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CABusiness account and accounting software in one
January 2022
For a personalised banking report, and access to tailored funding and savings opportunities for your business, simply register here.
Choose your business current account options
Countingup Business Account
Account fee
Free for the first three months
Opening time
3 mins
Bank transfers
£0.30
Invoicing
doneOverdrafts
closeBusiness account and accounting software in one
Cashplus business bank account
Account fee
No monthly or annual fees, just an initial £9.95 card fee
Opening time
4 mins
Bank transfers
First 3 free and then £0.99
Invoicing
closeOverdrafts
doneIntegrated with all accounting packages
Anna Money business account
Account fee
Free
Opening time
10 mins
Bank transfers
Free
Invoicing
doneOverdrafts
closeCalculates taxes & VAT for you automatically
GoSolo business bank account
Account fee
Free
Opening time
10 mins
Bank transfers
£0.20
Invoicing
doneOverdrafts
closeNew Limited company registration
Tide business current account
Account fee
Free
Opening time
1 day
Bank transfers
£0.20
Invoicing
doneOverdrafts
closeFree tools for accounting and invoicing
Card One Money Business Account
Account fee
FREE for first 3 months then £12.50 per month + an application fee of £55
Opening time
4 hours
Bank transfers
£0.30
Invoicing
closeOverdrafts
closeNo credit checks
Fair Everywhere business account
Account fee
£12.50 + £55 application fee
Opening time
1 day
Bank transfers
£0.30
Invoicing
closeOverdrafts
closeGreat currency rates
Revolut Free Account
Account fee
Free
Opening time
3.5 days
Bank transfers
£0.20
Invoicing
closeOverdrafts
closeHold and exchange 28 currencies at the real (interbank) rate
Revolut Grow Account
Account fee
£25 per month
Opening time
3.5 days
Bank transfers
First 100 free then £0.20
Invoicing
closeOverdrafts
closeEcommerce: accept payments on your checkout page and with platform plugins
HSBC small business account
Account fee
£8
Opening time
15 Days
Bank transfers
Free
Invoicing
doneOverdrafts
doneFree banking for 12 months
Bank of Scotland Start up
Account fee
FREE for 12 months, then £7 per month
Opening time
11 Days
Bank transfers
Free
Invoicing
closeOverdrafts
doneInterbank Agency Agreements
Lloyds Bank Start up
Account fee
FREE for 12 months, then £7 per month
Opening time
11 Days
Bank transfers
Free
Invoicing
closeOverdrafts
doneInterbank Agency Agreements
The listings below are for information purposes only. These accounts are not currently open for applications.
Bank of Scotland Switcher
Account fee
Free for 12 months then £7 after
Opening time
Bank of Scotland has temporarily stopped accepting applications from customers looking to switch their business.
Bank transfers
£0
Invoicing
closeOverdrafts
doneInterbank Agency Agreements
Lloyds Bank Switcher
Account fee
Free for 12 months then £7 after
Opening time
Lloyds has temporarily stopped accepting applications from customers looking to switch their business.
Bank transfers
£0
Invoicing
closeOverdrafts
doneInterbank Agency Agreements
* Swoop’s service features a selection of providers from whom we receive commission.
For a personalised banking and saving report tailored to your business, simply register and securely integrate your bank account through our Open Banking technology.
Register your business with Swoop and integrate your bank account for your personalised reportFree business banking is simply business banking with no fees attached. In other words, if you open a free business bank account you won’t have to pay a monthly or annual fee and there will be no charge for setting up the account itself either.
The main advantage to choosing free business banking is that it will enable you to keep some of your overheads low, which can be particularly beneficial when you’re just starting out and building your business.
You’ll be legally required to open a business bank account if you’ve set up your business as a limited company in the UK and it’s registered with Companies House, so it may be worth looking for one with no fees. If you’re a sole trader, such as some freelancers and contractors, you won’t be obliged to open a business bank account but having one can make keeping your business and personal finances separate that much easier.
