If you’re just starting out as a business, a free business bank account is a good way to minimise overheads while you get your business established.* We’ve rounded up the best free business bank accounts for UK small businesses and reviewed each provider.
*By free, we mean business bank accounts without monthly account fees. Some business account providers listed charge monthly fees if a minimum balance is not maintained. There are no completely free business bank accounts as other banking charges can be incurred, such as for making ATM withdrawals, international payments, and transfers. Please read providers’ terms and conditions for more details.
Key takeaways:
- A free business bank could save you up to £300 a year.
- Traditional High Street Banks offer in-person branch support.
- Digital banking solutions only offer telephone/chat support.
- Check for hidden costs or limited fee-free periods.
How to choose a business bank account
Choosing who your business banks with is not a simple decision. There are a wide range of factors which can affect your decision. These include:
- Are there monthly fees?
- Do you receive FSCS protection?
- Are there charges for bank transfers/ deposits?
- Do you want in-branch support?
- What other benefits/ features come with the provider?
- What are the ethical values of the bank?
- Are the customer reviews positive?**
**Trustpilot reviews listed accurate as of 30 April 2026.
Comparison table of free business bank accounts
| No monthly fees? | FSCS protected? | In-branch support? | Free Making Tax Digital software included? | |
| HSBC |
✅ |
✅ | ✅ | ✅ |
| Tide | ✅ | ✅ | ❌ | ✅ |
| Zempler Bank | ✅ | ✅ | ❌ | ✅ |
| Starling Bank | ✅ | ✅ | ❌ | ✅ |
| Monzo | ✅ | ✅ | ❌ | ✅ |
| The Co-operative Bank | ✅ | ✅ | ✅ | ❌ |
| Allica Bank | ✅* | ✅ | ❌ | ✅ |
| Metro Bank | ✅* | ✅ | ✅ | ❌ |
Top 8 free UK business bank accounts
HSBC
The HSBC Small Business Banking Account no longer has a monthly maintenance fee and does not charge for standard domestic digital transactions. Tailored for small businesses and start-ups, the account offers dedicated support via its network of business specialists, free accounting tools and borrowing solutions up to £100,000.
It comes with its own My Business Finance-integrated Making Tax Digital software and financial insights tool. This is free for three months after you join, then is available for £5.99 + VAT per month after the introductory offer period.
Key Features
- No monthly account fee and free standard domestic digital transactions (fees for other transactions like cash withdrawals and cheque deposits)
- Visa debit card
- Borrowing solutions up to £100,000
- Visa commercial card – no annual fee for the first year (then £32)
- Access to secure digital banking including the ability to scan and deposit your cheques via the Business Banking Mobile app
- Banking 24/7 online
- Comes with My Business Finances free accounting software
- UK-based telephone support
- International payments for over 60 currencies
- Bank in branch and at 11,500 Post Office branches
Trustpilot rating: 4.8/5 (3,398 reviews)
Open a Small Business Banking Account with HSBC
Tide
Tide’s Free current account has no set up fees or monthly charges and is a great option for small businesses looking to benefit from additional perks linked to the account.
With a Tide business bank account, you can accept contactless payments on your phone using your iPhone and the Tide app at no additional cost. You can also get your website up and running with their all-in-one starter kit (free for the first month, then £7.99 + VAT per month), and benefit from free Making Tax Digital software.
Tide is a digital banking platform, meaning it does not have any branches to provide in-person support.
Key Features:
- FSCS protected
- No monthly fees
- 24/7 chat support
- Earn up to 4% AER interest with Tide Instant Saver Account
- Free Tap to Pay to accept contactless payments
- Free Making Tax Digital software
Trustpilot rating: 4.4/5 (33,790 reviews)
Zempler Bank
Zempler Bank’s Business Go account can be opened in minutes and has helped over 650,000 businesses get off the ground. Zempler does not have any branches, although does offer telephone support with real humans Monday – Saturday and on Bank Holidays.
However you are going to be sending money regularly (either payments or transfers), you may find the 35p charge per payment/transfer after the initial 3 free payments an expense that quickly mounts up.
Key Features:
- No monthly account fees
- FSCS protected
- Sending money: 3 free payments & transfers per month (35p after)
- Free Making Tax Digital tool
- Free invoice generator
- Free digital receipts capture
- Spending insights
Trustpilot rating: 4.5/5 (16,754 reviews)
Right now, Zempler Bank have an offer where you can receive £100 if you open a business account with them and deposit £100 within 30 days into your new business bank account. Terms and conditions apply.
Open a Zempler business account
Starling Bank
Starling Bank is an award-winning digital bank with high customer satisfaction and over 450,000 UK business customers. You can choose from the business account or the sole trader account, both of which have no monthly fees or set up charges.
Starling is a solid option for businesses looking to integrate with third-party payment platforms and Xero/QuickBooks/FreeAgent.
However, Starling does not have physical branches, and also does not offer overdrafts.
