The best free business bank accounts

What you’ll discover when you first start looking at business bank accounts is that there are so… many… variables! Most business bank accounts will have charges for different things like:

• A flat monthly account fee
• Transaction fees in/out (e-payments, cash payments, cheque payments)
• CHAPs payments
• Foreign currency transactions
• Getting change

However, some business bank accounts won’t charge for some or all of these transactions and many have free introductory offers. You’ll need to work out what your business bank account will mainly be used for and then look for bank accounts with free or low charges for those things. For example, you might be better off paying for a higher flat monthly fee if the transaction charges are lower or free and you think that you’ll be making a lot of those transactions.

When you review the offers, also check the criteria for opening the bank account and getting the deal. You’ll probably have to be a new customer, have been trading for less than a year and they’ll be a limit on turnover (likely to be at least £1 million).

Getting the best deal on your bank account is great but also bear in mind that it’s not just rates that you should be weighing up. What else do you want from your bank account? Consider what’s important to you and the business, like:

• A good app
• Card terminals for payments in person
• Financial borrowing options – loans, overdrafts, credit cards
• A Business Manager
• 24-hour support
• 24-hour online and telephone banking
• Access to a nearby branch (with opening hours that suit you)
• Business insurance

You should also check on the bank’s service quality score and where they’re ranked compared to other banks based on the latest report from the Competition and Markets Authority.

If you already have a business bank account but want to swap to a free account then this is possible (check the exact criteria of the new bank account and offer). Many people are reluctant to switch business bank account because of the perceived hassle but these days banks are making it more attractive and much easier. They’ll let you choose the transfer date, doing it within seven days (if you want), arrange your payments to be switched and generally ensure a smooth transfer process. Your old bank will be obliged to pass on any payments that go into your old account by mistake for 13 months after the transfer.

Once you’ve chosen which bank you want to switch to you’ll need to tell them that you’d like to switch and apply for an account as normal.

Often all you’ll need to switch are:

• Proof of name and address
• The details of your old bank account with the account number, sort code and card number
• The date you’d like to switch

Check with your new bank whether they will inform those who you make payments to about the switch or if you need to. Monitor your payments carefully to make sure everything is working correctly and don’t forget to update your bank details on your invoices.

These are the best business bank accounts if you’re a small to medium-sized business with free introductory offers.

Compare how long the offers last for and how much it will cost after. Consider whether it will be a better deal in the longer term to go with a bank account that doesn’t have such a strong introductory offer. Or if a good free introductory offer is more important to you in the period when you’re getting up and running (and if you are willing to switch accounts later).

These business banks accounts have no monthly fees.

The tables in this article give an overview of the main charges. Check each bank account for specifics on all details and charges and the most up to date information.

If you need more features or higher levels of assistance with your banking then you will have to look at the next level of business banking with these or other banks but they will come with more fees.