Choose a free business bank account if you want to avoid a monthly fee. You could manage your small business with one of these accounts for free.
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As their name suggests, free business accounts don’t charge a fee. That means free setup, and no monthly or annual charges. This helps keep down costs, enabling you to focus your spending on your business.
Keep in mind, though, that free doesn’t mean there are no charges at all.
Free-of-charge accounts tend to be reserved for small businesses, including start-ups. The UK’s Companies Act 2006 defines a small business as one that meets at least two of the following conditions:
annual turnover of £5.6 million or less
annual balance sheet of £2.8 million or less
50 or fewer employees
If your company qualifies, you can use the table above to help you find a free business bank account that is right for you.
All the free business bank accounts in our comparison table are free from monthly and annual charges, as well as setup costs. However, there are likely to be charges for extra services, such as cash withdrawals, bank transfers, replacing cheques and sending money abroad.
Compare the charges associated with each free business account to help you find the cheapest.
Possibly. You do if you’re a limited company – it’s a legal requirement to have a business bank account. If you’re a sole trader, on the other hand, it’s up to you whether you have one.
If your business meets a bank’s criteria for obtaining a free business bank account, start your search using our comparison table at the top of the page. You can compare accounts based on elements such as:
annual turnover accepted
eligibility based on business type (such as being a sole trader or limited company)
how much interest you could earn
Free business accounts offer a wide range of features and perks. When comparing accounts, consider whether they come with an overdraft for easy – if expensive – borrowing. Other things to look for include:
debit cards for in-person spending
support for online banking
a Post Office banking service for depositing cash
whether they pay interest
the ability to link your account to third-party accounting software and apps for easy tracking of transactions
Not all fee-free bank accounts offer the same services as paid accounts. You can also explore options for a fee-based account if you can’t find the right free business current account for you.
Yes. Make use of the Current Account Switch Service when switching to or between free business bank accounts to make the process as easy as possible. Benefits include the automatic transfer of standing orders and direct debits to the new account, along with the redirection of payments from your old account to the new one (including informing payees of the change).
You can open a free account in a bank branch, online or over the telephone, depending on which account you’ve chosen (and having determined your eligibility).
You need to share business and personal details, as well as proof of identity and other documents. Check with the bank, so you can gather the right information before you apply.
Your bank may let you, but only if you are a sole trader or your business is a partnership. Check with your bank before you set up an account.
Most accounts have a minimum and maximum balance set by the bank. You may be charged a fee if your balance gets too low or too high.
Our comparison tables include providers we have commercial arrangements with. The number of listings in our tables can vary depending on the terms of those arrangements, as well as other market developments. They are all from lenders regulated by the Financial Conduct Authority (FCA). Here is more information about How our website works.
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.
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Last updated: 17 May, 2022