Best Free Business Bank Accounts in 2025

There are lots of benefits to having a business account and for startups and account switchers who would rather not incur monthly or annual fees, a free business bank account might be the answer. 

Because there are no ongoing monthly or annual charges, and no fees for opening the account, we refer to this account type as a “free” account.

However, there may be some charges attached to the account, such as if you go into an overdraft or miss a payment. Yet there are some accounts that won't apply any fees to everyday banking transactions, which can be a real bonus when you're just starting out, though this varies depending on the account.

From the most well-known banks to alternatives, I'll review the best free business bank accounts.

What is a free business bank account?

Are free business bank accounts really free?

It's important to be aware that not all free business bank accounts work in the same way. In general, though, a free business bank account means you won't be charged a monthly or annual fee for operating the account. But in some cases, this might only last a year or so and then a fee will kick in.

Some business bank accounts that don't charge a monthly fee will charge for certain banking transactions instead, such as cash withdrawals or payments sent abroad. Others might give you a free monthly allowance for certain transactions and if you exceed this, a fee will then be charged.

That's why it's so important to compare accounts carefully.

Eligibility

As with all business bank accounts, it's crucial that you also check the eligibility requirements. Some free business bank accounts might only be available to startups, while others might require you to have been trading for at least a year. Some might also have minimum annual turnover requirements.

Best free business bank accounts in 2025

I've picked out some of the best free business bank accounts to choose from right now, but your best will depend on the type of business you run.

1. Zempler Bank — Top free business bank account for no monthly fees

The Zempler business Go plan has no monthly fees, but you will still need to pay fees for certain transactions — this includes a card issuing fee of £9.95, and £2 for each ATM withdrawal (or £3 abroad). 

However, if you don't carry out many banking transactions each month, this could be the account for you.

It's quick and easy to open this account and you'll be able to manage your money and capture digital receipts directly in the app. You can also use card controls such as freezing and PIN retrieval.

Visit Zempler Bank

2. Tide — Well-reviewed free business bank account for online-only

Tide's business bank account doesn't charge a monthly or annual fee, but you will need to pay for certain banking transactions.

It's a straightforward account and Tide is a market leader in UK digital business banking. You can use the mobile app to access your finances and accounts with ease and keep track of your spending.

Visit Tide

Transfers in and out of your account cost 20p each, while withdrawing money from ATMs will cost you £1. Post Office cash deposits cost £1, and PayPoint deposits are charged at 3%.

However, you can spend on your Tide card at home or abroad for free (withdrawals still cost £1 abroad) and transfers between Tide members are always free.

3. Metro Bank — Best free business bank account for up to £5k

If you're a business with an annual turnover of less than £2 million, you'll qualify for the Metro Business bank account. As long as you keep at least £6,000 in this account, no monthly account fee will apply. If you meet this requirement, you'll also get 30 free UK transactions each month.

If your account balance drops below £6,000, a monthly maintenance charge of £5 will be deducted from your funds.

Visit Metro Bank

The account also offers business accounting tools and you won't be charged fees for non-sterling transactions in most European countries.

Note that if you are a larger business (with a turnover of more than £2 million a year), you'll qualify for the Commercial Current Account which also has no monthly fee. This account also comes with a dedicated relationship manager.

4. Lloyds Bank — Popular free business bank account

Lloyds Bank provides new businesses with a free everyday business bank account. You'll need to be a sole trader, partner or company director over the age of 18 to qualify.

Note, however, that the account only waives the monthly fee for the first year. After that, you'll pay £8.50 per month, as well as certain transaction charges. Electronic payments, cash withdrawals and card payments remain free.

Visit Lloyds Bank

You can also choose to apply for an overdraft of up to £5,000 (interest applies).

5. Royal Bank of Scotland — Top no-cost business bank account for startups

If you're a new business, open the RBS startup account and you won't need to worry about banking fees for the first 2 years.

There's no monthly account fee and no fees for everyday banking transactions either. After the first 2 years are up, you will need to pay 35p for each automated payment (including cash withdrawals), 70p per £100 for cash payments, and 70p per item for all manual payments.

Visit Royal Bank of Scotland

The account also offers access to FreeAgent, a digital accounting tool to help you with invoices and tax returns.

You can manage the account via the app, online or in the branch.

6. HSBC — Popular UK free business bank account for startups

This is another great option for startups, only this time you'll only get free business banking for 12 months. After this point, a monthly fee of £8 kicks in.

After the first 12 months, you will also need to pay 1.50% of the value deposited for cash deposits at the Post Office and HSBC branches and 50p per cheque for cheque deposits. Cash withdrawals will also incur a fee.

