Use CompareBanks to get the top no-cost business bank accounts, in this review.
Best Free Business Bank Accounts
What do paid business accounts give you?
More options are available for business bank accounts if you are willing to pay a monthly charge. Extra features and perks on offer can include:
- Interest on credit balances.
- Cashback on card spending
- Business travel insurance
- Fee-free international payments
However, before signing up to one of these accounts, you need to consider whether you will make full use of the perks on offer and whether the fee is worth paying.
Can I use a personal bank account for my business?
If you’re a sole trader, you don’t legally need to open a business bank account and you could use your personal account if your provider allows it. However, it can be much harder to keep track of your finances this way.
If you’re a limited company, you will need to open a separate business bank account and won’t be able to use a personal account. That’s because your business is a separate legal entity and your business finances must be kept separate from your own.
Is it safe to use a free business bank account?
If your provider has a UK banking licence, your money will be protected under the Financial Services Compensation Scheme (FSCS). If you have an e-money account, FSCS protection won’t apply, but e-money providers must still meet certain requirements to safeguard your funds.
How long will the no-fee status of my business bank account last?
This will depend on the account. Some won’t charge a monthly or annual fee at all, while others might waive these fees for a year or so. However, even if your account doesn’t charge a monthly fee, there might be other fees for banking transactions.
Does a free business bank account offer fewer services than a paid one?
You might find that a free business bank account offers fewer features such as cashback or accounting tools, but this depends on the account.
Who qualifies for a fee-free business bank account?
You will usually need to be at least 18 to apply, and a UK resident. Certain accounts might have additional criteria – for example, you might need to have been trading for a year or more or meet a minimum annual turnover requirement.
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