When starting your business, managing costs is crucial, and choosing a free or low-cost business bank account can make a significant difference. These accounts help you keep overheads low while still providing essential banking features like payments, invoicing, and expense tracking. However, it’s important to understand that no business account is entirely free.
Most accounts have transaction or usage fees, and some only waive monthly fees if certain conditions are met, such as maintaining a minimum balance. This guide explores accounts marketed as free or low-cost, detailing their key features, transaction fees, and eligibility criteria for fee-free banking.
Free business bank accounts with no monthly fee
- Tide Business Current Account
- Zempler Business Go
- ANNA Money Pay As You Go
- Revolut Business Basic
- Virgin Money M Account for Business
- Starling Business Current Account
- Monzo Business Lite
Tide Business Current Account
Tide offers a cost-effective and straightforward business banking solution, perfect for small businesses and startups. With its free Mastercard, simple transaction pricing, and tools for invoicing, expense tracking, and savings, Tide provides everything a business needs in a secure, app-based platform. 24/7 support ensures assistance is always a tap away.
Transaction Fees:
- Transfers: £0.20 each
- ATM Withdrawals: £1
- Foreign Card Transactions: 1.75%
Key Features:
- Free Mastercard with no monthly fees.
- Expense cards for team members (£5/month).
- Earn 4.07% AER on savings with Instant Saver Account.
- Integrated invoicing tools (3 free/month).
- 24/7 app-based support.
Zempler Business Go
Zempler Business Go simplifies business banking with no monthly fees and tools to manage cash flow. It supports cash deposits at UK Post Offices, provides robust fraud protection, and offers easy accounting integrations. Perfect for small businesses seeking reliable, straightforward banking.
Transaction Fees:
- Sending Money: 3 free/month, then £0.35
- ATM Withdrawals: £2 (UK), £3 (Non-UK)
- Cash Deposits: £4 or 0.55% at Post Office
- Foreign Card Spend: 2.99%
Key Features:
- FSCS protection up to £85,000.
- Real-time customer support from UK-based staff.
- Cashflow tracking and integrated accounting tools.
- Accepts cash deposits at 11,500 Post Offices.
- Free and unlimited receipt of payments.
ANNA Money Pay As You Go
ANNA Money is ideal for freelancers and small businesses looking for a flexible, pay-as-you-go account. With features like instant invoicing, expense tracking, and VAT filing, ANNA combines ease of use with affordability, ensuring businesses stay on top of their finances.
Transaction Fees:
- Bank Transfers: £0.20 each
- ATM Withdrawals: £1
- Foreign Transactions: £5 SWIFT fee + 1% conversion fee
- Personal Payment Link: 1% commission
- Expense Cards: £3/month (1 free included)
Key Features:
- Professional invoicing with QuickPay.
- Real-time expense management and receipt capture.
- Cashback offers up to 40%.
- Seamless VAT filing via spreadsheets (£3.50 per filing).
- Integrated tax and bookkeeping tools (free for 1 month).
Revolut Business Basic
Revolut Business Basic is tailored for businesses operating globally, with multi-currency support, expense management, and invoicing tools. Whether you’re a startup or a growing enterprise, Revolut ensures smooth, secure banking with advanced features and no monthly fees.
Transaction Fees:
- Local Transfers: 5 free, then fees apply
- International Payments: No fee for Revolut accounts; others at interbank rates
- Cash Withdrawals: Fees vary
Key Features:
- Multi-currency support (25+ currencies).
- Virtual and physical corporate cards with custom spend limits.
- Invoicing and payment links for seamless transactions.
- Expense management tools for teams.
- Accepts payments via QR codes or web links.
Virgin Money M Account for Business
Virgin Money’s M Account for Business offers an intuitive, fee-free banking solution for startups and small businesses with under £1M turnover. It includes cashback rewards, financial tools, and easy integration with major accounting platforms, making it a valuable partner for growing ventures.
Transaction Fees:
- Free UK Bank Transfers.
- Foreign Transactions: 3.75% fee (non-EEA)
- ATM Withdrawals: Free (UK and EEA)
- Cheque Deposits: Free via app
Key Features:
- No monthly fee and free everyday banking.
- Cashback on debit card purchases (0.25%).
- Integrated with QuickBooks and Xero.
- In-app cheque scanning for convenience.
- Expert mentoring via Virgin Startup.
Starling Business Current Account
Starling Bank’s Business Current Account delivers a no-nonsense, feature-rich banking experience for businesses. With no monthly fees, powerful integrations, and instant transaction tracking, Starling helps businesses manage finances efficiently while keeping costs minimal.
