Free Business Banking UK

Free business banking Uk is the provison of free banking service in Uk by some banks. The purpose of this article is to look at what free business banking Uk is and provide detailed information about free business banking to our respected readers.

One of the first things you will do when you set up a new business is to apply for a business bank account. Free business banking is something all business owners strive for, but what does "free" actually mean, and what should you look out for when opening a business account?

Many major UK banks offer incentives for startups - typically an initial period free of transaction charges, and a wide variety of free software products and guides.

As a new business, a bank may well offer you freebies such as; free accounting software, business planning software, business guides, books, help lines and seminars to help you get your business off the ground and to encourage you to open a new business bank account with them.You will typically find that offers are most beneficial for startup businesses that have just started trading.

Existing businesses which have traded for more than 12-18 months are more likely to be offered more 'standard' banking terms.When choosing a new business account, make sure you find out what any "free" banking periods actually cover - do they cover all transactions, or will you be charged if you make a large number of transactions each month.

Ask the bank what happens when any initial free banking period ends. Will you be automatically switched to the standard banking rates, or will you have a chance to benefit from any further discounted banking period?

You should also expect to be provided with a central point of contact from day one - your own business relationship manager. For businesses of all size, it is crucial to have access to a designated relationship manager to handle any questions or needs you may have along the way.

These are some of the things you should think about when you begin organizing your small business banking: Online and telephone banking facilities, Borrowing facilities, Savings options, and interest rates. If you are still concerned about the account you are opening, you don’t have to worry; you can normally change your business account without too much hassle, although with a little bit of committed research, there is no reason why you should need to make many changes later on.

There are some benefits that should ideally come as standard as part of your small business banking :

  • Card misuse insurance
  • Travel accident cover
  • Purchase protection
  • Extended warranty
  • Fraud protection
  • Discounts and special deals from other companies

These benefits could really make a difference to the smooth running of your small business banking transactions.

Banks That Offers Free Business Banking In UK


Barclays offer free business banking UK for up to 2 years (T&Cs apply), and free automated transactions when your free business banking period ends. Other free services include free data backup services, debt recovery help and access to business seminars. The Barclays business bank account is perfect for all types of businesses and offers completely free banking for small business customers. It's also one of the few banks where you can open your account online. This account is recommended for new business owners or existing businesses looking to switch and cut costs. You get:

  • Fee free day to day banking for up to 2 years
  • Free online internet banking and telephone banking
  • Free &Credit Focus& to help recover bad debts and late payments
  • Free advice from accountants, solicitors and marketing professionals
  • Free secure business data backup service
  • Apply online or over the telephone

Barclays have been running their fee free banking offer for many years now and this offer is available for new businesses and existing businesses wishing to switch their account.

Lloyds TSB

Lloyds TSB offer 18 months free day-to-day banking, free Sage business planning software, a free book, 'Getting Started in Business', and a wide variety of start-up support and resources.

Alliance and Leicester

Alliance and Leicester Commercial Bank Free Small Business Banking with No Catches

  • No Fees - completely free and unlimited
  • Free Cash Deposits
  • Manage your account online, by telephone or even through mobile internet
  • Competitive interest rates

Although all Partnerships and Limited Companies need to have small business banking; your options are not overly limited. Besides which it generally makes financial and managerial sense to open a new banking system for your business, and keep your personal accounts separate. There are often particular benefits that come as standard with small business banking.

Santander Free Banking Account

The Santander Group took over the Abbey and Alliance and Leicester banks and they also offer a free business banking Uk account. It operates in a similar manner but also pays a massive 5% AER on credit balances. The main elements of their offer are:

  • Unlimited direct debits, standing orders and bill payments
  • Unlimited debit card payments
  • Unlimited automated BACS credit
  • Unlimited transfers between linked Abbey accounts
  • 100 cheque deposits per month
  • 100 cash and cheque withdrawals per month
  • £3,000 in cash deposited per month
  • 5% AER interest on balances up to £2,500 per month
  • Charges for non standard services such as overdrafts and stopped cheques

Other Major BanksThe other main banks also offer free banking banking UK but for a limited period and then after that will make various charges. The free period offered varies as shown below

  • HSBC - 18 months
  • NatWest - 24 months
  • Co-operative Bank - 18 months
  • RBS - free if you don't need to use a branch (i.e.: operate your account via telephone or the internet)

Other Ways of getting Free Business Banking UK

If you approach the banks direct you will get the offers as mentioned above but if you are a member of various business clubs and associations they will be able to offer a better deal. These are shown below:

  • Federation of Small Businesses (FSB) - offers free business banking for life via the Cooperative bank - no fees at all as long as you are a FSB member and apply via their site. FSB membership costs from £170 per year for 1-4 employees and offers other great benefits as well so well worth a look.
  • Operate online and via the telephone - if you never need to use the facilities of a branch network then HSBC and RBS offers free business banking uk if you interact with them via the phone or internet. There are no monthly charges either

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