Best Free Business Bank Account in the UK (2026)

Paying a monthly fee for a business bank account is optional. A growing number of UK banks and fintechs now offer business current accounts with no monthly charge, no minimum balance, and free UK transfers on the standard tier.

But "free" covers a wide range of products. Starling and Monzo charge nothing per UK transfer at any volume. Tide gives you five free transfers a month, then 20p each. ANNA has no monthly fee but takes 0.95% of every incoming payment. Understanding what each provider actually charges is the difference between genuinely free banking and a bill that arrives in a different form.

This guide breaks down eight providers, explains where hidden costs lurk, and gives a clear recommendation for different business types.

Who can open a free business bank account?

Sole traders, freelancers, limited companies, and most partnerships can apply. The exception is Mettle, which is restricted to sole traders and single-director limited companies. Traditional high street banks often require a Companies House number and run a credit check during the application.

Starling Bank Business Account

Starling is a fully FCA-licensed bank with FSCS protection to £85,000. There is no monthly fee, no charge per UK Faster Payment, and no ATM fee at UK cash machines. Whether you make 20 transfers a month or 200, the cost stays at zero.

That unlimited-transfer policy sets Starling apart from almost every other free-tier account. It also integrates with Xero and FreeAgent without a paywall, and the Spaces feature lets you ring-fence a tax pot inside the same account.

What you get

• Zero monthly fee and zero per-transfer charges on UK Faster Payments
• FSCS protection up to £85,000
• Spaces for tax and project funds
• Xero and FreeAgent integrations at no extra cost
• Overdraft on application
• Apple Pay, Google Pay, iOS and Android apps

Best for: Any UK business making more than ten UK bank transfers per month. Sole traders, limited companies, and partnerships all qualify.

Watch out for: Cash deposits require a Post Office counter (fees apply from the Post Office, not Starling). No built-in invoicing.

Mettle Business Account

NatWest built Mettle as a free account for sole traders and small limited companies. The defining feature is a bundled FreeAgent subscription worth up to £228 per year, which covers invoicing, VAT returns, and payroll.

For a freelancer who already pays for FreeAgent, switching to Mettle turns a fixed software cost into a zero. That alone makes it worth considering before any of the banking features.

What you get

• Zero monthly fee
• FreeAgent included free
• NatWest-group backing
• Apple Pay, Google Pay, iOS and Android apps
• Optional Mettle+ (£4 per month) for auto-invoicing

Best for: Freelancers and sole traders who use FreeAgent. The free accountancy subscription offsets more value than any other perk on a free business account.

Watch out for: Mettle is an e-money institution, not a bank, so no FSCS protection. Partnerships and multi-director companies are ineligible.

Monzo Business Lite

Monzo became a licensed bank in 2017. Its Lite plan costs nothing and includes unlimited free UK bank transfers, which puts it in Starling's league on the fundamentals. The main trade-off is that accounting integrations with Xero and QuickBooks sit behind the paid Pro plan (£9 per month).

The Pot feature works well for setting aside VAT or tax without opening a separate account. Monzo's app is polished and its 24/7 in-app support is fast.

What you get

• Zero monthly fee
• FSCS protection up to £85,000
• Unlimited free UK Faster Payments
• Pot for ring-fencing tax funds
• Apple Pay and Google Pay
• 24/7 in-app customer support

Best for: New businesses that want a free account from a recognised bank name, with no intent to integrate accounting software on the free tier.

Watch out for: No accounting integrations on the Lite plan. International payments carry a 1% FX fee. No overdraft at the free tier.

Wise Business Account

Wise is an FCA-authorised e-money institution, not a bank. No monthly fee, but no FSCS protection either. What Wise does better than any of the other accounts on this list is multi-currency: balances in over 50 currencies, mid-market exchange rates, and local bank details in GBP, EUR, USD, AUD, and more.

An optional one-off £50 setup fee unlocks batch payments, team access, and the full multi-currency feature set. For businesses that only deal in GBP, Wise's UK-specific banking tools are thinner than Starling or Monzo.

What you get

• Zero monthly fee
• Balances in 50+ currencies
• Mid-market FX rates on international transfers
• Debit card, Apple Pay, Google Pay
• Xero and QuickBooks integration
• One-off £50 for advanced features (optional)

Best for: UK companies that regularly pay overseas suppliers or invoice international clients in multiple currencies.

Watch out for: No FSCS protection. No overdraft. Not the right primary account for a GBP-only domestic business.

Tide Business Account (Free Plan)

Tide is an FCA-authorised e-money institution serving over 600,000 UK businesses. Customer funds are safeguarded through ClearBank under FCA e-money rules, not FSCS-covered directly.

The free plan comes with five monthly transfers included, a Mastercard debit card, built-in invoicing, and direct feeds to Xero, QuickBooks, FreeAgent, and Sage. Above five transfers, each one costs 20p. For a business making 50 payments a month, that is £9 in additional charges on top of a "free" plan.

What you get

• Zero monthly fee
• 5 free transfers per month (20p each after)
• Built-in invoicing
• Xero, QuickBooks, FreeAgent, and Sage bank feeds
• Apple Pay, Google Pay
• Accounts open within minutes

Best for: Very early-stage businesses with low transaction volumes who value built-in invoicing and same-day setup.

