Top 5 Best Free Business Bank Accounts With No Fees

Since small business banking can be expensive and it’s hard to find the right account for you, it’s likely low on your priority list.

Finding a free business bank account is a great way to reduce your costs, and if you don’t mind switching accounts, you can continue to receive free banking services by moving accounts every 18-24 months.

This guide details the best deals for free business bank accounts from leading banks to lesser-known providers.

Top 5 Best Free Business Bank Accounts With No Fees

Yorkshire Bank

Some of the features and benefits of a Yorkshire Bank merchant bank account.

  • Choice of two accounts Business Current Account and Business Choice Account
  • Free daily banking for 25 months for startups and transformers
  • Agreed overdraft
  • Unlimited deposits and withdrawals although fees may apply
  • Business banking support
  • Choose the statement frequency
  • Internet banking
  • Simple exchange service through the current account exchange service
  • Network of local affiliates
  • Eligible for businesses with a turnover of less than £2m

57% of service quality points based on a report issued by the Markets and Competition Authority for 2019
Yorkshire Bank is the trading name of Clydesdale Bank and was established in 1859 in Halifax, West Yorkshire. They have strong commercial banking experience and capacity with an extensive UK branch network.

Yorkshire Bank has designed its Business Banking Account for day-to-day banking with core management providing all the services a business requires. It also provides the added benefit of an optional agreed overdraft.

They offer two commercial bank accounts that offer slightly different offers. The Business Current Account offers free daily introductory banking for 25 months to new startups and new customers. The Business Choice account is a flexible bank account with credit interest linked to the Bank of England base rate.

Website: Yorkshire Bank Commercial Bank Account Website

Compare: Compare Yorkshire Bank’s business banking services on NerdWallet

HSBC

Some of the features and benefits of the HSBC Business Banking Account.

  • Free introductory banking service for 12 months for new customers and 18 months for new companies
  • Best Tariff Promise for companies with a turnover of £2m
  • 12 months fixed rate banking offer after introductory
  • Two tariff options
  • Financing and borrowing options
  • Network of business professionals in branches across the UK
  • Face-to-face business reviews are available
  • International business expertise to support overseas expansion
  • Large network of branches and facilities in post offices

Banking services are available through the Internet, telephone, mobile, branches and post offices
52% service quality score based on the 2019 report from the Competition and Markets Authority
HSBC is one of the world’s largest banking and financial services organizations and one of the UK’s best-known banking brands.

HSBC offers a tiered banking service for companies that join its banking services with an introductory banking offer that gives 12 months of free banking to new customers and 18 months to new start-ups. After the introductory period, customers will be taken to a fixed rate period that offers some free transactions with the standard monthly account maintenance fee.

After this 12-month period, companies can choose between two business bank accounts. Small business tariffs that offer lower rates on cash transactions and higher rates on electronic transactions. Tariffs for electronic banking services that offer free electronic transactions but higher rates on cash transactions. Both accounts have the same account maintenance fee.

Website: HSBC Business Banking Account website

Compare: Compare HSBC Business Banking services on NerdWallet

TSB

Some of the features and benefits of a TSB Business Banking account.

  • Free daily banking services for 18 months for new companies and new customers
  • Dedicated switch team
  • Choose the tariff at the end of the free period
  • Flexible account management online, over the phone or at the branch
  • 550 main street branches
  • Talk to business advisors over the phone
  • Account updates via text alerts
  • Offer other free services
  • Export account statements to your finance package
  • Access faster payments

42% service quality score based on a report issued by the Markets and Competition Authority for 2019
TSB is part of a larger banking group called Lloyds Banking Group. TSB was first established in 1810 and has a long history in the banking sector.

At the end of the free banking period, you can choose which banking tariff you want to switch to. The fixed fee account has tiered tiers with fixed allowances for transactions that have different fixed monthly fees. There is no monthly fee for Business Plus Tariff instead you pay per transaction. The e-Business tariff caters to businesses that predominantly conduct electronic or automated banking transactions that are charged per transaction rather than a fixed monthly fee.

If you are making the switch to TSB, they promise an easy switching service run by a dedicated team of staff who will support the business through the process and ensure a smooth transition.

Website: TSB Business Banking Account website

Santander

Some of the features and benefits of a Santander merchant bank account.

  • Simple fee structure with a fixed monthly fee that has usage limits
  • Monthly interest on credit balances at 0.10% total / variable AER
  • Online and mobile banking services
  • Banking services at participating Post Office branches
  • Contactless payments
  • Awarded Best Business Checking Account Provider for the past 16 years
  • Access to a pre-arranged overdraft
  • Online business account calculator to assess the cost of their accounts
  • Member of the current account exchange service

67% service quality score based on the 2019 report from the Competition and Markets Authority
Santander is a large commercial and commercial bank in the UK, which is a wholly-owned subsidiary of Banco Santander which is a major global bank.

Santander business bank accounts have a simple structure paying a monthly account fee of £7.50 to £40 and each has a monthly cash deposit limit of between £1,000 and £10,000. All other transactions such as checks, withdrawals, payments, and BACs are free of charge although some restrictions may apply. Non-standard transactions such as submission of change, CHAPS payments, and foreign currency transactions are subject to additional fees.

Santander has won many awards for its commercial bank accounts which makes the bank even more attractive for its services.

Website: Santander merchant bank account website

Compare: Compare Santander’s business banking services on NerdWallet

NatWest

Some of the features and benefits of a NatWest business bank account.

  • Access to many features and services such as FreeAgent and Business Boost
  • Private Relationship Manager (eligibility criteria apply)
  • Online and phone banking services 24/7
  • Award-winning mobile app
  • The dedicated business planning team
  • Only pay for the transactions you make when they are over £5 per month
  • The Service Center provides access to managing accounts, loans, credit cards, and other services
  • Access to business growth catalysts

53% service quality score based on the 2019 report from the Competition and Markets Authority
NatWest was founded in 1970 and is part of the RBS group of companies. They serve clients in England and Wales and specialize in business sectors such as manufacturing and technology.

NatWest trading accounts are open to companies that have been trading for more than a year and have less than £2m in turnover. They have a separate bank account for start-ups that have been in operation for less than a year.

NatWest business banking account customers can use the award-winning mobile banking app which was awarded ‘Best Banking App’ at the British Business Banking Awards 2018.

NatWest offers a business support program to help companies grow called Boost. This includes business growth enablers that give their clients access to workshops and events. Pitch is another software that is used through an app to help customers hone their offerings.

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