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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.
Our services are provided at no cost to you. We may receive a commission from the companies we refer you to, but this does not affect what you will pay for the product you choose.
Last updated: 12 May, 2021
As the name suggests, free business bank accounts are ones which don't charge a fee.
If you've just started a business, a free business bank account is useful to keep down costs while you focus your spending on establishing your business.
You can set up a free business bank account knowing there won't be monthly or annual charges, and set-up itself is free too
Keep in mind though that free doesn't meant totally free like you'd get with a personal current account.
If you've got a limited company, you're legally required to have a business bank account.
If you're a sole trader, it's up to you whether you have one. But a free business account can help you keep your personal finances separate from your business finances.
Firstly, it's important to understand that not every free business bank account is available to every type of business. Some banks have specific criteria that your business must fit before they'll give you one of their free business banking accounts. So you'll need to do some groundwork to find the best free bank account, UK wide, for your business.
When it comes to finding the right free bank account for your business, our comparison table at the top of this page is a good place to start. It lets you compare free business banking accounts based on:
When you're choosing the best free business bank account for you, think about which features you need most from your free business banking. For example, a small business might only need UK-based payment facilities if they don't do any international business.
Before you can find the best free bank account or free online bank account, UK wide, you'll need to work out if you're eligible.
When it comes to your business bank account, free of charge ones tend to be reserved only for small businesses. So, if you're a startup or small business, you might be able to get a free bank account for your company.
The UK's Companies Act 2006 defines a small business as one that meets at least two of the following conditions:
If you're not sure whether your company counts as a 'small business', this definition might help you work it out.
If your company qualifies, use our table to help you find which free business bank account, UK wide, would be best for you.
All the free business bank accounts in our comparison table are free from monthly and annual charges, and setup charges.
But remember that even the very best free bank account options can come with charges for extra services.
These might include charges for:
So when you find a business bank account, no fees is a big bonus, but there may well be lots of other charges to think about.
Compare the charges associated with each free business account, UK wide, to help you find the cheapest one.
Your free business banking switch is simple with The Current Account Switch Service. It makes it hassle free to move your free business banking or free online business bank account elsewhere.
The Current Account Switch Service is free to use, and open to anyone with a UK bank account. It handles all the details involved with moving your free business bank account, such as standing orders and direct debits.
If you've got payments coming into your old account, they'll be redirected to your new account. And the person who made the payment will be told about the change, too.
When you're looking for the best free bank account, UK wide, it's important to know what you're looking for.
Whatever size your business is, your company's business account is an important tool. It helps you track your finances and manage day-to-day banking.
Free business banking, UK wide, can come with lots of different features and perks. These might include:
Not all fee-free bank accounts, UK wide, offer the same services. Some of these features aren't available with some free business accounts. So it's important to shop around for the best free business account for your needs.
You can also explore options for a paid if you can't find the right free business current account for you.
There are several perks of free business banking accounts. Here are some examples:
Of course there are some downsides to a fee-free business account, too. Free banking for small businesses is never completely fee-free, and a business account is still likely to cost you more.
Plus, with a fee free business bank account and a personal account, you'll have double the cards, cheque books, statements and passwords to take care of.
It's easy to open a free business checking account. As long as you're eligible to open one, you can do it in a bank branch, online, or over the telephone, depending on which free company bank account you've chosen.
You'll need to share business and personal details, as well as some ID and documents. Check with the bank what you'll need so you can gather the right information and documents before you apply.
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.
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.
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 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.
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