Key Features:
- FSCS protection
- No monthly fees or set up charges
- Free UK bank transfers
- Free ATM withdrawals (up to 6 a day, daily limit £300)
- International payments to bank accounts in 34 countries with no hidden fees
- Spending analytics
- 24/7 UK support from real humans
- Free Making Tax Digital software
Trustpilot rating: 4.1/5 (46,000 reviews)
Get started with Starling Bank
Monzo
With its recognisable coral card, Monzo is a popular choice for UK businesses looking to receive useful insights on their spending and income.
The Lite account has no monthly account fees and has several standard benefits, including free, instant UK bank transfers, FSCS protection up to £120,000, incorporated Making Tax Digital software, and the ability to send international payments for free.
The Lite account may not be suitable for businesses with large finance teams, or for sole traders wanting invoice software included with the account (this is only available with the Pro account, £9 a month, or Team account, £25 a month).
Key Features:
- No monthly fees
- FSCS protection
- Free, instant UK bank transfers
- Free international payments
- Making Tax Digital software included
- Spending insights
- Instant access savings pot (up to 1.30% AER)
Trustpilot rating: 4.6/5 (67,435 reviews)
The Co-operative Bank
Priding itself on ethical banking, The Co-operative Bank’s Business Account is ideal for small businesses and sole traders looking for an ethical solution to digital banking.
The Co-operative Bank’s Ethical Policy is committed to tackling the climate crisis, campaigning for change, and demanding a fairer society. They do not provide products, services or finances to any businesses that conflict with their Ethical Policy.
You can manage your account online, on a mobile app, or pop into a branch.
Key Features:
- No monthly fees
- FSCS Protection
- Free ATM withdrawals
- 42 branches nationwide (excludes Northern Ireland)
- Discounted payment terminals
- Free invoicing software, Go Get Paid
- Accountancy software integration
Trustpilot rating: 4.5/5 (17,219 reviews)
Allica Bank
Allica Bank is geared towards established businesses rather than start-ups or sole traders who’re just getting started as you’ll need £50,000 to open a Business Rewards Account (their business current account) and have been incorporated for at least twelve months.
However, if you meet these criteria, you gain access to a wide range of market-leading savings account as well as a dedicated relationship manager contact and borrowing solutions.
Allica Bank does not have any physical branches, but instead has relationship managers located across the UK.
Key Features:
- No monthly account fees (customers whose balance falls below an average of £10,000 in the previous month will incur a £25 monthly fee)
- FSCS protected
- UK-based telephone support
- Market-leading savings accounts
- Local relationship manager
Trustpilot rating: 4.6/5 (1,795 reviews)
Metro Bank
Metro Bank’s Business Bank Account is designed for small businesses including startups, sole traders and limited companies with less than £2m turnover a year.
The account is free – so long as your balance stays above £6,000 for the whole month (£8 per month otherwise). This may make the account more suited to switchers than businesses just starting out or side hustles.
Key Features:
- FSCS protected
- No monthly fees if balance above £6,000
- Overdraft and loan services
- In-person branch support
- Free invoicing tool to help sole traders and small businesses get paid
Trustpilot rating: 2.3/5 (5,667 reviews)
Frequently Asked Questions
Do I legally need a business bank account?
If you are registered as a sole trader, you are not legally required to open a business bank account, although it is recommended to keep business funds separate from your personal funds. This will make it easier for self-assessment.
If you are registered as a limited company it is a legal requirement to open a business bank account.
What documents do I need to open a business bank account?
To open a business bank account you will generally need the following supporting documents:
- Proof of identity (passport/driver’s licence) and proof of UK address (a utility bill/ a bank statement from your personal account)
- Company registration details
- Identification of all shareholders with over 10% of the business (if applicable)
- A business plan outlining why you need a business plan
How long does it take to open a business bank account?
This can vary between banks, and may depend on any follow-up questions they need to ask as part of their Know Your Customer (KYC) and Know Your Business (KYB) checks. However, usually a business bank account is opened within 4 weeks after the initial application is made.
What is FSCS protection?
The Financial Services Compensation Scheme (FSCS) provides compensation if a firm fails and is unable to pay claims against it, up to £120,000 per UK-authorised and regulated bank, building societies and credit unions.
Often small business owners bank with their personal account provider out of simplicity, which raises the important question: are both accounts are covered by FSCS protection?
If your business is a separate legal entity (for example a Limited Company or an LLP), then the business can claim up to £120,000 for its business bank account and you can claim up to £120,000 for your personal account.
If you run your business as a sole trader, your business and personal accounts would be considered as one entity, meaning you would only be able to claim £120,000 in total.
What are business savings accounts?
Business savings accounts are separate from your business current account. A current account is used to make and receive payments, although will likely not earn you any interest. A savings account is used to store surplus funds needed for payments and earns interest. For more information, see our article: The 8 best business savings accounts – Small Business UK
Want to know more about business banking?
- Check out our roundup of the best business bank accounts – What are the best business bank accounts in the UK?
- Are you a sole trader? We’ve identified business bank accounts made with sole traders in mind – Best business bank accounts for sole traders – Small Business UK