Author
Mark C
- 1st January 2026
Best Free Business Bank Accounts – 2026 Guide
If you’re launching a new business in the UK — whether you’re a sole trader, freelancer, or growing startup — opening a business bank account is one of your first and most important steps. But here’s the good news: you don’t need to pay for one.
In 2026, a wave of innovative digital banks are offering feature-packed, fully regulated, free business bank accounts that give you everything you need to manage your finances, send invoices, track expenses, and stay compliant — all without monthly fees.
At StartupDeals.co.uk, we’ve reviewed and compared the best free business bank accounts in the UK to help you avoid unnecessary costs and choose the right solution from the start. Whether you’re looking for instant setup, smart tax tools, international payments, or cashback perks, we’ve got you covered.
Let’s dive into the best free business bank accounts for UK entrepreneurs — and help you make a smart, fee-free start.
See Our Best Free Business Bank Accounts:
A free startup bank account provides all the core banking features you need to launch and manage your business. We’ve compared the best business current account options with no fees so you can choose the one that fits your startup’s needs and saves you money.
Monzo
Monzo Business Current Account- Free Business Current Account
- Free UK Transfers
- Accounting Integrations
- Real-Time Spending Notifications
Tide
Tide Business Current Account- Free Business Current Account
- 3 months free on any paid plan
- Earn up to 4% AER (Variable) on savings
- Apply in minutes
Anna Money
Anna Money Business Current Account- Free Business Current Account
- 24/7 In-App Support
- Tax & VAT Tools
- Multi-User Access
Why Free Business Accounts Are the Smart Choice:
When launching a new business, controlling costs is critical. When it comes to banking, many startups mistakenly assume they need to pay monthly fees for quality service but that’s no longer true.
Thanks to the rise of fintech, UK entrepreneurs can now access free business banking with pro-level features, such as integrated accounting tools, multi-currency wallets, and instant expense tracking — all with no monthly cost.
Benefits of Free Business Bank Accounts:
Choosing one of the best free business bank accounts in the UK gives your business a host of advantages, including:
No Monthly Fees
Keep costs low while accessing premium tools
Fast Setup
Open an account in minutes — often without visiting a branch
Mobile-First Experience
Manage your finances anytime, anywhere
Cashflow Clarity
Instant transaction notifications keep you informed
Bonus Offers
Many providers include cashback, free cards, or accounting discounts
Best Free Business Bank Accounts:
We’ve reviewed the best free business bank accounts available to UK startups, sole traders, and SMEs. Whether you’re just getting started or looking to streamline your growing business, you’ll find an account that fits your needs.
From fast setup to built-in accounting tools and zero monthly fees, these free accounts are designed to help you save money and manage your business finances more efficiently — without compromising on features.
Tide Business Bank Account
Best for: Free, Flexible Business Banking
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Available (subject to eligibility)
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with automated expense categorisation and invoicing tools
Extras: Multi-user access, real-time financial insights
Highlights: Unlimited transactions, instant payments, and easy-to-use dashboard
Offer: Get upto £200 cashback when you open a Tide Business Bank Account (T&C’s apply)
Key Benefits:
✔️ Free to open
✔️ No monthly fee’s
✔️ Instant account setup with no credit check
Ideal for: Sole traders, freelancers, and growing UK startups looking for a no-fee business bank account with smart features and zero hassle.
Why Choose Tide?
Tide is one of the UK’s leading free business bank accounts, offering a streamlined, digital-first experience with all the tools you need to manage your finances — without the cost. From automatic expense categorisation to in-app invoicing and seamless accounting integrations, Tide helps you stay in control of your cash flow from day one.
Sign up for free with Tide Today and earn upto £200 cashback*, plus, access all the powerful features of Tide Business Banking.
Read our full Tide Business Bank Account review >> here for more details!
Anna Money Business Bank Account
Best for: Tax Tools with a Free Business Account
Monthly Fee: £0 (Pay As You Go plan)
Bank Transfers: 20p (10 free per month)
Card Purchases: £0
Overdraft: Not available
FSCS Protection: No
Accessibility: User-friendly mobile app with built-in VAT management and expense tracking
Extras: Tax tools that automatically calculate and store VAT
Highlights: Instant payment notifications, card payments, and easy-to-use dashboard
Offer: Get 1% cashback on card purchases (terms apply)
Key Benefits:
✔️ No monthly fee — pay only for what you use
✔️ Fast account setup—open your account online in minutes
✔️ Real-time financial insights directly on your mobile device
Ideal for: Freelancers, sole traders, and small business owners who want a free business bank account with built-in tools to manage taxes, invoices, and expenses all in one place.
