How to choose the best free business bank account for me
To choose the best free business bank account for your business, you’ll need to work out what features and services you would use the most.
As some business bank accounts charge for certain services, by working out what features you will use most often you can find an account that matches the needs of your business and offers the best value for you.
Cash deposits
Bear in mind that if you regularly need to make cash deposits, it might be more convenient to choose an account with a bank that has a physical branch nearby. You may also be able to deposit cash at a PayPoint or the Post Office.
You should also check whether a ‘free’ business account would charge you to make cash deposits. Some charge a percentage of each deposit you make, while others may charge a flat fee per deposit.
Cheque deposits
If you use cheques in your business transactions, it’s worth checking whether a free business bank account will allow you to deposit or write cheques.
Some free providers do not offer cheque facilities at all. Others let you deposit cheques, either by freepost or at a branch or Post Office, but may charge you for this service.
Transfers
If your business makes numerous bank transfers a day, choosing a free bank account that charges a small fee for every transfer may not be the best choice for you. A business bank account with a monthly fee but no charges for individual services could work out cheaper.
For example, let’s say you make 100 transfers in a typical month. You have a free business bank account that doesn’t charge a monthly fee, but instead charges 20p per transfer. You would pay £20 a month for your transfers. A different bank account that includes unlimited transfers for a lower monthly fee, say £15, could suit you better.
International payments
Not all ‘free’ business bank accounts let you send or receive international payments. If this is important to the running of your business, you should ensure that your chosen free banking provider can offer this service.
Some providers may only offer international payments through a third party service.
It’s also worth checking whether you have to pay a foreign transaction fee for international transfers. Providers may charge to send money to or receive money from other countries.
Overdrafts
Overdrafts are one way that your business can borrow money. Some providers offer overdrafts on free business bank accounts, but not all.
Business banks may offer overdraft facilities.
If a provider is an e-money provider, they cannot provide an overdraft facility. You will not be able to get an overdraft or borrow money as a loan from these providers.
You can use our comparison table below to see some free business banking options and their key features. Each account states how long the account is free for and what charges could apply, so you can easily see what accounts might be best for your business.
