Best Free Business Bank Accounts July 2024

Ideal for anyone just starting out, Monzo Business makes it easy for you to set up a new account and start managing your money. 

Monzo offers a wide variety of business banking services, but you won’t have access to all of them unless you pay for its Pro account. 

For further details, read NerdWallet’s Monzo Business Account Review.

Monzo key features:

• Quick set-up: After applying on the mobile app, most accounts are up and running on the same day. 
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme.
• Low upgrade fee: If you want additional features, upgrading to Monzo’s premium account is cheaper than at many competitors.

Pros:

• Accounts can be accessed online or via Monzo’s mobile app.
• Your eligible deposits of up to £85,000 will be protected by the Financial Services Compensation Scheme (FSCS).
• You may be able to get access to online banking on the same day as you apply.
• Monzo business accounts can be integrated with multiple leading brands of accounting software, and business customers can get a six-month free trial with Xero.

Cons:

• It is not possible to manage the account over the phone or at a branch.
• Business accounts are not available to charities or partnerships.
• Cash deposits come with a fee of £1 at the Post Office and PayPoint. This may not be a huge amount of money, but it could have an impact on businesses that frequently need to deposit cash.

Sole traders, limited companies and limited liability partnerships can use Starling’s free business bank account.
The account has no fees for basic transactions, and Starling’s mobile apps have some of the highest review scores out there.
For further details, read NerdWallet’s Starling Account Review.

Starling key features:

• Free transactions: Everyday transactions, such as direct debits and standing orders, will not cost you a penny.
• FSCS protection: Deposits of up to £85,000 are protected by the Financial Services Compensation Scheme. 

Pros:

• You can make Faster Payments, direct debits and standing orders for free.
• Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).
• The Starling app is one of the best reviewed in the banking market.
• Starling offers 24/7 customer support through its app, over the phone and via email.

Cons:

• Some account features are only available through the Business Toolkit, which costs £7 a month.
• You cannot manage your account over the phone or at a branch.
• Cash deposits at the Post Office carry a £3 minimum fee.

This is a bank that puts ethical and sustainable concerns at the forefront of its mission statement, so it might appeal if you share similar values. It also offers a range of free and paid accounts, so you may well find an account that is tailored to your needs.

Find out more from NerdWallet’s Co-Operative Bank account review.

The Co-operative Bank key features:

• Range of accounts: The Co-op Bank’s choice of business accounts could suit a range of organisations, including small businesses and charities.
• FSCS protection: Your eligible deposits, up to £85,000 across all of your accounts, are protected by the Financial Services Compensation Scheme (FSCS).
• Additional features: A Co-op business account will allow you to apply for overdrafts, a charge card, a credit card, and a variable rate business loan.
• Customer support options: Manage your account online, over the phone, via the app and at a branch.

Pros:

• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• You can manage your business account online, over the phone, via the mobile app and in a branch.
• You can apply for a business overdraft, credit card, charge card and loan.

Cons:

• The Co-operative Bank says that it can take, on average, 14 days to open an account.
• 24/7 customer service is not available.
• There are no branches in Northern Ireland.

Allica Bank’s Business Rewards Account caters for established small and medium-sized enterprises (SMEs). This account offers customers a chance to earn interest on savings and take advantage of other rewards features, all while paying no monthly fees.

For more details, read NerdWallet’s Allica Bank Business Account review.

Allica Bank key features:

• Instant access savings pot: Customers earn 4.33% AER on their business savings with Allica.
• Cashback: Account holders can earn up to 1.5% cashback on eligible debit card purchases.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Allica Bank customers don’t incur transaction fees for UK-based transactions, except for outgoing CHAPS payments. 
• Local relationship managers are on hand to help customers in England, Scotland and Wales.
• Allica’s instant access savings pot allows customers to earn interest with 4.33% AER.
• Customers can receive cashback of up to 1.5% on eligible purchases if they use the Business Rewards Account debit card.

Cons:

• There is no way to deposit cash or cheques.
• Allica Bank doesn’t offer 24/7 customer support.
• You cannot manage your account over the phone or in a branch.

Mettle’s offering is specifically designed for self-employed workers and limited companies with up to two owners. Its account lets customers bank without any monthly fees or transaction charges, while the app is one of the best around.

For more details, read NerdWallet’s Mettle Business Account review.

Mettle key features:

• Top app: Mettle’s business banking app is very strongly reviewed.
• Eligibility: Mettle accounts are limited to UK-based sole traders or limited companies with up to two owners.
• Deposits protected by FSCS: Eligible deposits are protected up to a total of £85,000 by the Financial Services Compensation Scheme.

Pros:

• With zero monthly fees or transaction charges, Mettle offers free banking.
• Customers have given Mettle’s business banking app very positive reviews.
• Customers can make cash deposits at the Post Office (and also at PayPoint for e-accounts).
• Mettle customer support is available to customers through the app or email and over the phone every day of the week.
• Eligible deposits are covered by the Financial Services Compensation Scheme (FSCS).

