Basic business bank accounts: what you get, what you don’t
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying. You can check a firm’s details on the FCA Register.
Quick answer
A basic business account gives you a sort code and account number, a debit card, UK transfers and an app — and not much else. For many small businesses that’s enough. The trade-off is usually tighter allowances and fewer extras like overdrafts, cash handling or built-in accounting.
Our pick for a basic account without transfer caps: Starling, which charges no monthly fee and nothing on UK payments in or out. Our pick for a basic account backed by a high-street bank: Mettle (by NatWest).
What basic plans include
| Provider | Monthly fee | Transfers | Protection |
|---|---|---|---|
| Starling | No monthly fee | No fees on UK payments in or out | Bank — FSCS protected |
| Mettle (NatWest) | No monthly fee (optional Mettle+ add-on £4 a month) | Check provider | Accounts provided by NatWest — FSCS protected; older e-money accounts aren’t covered |
| Tide | Free plan: no plan fee. Smart £12.49, Pro £27.49, Max £69.99 a month | Free plan: 5 bank transfers a month; Smart 30; Pro and Max unlimited | Tide isn’t a bank. Most accounts are held with ClearBank (FSCS); some older e-money accounts aren’t FSCS covered |
| Countingup | 3-month free trial, then £5, £12 or £20 a month depending on monthly deposits | 3 free transfers a month, then 27p | New accounts held with Griffin — FSCS protected; older e-money accounts are on old pricing |
| ANNA | Free plan £0 (first £1,000 incoming a month free, then 0.95%). Business plan £22.90 a month + VAT | Business plan: 60 transfers a month, then 20p | E-money — funds in the main ANNA account are safeguarded, not FSCS protected |
| Monzo Business | Lite: free. Pro: £9 a month (first month free). Team: from £25 a month | Check provider | Bank — FSCS protected |
Figures as of 3 October 2026, taken from each provider’s own website. Fees, plans and eligibility change, so check the provider before applying.
Who it’s for
- Small businesses with simple incoming and outgoing payments
- Sole traders who mainly need somewhere to receive client payments
- Owners who would rather not pay for features they won’t use
- Businesses that rarely handle cash or cheques
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You need an overdraft or other borrowing linked to the account
- You deposit cash often — basic app accounts usually charge for it
- You make lots of payments and a free plan’s transfer cap would bite
- You want staff cards, approvals or multi-user controls
Full explanation
What “basic” usually covers
Expect UK transfers, Direct Debits, a debit card, an app and statements you can export. Many basic accounts also let you set aside money in pots or spaces. Starling’s account includes free ATM withdrawals — up to six a day, with a £300 daily limit.
What it usually leaves out
Overdrafts, cheque books, branch counters and relationship managers are rarely part of a basic package. International payments and currency accounts may cost extra. If you need any of these regularly, a basic account may end up costing more than a paid plan.
When to move up a tier
A simple test: list what you did last month — number of transfers, cash paid in, payments abroad — and price it on the free plan and the next plan up. Our business account fees guide explains each charge, and Business accounts with no monthly fee covers accounts with no monthly fee.
For the general picture, see the simple guide to business bank accounts.
The catch
“Basic” can mean capped. Tide’s Free plan includes 5 bank transfers a month; Countingup includes 3 free transfers a month, then 27p each.
Incoming payments aren’t always free. ANNA’s Free plan takes 0.95% of incoming payments above £1,000 a month.
Extras are add-ons. Invoicing, receipt capture or accounting tools may sit on a paid plan rather than the basic one.
Check a basic account’s current terms:
These go straight to each provider’s own website. They aren’t referral links and we don’t earn from them.
FAQs
Is a basic business account the same as a free one?
Not always. Many basic accounts have no monthly fee, but they may charge per transfer, for cash or for spending abroad.
Do basic business accounts come with an overdraft?
Rarely. Overdrafts usually need an application and depend on your trading history.
Can I pay in cash with a basic account?
Some allow Post Office deposits for a fee — Starling charges 0.7% with a £3 minimum. Check before you rely on it.
Will I outgrow a basic account?
You might if you start making lots of payments, need staff cards or trade abroad. Compare the next plan up when that happens.
Are basic accounts FSCS protected?
It depends on the provider. Bank accounts usually are, up to £120,000. E-money accounts are safeguarded instead.
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