The best free business bank account: a comprehensive guide for 2024

Banking is becoming a very competitive sector, with financial institutions diversifying the features and services they offer. In 2024, you can find anything, from dedicated IBAN accounts to exclusive cashbacks. But what about a free account for your company? Well, where there’s demand, there’s supply.

In this article, our team will explain the essential features a free business bank account should have in 2024 for the business banking needs of small businesses and sole traders.      

Why does a free business bank account matter?

A business bank account (also known simply as a business account) is a type of account financial institutions and fintech companies provide for companies. Such accounts come with a set of financial services and tools necessary for a business to conduct day-to-day financial operations. Multiple types of business bank accounts exist, each with different benefits and drawbacks. 

Thus, free business bank accounts are used by companies and sole traders for the same purpose, but their opening process is free, and/or they don’t have monthly fees or other charges associated with their maintenance. 

Free business bank accounts can differ in many ways, mainly by the number of services they offer, discounts they provide for specific company types, and regions they operate in. 

Essentially, to qualify for a free business bank account, a company needs to meet certain requirements and might not have all the services available at its disposal inside a free account. 

However, free business bank accounts can be lifesavers for startups, small companies, sole traders, or even a limited liability partnership that operates on a tight budget. The absence of monthly fees and high minimum balance requirements, accompanied by lower charges for cash deposits, are definitely a plus when you try to get your company up and running. Also, as a startup, a business usually doesn’t need many financial features to operate, just the essentials to keep the cash flow stable. Thus, a free business account can be a good starter account for some of the companies. 

Key features to look for in a free business bank account

As our team mentioned previously, business bank accounts can have different features and services available for their clients. Some providers, like Genome, even offer services for both individuals and businesses. But what are the most important features a free business bank account can have? Let’s list them. 

No monthly maintenance fees

A monthly fee, in general terms, represents a sum of money your bank or financial institution will charge you every month for the maintenance of your business account. A monthly fee can differ significantly between different business account providers, depending on the services they offer and the industries they work with. 

As for free business bank accounts, some have a monthly fee canceled or significantly reduced, which is one of their top advantages. Just think about it: instead of dealing with monthly account fees, a small business can instead allocate these funds to its development and expansion. 

If you are looking for a free business account, chances are the absence of a monthly fee is one of the main selling points for your business. Compare the pricing of competitors and be on the lookout for the hidden fees a business current account can have.  

Free transactions

Apart from a monthly fee, banks have a lot of other charges for their business current accounts. For one, the transaction fees are charges businesses and sole traders pay for deposits, withdrawals, and money transfers. You also need to take into account the different money transfer types. For instance, SEPA transfers within the SEPA zone, in most cases, will be cheaper than international payments performed via the SWIFT system. 

When selecting a free business bank account, take a close look at transaction fees: some providers can offer greater discounts for companies to withdraw and deposit cash, while others have better fee options for money transfers, direct debits, etc.  

Some banks might even provide free bank transfers, making your banking experience more convenient. For instance, Genome’s internal transfers between the users of the platform are free of charge and are conducted within seconds, offering a seamless and comfortable way to manage your finances. 

ATM access

Another key feature to consider is the availability of business credit cards or debit cards and access to the ATM network to withdraw funds. More importantly, the ATM withdrawals need to be reasonably priced. You can even find a bank that offers free ATM withdrawals.

Look for low withdrawal fees, free bank transfers, and card brands commonly used worldwide. This factor not only ensures your convenience during purchases or business trips but also offers a higher level of protection for your funds and data. As an example, inside Genome, a company can issue a Visa Business debit card and gain access to withdrawing funds at multiple ATMs around the world, as well as use contactless payments.  

Online and mobile banking

Multiple services are provided digitally nowadays, making daily errands much easier. So, simplifying your banking this way is also possible!

Consider partnering with a payment service provider that allows you access to a free business bank account online! A platform should have both web and mobile apps so you can easily deposit cash and manage your free business account from the comfort of your office, on a business trip, or even at home. 

Keep in mind: 24/7 access for tasks such as monitoring balances, making payments, and transferring funds can be especially crucial when you start a company. You don’t want to miss any payments. 

Integrations with accounting software

As a small business making its first steps up the industry ladder, you might not have a big team. It is why you need all the help you can get, and some of it can be found right inside your banking app, like accounting software integrations.

Some banks allow integrations with accounting software tools like QuickBooks and Xero, giving you a big advantage when it comes to bookkeeping and reducing the possibility of human error. Use such integrations to save time and prevent mistakes.  

The top free business bank account in 2024

So, what would be the qualities of the best business bank accounts in 2024? When looking for a new business bank account, having an account with a free period or lower fees may seem like a big advantage. However, such a discount will not serve you well if the business account doesn’t have the services you need, such as direct debits, cash deposits, virtual cards, merchant services, etc.  

You might want to try out free banking periods to check if the account can satisfy all your demands in terms of financial features. It is what will help you determine the optimal solution between saving money on free accounts and accessing banking solutions. 

Keep in mind that free business accounts are not your only option, as other business accounts can be far more helpful in growing your company or developing as a sole trader. For instance, Genome’s business current account. 

Key features and benefits of Genome

You can start a business wallet inside Genome online – in just a few clicks with an easy-to-follow onboarding process. Our pricing is transparent and can always be accessed on our website. 

Additionally, once you have a business account inside Genome, you can start more multi-currency accounts in EUR, USD, GBP, PLN, CHF, JPY, or CAD for free. Stire funds in different currencies and exchange those effortlessly between the accounts. 

Our platform offers multiple money transfer options, including SEPA Credit and Instant Transfers, international payments such as SWIFT, and instant internal transfers. Moreover, you can send up to 3000 transfers at once using Genome’s batch transfer feature.  