Watch out for: Per-transfer charges hit fast. Not FSCS protected. No overdraft on the free tier.

ANNA Money (Pay As You Go)

ANNA has no monthly fee but charges 0.95% on all incoming payments. A business receiving £5,000 a month pays £47.50 under ANNA's Pay As You Go model. At £10,000 a month incoming, that rises to £95. Most businesses with predictable revenue will find ANNA's Business plan (£22.90 plus VAT per month) cheaper overall.

Where ANNA earns its place is in the admin tooling: automated tax estimates, VAT reminders, MTD support, and receipt scanning are all included on the free tier.

What you get

• Zero monthly fee
• 0.95% on incoming payments
• Automated tax estimates
• VAT reminders and MTD support
• Receipt scanning and transaction categorisation
• Apple Pay and Google Pay

Best for: Sole traders and freelancers with irregular or very low income who want financial admin tools without committing to a monthly plan.

Watch out for: The incoming payment fee makes this the most expensive "free" account at any consistent revenue level. No FSCS protection.

Zempler Bank Business Go (formerly Cashplus)

Zempler Bank (which rebranded from Cashplus) holds a UK banking licence and offers FSCS protection to £85,000. Its Business Go account has no monthly fee and earns interest on the balance held, a rare combination for a free-tier account.

Three transfers per month are included; beyond that, each transfer costs 35p. Accounting integrations are limited compared to Starling or Tide.

What you get

• Zero monthly fee
• FSCS protection up to £85,000
• Interest earned on balances
• Overdraft on application
• Apple Pay and Google Pay

Best for: Low-volume businesses holding significant cash who want FSCS protection and interest on reserves. Useful as a secondary holding account.

Watch out for: Only three free monthly transfers (35p each after). Accounting integrations are thin.

Traditional banks: free introductory periods

High street banks offer business accounts with a free period for new customers, not ongoing free banking:

• Barclays Business: Up to 12 months free, then from £8 per month
• HSBC Kinetic: 12 months free, then £6.50 per month
• NatWest: 18 months free for startups and switchers
• Lloyds Business: 12 months free, then £7 per month
• Virgin Money M Account: 25 months free for eligible businesses, standard charges after

These are worth comparing if you plan to use a full banking relationship over time. For permanently free banking, the challengers above are stronger options.

How to choose a free business bank account

Transaction volume first

Starling and Monzo have no per-transfer fees. Tide limits you to five per month before charging. ANNA taxes your income. Work out your average monthly transfer count before picking.

FSCS status

Starling, Monzo, and Zempler are licensed banks with FSCS protection to £85,000. Tide, Wise, Mettle, and ANNA are e-money institutions with safeguarding but no FSCS. Both structures protect your money if the provider fails; FSCS adds a government guarantee on top.

Accounting integration

Mettle's free FreeAgent is hard to beat if you already pay for that software. Starling's Xero integration is the most reliable among UK challengers. Tide connects to the most platforms on its free tier.

Business type

Mettle excludes multi-director companies and partnerships. Every other provider on this list accepts limited companies. Sole traders have the widest choice.

What "free" can hide

No monthly fee does not mean no fees. Before committing, check:

• Cash deposit fees: Post Office deposits cost £3 to £5 regardless of provider
• International transfer fees: Each overseas payment carries a flat rate or percentage charge
• ATM withdrawal fees: Starling charges nothing; some others add a percentage on international ATM use
• Per-transaction fees: Tide (20p after 5), ANNA (0.95% on income), Zempler (35p after 3)
• Card replacement: Usually £5 to £10

For a domestic GBP-only business making more than ten monthly transfers, Starling has the lowest true cost of any account on this list.

Frequently Asked Questions

Can I open a free business bank account with bad credit?

Tide, Monzo, and ANNA do not run a credit check. Starling may run a soft check. High street banks are more likely to decline applications where directors have adverse credit history.

Is a free account as safe as a paid one?

Yes. Monthly fees have no bearing on deposit safety. What matters is whether the provider holds a banking licence (Starling, Monzo, Zempler) or FCA authorisation as an e-money institution (Tide, Wise, Mettle, ANNA). Both structures keep your money ring-fenced.

Do sole traders need a business bank account?

There is no legal requirement for a sole trader. In practice, separating personal and business finances makes Self Assessment tax returns far easier and protects you from personal liability confusion if you ever incorporate.

Can a limited company use a free business bank account?

Yes, with one exception. Starling, Tide, Monzo, Wise, and ANNA all accept limited company applications. Mettle is restricted to sole traders and single-director limited companies.

How long does account opening take?

Tide and ANNA complete same-day onboarding in most cases. Starling and Monzo respond within one to three business days. High street banks can take several weeks.

Which free account is best for a freelancer?

Starling for most freelancers: unlimited transfers, solid accounting integrations, FSCS protection. If you use FreeAgent, switch to Mettle instead and get the software free.

What happens if a free account provider goes under?

Licensed banks (Starling, Monzo, Zempler) fall under FSCS: you get up to £85,000 back. E-money institutions (Tide, Wise, Mettle, ANNA) must hold your funds in segregated accounts that cannot be used to pay company creditors, so your balance is returned even in insolvency. Neither scenario leaves you unprotected, but FSCS provides the stronger statutory guarantee.