesses.
• 24/7 online and mobile banking.
• Usual account fees are £7 a month.
• Two types of tariffs – electronic or mixed transaction tariff.
• Receive support from a UK-based business management team.
• Provides free tools, guides and interactive webinars.
• To be eligible your turnover needs to be below £3m.
• Ranked 6th in an independent regulatory survey of the 14 largest business banks.
• Awarded Moneyfacts Best Service from a Business Bank 2020 and Best Start-up Bank of the Year 2015.
• Borrowing, savings, and credit cards are also available.

Website: Lloyds Bank Business Banking
Read the full Lloyds Bank Business Account review.

5. Bank of Scotland

• 12 months’ free for new businesses.
• 24/7 online and mobile banking.
• Usually £7 a month.
• Free electronic payments.
• Pay in cheques through the banking app.
• Personalised banking alerts.
• Dedicated business management team to support you.
• Offers bespoke guides and reports that support your business.
• Ranked 8th in an independent regulatory survey of the 14 largest business banks.
• Borrowing, savings, and credit cards are also available.

Website: Bank of Scotland Business Banking
Read the full Bank of Scotland Business Account review.

6. TSB

• Free for 25 months for new businesses and businesses switching.
• Free period includes specialist support from TSB’s range of partners to help you start, run and grow your business.
• 24/7 online and mobile banking.
• Offers simple banking tariffs are the free period.
• Debit cards and credit cards are available.
• Free card payment reader from Square is available.
• Usually £5-£40 a month, depending on tariff.
• Make deposits at branches or Post Office counters.
• Savings and loans are also available.
• Ranked 11th in an independent regulatory survey of the 14 largest business banks.

Website: TSB Business Banking
Read the full TSB Business Account review.

7. Royal Bank of Scotland

• 24-months’ free for new businesses.
• 24/7 phone, online, and mobile banking.
• Quick online application.
• Includes free FreeAgent accountancy software.
• No minimum monthly fee after the free period, just pay for what you use.
• Overdraft available subject to approval.
• Use Tyl to make it easier for customers to pay you.
• Access a business network and experts.
• Savings, credit cards, loans, foreign exchange, and insurance products are also available.
• Access to Entrepreneur Accelerator programme and local Business Growth Events.

Website: Royal Bank of Scotland Business Banking
Read the full Royal Bank of Scotland Business Account review.

8. Ulster Bank

• Free for startups for 18 months.
• 24/7 online and mobile banking.
• Business Visa Debit Card.
• Allows international payments.
• Usually costs £8.00 per quarter.
• Includes FreeAgent accounting software.
• Apply online.
• Cheque book.
• Business finance, savings, and investment products are also available.
• Businesses must be registered in Northern Ireland to apply.

Website: Ulster Bank Business Banking
Read the full Ulster Bank Business Account review.

9. Co-operative Bank

• New customers get 30 months free.
• 24/7 online and mobile banking.
• Awarded Moneyfacts Best Service for a Business Account 2017-2019, and Best Charity Banking Provider 2016-2021.
• Unlimited deposits and withdrawals.
• Usually costs £7 a month.
• No monthly fee or admin charges if your balance stays above £1,000.
• Open to sole traders and directors of limited companies.
• Apply online.
• Lending and savings products are also available.
• Ranked 11th in an independent regulatory survey of the 14 largest business banks.

Website: Co-operative Bank Business Banking
Read the full Co-operative Bank Business Account review.

10. Anna Bank

• Free whilst your income is below £500 per month.
• Mobile business account, accessible on the app 24/7.
• £4.90-£19.90 monthly fee depending on monthly income.
• Set up in 10 minutes.
• Business debit Mastercard within 5 working days.
• 1% cashback on selected debit card purchases.
• Create and send invoice form the app.
• Schedule invoice payments.
• Integrate with Xero accounting software.
• Suitable for startups, freelancers and creatives.

Website: Anna Business Banking
Read the full Anna Business Bank Account review.

11. Revolut

• Free version available with limited access.
• Mobile business account, accessible online and on desktop 24/7.
• Trade in 30+ currencies with no fees.
• Offers virtual debit cards.
• Manage employee spending through company cards.
• Receive real-time notifications on your spend.
• Integrate with accounting software such as QuickBooks and Xero.
• Monthly account fees range from £7-£100, depending on usage.
• Quick and easy online signup.
• Also loans, overdrafts and payroll solutions.

Website: Revolut Business Banking
Read the full Revolut Business Bank Account review.

