FREE BUSINESS BANK ACCOUNTS
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Your one stop authority on free business bank accounts for small businesses and SMEs
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Promoted Accounts – April 2024
Free Business Bank Accounts
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
FreeFees apply CHAPS, SWIFT and SEPA transactions. -
Overdraft
-
Access Methods
App/Online
Product Features
- 4.33% AER* (variable) instant access Savings Pot. Savings Pots are an exclusive feature of the Business Rewards Account
- Up to 1.5% cashback on eligible card spend. View Business Rewards Account Terms and Conditions on Allica bank website
- UK based dedicated relationship manager
- FSCS covered up to £85,000
- Direct accounting integrations with Sage and Xero
Eligibility Criteria
- Business must be trading for at least 12 months
- Business must have estimated turnover of £500+ or at least 5 employees
Business must be trading for 12 months and have estimated turnover £500k+ or at least 5 employees. *View Business Rewards Account T&Cs on Allica bank website.
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Monthly Fee
FreeNo monthly fee for first 3 months, £3 per month thereafter -
Card Purchases
Free -
Bank Transfers
30p -
Overdraft
-
Access Methods
AppNo cheque facilities.
Cash paid in via Post Office (0.5% fee – £2 minimum) and PayPoint (3% fee)
Product Features
- Monthly subscription fees that go up and down in line with your business performance
- Rated ‘Excellent’ based on over 2,000 reviews on Trustpilot
- Built-in accounting software with receipt capture and live business insights
Eligibility Criteria
- Available to sole traders and limited companies
- You must be 18+ and a UK resident
- £750 maximum monthly deposit
Pay no subscription fees during your trial. Other transaction charges may apply.
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
FreeSWIFT payments vary £10-£20 -
Overdraft
-
Access Methods
App/Online
Product Features
- Open domestic and foreign currency accounts with local bank details around the world with no monthly fees within minutes.
- Make international transfers to 150+ countries – save up to 80% on FX fees, app. 70% of funds arrive within a few hours / same day
- Accept payments worldwide via 160+ payment methods – no coding required
- Issue multi currency corporate cards
- Integrates with platforms like Xero, Amazon, Shopify, WooCommerce & more
- Automate your domestic and international bill pay workflows
Eligibility Criteria
- You must be at least 18 years old
- Be a sole trader, partner in a partnership, or company
- Your business is registered in the UK. More markets are available with different Airwallex entities. Details can be found on the Airwallex website.
*10% cashback on your first $1,000 USD equivalent in eligible international card spend.
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
From 20p- Domestic: 20p per bank transfer
- International: £5 per SWIFT transaction (+1% currency conversion fee)
- Free direct debits
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Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash accepted via PayPoint (1% commission fee)
Product Features
- 1 debit card included (£3 per extra card) – 1% cashback on selected categories
- Personal payment link for accepting payments online (1% commission)
- Instant invoice generator and savings pots facility (fees apply)
- Landlords / property investors get a free 12 month subscription to the National Residential Landlords Association (NRLA)
- FastTrack to Credit – Boost your credit score and get access to credit after 3 months activity
Eligibility Criteria
- Must be a Sole Trader, Director of a Limited Company (and listed on Companies House), or a Partner in a Limited Liability Partnership
- Business must be located within the UK and you also need to have a UK residential address
- Not available to charities
ANNA Business comes with invoice generator tools, HMRC recognized Tax calculator and filing. Automate your bookkeeping with ANNA.
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Monthly Fee
FreePlus a one-off card issue fee of £9.95 -
Card Purchases
Free -
Bank Transfers
3 free per month3 free per month, then 30p thereafter -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash paid in via Post Office (0.5% fee)
Product Features
- 24/7 app and online account facilities
- FSCS protection – up to £85,000
- UK-based customer services team
- Invoicing tools that allow you to create and send invoices easily
Eligibility Criteria
- Available to UK registered companies or UK-based sole traders
- Application made by UK Director
- UK Director 18 years old plus
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
20p -
Overdraft
-
Access Methods
App/Online- No cheque facilities
- Cash deposits via Post Office (0.5% fee, minimum £2.50) and PayPoint (3% fee)
Product Features
- Create and send invoices for free
- Multi-business – hold up to 5 business accounts
- Automated 30-day cash flow forecasts
Eligibility Criteria
- For registered business account: you must be registered with UK Companies House as a director of that company or partnership
- For sole trader account: you must be a UK based sole trader/freelancer
- For all accounts: you must be aged 18+, have a valid UK phone number and address, and hold compatible device registered to a UK App or Google Play store
* Spend £100 within 30 days of opening an account to qualify for cashback.
Earn up to 4.33% AER (variable) with the Tide Instant Saver Account (interest paid monthly).
Award-winning business account
Earn up to 4.33% AER (variable) with the Tide Instant Saver Account (interest paid monthly).
