The cheapest business bank account for UK businesses

The cheapest business bank account for most UK businesses right now comes from Starling Bank, Monzo, Mettle or Tide, all of which offer a business current account with no monthly fee at all. That makes them cheaper than every UK high street bank, since Barclays, Lloyds and HSBC all move onto a paid monthly plan once their free introductory period ends. Which one works out cheapest for you depends on how you actually bank, since free accounts can still charge for things like cash deposits, ATM withdrawals or payments abroad.

What is the cheapest business bank account in the UK right now?

Starling Bank, Monzo (on its Lite plan), Mettle and Tide (on its Free plan) are the cheapest business bank accounts in the UK, since all four charge no monthly fee and no fee on standard UK payments. The table below compares their core costs against the three main high street banks.

Fees are correct as of August 2026 and can change, so it is worth checking each provider's own pricing page before you apply.

How do the free digital accounts compare on features and eligibility?

Starling, Monzo, Mettle and Tide all cover the basics for free, but they are not identical, and each one suits a slightly different type of business.

• Starling Bank is a fully licensed bank open to sole traders and limited companies.  with free payments to accounts in 34 other countries.

• Monzo's Lite plan is free for sole traders and limited companies, but caps cash deposits at £3,000 a month for sole traders and £10,000 a month for limited companies.

• Mettle is built by NatWest for sole traders and limited companies with up to two owners, and includes FreeAgent accounting software free of charge as long as you make at least one transaction a month.

• Tide's Free plan works for sole traders, partnerships and limited companies, but only covers 5 free transfers a month before a 20p charge applies to each one after that, and charges 2.75% on foreign currency card payments.

If you are weighing up a business bank account alongside other ways to build up your business's financial standing, we can also help you compare business credit card options and apply through Capitalise.

Why do high street banks charge more for a business account?

High street banks charge an ongoing monthly fee because their price covers branch access, dedicated relationship managers and overdraft facilities that most digital only providers do not offer. Barclays, Lloyds and HSBC all give new businesses a free introductory period, usually 12 months, then move you onto a paid plan of £8 to £10 a month whether or not you use any of those extra services. If your business mainly banks online and does not need a branch, that ongoing fee is money you can avoid entirely with one of the free digital accounts above.

When does a paid business account plan make sense?

A paid plan makes sense once your business needs something the free tier does not cover, such as unlimited transfers, multiple team cards with spending controls, or built-in invoicing. Both Tide and Monzo offer paid tiers above their free accounts for businesses that have outgrown the basics.

Upgrading only makes sense if you would otherwise pay more in per transaction fees than the plan costs, so it is worth totalling up your typical monthly transfers and card spend before you commit to a paid tier.

What should you check beyond the monthly fee?

The headline monthly fee only tells you part of the story, so it is worth checking a few other things before you switch business bank accounts.

• Whether your money is FSCS protected up to £120,000, or safeguarded a different way, since some providers use electronic money accounts rather than a banking licence.

• How much you can deposit in cash each month, and what that costs, if your business takes cash payments.

• What foreign exchange fees apply if you regularly pay suppliers or get paid in a currency other than sterling.

• Whether the account connects directly to your accounting software, since this can save hours of manual reconciliation every month.

• How you actually get support if something goes wrong, since app only providers rely on in app chat rather than a branch or phone line.

Does your choice of business bank account affect getting funding?

Your choice of business bank account can affect which finance options are open to you, because not every lender accepts statements from every provider. Some lenders still will not work with statements from digital or challenger banks. When you apply for funding with Capitalise, your dedicated funding specialist will explain your options and if you do bank with a challenger bank, they’ll explore options from our panel of 130+ lenders, to find the best fit for you.

Beyond the provider, lenders also look at your bank statements to understand your cash flow, so keeping your business banking separate from your personal account and easy to read matters whichever provider you choose. A clean, well organised account makes it easier to show lenders a true picture of how money moves through your business, which is especially useful if you are managing seasonal dips or waiting on invoices to clear. If gaps like these do come up, we can help you compare working capital finance options.

Get your business finances working harder for you

Sorting out cheap, reliable business banking is one part of running a financially healthy business, and funding is often the next thing on the list once cash flow gets tight or you spot a growth opportunity. You can explore your options for finance across our panel of 130+ lenders, just click ‘apply for funding’ to get started.