Visit HSBC

In addition, you can apply for an overdraft on the account if you wish to.

Also Read: HSBC Business Banking Review

7. Co-operative Bank — ESG free business bank account

Sole traders and single directors can open the Co-op business account and no monthly fee will be charged. Automated payments and cash withdrawals are also free of charge. However, fees will apply to cash and cheque deposits and foreign payments.

You can also integrate your account with accountancy software such as Quickbooks, Xero and Sage, and you'll have access to free support tools for your business.

Visit Co-operative Bank

The account can be managed online, over the phone and in branch and an overdraft is also available. The bank has been rated as the UK's best Environmental, Social and Governance (ESG) high street bank.

8. Mettle — Top free business bank account for challenger banking

Mettle bank is a mobile banking service built for sole traders and partnerships with no more than two owners. To qualify, your business must be registered and trading in the UK and you must be a UK resident and aged 18 or over. You'll also need a balance limit of up to £1 million.

The account is free to use and offers customisable invoices. FreeAgent accounting software is automatically included with the account, but you can also sync it with other accounting software if preferred.

Visit Mettle

You will also be able to set up money pots and save for your tax bill. Plus the account offers FSCS protection as it's provided by NatWest.

At a glance, the pros and cons of free business bank accounts

This section gives you a quick summary of the pros and cons of no-cost business bank accounts. While every bank is different, and you'll always need to check the small print to find out what's included with an account, these are some of the general benefits and drawbacks.

Note: Some free business bank accounts might allow you to carry out a certain amount of transfers or payments each month free of charge, but you'll incur a fee if you exceed this limit. In some cases, these allowances can be higher (or even unlimited) if the account has a monthly fee.

So if you're a larger business carrying out a lot of transactions, you might be better off choosing a paid-for account.

Which free business bank account is right for you?

This depends on how you run your business. If you only make a few day-to-day banking transactions each month, or you're a new business looking to keep overheads low, you probably want to look for an account that charges no monthly or annual fee. Fees for everyday banking transactions won't matter as much as you're not making many of them.

But if you're a more established business that carries out a large volume of business transactions each month, you could be better off with an account that charges lower transaction fees — or even none at all — even if you have to pay a monthly account fee in return.

How to open a free business bank account

You can easily open a free bank account online, just as you would any other business bank account. During the application process, you will be asked to verify both personal and company information.

After you have done your research and decided on a free bank account, click through from the website and make your application. Some banks enable account opening in person, over the phone, or by post if you would rather not open your account online.

How do you get started with a bank account?

When opening a business account, you might need to provide proof of ID (like a driver's licence or passport) and proof of address (a utility bill or council tax bill). Your full name, date of birth, and address history will also be required, and you may also be asked to provide financial information.

Don't forget that opening a free business bank account often involves a credit check, and if your score is low, you may not be approved.

Also Read: How Can I Open a Free Bank Account Online in 2025?

Essential fees to look out for…

What features should I look for in a free business checking account?

Consider what features and services are most important to you before deciding whether a free business bank account is right for you. Then look at what fees are charged for which services to help you make your decision.

For example:

#1 Cash deposits

If you regularly need to make cash deposits, you could be better off opening a bank account with a bank that has a branch local to you. However, some accounts allow you to deposit cash via Post Office branches or PayPoints.

You should also find out whether there are any fees associated with depositing your money into a “free” business account. Some may charge a flat fee for each deposit, while others may charge a percentage of the amount deposited.

#2 Cheque deposits

The same applies if you need to regularly pay cheques into your account. Find out whether this is possible with your chosen account (it won't always be if it's a digital bank) and how much it will cost you.

#3 Transfers

Consider how many bank transfers you're likely to make each month as a business and find out how much you might be charged. As mentioned, if you need to make a lot of transfers each month, it might be better to look for an account that offers unlimited fee-free transfers but charges a monthly account fee in return.

#4 Currency exchanges 

If you need to regularly send money overseas, look for an account that lets you do this for a low rate. Similarly, if you need to go abroad on business, look for a bank account that offers a card with free foreign spending.

#5 Overdrafts

If you need an overdraft, be aware that the interest you'll be charged for using it will usually be high. It's therefore best to only use your overdraft for short-term borrowing.

Our verdict

If you want a simple and inexpensive way to manage your money, a free business bank account may be what you are searching for. There are lots of free accounts to choose from, so never go with the first one you see and make sure you're comparing accounts and providers.

Before you apply it's also important to make sure you meet the eligibility requirements which may involve earning a certain amount each month.

You may also want to look at some paid-for accounts to see what is included. If extras are included which you're using and paying separately for, a paid-for account may provide better value for money.