Best Free Business Bank Accounts for UK New Businesses
A free standard tier covers most new businesses comfortably for the first 12–24 months. But 'free' rarely means free of everything — here's how to read the small print and pick the account that genuinely costs you nothing.
Several UK providers offer £0/month business accounts — Tide, Mettle (from NatWest), Starling, Revolut Business Basic and Monzo Business Lite. All are FSCS-protected (with Mettle/NatWest, Starling, Monzo) or e-money safeguarded (Tide, Revolut Basic). 'Free' typically covers the account, a debit card, UK bank transfers and basic in-app features. It rarely covers cash deposits, international payments, or premium tools. Pick by matching included features to how you actually trade, not by the headline price.
What 'free' really covers
On a typical UK free business account you get:
- £0 monthly account fee
- A UK current account with sort code and account number
- One business debit card
- Unlimited UK bank transfers (in and out)
- Direct Debits and standing orders
- A mobile and (sometimes) web app with basic reporting
- Notifications and rudimentary categorisation
- Open banking integration with accounting software
That covers the vast majority of new freelancers, consultants and small limited companies for the first year or two. The differences between providers show up in what isn't included.
Fees and limits that 'free' usually excludes
| Feature | Typical free-tier treatment | Why it matters |
|---|---|---|
| Cash deposits | £1–£3 per deposit at Post Office or PayPoint, sometimes plus a % | Anyone taking meaningful cash should compare carefully |
| International payments | Per-transfer fee + FX margin | Matters if you pay or invoice in other currencies |
| FX on card spend | Free, included, or 0.5%–2% margin (varies by provider) | Worth £100s/year if you spend abroad regularly |
| ATM withdrawals abroad | Often a fee + FX margin | Smaller issue but adds up |
| Multiple users | Free tier often single-user only | Limits delegation as you grow |
| Invoicing tools | Basic invoicing usually included | Adequate for low-volume; upgrade for repeat invoicing |
| Accounting integrations | Free open-banking feed always; native sync sometimes paywalled | Compare what's free vs paid tier |
UK free business account shortlist
| Provider | Best for | Notable strengths | Watch-outs |
|---|---|---|---|
| Tide Free | Freelancers and limited company directors who want simplicity and a fast online opening | Quick approval, simple app, invoicing built-in, accounting tool integrations | Cash deposit fees, paid tiers for higher features |
| Mettle (NatWest) | Sole traders and limited companies wanting FSCS-protected high-street parentage | FSCS-protected, free for now, simple categorisation | Smaller feature set than Tide/Starling |
| Starling Business | Established businesses wanting a full bank with branches as backstop | Full UK bank, FSCS-protected, strong app, included FX on card spend | Limited company applications more selective |
| Monzo Business Lite | Solo founders and freelancers already on personal Monzo | Familiar UI, fast onboarding, integrations | Some features paywalled to Pro tier |
| Revolut Business Basic | Businesses with regular FX needs | Multi-currency accounts, competitive FX on plan | E-money safeguarding (not FSCS) — different protection model |
FSCS-protected accounts (Mettle, Starling, Monzo) cover deposits up to £85,000 per banking licence if the bank fails. E-money providers (Tide, Revolut) ring-fence client funds with safeguarding accounts at a partner bank, which is regulated protection but works differently. Both are valid; understand which model you're choosing.
Matching the account to how you trade
- Freelancer / consultant, no cash, all UK payments: Tide, Mettle, Starling and Monzo are all fine; pick on app preference.
- Trades or hospitality with regular cash: compare per-deposit fees, frequency caps and the nearest Post Office to your work base.
- E-commerce seller with EUR/USD payouts: a multi-currency provider (Revolut Business, Wise Business — paid tier) usually beats converting in a single-currency account.
- Director needing to pay several contractors: check bulk payment features and whether multiple users are included free.
Switching later isn't dramatic
You don't have to commit forever. Open one free account, run it for a few months, and switch if it doesn't fit. The Current Account Switch Service does not currently cover business accounts in most cases, so plan a manual switch over 4–6 weeks: open the new account, move incoming payments first, update Direct Debits next, then close the old one. Tell HMRC, Companies House and your accountant when the new account becomes the main one.
£200 free cash
Use referral code REFER200 through our tracked Tide link and meet Tide's current qualifying terms.
Open a Tide business account and get £200 free cash when you use referral code REFER200 and meet Tide's current qualifying terms.
- Free standard UK business account opening
- Invoicing, payment links and expense cards in one app
- Referral code
REFER200required for the £200 free cash offer, subject to current provider terms
Frequently asked questions
Related guides
Some links on this page are affiliate or referral links. If you apply through them we may receive a commission, at no extra cost to you. This does not influence our editorial recommendations — see our editorial policy and affiliate disclosure.
Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.