Table Of Contents
Tide Business – In Brief
Tide are a UK based fintech, offering finance services to customers within the UK market. Unlike their main competitors, Starling Bank, Monzo and Revolut, they are focused solely on business customers – they do not have an offering for personal accounts.
Formed in 2015, and launched out of beta in 2017, Tide claim to have over 400,000 business customers with accounts as of late 2022.
Tide Business Pros & Cons
Pros:
- Support for integration with accountancy packages is comprehensive
- Tide are a business only focused product, so all of their services are dedicated solely to the requirements of businesses.
- Have multiple accounts and other money management functions
- Ability to send invoices from the app
Cons:
- Tide are a branchless bank. Any cash deposits have to be made via PayPoint or post offices, and incur a cost.
- Not the best choice for businesses who send and receive a lot of international payments.
- Certain banking functions appear quite complicated compared to competitors.
- There is a fee for all account transfers and payments
What is Tide Business?
The Tide business account is an app first digital ‘challenger’ bank, that aims to simplify the processes and reduce the costs of business banking for UK businesses. As it is a recently established product, their systems are based on the most modern technology available, and as such they should be able to offer a more seamless and customer friendly user experience than the traditional high street banks.
Tide Business Features
- Current account – with business debit card
- Accounting Software Integration – integrate your Tide account packages such as Xero, QuickBooks, FreeAgent and more.
- Mobile & Desktop Access – access your account on any device
- Send and Manage Invoices – direct from the app
The Tide business account is available in 3 tiers – the more the monthly cost, the more features you receive:
Tide Free:
- Tide Business Debit Card
- Expense cards for staff – £5 per month per card
- Transfers in and out – £0.20 per transfer
- ATM Withdrawals – £1 per transfer
- Read only account access for staff
- Accounting software integration
- Up to 5 business accounts
Tide Plus:
- Tide Business Debit Card
- Expense cards for staff – 1 cards included, then £5 per month per extra card
- Transfers in and out – 20 free per month, then £0.20 per transfer
- ATM Withdrawals – £1 per transfer
- Read only account access for staff
- Accounting software integration
- Up to 5 business accounts
- Priority in-app & phone support
- 24/7 legal support
Tide Cashback:
- Tide Business Debit Card
- Expense cards for staff – 3 card included, then £5 per month per extra card
- Transfers in and out – 150 free per month, then £0.20 per transfer
- ATM Withdrawals – £1 per transfer
- Read only account access for staff
- Accounting software integration
- Up to 5 business accounts
- Priority in-app & phone support
- 24/7 legal support
- Dedicated account manager
- 0.5% cashback on any payments made with Tide card
Who is Tide Business for?
Any business owner in the UK will understand the frustrations that can come with banking. Traditional high street banks are large organisations that have been around for years, and as such, can be very slow to take move along with new technology. In addition, they often have huge legacy technology systems that any new technology front-end has to communicate with – which can often slow things down and negatively affect the customer experience.
Tide, along with other fintech ‘challenger’ banks such as Starling, Monzo and Revolut, don’t have this problem. They are new start-ups, so they have built their systems from scratch in the last few years, utilising the most modern technology and creating efficient and simple systems that provide a more seamless customer experience than many of the traditional banks.
Therefore, any business, whether new, or established, and looking for a more user-friendly way to manage their finances, could find a good solution with Tide.
Tide is a digital, app focused bank, and has no actual branches. Therefore, it is not possible to go into a branch and speak to someone if there is an issue with your account, you have to rely on messaging via the app or calling their customer services.
Tide is not particularly strong when it comes to international payments, especially compared to certain competitors such as Revolut. Therefore, if your business trades internationally, then Tide may not be the best choice.
Tide Business Costs & Fees
There are 3 account tiers for Tide business:
- Free
- Plus – £9.99 (plus VAT) monthly
- Cashback – £49.99 (plus VAT) monthly
In addition, there are costs for certain functions within the account:
- Bank Transfers (in or out) – £0.20 per transfer
- ATM/Cash withdrawals – £1 per withdrawal
- Cash Deposits via the Post Office – £1 per deposit
- Cash Deposits via PayPoint – 3% of the total transaction value
Is Tide Business Safe?
Tide are not a licensed UK bank, and older customers may have accounts that are held as e-money accounts with Tide, and these are not protected under the Financial Services Compensation Scheme (FSCS), which covers customer deposits up to £85,000 in case of Tide’s insolvency.
However, Tide now work with Clearbank, who are a licensed UK bank, and now most existing Tide customers, and all new customers, will have their account held with Clearbank, so these accounts are covered by the FSCS.
Tide Business Comparisons
Which is better – Tide Business or Starling Bank Business?
Read our full Tide Business vs Starling Bank Business comparison
Which is better – Tide Business or Revolut Business?
Read our full Tide Business vs Revolut Business comparison
Which is better – Tide Business or Monzo Business?
Read our full Tide Business vs Monzo Bank comparison
Tide Business FAQ
Is Tide a legitimate bank?
Tide are not a licensed UK bank, but rather an e-money provider. They are still regulated by the Financial Conduct Authority, and customer deposits are held by their partner Clearbank, so deposits are protected under the FSCS.
How does Tide make money?
Tide have monthly fees for their Plus and Cashback tiers. They also make money in the same way as other business banking providers, with charges for payments, currency transfers etc, and they will make a small percentage any time the debit card is used.
Does Tide charge for payments?
Yes, Tide charge businesses 20p per transfer in or out of the account. All transfers on the Free tier are charged at this rate. On the Plus tier, they give 20 transfers free as part of the package, and on the Cashback tier, they give 150 payments as part of the package.
Tide Business Verdict
Tide is one of many app based digital start up banks in the UK, that have a product aimed directly at businesses. Unlike the others, Tide are focused only on business banking. To that end, potentially Tide would offer a more targeted product. However, the feature set of the product is very similar to that of their competitors, and it is debatable whether they have anything that really makes them stand out. However, Tide should definitely be part of the thought process when researching a financial provider for your business.
Articles on the wiseabout.money website may contain affiliate links. If you click these links, we may receive compensation. This has no impact on our editorial and any money earned helps us to continue to provide the useful information on our site.
