Best Free Business Bank Account UK: The 2026 Guide

Plenty of UK business accounts cost nothing a month, but fewer stay free once you start using them.

What you actually pay comes down to three things: how many transfers you get before fees kick in, whether your money is FSCS-protected and what it costs to pay someone overseas.

Key takeaways:

• “Free” usually means no monthly fee, not free transfers, cash deposits or international payments.
• Starling and Monzo Business Lite don’t charge for UK transfers. Tide’s Free plan charges 20p after the first five.
• WorldFirst suits cross-border businesses: 130+ marketplace connections, 20+ receiving currencies, supplier payments and FX tools.
• Compare transfer, cash deposit, withdrawal and currency conversion fees before you open anything.

Here’s how the main free business bank accounts in the UK compare for sole traders, contractors and online sellers. Happy to pay a monthly fee for more features? Our full guide lets you compare business bank accounts across paid plans too.

Best Free Business Bank Account UK: Quick Comparison Table

Paying suppliers or getting paid overseas?

A free business bank account handles your day-to-day UK banking. If you also send or receive money in other currencies, a multi-currency account can sit alongside it.

Pricing correct as of 30 September 2026. Fees, transfer allowances and promotional offers are set by each provider and are subject to change, so please check the current pricing page of any provider you’re considering before opening an account. 

Why Your Transfer Volume Matters

A free account doesn’t mean free transfers. What you pay depends on the provider and how many transfers its free plan includes. Starling and Monzo currently offer fee-free UK bank transfers on their free business accounts, while Tide’s Free plan includes five free transfers each month and charges 20p for each additional transfer. ANNA’s Free plan includes unlimited outgoing transfers.

Here’s what a small business would pay each month for outgoing UK transfers, based on each provider’s published rates:

The Tide figures assume that all transfers are chargeable outgoing bank transfers. Its Free plan includes five free transfers each month, after which each transfer costs 20p.

For example, 10 monthly transfers would mean five chargeable transfers at 20p each, giving a total of £1. At 50 transfers, 45 would be chargeable, giving a total of £9. At 100 transfers, 95 would be chargeable, giving a total of £19.

Send a handful of payments a month and all four cost nothing. Send dozens and Tide’s per-transfer fee adds up, while the other three stay at £0.

What to Check Before You Choose a Free Business Bank Account

Transfer allowance: some accounts genuinely have no limit on free UK transfers, like Starling and Monzo Lite. Other providers switch to per-transaction fees once you cross your free transfer limit.

FSCS protection vs. safeguarding: if you choose a full UK bank, you get protection for eligible deposits up to £120,000 under the Financial Services Compensation Scheme.

However, e-money institutions (or EMIs) like Tide and ANNA aren’t banks. Funds held with EMIs are safeguarded instead.

Tide’s position depends on which account type you hold, as newer accounts issued via its banking partner ClearBank do carry FSCS protection, while older accounts remain safeguarded. Check which type you’d get with Tide before you sign up.

Either way, the money is still regulated, but safeguarding offers a different form of protection to the FSCS.

Cash handling: businesses that receive cash payments should check the Post Office or PayPoint deposit fee, since several free accounts charge a percentage on cash paid in.

Accounting integrations: several of these accounts connect to Xero, QuickBooks, FreeAgent and Sage, but often only on a paid plan. Tide’s Xero Connector, for example, needs the Smart plan.

International payments: most free UK accounts are built for paying in pounds. If you import stock, sell overseas or pay suppliers abroad, check the cost of holding and sending other currencies.

Eligibility: if you want to open a free UK business bank account, you should be a UK resident. For businesses, all directors must also be UK residents. Overseas-owned UK companies therefore aren’t eligible to open a free UK business bank account with most of these providers.

The Best Free Business Bank Accounts in the UK, Reviewed

Starling Bank

Starling Bank is a licensed UK bank. All eligible deposits of its customers are covered by the FSCS up to £120,000. Its standard business account has no monthly fee and no charge for UK Faster Payments or BACS transfers in either direction.

Pros

• No monthly fee for the standard business account.
• No charge for UK Faster Payments or BACS transfers.
• No cap on how many you can send.
• 24/7 UK support.

Cons

• Automated VAT returns need Accounting Plus, at £7 a month until April 2027, then £14.
• No branches.