Why Choose Anna Money?
ANNA (Absolutely No-Nonsense Admin) lives up to its name by offering a smart, fee-free business banking solution designed to save you time on tax and admin. With 24/7 in-app support, fast account setup, and automated VAT tools, it’s perfect for busy entrepreneurs who want to stay financially organised without the cost.
Sign Up for Anna Money Today and start enjoying 1% cashback on your card purchases.
Read our full Anna Money review >> here for more details!
Monzo Business Bank Account
Monthly Fee: £0 (for the Basic Plan)
Bank Transfers: Free (UK transfers)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes
Accessibility: User-friendly mobile app with built-in expense categorisation and budgeting tools
Extras: Multi-currency support for international transactions, instant notifications for all spending
Highlights: Real-time transaction updates, integration with accounting tools, and easy-to-use dashboard
Offer: £50 cashback when opening a business account* (terms apply)
Key Benefits:
✔️Truly free business bank account for sole traders and small businesses
✔️ Seamless integration with popular accounting software (e.g., Xero, QuickBooks)
✔️ Real-time insights into your business finances directly through the mobile app
Ideal for: Freelancers, sole traders, and startups looking for a modern, mobile-first free business bank account with smart tools for day-to-day financial management.
Why Choose Monzo?
Monzo’s Lite plan offers one of the UK’s best free business bank accounts, combining sleek design with powerful financial tools. From instant payment alerts to effortless expense tracking, Monzo is built for founders who want speed, clarity, and control — without the admin or fees.
Sign Up for Monzo Business Account Today and enjoy £50 cashback when opening an account (terms and conditions apply).
Read our full review >> here for more details!
Wise Business Bank Account
Best for: International businesses and freelancers who need a simple, low-cost, multi-currency business banking solution.
Monthly Fee: £0
Bank Transfers: Free (domestic transfers)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes (up to £85,000, as it is a regulated e-money institution)
Accessibility: Easy-to-use mobile app and web platform with multi-currency accounts, international payments, and expense tracking tools
Extras: Low fees for international transfers, integrated with accounting software like Xero
Highlights: Hold and convert 50+ currencies, low-cost international payments, and transparent exchange rates
Offer: n/a
Key Benefits:
✔️ Multi-currency support: Hold and convert over 50 currencies at real exchange rates
✔️ Low-cost international transfers: Send money abroad without hidden fees or high exchange rates
✔️ Accounting software integration: Easily integrate with popular accounting software like Xero for seamless business finance management
Ideal for: Freelancers, remote teams, and startups working with international clients or suppliers who need a free business bank account with transparent fees and real exchange rates.
Why Choose Wise?
Wise offers a powerful free business bank account for UK startups operating across borders. With no monthly fees, the ability to hold multiple currencies, and access to the real exchange rate, Wise is perfect for those who want to save money on international payments and FX fees — while keeping their business finances in one place.
Read our full review >> here for more details!
Zempler Business Bank Account
Best for: Simple, flexible business banking with no monthly fees and low transaction charges.
Monthly Fee: £0
Bank Transfers: 35p (3 free per month)
Card Purchases: Free (business debit card)
Overdraft: Not available
FSCS Protection: Yes
Accessibility: Easy-to-use mobile app with automated expense tracking and financial management tools
Extras: Multi-currency accounts, international payments
Highlights: Low-cost international transfers, automatic expense categorisation, and real-time insights
Offer: Get a free business debit card when you sign up for Zempler
Key Benefits:
✔️ Automated expense categorisation for seamless bookkeeping
✔️ Multi-currency accounts for international businesses
✔️ Real-time financial insights for easy management of business cash flow
Ideal for: Freelancers, small businesses, and startups that need simple, low-cost banking with international payment options.
Why Choose Zempler?
Zempler offers an affordable solution for small businesses, providing no monthly fees and the ability to handle international transactions. Its user-friendly app helps manage expenses and track business performance efficiently, making it a perfect fit for businesses looking to scale with minimal costs.
Sign Up for Zempler Today and enjoy a free business debit card along with all the helpful features of Zempler Business Banking.
