Tide is a UK business current account provider used by over 500,000 small businesses. Unlike traditional banks, Tide is not itself a bank — it is an e-money institution authorised and regulated by the FCA. Customer funds are held in safeguarded accounts with tier-1 partner banks rather than being covered directly by FSCS. This is an important distinction from Monzo and Starling, which hold full banking licences and provide FSCS protection directly. Tide Business Account Plans 2026
Source: Tide website, April 2026. Always verify current fees at tide.co/business-bank-account as charges may have changed. Tide Business Account: The 20p Transfer ProblemThe most important thing to understand about Tide's free plan is the 20p per transfer charge. For businesses making multiple payments daily — paying suppliers, staff, HMRC — this adds up fast. A business making 20 transfers per month pays £4/month just in transfer fees on the free plan. Starling Bank's free business account offers unlimited UK transfers at no cost. For most businesses with regular payment activity, Starling's free account is better value than Tide's free plan. Is Tide Safe? FSCS and Fund ProtectionTide is not a bank and does not have FSCS protection. Customer funds are held in safeguarded accounts with ClearBank and other tier-1 partner banks. Safeguarding is a regulatory requirement under the FCA's Payment Services Regulations — it means your money is ring-fenced from Tide's own funds. However, in the unlikely event of Tide failing, the FSCS compensation scheme would not apply — recovery would depend on the insolvency process. For businesses where fund safety is a priority, Starling Bank (FSCS protected) or Monzo Business (FSCS protected) are safer choices. Our Verdict Tide is a solid business bank account for sole traders and small limited companies wanting quick setup and strong invoicing tools. Its main strength is the breadth of features available at low or no cost — particularly for invoicing and expense management. Its main weakness is the 20p per transfer fee on the free plan and lack of FSCS protection. For businesses with high transaction volumes, Starling's free account with unlimited free transfers and FSCS protection is typically better value. Frequently Asked QuestionsHow much does Tide business account cost? Tide's free business account has no monthly fee but charges 20p per bank transfer. The Plus plan costs £9.99/month and includes 20 free monthly transfers. The Pro plan costs £18.99/month with unlimited free transfers. ATM withdrawals cost £1 each on the free and Plus plans. Is Tide business account FSCS protected? No. Tide is an e-money institution, not a bank. Customer funds are held in safeguarded accounts with partner banks under FCA Payment Services Regulations. This means funds are ring-fenced from Tide's own money, but FSCS protection does not apply. If FSCS protection is important to you, consider Starling Bank or Monzo Business instead. Is Tide a good business account? Tide is well-regarded for its speed of setup, invoicing tools, and accounting integrations. It is particularly strong for businesses that need expense management tools. Its main drawbacks are the 20p per transfer fee on the free plan and the lack of FSCS protection. It has over 500,000 business customers in the UK. Tide vs Starling for business — which is better? Starling Bank offers FSCS protection and unlimited free UK transfers with no monthly fee — making it better value for most sole traders. Tide offers stronger invoicing and expense management tools on its free plan. If you need to manage expenses across multiple team members or want business credit, Tide's paid plans offer more features. This article is for informational purposes only and does not constitute financial advice. Always verify rates and eligibility directly with the provider before applying. Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk |
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