12. Countingup

• Free account available for businesses depositing under £500 each month.
• Manage your account 24/7 using the app.
• £4.95-£9.95 a month, depending on how much you deposit.
• Offers a contactless MasterCard.
• Bookkeeping and invoicing tools included.
• Estimate tax to help savings.
• Business management tools including profit and loss and expense management.
• Designed for freelancers and limited companies.
• Open an account in as little as 5 minutes.
• 4.5 stars on Trustpilot.

Website: Countingup Business Banking
Read the full Countingup Business Bank Account review.

13. Barclays

• 12 months’ free banking for small businesses in their first 12 months of trading.
• Business Moneyfacts Business Start-up Bank of the Year 2017-2021.
• 24/7 online and mobile banking.
• Call the Everyday Banking team 7am-8pm, Monday to Friday.
• Apply online, over the phone, and in person.
• Normal monthly account fee – up to £8.50, depending on account type.
• Includes free invoicing features.
• Savings, borrowing, and credit cards are also available.
• Payment services are available through Barclaycard.
• Offer extra support for businesses exporting goods or working abroad.

Website: Barclays Business Banking
Read the full Barclays Business Account review.

14. Mettle

• Completely free.
• Created by NatWest.
• Manage your current account on the app 24/7
• Apply in minutes through their app.
• Allows you to send and receive payments in the UK.
• Create and send invoices.
• Categorise business transactions to reduce admin and assist tax admin.
• Sync with accounting software such as FreeAgent, Xero and QuickBooks.
• For sole traders and limited companies with up to 2 owners.
• If pricing ever changes, Mettle will let you know in advance.

Website: Mettle Business Banking
Read the full Mettle Business Bank Account review.

15. Cater Allen Private Bank

• Accounts available for sole traders, limited companies, and charities.
• Manage your account online, over the phone, and through the post.
• Includes contactless Visa debit card.
• No monthly or annual account fee.
• 30 free day-to-day transactions per calendar month.
• Interest is paid on balances over £500,000.
• No conversion charges for transferring money between pounds, Euros and US dollars.
• Offers debit cards in pounds, Euros and US dollars.
• Part of the Santander Group.
• Fixed-term savings account available.

Website: Cater Allen Private Bank Business Banking
Read the full Cater Allen Private Bank Account review.

16. Airwallex

• No monthly fee or card fees
• Provides a multi-currency account
• Trade in over 34 currencies and 130 countries
• Allow you to collect, send and hold money in a range of currencies
• Accounts can be held in GBP, EUR, USD and AUD
• International fees don’t apply
• Offers competitive exchanges rates
• Make settlements in foreign currencies
• Offers virtual cards
• Integrate with Xero and popular online stores

Website: Airwallex Business Banking

How to open a free business bank account.

Most free accounts can be opened online. Mobile bank accounts are exclusively managed online and can set your account up within hours, or even minutes. Traditional banks accept applications online, over the phone, and in branch.

You’ll usually need to provide:

• Companies House registration number.
• Your business details, including turnover, age, and tax information.
• Details of all directors or partners, including name, date of birth, address and National Insurance numbers.

What types of restrictions are there with free business bank accounts?

Most free banking periods are restricted to new businesses, usually operating in their first 12 months. Your business will also need to be a brand new customer. Some banks and current account providers will also give you a few months free if you’re switching from a different provider.

Do free business bank accounts have any charges?

Most banks give new customers free access to all features for the fixed period, so there won’t be any other charges.

Sometimes new businesses will just have access to ‘everyday’ banking features, which usually include normal transactions like transfers, withdrawals, payments, and Direct Debits. If you need to use other features, there could be a charge. There will also be a charge if you use an unarranged overdraft during your free period.

Will my free business bank account always stay free?

Not usually. Some accounts are always free, or have a free version you can choose. However, most banks will have a fixed free period that will revert to the normal monthly charge when it ends.

What is the best free business bank account?

The best free business current account for you depends on what your business needs. Most sole traders and small businesses will be able to find something that suits them – there’s a huge amount of choice out there.

Before you commit, you should check the usual price and make sure what’s included in the free trial is all useful stuff you’ll actually need. You will need to understand how you will use your bank account such as electronic transactions, cash and cheques over the counter transactions, and foreign currency transactions to see which offers the best package for your business. It’s also a good idea to look for the longest free period available, so you can benefit from full access without paying for anything for as long as possible.

* Please note we have an affiliate relationship with Starling and Tide.