Suitable for

Businesses that bank online and send a lot of UK payments.

Monzo Business Lite

Monzo Business Lite is also a fully licensed UK bank account with FSCS protection up to £120,000. It includes a current account, a debit card, and unlimited free UK transfers.

Pros

• Unlimited free UK transfers.
• Includes a current account and debit card.
• FSCS protection up to £120,000.

Cons

• If you want invoicing or accounting software integration, you’ll need the £9/month Pro plan.

Suitable for

Sole traders and company directors who want a no-frills account with free UK transfers.

Tide: Free Plan 

Tide’s Free plan has no monthly charge and includes up to three invoices a month. Third-party accounting integrations work on Free, but the Xero Connector needs the Smart plan (£12.49 a month).

Features

• No monthly charge.
• Includes invoicing.
• Transfers cost 20p each after the first five a month.
• Newer accounts are issued via ClearBank, a licensed UK bank.

Pros

• No monthly charge on the Free plan.
• Includes built-in invoicing.
• Includes expense categorisation.
• Direct feeds into Xero
• Newer accounts issued via ClearBank carry FSCS protection up to £120,000.

Cons

• Transfers cost 20p each after the first five a month in Tide Free Plan.
• Tide is an e-money institution rather than a bank in its own right.
• Older accounts remain safeguarded rather than FSCS-protected.

Suitable for

Tide’s Free plan is suitable for businesses that want built-in invoicing, expense categorisation and direct feeds into accounting software without a monthly charge.

ANNA

With ANNA you get features like automated bookkeeping, receipt capture, and a live estimate of your tax bill. Auto Accountant is free for four months, then £29 a month.

Features

• Unlimited outgoing transfers
• The first £1,000 of incoming payments each month is free, then 0.95%.
• Receipt capture.
• A live estimate of your tax bill.
• ANNA is an e-money institution.
• Everyday account balance is safeguarded rather than FSCS-protected.

Pros

• No monthly fee.
• Automated bookkeeping and receipt capture.
• Live estimate of your tax bill.

Cons

• On the Free plan, the first £1,000 of incoming payments each month is free, then 0.95% commission applies.
• ANNA is an e-money institution.
• Its everyday account balance is safeguarded rather than FSCS-protected.

Suitable for

ANNA suits businesses with fewer, larger client payments, particularly sole traders managing their own tax.

Co-operative Bank

The Co-operative Bank’s Business Directplus plan charges no monthly service fee for the first 30 months for customers who are new to the bank and keep their credit balance above £1,000. After the introductory period, the standard monthly service charge is £7, provided the balance remains above £1,000.

Pros

• 30 months free, the longest introductory period in this guide.
• Fully licensed bank with FSCS cover up to £120,000.

Cons

• Standard monthly fees apply after the introductory period.

Suitable for

Businesses that can keep £1,000 in the account and want 30 months without a monthly fee.

Barclays

Barclays offers 12 months free for new business customers. It’s a fully licensed bank with FSCS cover up to £120,000. Standard monthly fees apply after the introductory period.

Pros

• 12 months free for new business customers.
• Fully licensed bank with FSCS cover up to £120,000.
• A high-street bank with branches across the UK.

Cons

• Standard monthly fees apply after the introductory period.

Suitable for: New businesses that want a high-street bank and a year without fees.

Revolut Business

Revolut’s basic plan now starts from £10 a month, and its FSCS protection depends on which entity holds your account. Eligible deposits with Revolut Bank UK Ltd may be protected by the FSCS up to £120,000. Accounts that haven’t yet transitioned from Revolut Ltd remain subject to safeguarding instead. Certain business categories are excluded from FSCS protection.

Features

• Basic starts at £10/month.
• FSCS protection depends on account entity: accounts held with Revolut Bank UK Ltd may be protected up to £120,000.
• Accounts still with the e-money entity (Revolut Ltd) remain safeguarded instead. However, some business categories are excluded from FSCS cover.

Pros

• FSCS protection for eligible deposits is available.
• Wide range of business tools and features available beyond basic banking

Cons

• Protection status isn’t the same for every account. It depends on which entity holds the account.
• Some business categories are excluded from FSCS cover even on Revolut Bank UK Ltd accounts

Suitable for
Businesses willing to pay a monthly fee for Revolut’s business and international features, provided they check which Revolut entity holds their account and whether their business is eligible for FSCS protection.