What Is a Free Business Bank Account?
A free business bank account is a current account designed specifically for business use — with no monthly fees. It allows sole traders, freelancers, and small businesses to manage income, pay expenses, and keep business finances separate from personal ones, all without incurring regular banking charges.
These accounts typically offer:
Free UK bank transfers
A business debit card
Online and mobile banking
Integration with accounting software
Expense tracking and invoicing tools
Most free business accounts are provided by modern digital challenger banks like Tide, Anna Money, and Monzo, which offer fast setup, intuitive apps, and built-in tools to help streamline your business finances. Unlike traditional banks that may only offer temporary free periods, these providers often give long-term, zero-fee banking solutions tailored to startups and SMEs.
In short, a free business bank account helps you stay financially organised, look professional, and save money — all while giving you access to the tools you need to grow.
How Do Free Business Bank Accounts Work?
Once opened, a free business bank account becomes the financial hub of your business — helping you stay in control of payments, budgeting, and bookkeeping with no monthly fees attached.
Here’s how it works in practice:
Receive income from customers, payment processors (like Stripe or PayPal), or marketplaces
Pay expenses such as supplier invoices, business subscriptions, or HMRC tax bills
Track spending in real-time using mobile app notifications
Categorise transactions automatically for bookkeeping or tax returns
Send invoices and set up recurring payments directly from your account
Integrate with accounting tools like Xero, FreeAgent, or QuickBooks for seamless reporting
Free accounts from digital banks are built to be user-friendly — you can typically manage everything from your phone, with features like instant notifications, expense tagging, and smart dashboards.
Unlike legacy business banking, which often relies on paper statements or branch visits, free business bank accounts are entirely digital, fast, and automated — helping you run your finances on the go, with zero friction.
What’s the Difference Between Free and Paid Business Bank Accounts?
While all business bank accounts help you separate company finances from personal spending, the key difference lies in the fees and features offered. Choosing between a free business bank account and a paid business account depends on your business size, transaction volume, and the tools you need.
Free Business Bank Accounts:
No monthly fees
Ideal for startups, sole traders, and side hustles
Core features like UK transfers, invoicing, and debit cards
Often includes accounting software integration
Limited add-ons or premium services
Customer support typically via app or chat
Paid Business Bank Accounts:
Monthly fees typically range from £5–£20+
Better suited for high-volume or growing businesses
Advanced tools: bulk payments, payroll integration, multi-user access
Higher transaction limits and international features
May include dedicated account managers
Priority customer support and custom branding options
Which Should You Choose?
If you’re just starting out or running a small operation, a free business bank account gives you everything you need to manage your finances efficiently — without the overhead. As your business grows, you can upgrade to a paid plan if you need enhanced tools or support.
For many UK entrepreneurs, starting with a no-fee account from providers like Tide, Monzo, or ANNA is the smartest, most cost-effective choice.
Do I Need a Free Business Bank Account?
Strictly speaking, not all businesses are legally required to have a business bank account — but in practice, having one is essential, especially if you’re serious about running a professional and financially organised business.
Limited Companies: Required
If you operate as a limited company in the UK, you are legally required to open a separate business bank account. Your company is a separate legal entity, and its finances must be kept distinct from your personal funds.
Sole Traders & Freelancers: Strongly Recommended
While sole traders and freelancers aren’t legally obliged to use a business account, using a free business bank account is still highly recommended. It makes it much easier to: Track income and business expenses, repare for tax returns and HMRC compliance, look professional when dealing with clients and suppliers and avoid mixing personal and business transactions.
There’s no reason not to open a business account — especially when so many providers offer free to open, feature-rich, no-fee business banking solutions designed specifically for startups and sole traders.
Whether you’re just launching or scaling up, a free business bank account helps you stay organised, present a professional image, and manage your money with confidence — all without monthly fees.
What Are the Benefits of Using Free Business Bank Accounts?
A free business bank account is more than just a place to store money — it’s a smart tool for managing your finances, projecting professionalism, and cutting costs. For UK startups, freelancers, and SMEs, choosing a no-fee business bank account offers major advantages without compromising on features.
Save Money on Banking
One of the biggest benefits of a free business bank account UK is the immediate cost savings. Traditional business banking can cost £5–£20+ per month in fees — not to mention transaction charges. Free accounts eliminate these costs, helping you keep more cash in your business.
