Compare Free Business Bank Accounts

Do I need to get a bank account for my business?

If you own a UK limited company or partnership, it is a legal requirement to have a business bank account set up. This is not the case for sole traders. If you have recently set up a company, a free business bank account can be the best way to get started.

What is a free business bank account?

A free business bank account is just your average bank account for businesses, but you pay zero monthly fees. Sounds good, particularly if you’re keeping a close eye on those purse strings. With free business banking, you can save hundreds of pounds on unnecessary set up and account fees.

There are different types of free business bank accounts. Providers could offer:

• Free accounts forever
• Free accounts, with add ons (known as ‘freemium’)
• Free accounts between 6 and 30 months

Remember, you’ll still be charged on bounced direct debits or if your account is overdrawn. Free doesn’t mean you’re exempt from fines; the term ‘free’ is usually referring to the lack of monthly fees or annual basic charge.

Am I eligible for a free business bank account?

To be eligible for a free business bank account, you must be a new company, either a sole trader, self-employed or limited company looking for your first account. You must also pass lender eligibility, and each provider’s requirements differ.

At Capalona, each of our providers has a dedicated page to help you figure out if they’re a good fit for you. Each page lists eligibility criteria, benefits and features, things to be aware of, and key facts. Our aim is to make your research mission as valuable as possible.

If you’re not currently using a free business bank account, you can switch to one easily.

How to make the switch to a free business account

If your business already has a current account set up, then don’t worry, it is still possible to make the switch to a fee free business account. Of course, this depends on the criteria and terms and conditions of the bank you’d like to switch to.

When applying for a new, free business bank account, you’ll need to provide your name, proof of address and the details of your old account. After that, you should be able to choose your transfer date within seven days, and typically the bank will arrange payments to be switched for a smooth transition.

What is the best free business bank account for 2021?

The best free business bank account really depends on what you’re looking for. Saving money might be the most important thing for your business; in that case, a free forever bank account could be the best option. Alternatively, you might take US dollar payments from your clients, so you might need a bank account that caters specifically to those needs.

To make comparing lenders easier, you’ll find the latest free business bank account deals in the table above. We keep these regularly updated, so you know these are the best deals out there at the moment.

There are options for free small business banking as well as solutions for larger, more established firms.

How do I apply for a free UK business bank account?

Applying for a free business bank account is straightforward. Simply compare the data in our table above. Click through to each provider to learn more about the benefits they’re offering, eligibility criteria and more about the deal.

Once you’ve found the best business banking deal for you, click ‘go to site’ to visit the provider directly. From here, you can complete your application in full; it’s at this point, the provider will tell you the documentation required to open the account (usually valid photo ID).

Remember, just because you choose a provider doesn’t mean you can’t switch providers for a better deal in the future. You can switch bank providers at any time - just come back to us and compare deals again.

Can I open an online business bank account for free?

Yes, you can open an online business bank account for free. Many providers will offer a free introductory trial period where you will not pay any monthly fees on your business account. Be aware that other fees, rates and charges relating to the account will apply.

What are the benefits of free business bank accounts?

Free bank accounts offer huge amounts of benefits for small and big businesses alike. When deciding on a provider, it’s important to take note of the different features on offer, as this will vary from bank to bank. The main advantages of free business banking include:

• Online banking: Free online business accounts make managing your account easier and more convenient. Access your account via desktop, or on the go from your mobile banking app.
• No set up or account fees: Save money when you sign up for a free business account. Many of these providers offer free set up, allowing you to keep more vital business funds.
• Tailored to business needs: As there are so many different features on offer, you can find the right free solutions for your business. Benefit from no transaction fees, free cash, ATM withdrawals and free overdraft facilities.

Why Capalona?

We’re a broker, which means our sole purpose is to help you find and apply for the best bank account deals. We’ve helped thousands of startups and SMEs in the UK access the business banking services they need to grow their company.

We’ve been there; finding the best business service deals can be tricky. With so many providers out there, it’s not hard to get confused. Our free tool can help make that task easier. Simply compare and choose the best free business bank account deal for you.

Compare Now