By: Money Navigator Research Team
Last Reviewed: 08/01/2026
FACT CHECKED
Quick Summary
Some UK business bank accounts advertise £0 monthly fees, meaning you don’t pay a fixed subscription to hold the account. That does not automatically mean “free banking”. Most £0 plans still charge for things like cash deposits, international payments, foreign exchange, card usage at scale, or premium features.
The most reliable way to assess “no monthly fees” is to look at the provider’s tariff, check what’s included in any “free allowance”, and confirm whether the provider is a bank or a non-bank (because regulatory status affects things like deposit protection and safeguarding). You can verify a firm’s permissions using the FCA Financial Services Register.
What “no monthly fee” actually means (and what it doesn’t)
A “no monthly fee” business account usually means no recurring subscription charge for the basic plan. Providers use this to compete on price and to make the account accessible for very small businesses, startups, and low-activity trading patterns.
However, business account pricing tends to shift costs elsewhere. Instead of a predictable fixed fee, you may see usage-based charges (for example, certain transfers, cash handling, or FX), or feature-based pricing (for example, extra user access, advanced reporting, or multi-currency tools).
For a wider view of pricing types across the market (including monthly fees, transaction fees, and cash handling charges), see:
Common charges that still apply on £0 monthly-fee plans
Even when the monthly fee is £0, the account can still carry charges in several predictable categories:
Payments and transfers: Some providers include standard UK transfers but charge for specific payment types (for example, faster processing, batch payments, or certain inbound/outbound services).
Cash deposits and withdrawals: Cash handling is costly for providers, so it’s common to see charges or restrictions for cash-intensive trading.
International payments and FX: Multi-currency and international banking often carries a spread, markup, or transaction fee.
Card costs at scale: Basic card access may be included, but there can be charges for extra cards, replacement cards, premium cards, or high-volume usage features.
Add-ons and upgrades: Bookkeeping integrations, invoicing tools, expense management, and multiple user permissions can sit behind paid tiers.
If you’re choosing between using a personal account vs a business account purely to avoid fees, be careful: providers often have terms restricting business use of personal accounts. We explain the operational differences in:
- Personal vs business bank account and when a business account may be required in do I need a business bank account UK?
“Free allowances” and fair-usage limits: the quiet detail in pricing pages
A lot of “no monthly fee” plans include a monthly allowance (for example, a number of transfers or a certain level of activity). Above that, fees can apply. This is not inherently good or bad – it’s just a different pricing model.
Also watch for “fair usage” language. It’s commonly used where a provider can restrict or reprice heavy usage that isn’t typical for the plan. The practical impact is that two businesses can both have a £0 monthly-fee account, but experience very different total costs depending on payment volume, cash handling, and FX needs.
If your application journey is a concern (for example, you need to open quickly and avoid repeated application friction), we cover timelines in how long does it take to open a business bank account? and common issues in why business bank account applications get rejected.
Bank vs non-bank accounts: why regulatory status changes the risk profile
Some “business accounts” are provided by UK-authorised banks. Others are provided by e-money or payment institutions. The user experience can look similar, but the regulatory mechanics can differ.
If the account balance is a deposit at a UK-authorised bank, it may fall under FSCS deposit protection up to the limit described by the FSCS banks and building societies protection rules.
If the account is provided by an e-money or payment firm, funds are typically subject to safeguarding requirements rather than FSCS deposit protection for the firm’s own failure, as set out in the FCA safeguarding framework for payments and e-money firms.
We explain deposit protection in plain English in is money in a business bank account protected by the FSCS?
A quick way to sanity-check “no monthly fee” claims before you commit time
Here’s a neutral checklist you can use to understand what “£0 monthly fee” really buys you (without assuming anything about a specific provider):
Confirm the firm’s status on the FCA Financial Services Register (bank vs e-money/payment firm).
Find the provider’s tariff and identify:
charges for UK transfers, cash deposits, international payments, and FX;
any free allowances and what happens above them;
any “fair usage” or plan eligibility wording.
Check whether “£0 per month” is a permanent plan or a time-limited offer.
Note any charges you’re likely to trigger simply by operating normally (for example, regular cash takings, frequent supplier payments, or international purchases).
If you’re building a safer operational setup, it can also help to understand multi-account setups and admin trade-offs – we cover this in can you open more than one business bank account?
Summary Table
| Scenario | Likely outcome on a “£0 monthly fee” plan | Practical impact |
|---|---|---|
| Low activity: a few UK transfers, minimal add-ons | Total cost may stay low because fees aren’t triggered often | Predictable day-to-day cost if your usage matches plan assumptions |
| High volume transfers or batch payments | Usage-based charges or plan limits may apply | Total cost can rise without any monthly subscription being charged |
| Cash-heavy business (regular cash deposits) | Cash handling fees or restrictions often apply | Cash-based trading can become the main cost driver |
| Regular international payments or FX exposure | FX and international payment charges are common | Total cost depends on how FX is priced (fees vs spread) |
| Needs multiple users, approvals, expense tools | Add-ons or higher tiers may be required | “£0 monthly fee” may only cover the basic feature set |
“No monthly fee” pricing patterns you’ll see in the UK
| Pricing pattern | How it works | What to look for in the tariff |
|---|---|---|
| True £0 plan + per-use fees | No subscription; you pay when you use certain services | Charges for transfers, cash, FX, cards, extra users |
| £0 plan + free allowances | A limited number/value of actions are included; fees apply above that | Allowance size, what counts towards it, and overage fees |
| Free trial then paid | £0 for a set period; subscription begins later | When charging starts, whether you can stay on a £0 tier |
| Basic £0 plan + paid add-ons | Core account is £0; features are modular | Cost of add-ons you consider “must-have” |
| Tiered plans (free + premium tiers) | Multiple tiers; higher tiers bundle more features | Which features are included at each tier and any “fair usage” wording |
Compare Business Bank Accounts
If you’re comparing £0 monthly-fee options, it helps to compare the total cost pattern rather than only the subscription line item. Two accounts can both show “£0/month” but produce very different costs depending on transfers, cash deposits, FX, and paid add-ons.