Separate Business and Personal Finances:
Keeping your business income and expenses separate simplifies everything — from budgeting and cash flow to HMRC reporting. It’s also essential for limited companies, and highly recommended for sole traders.
Look More Professional:
Using a dedicated business account shows clients and suppliers that you’re serious. It strengthens your business’s credibility and makes you appear more trustworthy when receiving payments or issuing invoices.
Simplify Invoicing, Payments, and Bookkeeping:
Most free business bank accounts now include digital tools like invoicing, expense tracking, and real-time payment notifications. Many also connect directly with accounting software like Xero or QuickBooks — saving you hours of admin time.
Build Business Credit:
Establishing a business banking history can help when applying for a loan, credit card, or funding in the future. Even free accounts can help build your business’s financial reputation over time.
How to Choose the Best Free Business Bank Account:
With so many providers offering free business bank accounts in the UK, choosing the right one for your startup or small business comes down to understanding what features matter most to your operations.
Here’s what to look for when comparing the best free business bank accounts:
Truly Free – No Hidden Fees
Make sure the account is genuinely free. Look for transparent pricing with no monthly fees or usage charges for standard features.
Mobile App Functionality
The best free accounts offer mobile-first platforms, perfect for managing your business finances on the go.
Accounting Integrations
Choose a business account that syncs seamlessly with accountancy software to ensure accurate bookkeeping.
International Capabilities
Consider an account that supports multi-currency accounts and low-cost international payments, avoiding high FX and transfer fees.
Invoicing & Expense Tools
Use Banks with built-in tools for creating and sending invoices, tracking expenses, and even managing tax deadlines from within the app.
FSCS Protection & Security
Make sure your provider is regulated and offers FSCS protection (up to £85,000).
Pros and Cons of Free Business Bank Accounts:
If you’re looking to cut overheads without compromising on features, no-fee business bank accounts are a smart alternative to traditional banking. Check out our latest pro’s and con’s summary:
Pro’s:
✔️ Cost Savings – No monthly fees = instant savings. Free business accounts are ideal for startups, sole traders, and SMEs looking to cut unnecessary costs without sacrificing essential features.
✔️ Separation of Personal and Business Finances –Keeping your business income and expenses separate helps with budgeting, reduces tax errors, and ensures your finances stay organised.
✔️ Professionalism – Using a dedicated business account — even a free one — boosts your credibility with clients, suppliers, and HMRC. It shows you’re running a serious operation.
✔️ Built-In Financial Tools – Many free business bank accounts offer integrated tools for invoicing, expense tracking, and accounting software sync — helping you automate finances from day one.
✔️ Fast Online Setup – Most no-fee providers offer fast digital onboarding, meaning you can open a fully functional free business bank account in minutes — no branch visit required.
✔️ Builds Business Credit – Maintaining a separate business account helps you build a financial footprint for your company, which is essential if you plan to apply for credit or funding later.
Cons:
❌ Feature Limitations – Free accounts may not include advanced features like bulk payments, multi-user access, or priority support — these are often reserved for paid plans.
❌ Transaction Limits or Small Usage Fees – Some providers may limit the number of free transfers per month or charge small fees after certain thresholds.
❌ No Branch Access – Free accounts are usually offered by digital banks, meaning you won’t have access to physical branches — which may be a drawback for businesses handling cash or cheques.
❌ Potential Upgrade Pressure – As your business grows, you may need features that are only available on a premium tier, requiring an upgrade to a paid account.
At a glance - Business Bank Account Comparison:
 |
 |
 |
 | |
|---|---|---|---|---|
| Opening Fee | £0 | £0 | £0 | £0 |
| Monthly Cost | £0 (Free account) £12.50–£69.99 (Paid plans) | £0 (Free account) £14.90 (Paid plans) | £0 (Free account) £5 (Pro plan) £15 (Premium plan) | £0 (Free account) |
| Card Transaction Costs | Free | Free up to turnover limit | Free UK card transactions | Free UK card transactions |
| Transfers to/from other bank accounts | Free UK transfers Fees for international | Free up to turnover limit | Free UK transfers Fees for international | Free transfers (for major currencies) |
| ATM Withdrawals | £1 | Free (up to £500/month) Fees after | Free up to £250/month Fees above that | Free |
| Tap to Pay | ✔️ | ✔️ | ✔️ | ✔️ |
| Payment links | ✔️ | ✔️ | ✔️ | ✔️ |
| Accounting Integrations | ✔️ | ✔️ | ✔️ | ✔️ |
| Sign-Up Offer | Up to £200 cashback* (T&C's apply) | 1% cashback* (T&C's apply) | £50 cashback* (T&C's apply) | N/A |
| Apply Now | Apply Now | Apply Now | Apply Now |
FAQ's:
Can I get a business bank account for free as a sole trader?
