You can get a business banking account without needing to pay a monthly or annual fee, but not every account is available to all types of businesses.

This comparison lets you compare free business accounts based on:

  • Annual turnover accepted: This tells you what annual turnover your business needs to make before you can apply for each current account.

  • Availability: Check if your business is eligible for each account. For example, an account may only be available for sole traders or limited companies.

  • Interest rate: This is how much interest you could earn on the money you keep in a business current account.

When choosing the best business bank account, consider the features you need, for example, a small business may only need UK based payment facilities, rather than international.

Can I get a free business bank account?

If you are a startup or small business, you may be eligible for free business banking.

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 2.8 million or less

  • 50 or less employees

If your company qualifies, use our table to compare the small business current accounts available to you.

Are there any charges?

The current accounts in this comparison are free from monthly fees, but you can still get charged for:

  • Cash withdrawals: This charge varies depending on the account. If you plan on taking cash out regularly, find an account with the lowest charge before you apply.

  • Bank transfers: Sending money to another account in the UK comes with a charge, which varies depending on the bank you choose.

  • Replacing cheques: If a cheque you send gets lost, or you make a mistake when writing one, most banks charge you if you need to cancel it.

  • Sending money abroad: All business current accounts charge a fee if you need to do an international money transfer.

Compare the charges from each business current account to help you find the cheapest one.

Can I switch my business bank account?

With The Current Account Switch Service, moving your business account from one bank to another is simple and hassle free.

The service, which is free to use and open to anyone with a UK bank account, handles all the details involved with moving your account, including standing orders and direct debits.

If you have any payments coming into your old account, they will be redirected to your new account and the person who made the payment will be told about the change.

What features should I look for in a free business bank account?

It doesn't matter what size your business is, a company's business account is an essential tool to keep track of finances and manage day-to-day banking. Free business bank accounts can include:

  • Overdraft: This is an efficient way to borrow money through your bank account, although it can be expensive.

  • Debit cards: You and other employees can spend in person, online or by phone.

  • Online banking: You manage your account and make payments through your bank's website or app.

  • Post Office banking service: Businesses which deal in cash can use this service to deposit into their account.

  • Interest: Some banks will pay you interest as a reward for keeping your business' money in their bank.

  • Accounting software integration: You means you can link third party software and apps to your free company account, which can track transactions without the need to be fed in manually.

It's possible that some of these features are not available with some banks, which is why it's important to shop around.

You can also explore options for a paid business account if you cannot find the features you're looking for.

Free business bank accounts FAQs

Q

How long does it take to get a business account?

A

It could take minutes if you apply online or in a branch, but it could take longer if the bank needs more information about your business.

Q

Can I switch my business account to another?

A

Yes, if you employ less than 50 employees you can use the Current Account Switch Service. For larger businesses, ask your new bank to arrange it.

Q

Can I use a personal current account instead?

A

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.

Q

How much can I pay into my business account?

A

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 high.

About our free business bank accounts comparison

Q

Who do we include in this comparison?

A

We include business current accounts from our panel of UK banks and building societies. They are all regulated by the Financial Conduct Authority (FCA). Here is more information about how our website works.

Q

How do we make money from our comparison?

A

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.