Editorial correction — 14 October 2026: Earlier targeted corrections have now been expanded to a full-body source review. The claim that every option is permanently free has been removed. Mettle cash deposits and FreeAgent conditions, Starling expense cards, Monzo features, Tide allowances and ANNA’s e-money distinction are clarified.
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This article is for informational purposes only and does not constitute financial advice. Verify account terms directly with each provider before opening a business bank account.
“No monthly account fee” does not mean every transaction, feature or future tariff is free. This guide compares current account structures and conditions, including the distinction between eligible bank deposits and safeguarded e-money.
Table of Contents
How We Selected These Accounts
We reviewed published account and plan information. No applications were submitted and no claim of permanently unchanged pricing or universal eligibility is made.
Check which accounting, invoice and team features are included and which require a paid tier. A zero monthly account fee does not establish that an account meets your needs.
No-Monthly-Fee Accounts: Current Conditions
| Provider | No-monthly-fee option | Important condition |
|---|---|---|
| Starling | Business account | Some services have separate charges |
| Tide | Free plan | Transfer allowance and other fees apply |
| Monzo | Lite | Some controls are in paid tiers |
| Mettle | Business account | FreeAgent requires monthly qualifying account use |
| ANNA | Pay-as-you-go option | Incoming-payment fees can apply; e-money safeguarding is not FSCS deposit protection |
Starling — Account Fees and Service Scope
Starling’s business current account is one option to compare. Eligible deposits receive FSCS protection up to £120,000 per depositor across accounts sharing the banking licence. Check current charges and eligibility directly, including paid extras, rather than treating “free” as a guarantee that every feature or transaction is included. Current FSCS limit.
Pricing
Starling’s business account has no monthly fee, but some services are charged separately. Use its current fee guidance and schedule for cash and international activity; the former cash/FX figures were not reconfirmed.
Key Features
Starling offers business expense cards, so the earlier claim that cards are only for directors was too broad. Check current expense-card terms and the required accounting, currency and access features.
Possible Fit
Shortlist it if the service scope and eligibility match your business. No overall winner was established by a measured comparison.
Tide — Plan Allowances and Administration Tools
Tide is a financial platform rather than a bank. Check whether the account is a ClearBank bank account or a PPS e-money account: the product determines the protection available. Eligible ClearBank deposits receive FSCS cover; e-money safeguarding is a different arrangement. Tide’s account-type explanation. Check current plan fees and transfer allowances before applying.
Tide’s current free-plan transfer allowance and chargeable activities must be checked in the plan table. Cashback does not make transfers or other activity free at every volume.
Pricing
The £100 offer previously described here required sign-up by 30 June 2026; that date has passed. It must not be treated as a current offer. For current monthly charges, transfer allowances and any new promotion, check Tide’s live account terms and the eligibility conditions before applying.
Key Features
Check the current plan’s invoice, payment, card and savings features and any introductory conditions. Savings rates and company-registration offers should not be treated as fixed account benefits.
Possible Fit
Potentially relevant where the included administration tools fit. Compare total cost and the account issuer, not just a £0 headline.
Monzo Lite — Basic Plan and Paid Features
Monzo Lite is one option for a basic business account. Existing personal-bank familiarity is a preference, not proof that it is the best choice or that another applicant should avoid it.
Monzo’s current comparison lists Lite, Pro and Team with different features, including tax tools. The old description that Lite has “only” basic banking was incomplete. Confirm the exact workflow in the current plan comparison.
Pricing
Lite has no monthly fee; Pro is currently £9 per month and Team starts at £25. Other transaction fees and limits can apply. The previous cash-limit and no-IBAN claims were not retained without current verification.
Key Features
Check payment destinations, currencies, access and accounting support for the relevant tier. The former blanket “no international payments” statement was not adequately supported.
Possible Fit
Choose by the functions and charges you need. We have not measured that a new customer would be better served by a competing bank.
Mettle — Account and Conditional FreeAgent Benefit
Mettle offers a business account and a conditional FreeAgent benefit. FreeAgent requires at least one Mettle account transaction each month; otherwise a subscription can be payable, and some extras cost more.
Mettle currently advertises cash deposits. Check its account information for supported deposit methods, ownership eligibility and limits; the old “no cash deposits” statement was incorrect.
Pricing
Review the account tariff and the separate FreeAgent eligibility conditions. A no-monthly-fee account is not a promise that every service or software add-on is free indefinitely.
Key Features
Confirm who can open and access the account and which software connection you need. Check the banking licence and your aggregate eligible balances when assessing FSCS protection.
Possible Fit
It may fit businesses that meet both account and software conditions. Compare the full cost rather than treating FreeAgent as unconditional or declaring one account the cheapest for everyone.
Sole-Trader Account and Record-Keeping Checks
A sole trader and a limited company have different legal and accounting positions. Keep company and personal transactions appropriately separated, check account terms and obtain advice where needed; this guide is not an individual legal assessment.
For MTD, identify the relevant tax obligation and compatible software. Banking tools can help records, but opening a particular account does not make a sole trader compliant.
Accounting Software Integration — Does Your Free Account Connect?
A supported feed can help import transactions, but alternative controlled record-keeping methods exist. No single banking connection is mandatory for MTD or a guarantee that records are complete.
Check the exact accounting subscription and connector, including any paid features. Reconcile imports and handle duplicates, missing items and reconnections rather than assuming manual checks disappear.
When a Free Account Is Not Enough — Paid Options Worth Considering
A paid plan may be justified by transaction volume, access controls, payment methods or support requirements. There is no demonstrated rule that most SMEs should stay on a free plan for two years.
Our business account comparison provides a broader selection checklist. It is not a ranking of every provider or proof that each has a paid current-account tier.
FAQ
Which free business bank account is best for a UK limited company?
There is no universal best account for a limited company. Compare eligibility, owners and users, transaction costs, controls, protection and exports using the company’s requirements.
Is Tide a real bank account?
Identify the actual account. Tide’s ClearBank bank accounts and PPS e-money accounts have different protection arrangements; this distinction matters and should be checked in your documents.
Do free business bank accounts affect business loan eligibility?
A free account does not guarantee or prevent a loan. Lenders assess their own eligibility, affordability and credit requirements; an account relationship is not approval.
Can a sole trader use a personal account for business?
A sole trader should check the personal account’s terms before business use. Separate records can make bookkeeping easier, but the appropriate arrangement depends on the business and provider terms.