Yes — accounts like Tide, ANNA, and Mettle are ideal for sole traders and freelancers.
Is FSCS protection available with free accounts?
Yes, most accounts such as Tide or Monzo are fully FSCS protected up to £85,000.
Can I switch from my paid business bank to a free one?
Absolutely. Look for banks using the Current Account Switch Service (CASS) for seamless transfer.
Do free accounts work for limited companies?
Yes. All listed accounts support Ltd companies, sole traders, and partnerships.
What is the best free business bank account in the UK for startups?
The best free business bank account in the UK for startups usually offers no monthly fees, free digital banking tools, and easy account setup to help new businesses save money.
How do I choose the best free business bank account for my small business?
To choose the best free business bank account, compare providers based on fees, transaction limits, online tools, and customer support.
Are there no-fee business bank accounts available for sole traders?
Yes, many banks provide no-fee business bank accounts specifically designed for sole traders who want simple, cost-effective banking solutions.
Can I open a free business bank account UK option entirely online?
Yes, several providers let you open a free business bank account in the UK online, with quick approval and instant digital access.
Which providers offer the best business current account no fees for SMEs?
Popular providers like Starling, Monzo, and Tide are often considered the best business current account no fees options for SMEs in the UK.
Is the best free business bank account suitable for freelancers?
Absolutely, freelancers benefit from the best free business bank account by separating personal and business finances without extra costs.
What features should I look for in the best free business bank account UK providers?
Look for features like free transactions, mobile app access, invoicing tools, and integration with accounting software.
Are no-fee business bank accounts truly free, or are there hidden charges?
Most no-fee business bank accounts don’t have monthly charges, but some may charge for international payments or cash deposits.
Can startups benefit from a free startup bank account?
Yes, a free startup bank account helps founders avoid monthly charges while gaining access to digital tools that support growth.
Which banks are considered the best free business bank account providers?
Starling Bank, Monzo Business, and Tide are highly rated as the best free business bank account providers in the UK.
How does a free business bank account UK compare with paid accounts?
A free business bank account UK saves you on monthly fees, but paid accounts may include perks like overdrafts and advanced support.
Are there any best business current account no fees options for charities or nonprofits?
Yes, some providers offer the best business current account no fees deals specifically for charities, clubs, and nonprofits.
What documents do I need to open the best free business bank account?
You’ll typically need proof of ID, proof of address, and business details to open the best free business bank account.
Do no-fee business bank accounts include debit cards?
Yes, most no-fee business bank accounts include a free debit card for purchases and withdrawals.
Is a free startup bank account safe to use for new companies?
Yes, a free startup bank account with a regulated UK bank is completely safe and protects your money under FSCS rules.
What makes the best business current account no fees different from a personal account?
The best business current account no fees is designed for managing company transactions, while personal accounts are only for individual use.
Can I switch to the best free business bank account if I already have a paid account?
Yes, you can switch to the best free business bank account through the UK’s Current Account Switch Service with minimal hassle.
Do free business bank account UK providers offer mobile banking apps?
Yes, almost all free business bank account UK providers offer mobile apps for easy account management on the go.
Are there international options for the best free business bank account?
While UK providers focus on domestic accounts, some fintechs also offer international services alongside the best free business bank account.
Why should I open a free startup bank account instead of using my personal one?
Opening a free startup bank account keeps finances separate, makes bookkeeping easier, and looks more professional to clients.
Conclusion: Choose the Right Free Business Bank Account for Your Startup:
Choosing the best free business bank account can give you all the tools to manage your finances professionally — without the cost. From saving money on fees to simplifying bookkeeping and boosting your business credibility, it’s a smart move for any startup, sole trader, or SME.
Whether you need cashback, accounting integrations, or international payments, there’s a no-fee business account that fits your needs. Compare your options, pick the right provider, and start managing your business finances the smarter way — for free.
Ready to Open the Best Free Business Bank Account?
Start comparing the best free business bank account offers and claim your bonus today:
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