Award-winning business account
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Monthly Fee
Free -
Card Purchases
Free -
Bank Transfers
5 free per month- 5 free local transfers per month, then 20p thereafter
- International transfers: £5
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Overdraft
-
Access Methods
App/OnlineNo cash or cheque facilities
Product Features
- Multi-currency accounts – recieve payments and exchange in 25+ currencies
- Control and monitor team spending with multiple debit and virtual cards, manage permissions and levels of access and more
- Various payment facilities including Tap to Pay on iPhone (fees apply)
- International payments – Send and receive money from 200 countries
Eligibility Criteria
- Available for limited companies, PLCs, LLPs, Partnerships & unlimited companies
- Currently available for companies registered in and with a physical presence within the European Economic Area (EEA), Switzerland, UK and US
International payments – Send and receive money from 200 countries.
Exchange money in 30+ currencies at interbank rates
Exchange money in 30+ currencies at interbank rates
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Refine Your Search
- Freelancer Bank Accounts
- Best Business Bank Accounts
- Free Business Bank Accounts
- Joint Business Bank Accounts
- Small Business Bank Accounts
- Sole Trader Business Bank Accounts
- Multi Director Access Business Accounts
- No Credit Check Bank Accounts
- Switcher Business Bank Accounts
- Online Business Bank Accounts
- Bad Credit Business Bank Accounts
- Corporate Business Bank Accounts
- Self Employed Business Bank Accounts
- Start Up Business Bank Accounts
- International Business Bank Accounts
How to compare business bank accounts…
Step One
Understand your requirements
How you do business will effect the type of account you need. How many transactions will you have each month? Do you need to pay in cash? Do you need a local branch?
Step Two
Check eligibility
Most providers have a range of business accounts to suit different types of businesses. Check the eligibility of each account to make sure if suited to your business.
Step Three
Compare the latest deals and offer
There are numerous offers and deals to attract new customers which can be compared with our handy tool above. Always consider the cost of the account once the free period ends
A Guide to Free Business Bank Accounts in the UK
Navigating the landscape of business banking in the UK can seem daunting, especially with a plethora of options available. For many small businesses, startups, and freelancers, the allure of a free business bank account is significant. But what does “free” truly entail, and how can you make an informed choice? Here’s a guide to help you decode free business bank accounts in the UK.
1. Understanding ‘Free’ Business Banking
Most ‘free’ business bank accounts offer a period during which no monthly maintenance fees are charged. This period can range anywhere from 6 months to a couple of years. After this fee-free period, standard charges typically apply.
2. Why Opt for a Free Business Bank Account?
- Cost Efficiency: Especially for startups or businesses with limited cash flow, avoiding additional monthly expenses can be beneficial.
- Simplified Banking: Free accounts typically offer basic banking services, making them user-friendly and straightforward for those new to business banking.
- Flexibility: A fee-free introductory period allows businesses to test the waters without long-term commitments.
3. Features to Look Out For
While the primary allure is the absence of fees, there are other essential features to consider:
- Duration of Fee-Free Period: The longer, the better. However, also consider the charges applied after this period.
- Online Banking: Ensure the bank provides a robust online platform for easy financial management.
- Transaction Limits: Some banks might limit the number of free transactions, after which charges may apply.
- Additional Perks: Some free accounts come bundled with perks such as free accounting software trials, business advice, or discounted services.
4. Potential Pitfalls
- Hidden Charges: While the account may be free from monthly maintenance fees, there could be charges for specific services like international transfers, ATM withdrawals, or if you exceed a transaction limit.
- Limited Features: Some free accounts may not offer all the features that a growing business requires, such as extensive international services or integrations with advanced accounting software.
5. Best Practices When Choosing
- Assess Your Needs: Understand your business’s banking needs – the volume of transactions, types of services required, international needs, etc. Read our article on how to choose the right business bank account for your needs.
- Compare Widely: Don’t just opt for the first free account you come across. Compare various offerings to find one that aligns best with your business’s needs.
- Review Feedback: Look for reviews or feedback from other businesses to gauge the quality of service and customer support.
6. Transitioning After the Free Period
Once the fee-free period ends, you’ll be faced with standard charges. It’s crucial to:
- Be Prepared: Mark the end date of your fee-free period and review the standard fees in advance.
- Evaluate Value: If you’re satisfied with the service and feel the fees offer good value, continue with the account. Otherwise, consider switching.
- Switching Accounts: The Current Account Switch Service (CASS) makes it relatively pain-free to switch business bank accounts in the UK.
7. Digital Banks vs Traditional Banks
In recent years, digital-only banks have emerged as fierce competitors to traditional banks. Many of them offer free business bank accounts with competitive features. Digital banks often have lower operating costs, translating to extended free periods or lower subsequent fees. However, they lack physical branches which some businesses might prefer.
A free business bank account can be an attractive proposition for UK businesses looking for cost-effective banking solutions. However, it’s essential to delve deeper than just the allure of “free.” Understand the features, be wary of potential hidden costs, and always choose an account that aligns with your business’s present and future needs. With diligent research and a clear understanding of your requirements, you can harness the benefits of free business banking without any unwelcome surprises.