Paying or Getting Paid Overseas? Where WorldFirst Fits

WorldFirst is not a bank, and it doesn’t offer a UK current account to replace the ones above. World First UK Limited is authorised by the FCA as an Electronic Money Institution, not a deposit-taking bank, so funds held with WorldFirst are protected through safeguarding arrangements rather than FSCS deposit protection.

For most small businesses, the answer is both: a free UK account for day-to-day banking and a World Account for anything in another currency.

What the World Account does

The World Account is built for businesses that trade across borders. Send in 100+ currencies, hold and receive in 20+, and pay nothing to open or keep it.

Features

• Send funds in 100+ currencies and hold or receive funds in 20+ currencies.
• Local account details, like IBANs, account numbers, and routing info, for each currency.
• Funds are transferred via local payment rails rather than the international SWIFT network.
• where a local route exists, such as UK Faster Payments or EU SEPA, payments go through it rather than SWIFT. 95% of international payments arrive the same day.
• Integrate directly with 130+ marketplaces and payment platforms.
• Free to open and maintain.

Pros

• Get paid in USD from US sales, hold it in dollars and pay US suppliers from the same balance, with no conversion in between.
• Local payment rails mean funds clear much faster than through the international SWIFT network.

Cons

• If you rarely pay or get paid in another currency, you probably don’t need it.

Suitable for

UK businesses that sell overseas, pay international suppliers or collect marketplace payouts.

Paying suppliers abroad or selling overseas? Open a World Account.

Frequently Asked Questions

1. What is the best free business bank account in the UK?

Starling and Monzo Business Lite are the strongest all-rounders here: no monthly fee, no UK transfer fees and FSCS protection.

2. Is a free business bank account safe?

If your provider is a UK bank, eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per depositor, per banking licence.

E-money institutions (EMIs), like WorldFirst, aren’t banks, so the FSCS doesn’t cover them. Instead, the FCA requires them to safeguard your money by keeping it separate from their own funds.

3. Can I open a free business bank account as a sole trader?

Yes. Starling and Monzo both offer accounts for sole traders and freelancers.

4. Do free business bank accounts charge for international payments?

They can. Free UK accounts are built for paying in pounds, so international payments and currency conversion often cost extra. If you pay or get paid overseas regularly, a multi-currency account like WorldFirst can sit alongside your bank account. The World Account is free to open and has no ongoing subscription or account-maintenance fees. It lets businesses receive payments in 20+ currencies, with receiving funds and holding funds free of charge. Payment fees vary depending on the currency and destination. For example, GBP payments to the UK via Faster Payments or CHAPS cost £0.31, while GBP payments to other destinations cost £4.62. Currency conversion is charged at up to 0.50% for major currencies, while new customers can access a 0.30% rate for their first six months.

5. Is WorldFirst a bank?

No. WorldFirst is an Electronic Money Institution authorised by the FCA, not a bank. It doesn’t offer UK current accounts or FSCS-protected deposits. It’s designed to sit alongside a UK business bank account for holding and sending money in foreign currencies.

6. What happens if I go over my free transfer limit?

It depends on the provider. On Tide’s Free plan, each transfer in or out after your first five that month costs 20p. Starling, Monzo Business Lite and ANNA’s Free plan don’t cap outgoing UK transfers.

Sources:

• https://www.starlingbank.com/business-account/
• https://www.tide.co/safety-security/
• https://www.tide.co/pricing/
• https://monzo.com/business-banking
• https://www.tide.co/business-current-account/
• https://www.tide.co/support/joining/what-is-tide/how-much-does-tide-cost/
• https://anna.money/pricing/
• https://www.revolut.com/business/
• https://www.worldfirst.com/uk/pricing/
• https://www.worldfirst.com/uk/
• https://www.fscs.org.uk/what-we-cover/
• https://www.fca.org.uk/consumers/using-payment-service-providers
• https://www.co-operativebank.co.uk/business/products/bank-accounts/business-directplus/
• https://www.barclays.co.uk/business-banking/
• https://www.fscs.org.uk/media/press/2025/nov/fscs-welcomes-higher-deposit-protection-limit-of-120000–giving-people-confidence-their-money-is-protected/
• https://www.revolut.com/business/business-account-plans/