Top 10 free UK business bank accounts part 2 – Part one is here.
Let’s now see what are the best business bank accounts with no credit check in the UK. But first we’ll understand what is a credit check.
Table of Contents
1. Starling Bank
- Free e-payments, domestic transfers and ATM withdrawals for businesses with less than 10 employees and less than £1.7m in annual turnover.
- No monthly fee. You will be charged for any additional features you use.
- Up to £85,000 covered by FSCS.
- Quick and easy setup.
- A digital bank account that can be managed through the app or on the desktop.
- Designed for contractors, freelancers and small businesses.
- No commissions for spending and withdrawing money abroad.
- On-time notifications about money entering or leaving your account.
- Organized overdrafts available.
- Best UK Bank, Best Banking App, Best Current Account Provider and Best Business Banking Provider at the 2021 British Bank Awards.
Starling Bank offers a wide range of free business account options. And unlike many of the other accounts listed here, their account remains free as long as your business has fewer than 10 employees and less than £1.7m in annual turnover. What’s more, unlike some of the accounts listed below, they are a fully regulated bank, which means that all eligible deposits are protected by the FSCS up to £85,000.
2. NatWest
- New businesses receive 18 months of free business banking.
- 24/7 online and mobile banking.
- Fast and simple application.
- Local business managers to support you.
- Business account holders can access Business Builder and MentorDigital.
- Includes FreeAgent accounting software.
- No monthly fees, pay only for what you use at the end of your free banking period.
- Provides debit, credit and payment cards.
- Savings, loans and credit cards are also available.
NatWest is a UK-based bank that offers online, telephone, and branch banking services. They offer free business banking on their checking accounts if your business has been established for less than 12 months with a turnover of less than £1 million in 18 months. They also offer free banking to charities and social organizations with an annual turnover of less than £100,000. Fees may apply for some types of transactions.
NatWest’s free corporate bank account also gives you free access to FreeAgent’s accounting software, which you can use as long as you use them. This allows you to better manage your bills, expenses, and your bank account in one place.
3. HSBC
- 12 months of free banking for new companies and switchovers.
- Offers a new app-based Kinetic account.
- Received a 5-star Moneyfacts rating for Business Checking Account in 2017.
- 24/7 online and mobile banking.
- Usually from £6.50 per month.
- Debit cards and commercial Visa cards are available.
- Phone support is available from 8:00 am to 10:00 pm every day.
- Sage integration.
- Loans, savings and credit cards are also available.
HSBC offers both new clients and start-ups a free daily banking period that lasts 12 months for new clients and 18 months for start-ups. All customers at the end of the free banking period upgrade to a fixed price plan which gives 12 months of free transactions (excluding cash deposits over £3,000 per month) with a monthly account fee of £5.50. After this period, you will be switched to one of their two checking accounts.
4. Lloyds Bank
- 12 months of free banking for new businesses.
- 24/7 online and mobile banking.
- The regular account fee is £7 per month.
- Two types of tariffs – electronic or mixed transactional tariff.
- Get support from the UK Business Management team.
- Provides free tools, guides and interactive webinars.
- To be eligible, your turnover must be below £3 million.
- Ranked 6th in an independent regulatory review of 14 largest commercial banks.
- Awarded Moneyfacts Best Service by Business Bank 2020 and Best Start-up Bank of the Year 2015.
- Loans, savings and credit cards are also available.
Lloyds Bank is part of one of the largest banking providers in the UK, Lloyds Banking Group and the group consists of Bank of Scotland, Halifax, TSB, and Scottish Widows.
Lloyds Bank is offering a free introductory daily business account offer for new startups. To be eligible, the person opening the account must be a sole trader, partner, or director of a company.
At the end of the free banking period, you will be upgraded to their standard business checking account plan, which continues to offer free electronic payments, ATM withdrawals, and debit card payments. The monthly account maintenance fee is £6.50 after the free period.
5. Royal Bank of Scotland
- 24 months free for new companies.
- 24/7 phone, online and mobile banking.
- Fast online application.
- Includes free FreeAgent accounting software.
- There is no minimum monthly fee after the free period, just pay for what you use.
- Overdraft available subject to approval.
- Access to business network and experts.
- Savings, credit cards, loans, foreign exchange and insurance products are also available.
- Access to the Entrepreneur Accelerator program and local business development events.
