Business bank accounts with no monthly fee — and what can still cost you
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
Several UK business accounts charge no monthly fee: Starling, Mettle, Monzo Business Lite, Tide’s Free plan, ANNA’s Free plan and HSBC’s Small Business Banking Account. “No monthly fee” isn’t the same as “no fees” though — cash deposits, transfers beyond an allowance and spending abroad can still cost money.
Our pick for no monthly fee and no charge on UK payments: Starling. Our pick for no monthly fee with accounting software included: Mettle (FreeAgent included if you make one transaction a month).
No-monthly-fee accounts compared
| Provider | Monthly fee | Charges that can still apply | Protection |
|---|---|---|---|
| Starling | No monthly fee | Post Office cash deposits 0.7% (minimum £3) | Bank — FSCS protected |
| Mettle (NatWest) | No monthly fee | Optional Mettle+ add-on £4 a month | Accounts provided by NatWest — FSCS protected; older e-money accounts aren’t covered |
| Monzo Business | Lite: free | Upgrades: Pro £9, Team from £25 a month | Bank — FSCS protected |
| Tide | Free plan: no plan fee | 5 bank transfers a month included; 2.75% on card spending abroad | Tide isn’t a bank. Most accounts are held with ClearBank (FSCS); some older e-money accounts aren’t FSCS covered |
| ANNA | Free plan: £0 | 0.95% on incoming payments above £1,000 a month | E-money — funds in the main ANNA account are safeguarded, not FSCS protected |
| HSBC | Small Business Banking Account: no monthly fee | Charges for cash, CHAPS, international payments and cheques | Bank — FSCS protected |
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
- Small businesses that want to keep fixed costs at zero
- Sole traders with simple payments in and out
- Businesses paying a monthly fee for features they don’t use
- New businesses testing an idea before committing to costs
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You deposit lots of cash — per-deposit charges may outweigh a monthly fee elsewhere
- You need many payments a month and a free plan caps them
- You want branch support and relationship managers
- You’d rather pay one fixed fee for predictable costs
Full explanation
How no-fee accounts make money
Providers earn from interchange on card spending, charges for extras, paid upgrades, lending and interest on balances. That’s fine — it just means you should check which of those charges you’d trigger.
Price your own month
Take last month’s activity: payments in, payments out, cash paid in, spending abroad. Price it on each account.
A paid plan with a bigger allowance can work out cheaper than a free plan with per-use charges. Our business account fees guide lists the usual charges, and the business fees FAQs answer common questions.
Protection still matters
Money held with a UK-authorised bank is usually protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per eligible depositor, per banking licence (source: FSCS). E-money accounts are safeguarded instead, which is a different kind of protection. See FSCS protection limits.
Compare more options in Business bank accounts compared or read Basic business bank accounts.
The catch
Per-use charges replace the monthly fee. Tide’s Free plan includes 5 bank transfers a month; ANNA’s Free plan takes 0.95% of incoming payments above £1,000 a month.
Cash is rarely free. Starling charges 0.7% (minimum £3) for Post Office cash deposits.
Check who holds your money. ANNA’s main account is e-money, so it isn’t FSCS protected. Read more on the catch with “free” business accounts.
Check a no-fee account’s current terms:
These go straight to each provider’s own website. They aren’t referral links and we don’t earn from them.
FAQs
Is any UK business bank account completely free?
Several have no monthly fee, but most charge for some things — cash deposits, international payments or transfers beyond an allowance.
Does Starling charge for business accounts?
Starling advertises no monthly fees and no fees on UK payments in or out. It charges for Post Office cash deposits.
Is HSBC’s business account free?
HSBC’s price list shows no monthly fee for its Small Business Banking Account. Transaction charges can apply.
Are free business accounts FSCS protected?
Bank accounts usually are, up to £120,000. E-money accounts, such as ANNA’s main account, are safeguarded rather than FSCS protected.
When does a paid plan make sense?
When the extras you’d use — transfers, currency, software, team cards — would cost more on a free plan.
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