When your business is still quite new, a free bank account has lots of benefits. You’ll be able to keep at least one of your overheads down while you’re establishing yourself and your relationships with clients and customers.
Many mainstream UK banks offer a free period for new businesses and switching customers, ranging from 6 to 30 months. Many online-only bank accounts offer a free version with limited features. There are even a few banks on this list that are 100% free forever!
Please note companies are ranked in no particular order.
| Bank account | Free for? | Restrictions | Normal monthly fee |
|---|---|---|---|
| Barclays | 12 months | For small businesses setting up their first business bank account in the first 12 months of trading. | Up to £6.50 |
| NatWest | 18 months | Trading for less than a year and turnover is less than £1 million. | £5.00 |
| HSBC | 12 or 18 months | 18 months' free for new businesses only. 12 months' free if you switch to HSBC. | £6.50 |
| Lloyds | 6 or 18 months | Day-to-day banking only. 6 months' free for switchers. 18 months' free for new businesses. | £6.50 |
| Bank of Scotland | 18 months | Includes day-to-day banking features. | £6.50-£12.50 |
| Yorkshire Bank | 25 months | New businesses must be in their first 12 months. Also available to switching businesses with a turnover of under £2 million. | £6.50 |
| TSB | 25 months | For new businesses and businesses switching. | £5-£40 |
| Royal Bank of Scotland | 24 months | Trading for less than a year and turnover is less than £1 million. | From £5.00 |
| Ulster Bank | 18 months | Trading for less than 12 months and have a projected or existing annual turnover of under £1 million. | £8.00 per quarter |
| Co-operative Bank | 30 months | Everyday business banking only. There's no monthly fee or charges at all if your balance stays above £1000. | £5.00 |
| Clydesdale Bank | 25 months | New businesses must be in their first 12 months. Also available to switching businesses with a turnover of under £2 million. | £6.50 |
| Anna Bank | 3 months | For all new customers | £5, £11, or £49 |
| Revolut | Forever | Free account available. | £6.99-£12.99 |
| Countingup | Forever | Free account available | £4.95-£9.95 |
| Starling Bank | Forever | Most features are free for small businesses with fewer than 10 employees and less than £1.7m in annual turnover. | No monthly fee. Some charges for paying in physical cash. |
| Coconut | Forever | Free account available. | £5.00 |
| Amaiz | 30 days | Free trial for new customers. | £9.99 |
| Holvi | Forever | Free account available, which includes all the essential account features. | £9.00 |
| Mettle | Forever | Everything's free! | n/a |
1. Barclays
- 12 months’ free banking for small businesses in their first 12 months of trading.
- Business Moneyfacts Business Start-up Bank of the Year 2017-2019.
- 24/7 online and mobile banking.
- Call the Everyday Banking team – 7am-8pm, Monday to Friday.
- Apply online, over the phone, and in person.
- Normal monthly account fee – £6.00 or £6.50, depending on account type.
- Savings, borrowing, and credit cards also available.
Website: Barclays Business Banking
Read the full Barclays Business Account review.
2. NatWest
- New businesses get 18-months’ free business banking.
- Awarded ‘Best Banking App’ at the 2018 British Banking Awards.
- 24/7 online and mobile banking.
- Business Account holders can access the Entrepreneur Accelerator, Business Growth Enablers, and FreeAgent.
- Usually costs £5 per account, per month.
- Savings, borrowing, and credit cards also available.
Website: NatWest Business Banking
Read the full NatWest Business Account review.
3. HSBC
- 18 months’ free banking for new businesses.
- 12 months’ free if you switch.
- When your free period ends, you’ll pay a fixed price for 12 months.
- Awarded a Moneyfacts 5-star rating for Business Current Account in 2017.
- 24/7 online and mobile banking.
- Usually £6.50 a month.
- Borrowing, savings, and credit cards also available.
Website: HSBC Business Banking
Read the full HSBC Business Account review.
4. Lloyds Bank
- 18 months’ free for new businesses.
- 6 months’ free banking if you switch.
- 24/7 online and mobile banking.
- Usually £6.50 a month.
- Ranked 4th in an independent regulatory survey of the 14 largest business banks.
