For 2026, Starling Business leads the free options for limited companies thanks to zero fees, FSCS protection, and deep accounting integrations. Mettle (NatWest’s digital business bank) is the standout free option for sole traders and very small limited companies. Tide Free remains a popular sole-trader option but charges 20p per transfer and is e-money rather than FSCS-protected. On paid plans, Tide Plus, Monzo Business Pro, and Revolut Business cover the higher-volume and multi-currency end of the market. The high-street banks (Barclays, HSBC Kinetic, NatWest, Lloyds) compete with free banking periods of typically 12 to 24 months for new businesses.
This guide compares the leading free and paid accounts across fees, FSCS coverage, integrations, and business-type fit, and helps you match an account to how you actually run your business.
How we compared accounts
Our comparison weighed five criteria: monthly account fee, transaction fees (UK transfers, card payments, cash deposits), FSCS protection, accounting-software integrations (Xero, QuickBooks, FreeAgent, Sage), and customer support availability. We also considered fit by business type — sole trader, limited company, and growing SME — because what works for a freelancer can be wrong for a 30-employee operation.
Best free business bank accounts in 2026
Starling Business
Starling Business is the strongest combination of zero fees and full UK protections. There is no monthly account fee, no fee for UK Faster Payments, no fee for direct debits, and no fee for in-credit balances. Cash deposits at the Post Office cost a small fee. The account is FSCS-protected up to £85,000 because Starling is a fully licensed UK bank.
Integrations are deep: Open Banking connections to all major accounting platforms, automatic transaction feeds, and a Toolkit add-on (£7 per month) for invoicing, bookkeeping, and VAT. Customer support is 24/7 and UK-based.
Best for: limited companies of any size that want a free, integrated, fully-protected business account.
Mettle
Mettle is NatWest’s digital business bank, built specifically for self-employed customers and small limited companies with up to two owners. The account is genuinely free with no monthly fee, no UK transaction fees, and built-in invoicing and tax estimation features. Mettle is operated by NatWest, so funds are FSCS-protected.
The account caps out at smaller businesses — Mettle is not designed for multi-owner companies or higher transaction volumes. Integrations are limited compared with Starling.
Best for: sole traders and one or two-person limited companies who want a free FSCS-protected account from a major banking group.
Tide Free
Tide is the best-known digital business banking brand in the UK and serves over 700,000 small businesses. The free plan gives you a sort code and account number, a card, and core business banking. Transfers cost 20p each, which is the main caveat. Tide is not FSCS-protected — it operates as an e-money institution, so customer funds are safeguarded with a partner bank but not covered by FSCS.
Tide’s strength is its broader business-services bundle: integrated bookkeeping, expense cards, VAT support, and credit-builder products.
Best for: sole traders and very small businesses who value the wider Tide ecosystem and do not mind paying per transfer.
Best paid business bank accounts in 2026
Tide Plus and Tide Pro
Tide Plus is £9.99 per month and removes the 20p transaction fee, adds higher monthly transfer limits, and includes a small amount of free cash deposits. Tide Pro is £18.99 per month with extra benefits including priority support and additional team cards. Both still operate on the e-money model.
Starling Toolkit
Starling does not charge for the bank account itself but offers a Toolkit add-on at £7 per month covering invoicing, accounting, and VAT-return preparation. For limited companies that want one platform for banking and bookkeeping, this is a competitive bundle.
Monzo Business Pro
Monzo Business Pro is £9 per month and adds integrations with Xero and QuickBooks, multi-user access, virtual cards for spend management, and tax pots. Monzo is FSCS-protected. The free Monzo Business Lite tier exists but lacks the integrations most growing businesses need.
Revolut Business
Revolut Business serves the multi-currency and international-trade end of the market. The free Basic tier covers the very smallest needs; paid tiers from £25 per month upwards add multi-currency accounts, international transfers at interbank rates, expense management, and integrations. Revolut operates under a UK banking licence for relevant entities, but coverage details vary, so it pays to check FSCS status for your specific account.
