When you’re first starting out with your own business or start-up, it’s often tempting to just use your own personal bank account for your finances.
When you’re first starting out with your own business or start-up, it’s often tempting to just use your own personal bank account for your finances.
When you’re first starting out with your own business or start-up, it’s often tempting to just use your own personal bank account for your finances.
It’s easy, doesn’t cost any extra fees, and means you can have instant access to your cash. However, in the long run, you’ll always need to have a separate account, whether it’s for legal, tax, or clarity reasons.
Choosing the right business bank account can sometimes be difficult. There’s a lot on offer, catering to different sizes and types of companies.
However, the rise of challenger banks means that it’s easier than ever to get set up with your account.
One such newcomer to the market that’s worth considering is Tide. We’ve covered everything you need to know about their business banking offering here in our Tide review.
Related: How to Open a Tide Business Account
| Bank | Tide |
| Founded | 2015 |
| Bank Type | Digital / App |
| Eligibility | UK businesses |
| Account ready time | Minutes to days, depending on checks |
| Overdraft | No, but other finance available |
| Monthly fee | No |
| Transfer fees | Yes (Free Tide to Tide) |
| Debit card | Yes |
As with every provider, there are positive and negative aspects of Tide’s service. Before we take a deep-dive, here are some of the notable pros and cons:
✔️ Simple to use app that allows you to manage your money with your Tide and other accounts.
✔️ Reasonable charges and fees compared to competitors.
✔️ Create business invoices and share details with your accountant simply by using the app.
✔️ Safe and secure to use, and covered by the FCA and PRA.
❌ No direct customer service, only mobile contacts.
❌ International money transfers can’t be made using the account.
❌ Doesn’t have all of the features of a traditional bank account, making it unsuitable for some businesses and startups.
❌ You can’t pay in cheques and cash.
Tide is a company that offers alternative business accounts that you can open within minutes. Their product is aimed at smaller companies and freelancers who are in need of separating their business and personal finances.
The company first formed in 2015 as a fintech
venture and has since grown from strength to strength.
The main focus of Tide is on app-based and card-based banking. You can set up an account, manage your finances, and order a MasterCard using the Tide app. The entire experience uses their smartphone software, giving a streamlined way of banking.
The company first formed in 2015 as a fintech venture and has since grown from strength to strength. At the start of 2019, they secured £60 million of funding to expand their offering when they partnered with ClearBank.
The basics of the Tide account are really quite simple. Like many other challenger banking apps, all you need to do is sign up for an account and follow the on-screen prompts. The whole process takes just a few minutes, and it’s free to sign up. You’ll only need to provide some basic information about you and your business, as well as verify a couple of forms of ID.
Once your account is set up, they’ll send you a free Tide MasterCard, which takes around three days to arrive. However, once the sign-up process is complete, you’ll immediately be able to start using your new business account provided there
You can make transfers and payments using the app, although Direct Debits may take longer to get set up.
It’s as simple as that. Once you have the app installed, you can manage all of your money and finances, as well as your physical MasterCard from the smartphone interface.
Despite being a relatively simple way of creating a business account, there’s a lot you can do with the app:
Those are just some of the features you can expect from Tide, and you get all that with a quick sign-up, no credit checks, and no need to go into a bank.
Business banking can sometimes get expensive, yet Tide has some surprisingly low fees for using its service. Because the company has so few overheads and no physical locations, they can afford to offer their business accounts without charging a monthly fee. So, you can access all the great features mentioned above without paying much at all.
Business banking can sometimes get expensive, yet Tide has some surprisingly low fees for using its service.
There are some attached transaction fees, however:
That’s a pretty impressive offering and means that you can make card payments in the UK and abroad without getting charged. If you’re overseas, you’ll get the MasterCard exchange rate and don’t have to pay foreign transaction fees. However, you can’t currently make transfers to overseas accounts.
Your initial MasterCard is free, and if you lose it, you’ll also be eligible for a free replacement. Additionally, if you’re transferring between Tide accounts, you won’t be charged anything.
If you’re a new small or medium-sized business owner or freelancer, a Tide account could well be suitable for you. The fact that it’s so easy to get started and set up the app means you can start making and taking transactions with minimal effort. If you deal with a lot of UK companies, send a lot of invoices, and want to integrate your bank with your accountant or accounting software, Tide is a great choice.
