Business account fees explained: what you might pay and when
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
Quick answer
Business account costs fall into four groups: the monthly fee, charges per transaction, charges for cash and cheques, and charges for international payments and currency. A few providers also charge if your balance falls below a minimum.
Our pick for avoiding everyday transaction charges: Starling, which charges no monthly fee and nothing on UK payments in or out. Our pick for predictable costs on a high-street bank: compare free-period lengths and the fee afterwards.
Common fees, with examples
| Fee type | What it is | Example (as of 3 October 2026) |
|---|---|---|
| Monthly fee | A fixed charge for the account | Barclays: £8.50 a month after 12 free months |
| Transfer charges | Per-payment fees beyond an allowance | Countingup: 3 free a month, then 27p; Revolut: £0.20 beyond allowance |
| Incoming payment charges | A percentage of money received | ANNA Free plan: 0.95% above £1,000 a month |
| Cash deposits | Fees to pay in notes and coins | Starling: 0.7% at the Post Office (minimum £3) |
| ATM withdrawals | Fees to take cash out | Countingup: £1 per withdrawal |
| International transfers | Payments to overseas accounts | Revolut Business: £5 per international transfer beyond your plan allowance |
| Foreign currency | A percentage on spending or converting currency | Tide Free plan: 2.75%; Countingup: 3% |
| Minimum balance fee | Charged if your balance drops below a level | Allica: £25 a month below a £10,000 average |
| Replacement card | A fee for a new card | Countingup: £5 |
Figures as of 3 October 2026, taken from each provider’s own website. Fees, plans and eligibility change, so check the provider before applying.
Who it’s for
- Owners trying to understand a confusing tariff
- Businesses whose bank costs have crept up
- Anyone pricing up a switch
- Bookkeepers explaining bank charges to clients
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You want a provider-by-provider table — see the comparison table
- You’re asking about card fees — see business credit card fees explained
- You need advice on disputing a charge — contact your bank, then the Financial Ombudsman Service
- You want tax treatment of bank fees — ask your accountant
Full explanation
Free banking periods
High-street banks often waive everyday charges for a set time. NatWest offers two years’ free everyday banking when you switch with the full Current Account Switch Service (turnover up to £2m); Santander and Barclays offer 12 months. Check what “everyday” covers — some services are still charged.
Working out your real cost
Take three months of statements. Count transfers, cash deposits, international payments and card spending abroad.
Price them on each tariff, add the monthly fee and divide by three. That’s your likely monthly cost.
Overdrafts
Arranged overdrafts may carry an arrangement fee and interest; unarranged borrowing usually costs more. Ask your bank for its business overdraft terms.
More: Business fees FAQs, Business accounts with no monthly fee and The catch with “free” business accounts.
The catch
Minimum balance fees: Allica charges £25 a month if your average balance falls below £10,000 (unless you have an Allica loan).
Incoming payment charges: ANNA’s Free plan takes 0.95% of incoming payments above £1,000 a month.
Small charges add up: Countingup charges 27p per transfer after 3 free a month and £1 per ATM withdrawal.
See how these fees compare across providers:
FAQs
What fees do business bank accounts charge?
Common ones are monthly fees, transfer charges beyond an allowance, cash and cheque charges, CHAPS and international payment fees, and currency fees.
Why do business accounts charge when personal accounts don’t?
Business accounts usually handle more transactions and cash, and providers price that in. Some business accounts have no monthly fee.
Can I avoid cash deposit fees?
Not always. If you handle a lot of cash, compare deposit charges carefully — they can outweigh a monthly fee.
Are bank charges an allowable business expense?
Bank charges for a business account are usually allowable. Ask your accountant for your situation.
What is a minimum balance fee?
A charge if your balance falls below a set level. Allica charges £25 a month if your average balance is below £10,000.
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