High-street bank options
Barclays Business
Barclays offers a free banking period (typically 12 months for start-ups) and a tariffed account afterwards. Branch access, cash and cheque handling, and lending products are the differentiators.
HSBC Kinetic
Kinetic is HSBC’s digital small-business account with a free period followed by a monthly fee. Suited to businesses that want a digital experience but prefer a major-bank brand.
NatWest, Lloyds, and Santander
NatWest, Lloyds, and Santander all offer free banking periods of 12 to 24 months and tariffed accounts thereafter. The exact terms shift regularly, so check the bank’s current new-business offer.
Comparison summary
| Account | Monthly fee | UK transfers | FSCS | Sole trader | Limited co | Integrations |
|---|---|---|---|---|---|---|
| Starling Business | £0 | Free | Yes | Yes | Yes | Deep |
| Mettle | £0 | Free | Yes | Yes | Limited (1–2 owners) | Basic |
| Tide Free | £0 | 20p each | No (e-money) | Yes | Yes | Strong |
| Tide Plus | £9.99 | Free | No (e-money) | Yes | Yes | Strong |
| Monzo Business Pro | £9 | Free | Yes | Yes | Yes | Good |
| Revolut Business Basic | £0 | 5/month free | Varies | Yes | Yes | Good |
To match your account choice with bookkeeping software that ties cleanly into your transaction feed, compare accounting software that integrates with these banks.
How to choose for your business type
Sole trader, low volume. Mettle or Starling. Both are free, FSCS-protected, and easy to open. Choose Mettle if you like NatWest’s brand or want built-in invoicing; choose Starling if you may grow into a limited company on the same platform.
Limited company, low to mid volume. Starling Business is the default recommendation. Free, FSCS-protected, and supports multi-user access and team cards.
High transaction volume. Tide Plus or Monzo Business Pro pay back the £9–10 monthly fee once you process more than around 50 transfers a month.
Multi-currency or international. Revolut Business or Wise Business. Both offer interbank-rate currency conversion that beats high-street banks substantially.
Cash-heavy business. A high-street account is usually unavoidable. Digital accounts charge for cash deposits and limit volumes.
Key takeaways
- Starling and Mettle lead free options for limited companies and sole traders respectively
- Tide Free suits sole traders willing to pay 20p per transfer
- Paid plans pay back when you process roughly 50+ transactions a month
- Always check FSCS status — Tide is e-money and not FSCS-covered, but it is safeguarded
- Most accounts now offer Open Banking integration with the main accounting platforms
Frequently asked questions
Which free business bank account is best in 2026? Starling Business is the strongest free option for limited companies; Mettle is the strongest for sole traders. Both are free, FSCS-protected, and integrate with the main accounting platforms.
Is Tide FSCS protected? No. Tide operates as an e-money institution, not a bank, so funds are safeguarded with partner banks but not covered by the Financial Services Compensation Scheme. This is an important distinction if you hold significant balances.
Can sole traders use any of these accounts? Yes. All accounts listed accept sole traders. Starling and Mettle are particularly easy to open with a single online application.
Do business bank accounts charge for cash deposits? Most digital banks either charge per cash deposit or route deposits through the Post Office. If you handle significant cash, a high-street account with branch access is usually more practical.
How long does it take to open a UK business bank account? Digital banks typically open accounts within 24 hours to five working days. High-street banks can take longer because identification, address checks, and director verification are completed at branch level.
(Pricing correct April 2026. Verify current terms with each provider before opening an account, as fees change frequently.)
Useful resources
Starling Business — Pricing https://www.starlingbank.com/business/
Mettle — Product overview https://www.mettle.co.uk/
Tide — Pricing https://www.tide.co/pricing/
Financial Services Compensation Scheme https://www.fscs.org.uk/