Free business accounts in United Kingdom: what free really means

Snapshot

Several providers list a free business account in the United Kingdom, meaning no monthly account fee. Starling lists no monthly fee, Monzo lists a free Lite plan, and Tide lists a free plan with per item charges. Free does not mean no charges at all, since transfers, cash handling and foreign exchange can still cost. As of 17 March 2026.

Free, licensed UK banks: Starling lists no monthly fee, Monzo lists a free Lite plan. Eligible deposits covered by the Financial Services Compensation Scheme. As of 17 March 2026.
Free, electronic money providers: Tide lists a free plan with per item charges. Funds safeguarded, not covered by the deposit scheme. As of 17 March 2026.
What free means: No monthly account fee. Other charges such as transfers and foreign exchange can apply. As of 17 March 2026.
Always: Confirm the full fee schedule with the provider.

Fees and features as of 17 March 2026Last reviewed 17 March 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

Free business accounts in the United Kingdom do exist, but the word free needs care. It almost always means no monthly account fee, not banking with no charges at all. Among licensed UK banks, Starling lists a business account with no monthly fee and Monzo lists a free Lite plan, both with eligible deposits covered by the Financial Services Compensation Scheme. Among electronic money providers, Tide lists a free plan that gives a few free transfers a month and then charges per transfer. On any of these you can still pay for transfers, cash and cheque handling, cards, or foreign exchange. The figures below are shown as of 17 March 2026, so confirm current terms with each provider.

What a free business account means in United Kingdom

Free in UK business banking is a marketing word for no monthly account fee. The account itself costs nothing to hold each month, but the provider may still charge for how you use it. The cheapest option for one business is not the cheapest for another, since a firm that makes many transfers, handles cash, or converts currency can pay more on a free account than it would on a paid plan with those costs bundled in. The sensible test is to map your actual usage against each fee, not just the headline monthly figure. As of 17 March 2026.

Free accounts from licensed UK banks

Starling lists a business account and a sole trader account with no monthly fee, free domestic transfers, and accounting links, with an optional add on such as bulk payments reported at about 7 pounds a month. Monzo lists a free Lite plan for sole traders and limited companies with unlimited free UK transfers and pots to set aside tax, alongside a paid Pro plan reported at about 5 pounds a month. Both are licensed UK banks, so eligible deposits are covered by the Financial Services Compensation Scheme up to the published limit. Verify current pricing and the covered limit with each provider before you apply.

Free accounts from electronic money providers

Tide lists a free plan that gives a few free transfers a month and then charges per transfer, with paid plans reported from about 12.49 pounds a month for added tools. Wise Business lets you open a free Essential plan, with a one time fee reported at about 50 pounds to activate full receiving and account detail features. These providers are not banks, so customer funds are safeguarded rather than covered by the deposit scheme. As of 17 March 2026. Verify current pricing and the safeguarding position with each provider.

Charges to check before you call an account free

Even with no monthly fee, these charges decide the real cost. The exact amounts vary by provider. Verify with the provider

Transfer charges on some plans, often after a small number of free transfers.
Cash and cheque handling fees, which matter most for firms that take cash.
Card fees and a foreign exchange cost on currency conversion and international payments.

How to compare free accounts

List the ways you will actually use the account, including transfers, cash, cards and foreign exchange.
Match a free account to that usage, since a free plan with per item charges can cost more than a low paid plan for some firms.
Confirm the current published fees and the protection position with each provider before you open or fund the account.

Compare business accounts available in United Kingdom

These providers accept business customers in the United Kingdom. Fees and eligibility shown as of 17 March 2026. Confirm current terms with the provider before applying.

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Questions about free business accounts in United Kingdom

Are there really free business bank accounts in the United Kingdom?

Yes, in the sense of no monthly account fee. Starling lists a business account with no monthly fee, Monzo lists a free Lite plan, and Tide lists a free plan with per item transfer charges. Free means no monthly account fee, not no charges at all, since transfers, cash handling or foreign exchange can still cost. As of 17 March 2026. Verify with the provider.

What charges still apply on a free account?

Even with no monthly fee, you may pay per transfer charges on some plans, cash and cheque handling fees, card fees, and a foreign exchange cost on currency conversion. Tide lists a per transfer charge on its free plan once a few free transfers are used. As of 17 March 2026. Verify the full fee schedule with the provider.

Is a free account protected if the provider fails?

It depends on the provider. Starling and Monzo are licensed UK banks, so eligible deposits are covered by the Financial Services Compensation Scheme up to the published limit. Tide and Wise are not banks, so customer funds are safeguarded rather than covered by that scheme. As of 17 March 2026. Confirm with the provider.

Who can open a free business account in the United Kingdom?

Most free accounts are aimed at UK based sole traders and limited companies, with directors and people with significant control usually required to be UK residents at digital providers. Acceptance varies by business type and structure. As of 17 March 2026. Confirm eligibility with the provider.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 17 March 2026. Confirm current terms with the provider before applying.