Our Business Bank Accounts hub is designed for side-by-side comparison of account types and features, and our provider pages (such as Tide review and Starling review) provide additional context on how accounts work in practice.
Frequently Asked Questions
“No monthly fees” usually means there is no subscription charge for keeping the account open on the base plan. It does not automatically mean there are no charges at all.
Many providers use usage-based pricing. That means you can still pay for cash deposits, international payments, FX, premium tools, or high-volume activity. The only way to understand “free” is to read the tariff and map it to how the business actually operates.
£0 monthly fees can be a competitive acquisition strategy, particularly for startups and small businesses that are sensitive to fixed costs. It can also reflect a pricing model where revenue comes from other sources (such as interchange on card spending or paid feature tiers).
The key point is that the provider still has operating costs (support, compliance, payments infrastructure). So the pricing usually shows up somewhere else – often as per-use fees, FX pricing, add-ons, or tiered upgrades.
If you want to understand likely total costs, start with categories that match common business activity:
- UK transfers
- Cash deposits
- International payments
- FX
Those tend to drive costs more than the monthly subscription line for many businesses.
Also check for allowances and thresholds. A plan can be £0/month but effectively designed for “light usage”, with higher charges once you exceed the included activity.
Cash handling is often expensive for providers because it relies on physical infrastructure and third-party networks. That’s why cash deposits and withdrawals are commonly charged, limited, or linked to certain plans.
For cash-based businesses, the tariff detail can matter more than the subscription amount. Even a small per-deposit or percentage-based charge can dominate monthly cost compared to a modest subscription plan elsewhere.
Some do include standard UK transfers, but the definition of “included” varies. A provider might include certain transfer types while charging for others, or include transfers up to an allowance and charge above it.
It’s also worth checking whether there are separate charges for “bulk” or advanced payment workflows, because some businesses trigger those features naturally once they scale payroll, supplier payments, or invoicing volume.
International payments and FX pricing vary widely. Some providers price this as a visible fee, others embed it in the exchange rate spread, and some use a combination of both depending on currency routes and transfer methods.
The practical point is that “£0 monthly fee” tells you nothing about FX competitiveness. If a business regularly buys stock overseas, sells internationally, or pays staff/contractors abroad, FX can become the largest variable cost line in banking.
Pricing and terms can change over time, because providers update tariffs, plan structures, and included allowances. The key is how changes are communicated and whether you can move plans or exit without undue friction.
This is one reason it’s useful to treat “£0 monthly fee” as a snapshot of today’s tariff, not a permanent promise. Checking the tariff version date and change-notice wording helps you understand how stable the pricing model is likely to be.
FSCS deposit protection depends on whether the balance is a deposit with a UK-authorised bank, building society, or credit union, as described under the FSCS deposit protection rules.
Some “business accounts” are provided by e-money or payment institutions, where funds are safeguarded rather than protected as FSCS deposits for the firm’s own failure, as set out in the FCA safeguarding requirements. Our detailed explainer:
A £0 monthly-fee plan does not remove regulatory onboarding checks. Providers still need to carry out identity checks, verify business details, and assess risk based on the nature of the business and expected account activity.
If you’re trying to avoid delays, the more relevant factors are usually the completeness of documentation and whether your business profile fits the provider’s risk appetite. We cover required paperwork in:
- Documents to open a business bank account and reasons for rejection in why applications get rejected
Some businesses use multiple accounts for operational separation (for example, separating tax reserves, payroll, or different trading lines). Whether that’s practical depends on admin complexity, bookkeeping workflows, and how the accounts are used.
From a pricing perspective, multiple £0 accounts can still create costs if each triggers fees (for example, per-transfer charges, extra cards, or FX). We explain the mechanics and trade-offs in can you open more than one business bank account?
The real constraint behind “no monthly fees” is that banking costs don’t disappear – they usually move from a predictable subscription to variable charges tied to behaviour (cash handling, FX, payment volume) and paid feature layers (users, approvals, integrations). That’s why two businesses can both use “£0/month” accounts and still end up with very different total costs.
The second hidden mechanism is regulatory status. A £0 plan offered by a bank (deposit) and a £0 plan offered by an e-money firm (safeguarding) can feel similar day-to-day, but the legal treatment of funds differs. Verifying the provider on the FCA Register is often the fastest way to understand what kind of account you’re actually opening.
Sources & References
Use the FCA Financial Services Register to confirm whether a provider is an authorised bank, e-money institution, or payment institution.
The scope of deposit protection for eligible deposits is described under FSCS protection for banks, building societies and credit unions.
The safeguarding approach typically relevant to payments and e-money firms is explained in the FCA safeguarding requirements for payments and e-money.