Tide Business Account Review 2023 – Forbes Advisor UK

Tide business account at a glance

Launched in 2015, Tide has grown rapidly and is now one of the leading providers of digital business banking services for small businesses. It has almost half a million business customers in the UK.

Tide offers an app-based business account with most of the usual functionality of a bank account. However, it’s a financial platform (authorised by the Financial Conduct Authority under e-money regulations) rather than a bank. 

When customers get a bank account with Tide, it’s actually provided by ClearBank which has a full UK banking licence. This enables Tide customers to get full protection from the Financial Services Compensation Scheme (FSCS) which covers up to £85,000 of cash deposits held in their business’s name.

Tide has a strong rating from its customers of 4.3 out of 5 on Trustpilot from more than 16,000 reviews. The reviews describe the ease and speed of opening the app account and the helpful customer service experience.

Tide account features

Tide offers four account offerings for small businesses – one of which (Tide Free) has no monthly fee.  Here’s an outline of what’s available with each account and the pricing:

Tide Free

• A free account with a contactless Mastercard card. Hold up to five accounts for free on the same platform. Extra cards (up to 35 per account) are available for other staff members at £5 per month and spending limits can be set

• Transfers in and out of the account carry a 20p charge and cash machine withdrawals cost £1 each. Card purchases have no fees in the UK or overseas

• The account can be integrated with accounting software and allows you to create and send invoices for free. Read access is available for team members.

Tide Plus

• Monthly cost is £9.99 plus VAT. Hold up to five accounts on the same platform

• Free Mastercard plus one free additional card for staff, plus all the same card benefits as Tide Free

• Transfers in and out of the account are free for the first 20 each month, then 20p thereafter

• Cash machine withdrawals cost £1 each. Card purchases have no fees in the UK or overseas

• Integrate with accounting software, get support with trademark filing and disputes, subject to the case

• Priority in-app support, phone line customer support and 24/7 legal helpline, plus exclusive member perks (see more on this below).

Tide Pro 

• Monthly cost is £18.99 plus VAT

• Free Mastercard plus two free additional cards for staff

• Transfers in and out of the account are free and unlimited

• All other features and benefits are the same as with Tide Plus.

Tide Cashback

• Monthly cost is £49.99 plus VAT

• Free Mastercard plus three free additional cards for staff

• Transfers in and out of the account are free for the first 150 per month

• 0.5% cashback on all spending on the Tide account cards

• All other features and benefits are the same as with Tide Plus and Tide Pro, but this account also includes a dedicated team of account managers.

What are Tide member perks?

All fee-paying accounts with Tide offer member perks such as discounts and offers that are tailored to small businesses. For example, current deals include discounts off storage, packaging, zip cars for business and breakdown insurance.

There are also offers on marketing and advertising, business support and legal services, among other deals.

Drawbacks of Tide’s business account

Among the downsides of Tide’s offering for business customers is that customers can’t deposit cheques. However, on its website Tide says it is looking into smart ways to process cheques – so this could change in the future.

There is no overdraft facility while bank transfers incur charges which could mount up over time. However, the premium accounts offer a number of free transactions each month.

Another point to note, particularly for businesses that deal with large amounts of cash, is that there are high fees for cash deposits into the Tide account. 

Cash deposits can be made through post offices or at PayPoint counters. There’s a 3% fee on the total deposit value at PayPoint (max £500 per day).

Post Office charges are as follows:

• £2.50 for deposits up to £500
• 0.5% of the cash deposit amount for deposits over £500.

At the Post Office, you can make monthly cash deposits of up to £25,000 and a yearly deposit of up to £300,000 (subject to transaction limits controlled by Post Office branches). 

Who is the Tide business account suitable for?

Tide accounts are popular with small business owners including sole traders and freelancers, right up to limited companies. 

The account offers a straightforward banking service with transparent, low cost pricing and the integration with accounting software appeals to many businesses.

But Tide accounts are unlikely to suit businesses that deal with large quantities of cash or cheques, due to the charges applied for paying in cash, plus you can’t yet pay in cheques. 

To be eligible to open a Tide account you’ll need to be: 

• A company director, where the company is registered with Companies House, or a sole trader, registered with HMRC and with a residential address in the UK
• At least 18 years old.

Some types of businesses are not eligible to open a Tide account. These include ‘higher risk businesses’, including cryptocurrency, investments and casinos, but also charities and non-profit organisations.

How can I compare accounts for small businesses?

Before choosing an account it’s important to shop around and compare the deals on offer for business accounts, including weighing up the benefits against the relative costs. 

By looking at the features available you can decide which provider is offering the right account for you and your business.