Royal Bank of Scotland offers free day-to-day banking for new transferring customers for 6 months and for new start-ups for 18 months. This includes most transactions. There is a £6.50 account maintenance fee after the free banking period ends, but you still get free e-payments, ATM withdrawals and direct debit payments.
Their corporate bank account has a simple pricing structure and an online calculator to help you calculate how much the account will cost you after the free period ends.
6. Anna Bank
- Free as long as your income is below £500 per month.
- Mobile business account available in the app 24/7.
- Monthly fees from £4.90 to £19.90 depending on monthly income.
- Set up in 10 minutes.
- Mastercard business debit card within 5 business days.
- 1% cashback on purchases with the selected debit card.
- Bill payment schedule.
- Integration with Xero accounting software.
- Suitable for startups, freelancers and creatives.
ANNA stands for “Absolutely No Nonsense Admin”. This means you can quickly set up a free account, sometimes in as little as 10 minutes (assuming you have all the documentation). However, keep in mind that ANNA is a business checking account and digital administrator assistant, not a bank.
7. Revolut
- The free version is available with limited access.
- Mobile business account available online and on your computer 24/7.
- Trade over 30 currencies with no fees.
- Offers virtual debit cards.
- Manage employee expenses with company cards.
- Get real-time notifications of your spending.
- Monthly account fees range from £7 to £100, depending on usage.
- Fast and easy online registration.
- Also loans, overdrafts and payroll solutions.
Revolut Business is an online banking providing a global financial application. They operate in many countries and process up to 150 local currency transactions and offer a simple and transparent currency exchange.
Revolut Business offers two free accounts – a company account registered in the name of a company and a freelancer account registered in the name of an individual. Both types of accounts offer tiered services depending on the account fees. With free accounts, you can get free access for team members (1 or 10 free) and smart cards, which are physical and virtual cards that you can use to track expenses.
8. Metro Bank
- If the daily balance exceeds £5,000, there is no monthly account fee.
- A balance of over £5,000 gives you 50 free transactions per month.
- No transaction fees in many European countries
- Shops open 7 days a week
- Branch appointments are not required.
- Local business manager
- 24/7 customer support
- Flexible banking by phone, online and in store
- Mobile app
- Metro Bank offers a different style of banking for businesses that are not open 9 to 5 as they are open 7 days a week, not only online or by phone, but also in-store where appointments are not required.
To take advantage of Metro Bank’s free banking offer, you need to maintain a daily balance of over £5,000 every day for a month. If your balance drops below £5,000, the standard £5 monthly fee for that month will be applied to your account. With this offer, you will also receive the first 50 transactions for free, although some transactions, such as international payments, CHAPS payments, and balance audit certificate, are subject to a fee.
9. Yorkshire Bank
- Free daily business banking services for 25 months when you switch to them
- Free daily banking for 25 months for new startups
- Basic account management for day-to-day business banking needs
- Additional agreed overdraft
- A supportive bank that wants to help its clients grow
- 24/7 access to your online bank account
- Mobile app to manage your account wherever you are
- Current Account Change Guarantee
Yorkshire Bank’s free daily banking offer is available for companies looking to change their checking account or start a new business. To be eligible, you must have a turnover of less than £2 million per year. New businesses must operate for less than 12 months.
Most transactions are free, but there are some that still incur fees, including international and CHAPS payments, and there are some restrictions on cash withdrawals and deposits.
At the end of the free banking period, customers switch to the Business Banking plan, which charges a monthly fee of £5 per month. All transactions are subject to a fee ranging from 30p to £1.30.
10. Monzo
- Offers two levels of bank account
- One account is a Lite account, which is free forever.
- Some fees apply
- Free instant bank transfers
- Easy to open from mobile
- Online account management
- You can set up payment notifications
- Integrates with Apple Pay and Google Pay.
- 24/7 customer support
Monzo is an alternative to the big banks and is fully regulated in the UK. They offer two business bank accounts, one called Lite, which is always free for sole proprietors and registered limited companies, but there are some transaction fees.
The Monzo Lite account offers basic features and you can upgrade to their Pro account for a small amount each month to get more features. The Lite account provides online account management with simple setup that can be done on your mobile phone. It also includes payment notifications, in-app billing and digital receipts, the ability to pay with Apple Pay and Google Pay, and 24/7 customer support.
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