Cons:

• Mettle does not offer branch access.
• Customers cannot deposit cheques.
• International payments are not possible for Mettle customers. 
• Borrowing options like business overdrafts, credit cards or loans are not available.
• Partnerships or charities cannot get a Mettle account.

All three accounts offered by RBS only charge customers for what they use, meaning there is no fixed monthly fee. Customers who go for the RBS Start-Up Account will not have to pay transaction fees for two years.

For more details, see NerdWallet’s RBS business account review.

RBS key features:

• Fee-free period: Customers do not need to pay transaction fees for the first 24 months after opening a Start-Up account.
• Borrowing: RBS offers business overdrafts, credit cards and loans.
• Extras: Free access to FreeAgent accounting software and a dedicated relationship manager are among the perks of an RBS account.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Customers who go for the  Start-Up Account enjoy a fee-free period for the first 24 months.
• Speedy account opening means that 85% of RBS business customers have their account open within one day of application.
• Eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Accounts can be managed in a branch, over the phone, online and via the app.

Cons:

• Businesses outside Scotland may be steered towards opening accounts with NatWest or Ulster Bank, depending on where in the UK they are based. 
• Businesses that have been trading for over a year, or those with turnover exceeding £1 million, cannot apply for a Start-Up Account.
• Following the end of fee-free introductory periods, all transactions carry a cost.

NatWest offers three different accounts for business customers. These are an account for start ups, an account for more established businesses, and a community account for charities and societies. For sole traders and small businesses searching for a free mobile business account, there is also NatWest’s Mettle app.

For more details, see NerdWallet’s NatWest business account review.

NatWest key features:

• Fact-to-face support: Customers across England and Wales can head to branches for customer service in person.
• Customer support: Support can be accessed in several ways 24/7.
• FSCS protection: Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Accounts can be accessed online, via a mobile app, in a branch or Post Office or over the phone.
• NatWest’s digital assistant can be accessed 24/7 for basic banking queries.
• Eligible deposits up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).
• Accounts come with free access to integrated accounting software from FreeAgent.

Cons:

• There are no NatWest branches in Scotland or Northern Ireland.
• NatWest’s start-up account is only available to businesses that have been trading for less than a year and have a turnover of less than £1 million.
• NatWest business accounts charge for every transaction following initial promotional periods.

The Zempler Bank’s business account may appeal to customers with bad credit, as there is no credit check when you apply for this account. Additionally, its paid-for Business Extra account, which costs £9 per month, can bolster your credit score using the Business Creditbuilder feature.

For more details, check out NerdWallet’s Zempler Bank Business Account review.

Cashplus key features:

• Credit and overdraft facilities: An account can offers the chance to apply for a business overdraft, or a business credit card.
• Business Creditbuilder: If you open an account, you can upgrade to boost your credit score with the Zempler Bank Business Creditbuilder.
• No maintenance fee: There is no monthly charge for having this account.
• FSCS protection: Zempler Bank is a fully-licensed bank, so your eligible deposits of up to £85,000 are protected by the Financial Services Compensation Scheme (FSCS).

Pros:

• Accounts can be accessed online and through Zempler Bank’s mobile app, on iOS and Android.
• Zempler Bank business accounts are FSCS protected.
• Zempler Bank claims that 99.90% of its customers open an account on the same day as their application. 
• Zempler Bank business customers can potentially access overdraft and credit facilities.

Cons:

• You cannot cash cheques with a Zempler Bank business account.
• You cannot send international payments through your Zempler Bank account, but this is set to change before the end of 2024.
• Zempler Bank doesn’t have any branches, though customers can deposit cash in person at the Post Office.
• Zempler Bank does not have 24/7 customer service.

Tide offers a lot of variety in its business accounts, which include Free, Plus, Pro and Cashback options. Tide’s Free account gives customers access to accounting software integration, free invoicing a free company card and much more. In addition, its quick set-up times and well-reviewed app make Tide a potentially attractive option.

For more details, read NerdWallet’s Tide Business Account Review.

Tide Key features: 

• Protected: Eligible deposits of up to £85,000 in new Tide accounts are protected by the Financial Services Compensation Scheme (FSCS).
• All-hours customer support: Tide customers can enjoy 24/7 access to customer services.
• Business lending: Tide offers business lending options, including a government-backed loan for start ups, as well as a business creditbuilder feature to help with future borrowing. 

Pros:

• You can access the account digitally via a well-reviewed mobile app and on the Tide website.
• New accounts opened with Tide are eligible for protection through the Financial Services Compensation Scheme (FSCS).
• You can contact Tide’s customer support team 24/7 support.
• Tide’s speedy account opening process means more than half of applicants manage to get their account up and running in just 10 minutes.

Cons:

• E-money accounts (for some existing customers) from Tide are not protected by the FSCS.
• There is no way for Tide account holders to deposit cheques into their account.
• Tide’s Free plan charges for everyday transactions like incoming and outgoing transfers, as well as ATM withdrawals.