Those who need to make a lot of cash withdrawals and payments may not find this account suitable. The fees can get a little pricey when doing so. Similarly, if you need to make transfers to overseas clients, you’ll have to do so elsewhere.
If you deal with a lot of UK companies, send a lot of invoices, and want to integrate your bank with your accountant or accounting software, Tide is a great choice.
Some business owners will want the reassurance of a face-to-face person to help them set up and manage their account. Although Tide’s customer service is good, it’s limited to a text chat on the app.
As with every account, there are some drawbacks to using Tide:
Some of these may not affect you, and others will be bearable. Ultimately, you must decide what your business banking needs are and whether Tide can meet them.
One thing that you can rest assured about is that your money is safe with Tide. Their parent company is authorised by the Financial Conduct Authority under the Electronic Money Regulations. This means that the money in Tide accounts is protected by Safeguarding accounts — Tide doesn’t invest or loan out your money, and so it’s not at risk. Even if Tide were to file for insolvency, your money is safe.
In terms of the app, your account is password protected, and you have to authorise any payments made on your card. Every time you sign into a new device using the Tide app, you’ll have to provide a selfie to verify it’s you. If you do lose your smartphone, you can email Tide to freeze your account and card.
Tide offers a service that will be ideal for many SMEs and freelancers. It’s incredibly simple to get started with, and using the app to manage your finances is straightforward. The fees are reasonable for most activities, and you can rest assured that your money is safe.
If you’re a cash-based business or make a lot of foreign transfers, this is perhaps not the account for you. Similarly, if you need the reassurance of a physical branch, you won’t find that here.
Address:
144a Clerkenwell Road
London
UK
Telephone: 0333 121 0266
Email: hello@tide.co
Find answers in Q&As and ask your question
Tide and Hoxton Mix virtual office are apparently different companies. I upgraded my virtual office on the advice of Hoxton to enable all mail to be forwarded. I paid the upgrade fee accordingly. Guess what Tide did? They took money out of my account for the virtual office despite me telling them I have already paid the virtual office which is a third party provider. So, in black and white, Tide has stolen money from my account. 17.99 for a virtual office which I have already paid for. Now, I spoke to my bank, they said do not under any circumstances, agree to discuss anything on the Tide app which Tide insists on. The high street bank said this is a regular tactic to avoid keeping evidence. Also, they said do not under any circumstances, agree to partial payment as Tide has terms and conditions which state that you have agreed to close the case with partial payment. Also, do not use your personal debit cards, use one time use debit cards as Tide will continue to steal your money. Finally, Tide is obliged to return the money and I have to give them a 14 day notice to do so. Failure to do so, will result in my high street bank taking the matter further themselves and according to the high street bank, Tide will avoid this at all costs. So Tide, pay my money back. Don't start with ‘we are sorry you feel this way' nonsense or, ‘please go to the app as we cannot discuss this on email due to security reasons'. My high street bank has instructed me what to do, you have 14 days to return my money. Also, for all of you reading this, I am setting up a few social media accounts where you can post your complaints without restrictions. Let's make Tide famous shall we?
Disgusting – Refusing to return my Stolen money
Had my account hacked and £1500 stolen. Cant speak to anyone as they have NO phone number. So have to do online chats which they take hours / days to reply to.
They have REFUSED TO RETURN MY STOLEN MONEY as they claim i gave a code to the hackers – which i didn't. They sent me a chat refusing the claim then just closed the chat so i cant even reply or argue it. Disgusting – a bunch of scammers.
DO NOT TRUST YOUR MONEY WITH THEM.
I was enticed into opening a tide business account on the offer of £75 free, I have recently got into ecommerce so thought this could be a useful account to have.
1 day after opening the account I was sent an email that told me I had 5 days to remove my money from the account as it was being deleted. Colossal waste of my time, all so they dont have to pay out £75, disgraceful. dont use this bank!
This business is absolutely ridiculous. They paused my business account whiles I was mid-shopping for my work. It couldn't have happened at a worse time as the stuff I was getting was urgent. I messaged them on their stupid app no reply for ages. I was left with no money for 3 days and my business account closed without explanation. This company is the worse I have been with. S**t customer service, they reply back to you once a day. I will advise people not to use this bank.
