Tide Business Banking [2023]

Tide is a financial service provider which offers business bank accounts for freelancers, sole traders and business owners. It’s not a bank, but it does offer lots of the services you’d get from a bank – and as it’s FCA regulated, just like your bank would be, it’s also safe to use.

Tide business accounts are available for free, or you can choose to upgrade to an account plan which has a monthly fee of up to 49.99 GBP depending on your business type and specific needs.

We’ll walk through the options for Tide business banking, including features, fees and how to get a Tide account opened. And because Tide isn’t your only option for a business bank account we’ll also touch on a few Tide alternatives for you to compare.

Key Points

• Account plans: Get a free Tide account or upgrade to one of 3 paid account tiers for more features
• Cash deposits: Deposit cash at a Post Office or PayPoint location for a fee
• Expense cards: Expense and fuel cards available – either as part of your account plan or for an extra fee
• International transactions: Some Tide accounts can be used to send international payments – but new customers can’t access this service
• Team member access: Tide accounts can only be operated by the account holder – you can’t give access to an accountant or administrator for example
• Reconciliation: QuickBooks, Xero, Sage, FreeAgent, KashFlow and Reckon supported
• Loans and other services: Range of other services like company registration and loans

Tide business banking pros:

• Free pay as you go accounts available
• Manage your money from the Tide app, with access to in person cash deposit service
• Good range of integrations and business friendly perks

Tide business banking cons:

• You’ll need to pay a monthly fee to unlock all the features
• New Tide customers can’t send international payments
• Transaction fees for some services – particularly cash deposits – can be high

Overall: Tide has several different account plans for UK registered business owners, sole traders and freelancers. You’ll be able to manage your money in the Tide app, but retain the flexibility to deposit cash to your account for a fee. New Tide customers can’t make international payments which is a drawback – if you have a Tide business account you may decide to send your cross border transfers with a third party instead. More on that later.

Tide business account fees and exchange rates

Let’s walk through the key Tide business account fees.

Account Fees

You may choose to pay a monthly fee of up to 49.99 GBP for the highest tier of Tide business account. Paid tiers typically come with some fee free transactions which can mean they’re worthwhile for businesses which need to transact often. Outside of transactions covered by your plan, there are also these fees to consider:

• Bank transfers in and out: 0.2 GBP
• ATM withdrawals: 1 GBP
• Cash deposits: up to 3% of the total deposited

Tide international payments

New Tide customers won’t be able to make international payments. This service is only available to older customers who hold a Tide International Currency Account. If you have this account type you’ll want to check the exchange rates available in the Tide app to make sure you’re getting the best available deal on your payment.

If your Tide account isn’t eligible for international transfers you can still make cross border payments with a third party service like Wise or OFX – we’ll look at Wise, Monzo and Payoneer as a Tide alternative in a little while.

What is Tide for business?

Tide isn’t a bank, but it is regulated by the FCA in the UK, and trusted by 450,000 individuals and businesses here for account services and support. As well as a range of business accounts, Tide offers linked services such as company registration, loans, and virtual office addresses. This guide will focus on the Tide for business bank account options, to help you work out if Tide is right for you.

Tide business accounts/plans

Tide offers several different business account options, depending on whether you’d rather pay a monthly fee for some free transactions, or have no monthly charge and pay by the transaction. Higher tier accounts also unlock extras like priority service. You can see the full range of differences online on the Tide site – for now, here are the key differences between plans:

Who is it for?

Tide Business accounts can be opened by directors of UK registered businesses. If you’re a freelancer or sole trader based in the UK, and registered with HMRC, you can open a Tide Sole Trader account. There are a small number of exceptions, which cover industries and business types which are not accepted by Tide. Notably, charities and non-profits can’t open a Tide account.

Where is it available?

Tide accounts are available to people who have UK registered businesses, and sole traders and freelancers who are registered with HMRC only.

Tide business account Main Features

Let’s look at the key Tide business account features you may find useful.

Debit and expense cards

Each Tide business account comes with a linked debit card, and you can also get up to 50 expense cards for your team. Paid Tide plans have one or more expense cards included in the monthly fee, and for extras there’s a 5 GBP/month charge. Expense cards make it easier to manage company expenses and can reduce the administration required, as well as cutting down on human error when managing business spending.

Cash deposit

If you run a business which still needs to deposit cash into an account Tide can help. You can make cash deposits at a Post Office or PayPoint location. With the Post Office you’ll pay 2.50 GBP for up to 500 GBP deposited, or 0.5% above that amount, while PayPoint charges 3%.

Invoicing

Tide business customers can make invoices in the Tide app, with the Tide invoice generator. You’ll be able to add the details you need and personalise the invoice for a professional finish, and then send it right from the app for easy payment.