- Awarded Moneyfacts Business Start-up Bank of the Year 2015.
- Borrowing, savings, and credit cards also available.
Website: Lloyds Bank Business Banking
Read the full Lloyds Bank Business Account review.
5. Bank of Scotland
- 6 months’ free day-to-day banking when you switch.
- 18 months’ free for new businesses.
- 24/7 online and mobile banking.
- Usually £6.50-£12.50 a month, depending on annual turnover.
- Free electronic payments.
- Ranked 7th in an independent regulatory survey of the 14 largest business banks.
- Borrowing, savings, and credit cards also available.
Website: Bank of Scotland Business Banking
Read the full Bank of Scotland Business Account review.
6. Yorkshire Bank
- Free for 25 months for new businesses and businesses switching.
- 24/7 online and mobile banking.
- Commercial Bank of the Year at the Yorkshire Financial Awards 2019.
- Ranked 5th in an independent regulatory survey of the 14 largest business banks.
- Access to other services, including card terminals, online training for new business owners.
- Savings and business finance products available.
- Usually £6.50 a month.
Website: Yorkshire Bank Business Banking
Read the full Yorkshire Bank Business Account review.
7. TSB
- Free for 25 months for new businesses and businesses switching.
- Free period includes specialist support from TSB’s range of partners to help you start, run and grow your business.
- 24/7 online and mobile banking.
- Free card payment reader from Square available.
- Usually £5-£40 a month, depending on tariff.
- Savings, credit cards, and loans also available.
Website: TSB Business Banking
Read the full TSB Business Account review.
8. Royal Bank of Scotland
- 24-months’ free for new businesses.
- 24/7 phone, online, and mobile banking.
- Includes free FreeAgent account and a discount on DHL Express for 12 months.
- £5 a month after free period.
- Savings, credit cards, loans, foreign exchange, and insurance products also available.
- Access to Accelerator, Pre-Accelerator and Fintech Accelerator.
Website: Royal Bank of Scotland Business Banking
Read the full Royal Bank of Scotland Business Account review.
9. Ulster Bank
- Free for startups for 18 months.
- 24/7 online and mobile banking.
- Ranked 3rd for ‘overall service quality’ in an independent regulatory survey of the 14 largest business banks.
- Usually costs £8.00 per quarter.
- Business finance, savings, and investment products also available.
- Businesses must be registered in Northern Ireland to apply.
Website: Ulster Bank Business Banking
Read the full Ulster Bank Business Account review.
10. Co-operative Bank
- New customers get 30 months’ free.
- Awarded Moneyfacts Best Service for a Business Account 2017-2019, and Best Charity Banking Provider 2016-2019.
- Unlimited deposits and withdrawals.
- Usually costs £5 a month.
- No monthly fee or admin charges if your balance stays above £1000.
- Lending and savings products also available.
Website: Co-operative Bank Business Banking
Read the full Co-operative Bank Business Account review.
11. Clydesdale Bank
- 25 months’ free for new businesses and businesses switching.
- 24/7 online and mobile banking.
- Normally £6.50 a month.
- Get interest on your balance with the Business Choice Account.
- Savings and business finance products available.
Website: Clydesdale Bank Business Banking
Read the full Clydesdale Bank Business Account review.
12. Anna Bank
- Free for the first 3 months.
- Mobile business account, accessible on the app 24/7.
- £5-£11 monthly fee after the first 3 months.
- 24/7 live support. If they don’t get back to you in 10 minutes you get a refund on your monthly account fee.
- Set up in 3 minutes.
- 1% cash back on selected debit card purchases.
Website: Anna Business Banking
Read the full Anna Business Bank Account review.
13. Revolut
- Free account available. Includes all the normal features, limited to 2 users and 5 local transfers a month.
- Mobile business account, accessible online and on desktop 24/7.
- Trade in 29 currencies with no fees.
- Discounts on services and products like Apple, Google Ads, Deliveroo, and Amazon Business.
- Monthly account fees range from £25-£1000, depending on usage.
Website: Revolut Business Banking
Read the full Revolut Business Bank Account review.
