Top 5 Business Bank Accounts in the UK with No Monthly Fees
Several UK providers offer business current accounts with no monthly fee, but 'free' rarely means free for everything. We compare five no-fee accounts on the costs that actually bite, such as cash deposits, transfers and foreign exchange, and explain which accounts are protected by the FSCS.
Sumcraft Editorial Team
Sumcraft
How to read this comparison. These are five examples of UK business accounts with no monthly fee, chosen because their fees are published and they hold a UK banking licence or bank partnership. They are listed in alphabetical order, not ranked. Sumcraft does not receive payment from any provider. Fees were checked on providers' websites on 15 October 2026 and can change at any time.
What 'no monthly fee' does and does not cover
A business account with no monthly fee removes the fixed charge for having the account. Each provider then makes money in other ways, and those charges can easily exceed a traditional monthly fee if they do not match how your business works. The four costs to check are:
- Cash deposits: often charged per deposit or as a percentage, usually through the Post Office or PayPoint.
- Transfers: some accounts limit free bank transfers each month.
- Foreign exchange: card spending or payments in other currencies often carry a percentage fee.
- Cash withdrawals: usually free in the UK, but not always.
If you take a lot of cash, an online-only account with a percentage deposit fee may cost more than a high-street account with a monthly fee. If you rarely touch cash and pay mostly by bank transfer, a no-fee account is often the cheapest option.
Five no-fee business accounts compared
| Account (A–Z) | Monthly fee | UK transfers | Cash deposits | Non-sterling spending | Protection |
|---|---|---|---|---|---|
| Mettle (NatWest) | £0 | Free | £2.75 per deposit (withdrawals £1) | Check provider | FSCS, via NatWest |
| Monzo Business Lite | £0 | Free | £1 per deposit at PayPoint or the Post Office | Check provider | FSCS |
| Starling Business | £0 | Free | £3 or 0.7% at the Post Office (see provider) | 0.4% | FSCS |
| Tide Free | £0 plan fee | 5 free per month | Check provider | 2.75% | FSCS via ClearBank for eligible accounts; some members have e-money accounts |
| Zempler Business Go | £0 | 3 free payments, then 30p each | £3 or 0.5% | 2.99% | FSCS |
All figures were taken from providers' published fee pages on 15 October 2026. 'Check provider' means the figure was not clearly published or varies by method. Read each provider's full tariff before you open an account.
Each account in brief
Mettle
Mettle is run by NatWest and protected by the FSCS through NatWest's banking licence. It is open to sole traders and limited companies with up to two owners. There is no monthly fee for the core account, cash deposits cost £2.75 each and cash withdrawals £1. NatWest also offers a paid Mettle+ plan at £4 a month with extra features.
Monzo Business Lite
Monzo Business Lite has no monthly fee and free UK transfers. Cash deposits at PayPoint or the Post Office cost £1 each. Monzo is a UK-authorised bank, so eligible deposits are FSCS-protected. Paid tiers add features such as tax pots and integrations.
Starling Business
Starling's business account has no monthly fee and free UK transfers. Cash paid in at the Post Office costs £3 or 0.7% (check Starling's tariff for which applies to your deposit), and spending in other currencies carries a 0.4% fee. Starling is a UK-authorised bank covered by the FSCS.
Tide Free
Tide's Free plan has no plan fee and includes five free transfers a month. Payments in foreign currency carry a 2.75% fee. Tide is not itself a bank: many accounts are held with ClearBank and are FSCS-protected, but Tide states that some members hold e-money accounts that are not. Check which type you are offered.
Zempler Business Go
Zempler Bank's Business Go account has no monthly fee. It includes three free payments a month, then 30p each. Cash deposits cost £3 or 0.5%, cash withdrawals £2, and non-sterling transactions 2.99%. Zempler is a UK bank and deposits are protected by the FSCS up to £120,000.
FSCS protection vs e-money safeguarding
This is the most important difference between business accounts, and it is easy to miss.
- Bank accounts: the Financial Services Compensation Scheme protects eligible deposits up to £120,000 per depositor, per authorised bank, from 1 December 2025. Most small businesses, including limited companies, are eligible.
- E-money accounts: firms such as ANNA operate under e-money rules. Your money is not covered by the FSCS. Instead, the firm must 'safeguard' customer funds by keeping them separate from its own money, as the FCA explains. If the firm fails, safeguarded funds should be returned, but the process can be slower and the outcome less certain than an FSCS payout.
Some providers that look like banks are neither. Coconut, for example, offers accounting and tax tools but is not a bank. Always check a provider on the FCA Register and read the protection statement on its website before you move money.
High-street alternatives: free for a fixed period
Traditional banks usually charge a monthly fee but waive it for new businesses for an introductory period. In return you get branch access, which can matter if you handle a lot of cash.
| Bank | Introductory free banking (checked 15 Oct 2026) | Monthly fee afterwards |
|---|---|---|
| NatWest | 2 years for eligible start-ups | Check tariff |
| HSBC | 12 months | £10 |
| Barclays | 12 months | £8.50 |
| Lloyds | 12 months | £10 |
| Santander | 12 months | £9.99 |
Eligibility criteria apply, usually based on turnover and how long you have been trading. Set a reminder for when the free period ends, so you can review whether the paid tariff still suits you.
How to choose: match the account to your money flows
- Count your cash. If you deposit cash weekly, multiply each provider's deposit fee by 52 and compare that with a monthly fee.
- Count your transfers. If you pay suppliers or staff often, an account with limited free transfers will add up.
- Check foreign currency use. If you buy from overseas suppliers or travel for work, FX fees ranging from 0.4% to 2.99% make a real difference.
- Check integrations. If you use cloud accounting for Making Tax Digital, confirm the bank offers a feed to your software.
- Check who can open it. Some accounts are only for sole traders or companies with a limited number of owners.
- Check protection. Prefer FSCS-protected accounts for operating balances, and keep balances above £120,000 spread across separately licensed banks if that matters to you.
If you are a sole trader, you are not legally required to have a separate business account, but many banks' personal account terms do not allow business use, and separating the two makes tax records much easier. Limited companies need an account in the company's name.
Bottom line
There is no single best free business account. The cheapest choice depends on how much cash you handle, how many payments you make and whether you deal in foreign currency. Use the table above as a starting point, check each provider's full tariff, and prioritise FSCS protection for money your business cannot afford to have tied up.
Starting a business? Our sole trader vs limited company calculator and VAT calculator can help with the next decisions.