Business Bank Account Costs in the UK: What’s Free?

How much does a business bank account cost in the UK? Anywhere from £0 to £15+ a month — and the free ones are genuinely good now, which has upended the old assumption that business banking means monthly fees. Here’s what each tier costs and when paying makes sense.

There’s a lot of conflicting advice out there, and some of it is years out of date. Rules change, prices move, and providers quietly rewrite their terms. What follows is current for the UK right now, based on what’s actually on offer and what real customers are paying — not the teaser rates in the adverts. If that’s on your mind too, have a look at our guide to what is the best free accounting software for uk freelancers — it pairs naturally with everything below.

How much does a business bank account cost in the UK?

The free tier: Starling Business, Monzo Business (lite), Tide (free plan) and Mettle all offer £0/month business accounts with no transaction fees for standard use. These aren’t stripped-down toys — they include invoicing tools, expense categorisation, accounting software integrations and FSCS protection. For most freelancers and small companies, a free account does everything needed.

Paid accounts (£5-£15/month): Monzo Business Pro (£5), Tide Plus (£9.99+), and high-street accounts (typically £6-£10/month after 12-18 months free) add multi-user access, higher cash deposit allowances, dedicated support and premium integrations. Worth it when you have staff, handle lots of cash, or want everything under one roof.

Here’s where it gets genuinely useful. The theory is fine, but decisions happen in the detail below. Worth a read alongside this: our guide to how do I get a business loan as a startup in the uk.

The hidden costs beyond the monthly fee

If you only read one list today, make it this one:

• Cash deposits: free accounts often charge £1-£3 per deposit or limit free deposits — painful for cash businesses.
• International payments: high-street banks charge £15-£30 per transfer; fintechs are far cheaper. Big factor for importers/exporters.
• Transaction fees: some ‘free’ accounts charge per transaction above a threshold — check if you process hundreds monthly.
• Introductory periods: high-street ‘free for 18 months’ deals revert to £7+/month — diary the date.
• Overdrafts and borrowing: arrangement fees and rates vary wildly; compare before you need one.

A quick word from experience: don’t decide on price alone. The cheapest option has a habit of costing more in hassle, and I’ve learned that lesson the expensive way more than once.

Do you legally need one?

Limited companies: effectively yes — mixing company and personal money is an accounting nightmare and can undermine your limited liability protection. Banks’ terms also typically prohibit business use of personal accounts.

Sole traders: not legally required, but strongly recommended. A separate account (even a second personal account used only for business) makes tax time dramatically easier and looks professional to clients. HMRC doesn’t mandate it, but your accountant will beg you. The 30 minutes to open a free Starling or Mettle account pays for itself in the first month.

Which to choose

Freelancer/service business, no cash handling: Starling or Mettle — free, excellent apps, FreeAgent included with Mettle. This is the default recommendation and it’s not close.

Cash-heavy business (retail, trades, market stalls): high-street bank with a local branch for deposits, despite the fees — or a hybrid: fintech for daily banking, high-street for cash. Growing company with staff: Monzo Business Pro or Starling’s paid tiers for multi-user access and controls. And always keep a backup account — banks freeze accounts for fraud checks with zero notice, and being unable to pay anyone for a week is an existential risk.

Quick answers

How long does sorting out business bank accounts usually take?

Less time than you’re probably imagining. The research takes an evening, the decision takes a day of mulling over, and the actual doing is usually under two hours. What stretches it into weeks is dithering — half-decided, tab-hoarding limbo. Pick a deadline, gather the facts from this guide, make the call, and move on. Done beats perfect here, every single time.

How much should I realistically budget for business bank accounts?

More than the headline price, less than the premium option. A sensible budget for business bank accounts sits in the middle of the market — enough to avoid the cut corners of the cheapest tier, without paying for features you’ll never touch. Add 15-20% contingency for the extras nobody mentions upfront, and you’ll land about right. The people who blow the budget are the ones who budgeted for the advert price instead of the real one.

Can I handle business bank accounts myself, or do I need professional help?

It depends on complexity and stakes. Straightforward business bank accounts tasks are well within DIY territory with a decent guide — most people manage fine and save a packet. But when money, legal compliance or safety are involved, professional help pays for itself quickly. My rule of thumb: DIY when the worst case is a wasted afternoon; call in a pro when the worst case is wasted money or a legal headache.

Pro tip: for business bank accounts, the middle of the market is usually the sweet spot. The cheapest tier cuts the corners you’ll notice every single day; the premium tier charges for bragging rights. Buy the best of the mid-range and you’ll rarely regret it.

The bottom line

£0/month gets you an excellent account from Starling, Monzo, Tide or Mettle — paying only makes sense for cash handling, teams or premium features. Open one before your first invoice, keep business money separate from day one, and maintain a backup account.

Nobody else is going to sort this for you, and honestly it doesn’t take long once you know what you’re looking at. Pick the option that fits, set a reminder to review it in a year, and get on with your life. Final thought: the market rewards people who shop around and punishes people who don’t. You’re now in the first group. For the official word, see Starling business account UK. MoneyHelper: business bank accounts is also worth a look for independent comparisons. And if you’re still weighing things up, our guide to how do I write a simple business plan for a small uk business covers the next question most people ask.