Transaction Fees:
- Free UK Bank Transfers.
- Cash Deposits: 0.7% fee (£3 min)
- Foreign Card Spend: No fees
Key Features:
- Free Mastercard and no monthly fees.
- Cash deposits via Post Office.
- Real-time payment notifications.
- Robust accounting integrations (Xero, QuickBooks, FreeAgent).
- 24/7 customer support.
Monzo Business Lite
Monzo Business Lite is perfect for startups and entrepreneurs seeking an easy-to-use, mobile-first banking solution. With no monthly fees, instant transfers, and savings tools, Monzo ensures your business finances are secure, flexible, and accessible wherever you go.
Transaction Fees:
- UK Transfers: Free
- Foreign Payments: 1% currency conversion fee (capped at £1,000)
- ATM Withdrawals (Non-EEA): Free for first £200, 3% after
- Cash Deposits: £1 per deposit
Key Features:
- FSCS protection up to £85,000.
- Intuitive mobile-first platform.
- Instant Access Savings Pots.
- Payment links and contactless options.
- Advanced security and fraud protection.
The best conditional free business bank accounts
The following accounts require you to meet certain conditions to maintain their fee-free status:
Allica Bank Business Rewards Account
Allica Bank offers the Business Rewards Account for established businesses looking to combine free banking (subject to conditions) with cashback rewards and competitive savings interest. With a dedicated relationship manager and integration with leading accounting software, Allica ensures a seamless banking experience for businesses maintaining healthy balances. The monthly fee is free if you keep a balance of £50,000 or more in your account.
Transaction Fees:
- Monthly Fee: None (if you maintain a balance of £50,000 or more in your account)
- Outgoing CHAPS: £20 per transaction
- Cash Withdrawal: Free (up to £750/day)
- Faster Payments & BACS: Free (up to 100 monthly, 15p thereafter)
- International Transfers: Wise fees apply, no Allica fee
Key Features:
- No monthly fees (subject to eligibility).
- Up to 4.83% AER (variable) interest on integrated Savings Pots.
- Up to 1.5% cashback on card spend.
- Dedicated relationship manager for personalized support.
- Integration with Sage and Xero accounting software.
Airwallex Explore
Airwallex’s Explore Account empowers businesses with global financial operations through multi-currency accounts, international transfers, and fee-free card spending. Tailored for growing businesses managing cross-border payments, it combines cutting-edge integrations with competitive rates.
Transaction Fees:
- Monthly Fee: £0 (with £10,000 deposit/month or balance); otherwise, £19/month
- Local Transfers: Free to 120+ countries
- FX Rates: Interbank rates
- International Batch Transfers: Free (up to limits)
- Employee Cards: Free for 5 users; £5/month for additional cards
Key Features:
- £0/month if depositing £10,000+ or maintaining a £10,000 balance.
- Multi-currency accounts with local details in 20+ currencies.
- Fee-free card payments globally with interbank FX rates.
- Batch payments for international transfers.
- Seamless integrations with Xero and ApprovalMax.
FAQs
1. Are there any truly free business bank accounts?
No, no business bank account is entirely free. While some accounts advertise no monthly fees, there are often transaction fees for certain activities, such as transfers, foreign transactions, or cash withdrawals. Additionally, some accounts only waive monthly fees if you meet specific conditions, like maintaining a minimum balance.
2. What should I consider when choosing a low-cost business bank account?
When selecting an account, consider factors such as transaction fees, monthly fees (or eligibility criteria to waive them), cashback or interest-earning features, integration with accounting tools, and customer support. Assess your business’s typical transaction volume and banking needs to find the best fit.
3. What are the most common conditions for fee waivers?
The most common condition for waiving monthly fees is maintaining a minimum account balance. For example, some accounts require you to keep £50,000 or more in the account to qualify for no monthly fees. Others may offer free accounts if you meet specific transaction or deposit thresholds.
4. Can free accounts still offer features like cashback or savings interest?
Yes, many low-cost or fee-waived accounts include additional benefits such as cashback on card spending, integrated savings pots with competitive interest rates, or expense management tools. These features can help you maximize value, even with minimal banking costs.
5. Are there any limitations on free transactions with these accounts?
Yes, even accounts with free transfers or payments often have limits. For instance, some may allow a certain number of free outgoing Faster Payments or BACS transactions per month, after which a fee (e.g., 15p per transaction) may apply. It’s important to check the fair usage policies and transaction caps of your chosen account.