Need a card for ATM withdrawals? No problem, as Genome issues corporate Visa debit cards for all business expenses. You can also issue hundreds of virtual Visa cards to pay for subscriptions, ads, and other corporate expenses. Both card types are contactless Order cards and get instant payment notifications to your account online. 

Why Genome is different?

Genome was created by a team of professionals with a clear goal – to tailor financial solutions to the specific needs of businesses.

We provide a wide range of services and offer our assistance along the way. See for yourself: contact us at sales@genome.eu and book a demo call to see how our financial solutions can help your business grow and develop. 

How to choose the best free business bank account

A search for the best free small business bank account can be tough. However, it becomes a tad easier if you have a couple of goals you need to hit. Here’s how you can determine if a free bank account will be good enough for you: 

Consider your business needs. You need to assess your future business activity. It will allow you to better understand which banking features you need for your day-to-day operations. 

For example, international payments are required if you need to send payments abroad. Or, if you expect to accept payments from eligible customers, you will need to start a merchant account in addition to your business account. 

Once you have determined which services to prioritize, select your free account based on your company’s requirements.

Look at transaction limits. Financial institutions set certain limits on the number of transactions you can send per day or month, as well as the amount of money. 

To avoid any issues, like being unable to pay your employees or contractors, you need to budget and plan out your monthly transactions. Then, check the transaction limits of the free business accounts you’re researching before making the final decision.  

Examine online banking tools. As mentioned previously, online banking tools can be very handy. Who can refuse safe, quick access to bank accounts and banking information at all times?

If you want to be a part of flexible banking, check if your business account comes with free access to the website and the app. 

Customer service availability. Last but not least, customer support services are important, especially if it is your first time handling a free business current account.

Check if the bank’s customer support works 24/7 and has the communication channels that you would want to use to communicate with them.  

Pros and cons of free business bank accounts

Now that we have reviewed the main features of free accounts let’s list their pros and cons.

Advantages: 

• No monthly fee. One of the biggest benefits is the absence of a monthly fee, which allows companies to save on operational costs. Note that some free accounts just offer discounts on monthly or annual fees.
• Cost-saving for startups and new businesses. Free business bank accounts allow startups and small businesses to reduce overhead costs associated with banking. By eliminating a monthly fee and other charges, these accounts enable companies to allocate more of their resources toward other critical areas.
• Access to digital banking tools. Lastly, many free business accounts are now provided by fintech companies. This means you are far more likely to get your business banking services through a convenient, easy-to-use banking app. Additionally, they offer more instruments for financial management, as well as integrations with accounting software.  

Drawbacks:

• Limited features compared to premium accounts. Unfortunately, even the best free business bank accounts can be limited in their features. After all, it is a “starter” bank account, so to speak. So, there’s a chance your company will have to switch to another bank account later on.
• Lower transaction or cash deposit limits. Additionally, your business does not have as much flexibility when it comes to transactions. Mainly, a financial provider can limit the number of payments you can make per month.

How to open a free business bank account

As in the case of opening a regular business account, there are a couple of steps you need to take:

1. Based on the criteria and tips described in the article, select a business bank account.
2. Find out if you meet all the requirements of the financial institution: for one, you might be required to be a part of a specific industry or have a certain starting capital.
3. Apply for the business banking account: provide the necessary documents about your company.

Also, if you’re interested in Genome’s services, you can apply for our business wallet, as we work with small businesses as well, offering a wide range of services with affordable pricing. Once you have a wallet, you can start multiple additional business accounts for free! 

Moreover, these accounts are available in different currencies, including euros (EUR), US dollars (USD), British pounds (GBP), Polish zloty (PLN), Swiss franc (CHF), Japanese yen (JPY), and Canadian dollar (CAD). You can have up to 5 accounts per currency!

To access these additional free multi-currency accounts, you need to:

1. Open the Genome dashboard in your web browser;
2. Click the Plus sign (+) next to your Business accounts in the left upper corner;
3. Select the currency you want;
4. That’s it! Your account will be available within seconds! You can easily link your new account to a Visa Business debit card and issue as many cards as you need. 

Conclusion: finding the best free business bank account for your needs

Finding a free business bank account that meets your specific needs, including any introductory free period, can help reduce banking costs and streamline financial management. Evaluate factors like transaction limits, international fees, and integration options to select the best fit for your business.

FAQs

Can I get a business bank account with no monthly fees?

Yes, there are financial institutions that don’t apply a monthly or annual fee for some categories of business or limited liability partnerships. These accounts often have limited features but cover essential services, allowing companies to manage their finances without extra monthly charges. Additionally, some institutions provide a free banking period, when certain features are free of charge, as well as free ATM withdrawals. Still, it is difficult to find a business banking account that is completely free, as some charges for services may apply. 

What are the transaction limits for free business bank accounts?

A free business bank account can have limits on monthly transactions, such as deposits, withdrawals, and transfers. Different financial institutions may impose different limits on transaction types while offering discounts for others. Thus, you need to check their pricing and account limits table before partnering with a financial provider. 

Is a free business bank account secure?

Yes, even completely free business bank accounts are generally as secure as common business accounts, as the same security rules and compliance regulations are applied to them. Just make sure that you use the services of a fully licensed bank/payment service provider. 

Do free accounts offer access to accounting integrations?

Not all of them, but some financial providers of such accounts offer integrations with accounting software tools like QuickBooks or Xero. If you’re looking for a specific accounting software integration, contact the bank’s customer support team for more information. 

Can I upgrade to a premium account later if needed?

Yes, established businesses will likely need to grow and expand with time, requiring an account that will have more financial services. Some companies might need to switch business bank accounts in less than a year. For instance, you might need to open a business savings account and switch bank accounts because of this.