International payments

It’s worth noting that newer Tide customers can’t send international payments direct from their Tide business accounts. You can only make international transfers if you have an older Tide International Currency Account, which is not available for new applicants.

If you’re spending with your Tide debit card overseas you won’t pay a Tide fee and you’ll get the network exchange rate which is usually pretty fair.

Reconciliation

Tide is compatible with an impressive range of accounting software – QuickBooks, Xero, Sage, FreeAgent, KashFlow and Reckon are all covered. That can make it far easier to keep track of your finances, with less administration to worry about.

How does Tide work?

Tide is a financial app which offers digital business banking services you can operate online and in the Tide app. You’ll need to download the app to get started, and can then manage most transactions on the move. You’ll also have the option to deposit cash into your Tide account at a Post Office or other select locations, but fees do apply for this service.

Is Tide regulated and safe to use?

Tide is not a bank – but it’s still safe to use, and falls under much of the same regulation and oversight that a bank would. Tide’s business services are offered through a partnership with ClearBank, and Tide is regulated by the FCA in the UK.

How to open a Tide business account online

Tide operates primarily through an app – which means you can apply in the app with nothing more than your phone and your ID to hand. Here’s what to do:

1. Download the Tide app
2. Complete the application and give details of your business
3. Upload an image of your ID and a selfie
4. Your account could be opened in minutes

Documents needed to open a business account

The documents you need to open your Tide account may vary based on the business type you run. However you’ll need to provide a suitable form of ID, like a passport, and you’ll need to have a smartphone registered to the UK App or Google Play store.

Verification Process

Tide may be able to verify your account without needing anything more than your business information and your personal ID. If more information is required you’ll be notified and can upload more documents easily within the Tide app.

How to Use Tide for Business?

Tide customers can use their account through the Tide app. Only the primary account holder can access the account, which means you can’t give access to your employees or business partners. However, you can order expense cards for your team to spend on behalf of the company more easily.

How long does it take to make a transfer?

Tide to Tide transfers are instant. Tide GBP payments are sent using the Faster Payments system. That means they’re usually received within a few hours. If your Tide business account is eligible for international transfers these can take a few days to arrive.

Alternatives to Tide Business

If you’re looking for a way to manage your business finances online or using an app, it’s worth comparing a few alternative providers and neobanks. Here are a couple of popular options in the UK which are worth considering.

Wise Business

Hold and exchange 50+ currencies with the mid-market exchange rate and send payments to 80+ countries. Get linked debit cards for you and your team members, and grant access and user permissions to your team so everyone has the tools they need to get their job done.

Monzo is a fully regulated UK bank which offers online accounts for business customers. You can choose a free account or pay 5 GBP/month for more features and services. Even with the free account plan you can get a linked debit card, full UK banking details, instant UK transfers and outward international payments.

Payoneer

With Payoneer you can open an account online for free, get local bank details for several major currencies including GBP, EUR and USD. Get paid through payment gateways, marketplaces, and from customers, and use your funds to pay contractors or for withdrawals via an ATM.

Conclusion

Tide is one of the largest providers of digital business banking services in the UK, with free accounts as well as fee paying account tiers to suit more established businesses. Tide business accounts have pretty low fees and can be used to manage your business finances online and in-app, as well as to deposit cash. However, most Tide business customers can’t make international payments from Tide, and you can’t give anyone else access to your Tide account (like a team member, administrator or accountant for example).

Compare Tide against a few alternatives to see which might work out best for you. If you’re thinking of a full bank account from an online provider, Monzo may suit, and if you need low cost international services and the option to add and manage permissions for team members to access your account, Wise may be a good bet.

FAQs – Tide Business Account

• Is Tide a good business account?

Tide offers 4 different tiers of business bank account – whether they’re right for you will depend on your personal preferences and banking requirements.

• Can I use Tide as a business bank account?

Tide is a major provider of UK digital business banking services – you can open an account as a freelancer, sole trader or business owner.

• How much does it cost to open a Tide business account?

Tide offers fee free account tiers, or you can upgrade to a fee paying option with charges of up to 49.99 GBP/month.

• How can I withdraw money from my Tide business account?

All Tide accounts come with a linked card for ATM withdrawals, and the option to get expense cards for your team.

• Can I transfer money from Tide business account to personal account?

The type of transfers you can make with Tide may depend on your situation and account type. Check the account terms and conditions to be sure.

• Are there any restrictions on Tide business transfers?

You can’t send international transfers with many Tide business accounts – you’ll need to pick a third party provider to make your international payment.

• What is the difference between Tide business and personal?

Tide offers accounts to owners of UK registered businesses, and freelancers and sole traders who are registered with HMRC. All Tide’s products are intended to support business activities and payments.