Although your business bank account may not charge a monthly, annual or set-up fee, you may still have to pay for certain services. These can include:
Note that fees can vary depending on the business bank account you choose, and some won’t charge many fees at all, so it’s worth shopping around and comparing your options carefully.
You should also keep in mind that some business bank accounts have introductory offers that waive monthly or annual fees for 12 to 18 months. Once this period is over, you’ll have to pay a fee so if you’re considering one of these accounts, make sure you check in advance how much you’ll be charged.
The best free business bank account for you will depend on the type of business you run and how you plan to use the account. The quickest way to find the most suitable business account is to compare your options using our business bank account comparison tool. You’ll be able to select ‘free banking’ on the features tab to view all free business bank accounts from providers such as Anna and Revolut.
Anna’s free business bank account offers services such as invoice management which can help you to create and send invoices, and it automatically matches payments and invoices to help you organise your accounts. The account also offers:
Meanwhile, Revolut’s free business bank account allows you to send and receive funds in more than 28 currencies at the real Interbank exchange rate. It also offers five free local transfers a month (after which you’ll be charged 20p per transfer), while international transfers are competitive at just £3 each and a 0.4% fee applies to all foreign exchanges.
You’ll also be able to link your account up with third-party software providers such as Xero, QuickBooks, FreeAgent and Sage.
In August 2021 the BVA BDRC published the findings from its Business Banking Service Quality survey. Undertaken as part of a regulatory requirement and published at the request of the providers and the Competition and Markets Authority, the study surveyed 16,800 SME bank account customers between July 2020 and June 2021.
Each customer was asked how likely they would be to recommend to other SMEs –
The results show the proportion of customers of each provider, among those who took part in the survey, who said they were ‘extremely likely’ or ‘very likely’ to recommend each service. A detailed breakdown for each category can be seen in the table below.
Source: BVA BDRC
You’ll usually be able to apply for a free business bank account if you’re a sole trader, private limited company, public limited partnership or limited liability partnership.
Many free business bank accounts are aimed towards smaller businesses and start ups which means your business may need to have been trading for less than a year and/or have a turnover of less than a specified amount. Check the terms and conditions carefully so you know whether you’ll qualify.
Note, too, that you’re more likely to get accepted for a business bank account if you have a good credit rating and no history of defaults or arrears. A credit check will usually be carried out when you apply for a business bank account and if your credit score is poor, you’re more likely to be turned away.
Fortunately, some app-based providers, such as Anna, won’t require a credit check as part of the application process which can make them a good option if you have a poor credit history – although keep in mind you may not be offered an overdraft.
You can usually apply for a free business bank account online or via the provider’s app in as little as 15 minutes. The approval time will then depend on the business circumstances.
If you choose a digital bank, your free business bank account will usually be up and running within just a few days – in some cases your account can even be opened on the day you applied for it. If your account comes with a debit card, this should also be with you within around five working days.
Note that due to the COVID-19 pandemic, many high street banks are taking longer than usual to process business bank account applications, so you may find opening your account takes a matter of weeks. However, this will depend on the provider.
The quickest way to apply for a business bank account is online – simply compare your options using an online comparison tool and click through to the account you want to open. You’ll then be able to fill in your application form online.
Alternatively, you may be able to open your account over the telephone or in branch depending on which account you’ve chosen.
As part of the application process, you will need to provide proof of ID such as a passport or driving licence, along with proof of address such as a utility bill or bank statement. If you’re applying via a digital bank, you will be asked to upload photos of your ID and record a short selfie video for identification purposes.
You may also need to provide:
Once you’ve provided the required documents, your chosen provider will set up your account and you’ll be ready to go.
Written by
Rachel has been writing about finance and consumer affairs for over a decade, helping people to get to grips with their finances and cut through the jargon. She’s written for a range of websites and national newspapers including MoneySuperMarket, Money to the Masses, Forbes UK, and Mail on Sunday. Rachel has covered almost every financial topic, from car insurance and credit cards, to business bank accounts and mortgages.
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