14. Countingup
- Free account available for businesses depositing under £500 each month.
- Manage your account 24/7 using the app.
- £4.95-£9.95 a month, depending on how much you deposit.
- Bookkeeping and invoicing included.
- 4.5 stars on Trustpilot.
Website: Countingup Business Banking
Read the full Countingup Business Bank Account review.
15. Starling Bank
- Free electronic payments, domestic transfers and ATM withdrawals for businesses with fewer than 10 employees and less than £1.7m in annual turnover.
- No monthly fee. You’re charged for any extra features you use.
- Best British Bank, Best Current Account Provider & Best Business Banking Provider at the British Bank Awards 2019.
- Earn interest on your balance – 0.5% AER up to £2,000 and 0.25% up to £85,000.
- Arranged overdrafts available.
Website: Starling Bank Business Banking
Read the full Starling Bank Business Bank Account review.
16. Coconut
- Free account available, includes 3 invoices each month and 2% on purchases abroad.
- Paid account costs £5 a month.
- Manage your account 24/7 using the app.
- Expenses are automatically categorised and organised.
- Invoicing tool included.
- Sync with your accounting tool.
Website: Coconut Business Banking
Read the full Coconut Business Bank Account review.
17. Amaiz
- Try it free for 30 days.
- Online only. Manage your account on desktop and the app 24/7.
- Normally £9.99 a month.
- Get your account number/sort code instantly when you sign up.
- Save cash in separate ‘jars’.
Website: Amaiz Business Banking
Read the full Amaiz Business Bank Account review.
18. Holvi
- Free account available, includes 1 account and 1 card.
- Paid account costs £9 a month and includes invoice management.
- Manage everything online 24/7. On desktop and on the app.
- Send and receive money within Europe.
- Includes bookkeeping and small business accounting features.
Website: Holvi Business Banking
Read the full Holvi Business Bank Account review.
19. Mettle
- Completely free.
- Created by NatWest.
- Manage your current account on the app 24/7
- Only available on iOS at the moment.
- For sole traders and limited companies with up to 2 owners.
- If pricing ever changes, Mettle will let you know in advance.
Website: Mettle Business Banking
Read the full Mettle Business Bank Account review.
20. Cater Allen Private Bank
- Accounts available for sole traders, limited companies, and charities.
- Manage your account online, over the phone, and through the post.
- Includes Mastercard debit card.
- No monthly account fee.
- 30 free day-to-day transactions per calendar month.
- Part of the Santander Group.
- Fixed term and easy access savings account available
Website: Cater Allen Private Bank Business Banking
Read the full Cater Allen Private Bank Account review.
How to open a free business bank account.
Most free accounts can be opened online. Mobile bank accounts are exclusively managed online and can set your account up within hours, or even minutes. Traditional banks accept applications online, over the phone, and in branch.
You’ll usually need to provide:
- Companies House registration number.
- Your business’ details, including turnover, age, and tax information.
- Details of all directors or partners, including name, date of birth, address and National Insurance numbers.
What types of restrictions are there with free business bank accounts?
Most free banking periods are restricted to new businesses, usually operating in their first 12 months. Your business will also need to be a brand new customer. Some banks and current account providers will also give you a few months free if you’re switching from a different provider.
Do free business bank accounts have any charges?
Most banks give new customers free access to all features for the fixed period, so there won’t be any other charges.
Sometimes new businesses will just have access to ‘everyday’ banking features, which usually include normal transactions like transfers, withdrawals, payments, and Direct Debits. If you need to use other features, there could be a charge. There will also be a charge if you use an unarranged overdraft during your free period.
Will my free business bank account always stay free?
Not usually. Some accounts are always free, or have a free version you can choose. However, most banks will have a fixed free period that will revert to the normal monthly charge when it ends.
What is the best free business bank account?
The best free business current account for you depends on what your business needs. Most sole traders and small businesses will be able to find something that suits them – there’s a huge amount of choice out there.
Before you commit, you should check the usual price and make sure what’s included in the free trial is all useful stuff you’ll actually need. It’s also a good idea to look for the longest free period available, so you can benefit from full access without paying for anything for as long as possible.