How Much Do Business Bank Accounts Cost?

If you're comparing business bank accounts, the advertised 'free' account rarely tells the full story. Many providers waive the monthly fee for a set period, then start charging once that window closes, and even free accounts often carry charges for cash handling, international payments or going over a transaction limit.

This guide breaks down what business bank accounts actually cost in 2026: the fee types you're likely to meet, how much providers typically charge for each, and how to work out which account structure suits your business. Figures below are illustrative, drawn from provider pricing pages and comparison data current as of mid-2026. Always check the current tariff on the provider's own site before applying, since pricing changes.

What UK Business Accounts Typically Cost

It's worth noting that 'free' and 'FSCS protected' are not the same thing. A handful of popular providers, including Tide and Revolut, are e-money institutions rather than banks. Your money is safeguarded under separate regulation rather than covered by the Financial Services Compensation Scheme (FSCS), which only applies to firms with a full UK banking licence.

Why Business Bank Accounts Charge Fees

Business accounts typically process more transactions than personal current accounts: supplier payments, customer receipts, payroll, and international transfers all add administrative load. Providers also build in features personal banking doesn't offer, such as accounting software integration, higher transaction limits, invoicing tools and access to business lending, and fees help cover the cost of that infrastructure.

That said, the market has shifted since digital challengers arrived. Starling and Mettle by NatWest now offer fee-free accounts for eligible limited companies and sole traders, so "banks charge fees because of the extra work" is a less complete answer than it used to be. In practice, whether you pay depends more on which type of provider you choose than on some fixed cost of doing business banking.

Key Types of Business Bank Account Fees

Monthly Account Fees

This is the standing charge for keeping the account open, separate from anything you do with it. High-street providers typically charge £7 to £10 a month once any introductory free period ends. NatWest and Barclays both currently offer extended free periods for new businesses (NatWest up to 24 months, Barclays 12 months), after which the standard tariff applies. Several digital challengers, including Starling for limited companies and Mettle for sole traders and small limited companies, charge no monthly fee at all.

Transaction Fees

These apply per payment made or received, and the rate depends on the payment type. Electronic payments (Faster Payments, standing orders, direct debits) are free with most providers once you're past any allowance, but high-street banks often charge per transaction beyond a monthly free allowance, commonly around 20 to 35p per automated payment.

Cash Deposit and Withdrawal Fees

Paying in cash or cheques typically costs more with digital accounts than with high-street ones, since digital providers route deposits through third-party networks like the Post Office. Typical charges run from around £0.60 to £1.50 per £100 deposited. If your business handles a lot of cash, for example in retail or hospitality, this is one of the most consequential fees to check before switching.

International and Foreign Transaction Fees

If your business pays suppliers or receives payments in other currencies, this is where account choice makes the biggest difference. High-street banks typically add a margin of 2 to 4% above the interbank exchange rate. Specialist providers such as Wise Business and Revolut Business use rates much closer to the mid-market rate, which can save a meaningful amount on regular international payments.

Overdraft Fees

An arranged overdraft can help manage short-term cash flow gaps, but unarranged use of an overdraft typically triggers higher charges, sometimes a flat fee per day plus interest. Arrange a limit in advance if you think you might need one, rather than letting the account go into the red unplanned.

Account Closure Fees

Closing a UK business bank account is rarely subject to a direct closure fee. What can cost money is leaving the account with outstanding charges, an overdrawn balance, or an active overdraft, all of which must be cleared first.

Fees for Additional Services

Many accounts bundle extras such as accounting software integration, invoicing tools or cashback into the monthly fee. Others charge separately for services like same-day payments, paper statements, or business lending applications. Read the tariff carefully rather than assuming "free account" means every feature is free.

Business Bank Account Fees by Provider Type

High-Street Banks

Digital Challengers

It's worth flagging that Tide and Revolut route deposits through e-money safeguarding rather than the FSCS. This is a different, contractual form of protection, not the statutory guarantee that covers Barclays, Lloyds, NatWest, HSBC, Starling and Monzo. For balances above a few thousand pounds, that distinction is worth understanding before you choose where to bank.

How to Compare Business Bank Account Fees by Business Type

Sole traders and freelancers. Low transaction volume and simple needs usually make a free digital account, such as Mettle or Tide Free, the most cost-effective starting point. Watch the per-transfer fee on Tide's free plan if you make frequent payments.

Start-ups and new limited companies. A high-street start-up offer (NatWest's up to 24 months free, Barclays' 12 months) buys time to establish cash flow before fees start, though Starling's permanently free tier avoids the cliff-edge entirely once the offer period ends.

Cash-heavy businesses. Retail, hospitality and trades businesses depositing cash regularly are usually better served by a high-street account with in-branch access, since digital providers charge more per £100 for cash handling and cap deposit volumes.

High transaction volume businesses. Once you're processing more than around 50 transactions a month, a paid tier such as Tide Plus or Monzo Business Pro often pays for its own monthly fee through free transfers and better limits.

Businesses trading internationally. Specialist providers like Wise Business or Revolut Business typically beat high-street foreign exchange margins by a wide margin, which matters most if you pay overseas suppliers or receive payments in foreign currency regularly.

Reducing Business Bank Account Fees

Even accounts advertised as having 'no hidden fees' are worth checking against their published tariff, since introductory offers commonly convert to standard charges once the free period ends. A few practical steps:

• Note the date your free banking period ends and diarise a review before it converts to the standard tariff

• Favour digital payments over in-branch or cash services where your business allows it, since these typically carry the lowest fees across most providers

• Arrange an overdraft limit in advance if you expect to need one, to avoid unauthorised overdraft charges

• If you trade internationally, compare a specialist provider's exchange margin against your current bank's rate on a typical transaction, since the difference compounds over regular payments

• Reassess annually. As a business grows, its transaction pattern often changes enough that a different account type becomes cheaper

Business Bank Account Fee FAQs

What are the most common business bank fees?

Monthly maintenance fees, transaction fees, cash deposit and withdrawal fees, overdraft fees, and foreign transaction fees are the ones most businesses encounter.

How can I avoid monthly fees?

Look at accounts with no fee at all, such as Starling for limited companies or Mettle for sole traders, or a high-street start-up offer with an extended free period. Check what happens to the fee once any offer ends.

Are there genuinely free business bank accounts?

Yes. Starling and Mettle currently offer fee-free accounts for eligible businesses permanently, though "free" typically still excludes cash deposits, foreign payments and some additional services, so check the full tariff rather than the headline fee alone.

Is my money protected if my business bank fails?

If your provider holds a full UK banking licence, such as Barclays, Lloyds, NatWest, HSBC, Starling or Monzo, your eligible deposits are protected by the FSCS up to £120,000 per person, per firm, as of December 2025. E-money institutions such as Tide and Revolut use a different safeguarding model rather than FSCS protection.

Do I need a business bank account if I'm a sole trader?

It's not a legal requirement, but keeping business and personal transactions separate makes bookkeeping and tax reporting considerably easier, and most accounting software integrates more cleanly with a dedicated business account.

In Summary

Business bank account fees vary far more by provider type than they used to. Digital challengers like Starling and Mettle now offer genuinely free banking for many small businesses, while high-street banks lean on extended introductory offers before their standard tariff applies. The right choice depends on your transaction volume, how much cash you handle, and whether you trade internationally, more than on any single "cheapest" account. Compare the full tariff, not just the headline monthly fee, before you switch.