One of the first things any new business owner needs to do is set up a bank account. In this guide, we look at Tide, one of the leading banking providers for small businesses.
Tide offers a free business bank account with £50 cashback.
You can also add a savings account to your Tide setup and earn up to 4% AER on your balance.
At ByteStart, we’ve opened Tide accounts ourselves. The sign-up process took only minutes, and the app has proven to be intuitive and very easy to use. The savings rates are very competitive too.
Some business banking basics
Before we look at what the Tide account can offer, here are some useful things to know about setting up a business account:
Do you need a separate bank account?
If you form a limited company, you must set up a separate account in your company’s name, as it is a distinct legal entity. You can’t use your personal account for any company transactions.
If you’re self-employed (a sole trader), there is no legal obligation to open a separate bank account, but it will make life a lot easier if you do.
However you run your business, finding a banking provider to suit your individual needs is essential.
What do you need from a banking provider?
There are lots of things to consider, such as:
- Do you have a lot of monthly transactions?
- Do you need access to a branch?
- Do you need to deposit cash or cheques?
Things to look out for when comparing banks
- What is the monthly cost of the account?
- Are there any additional fees you should be aware of?
- Are there any valuable extras, such as free invoicing on accounting software?
- Is the bank FSCS protected?
The Tide business bank account – £50 cashback
Over 1.5 million UK businesses trust Tide, one of the UK’s leading challenger banks.
You can set up an account in minutes, and as a special welcoming bonus, Bytestart visitors qualify for £50 cashback just for opening an account.
As you would expect, your money is FSCS-protected, there are no monthly or annual fees, and you can manage your account from your mobile phone (or desktop).
You can open a Tide account and run it concurrently with a traditional business bank account if you already have a business current account.
Benefits provided by the free Tide business bank account
- Rapid signup – the application process takes minutes.
- There are no monthly or annual fees for the ‘free’ account.
- Free use of your MasterCard (home and abroad).
- Set up and amend direct debits.
- Compatible with Apple and Google Pay.
- Free transfers to other Tide accounts.
- Free company formation if needed (whilst opening your bank account!)
- Effortless expense management via the Tide app. It makes VAT returns simple.
- Tide integrates seamlessly with FreeAgent, Xero, Sage, QuickBooks, and Kashflow, so you can easily synchronise your online accounting software with your bank transactions.
- 24-hour a day support via the Tide app.
- Manage your account from any device—laptop, tablet, or desktop.
- You can deposit cash in over 40,000 locations via Tide’s Post Office and PayPoint partnerships.
- Tide is authorised by the Financial Conduct Authority (FCA).
Several pricing tiers are available – Free, Plus and Pro
Make sure you compare the different Tide account offerings: Free, Plus and Pro.
The Free account is an excellent bet for low monthly transactions and simple banking needs.
There is no monthly fee, but a 20p charge applies per transaction. There is in-app support, but no phone support is available.
The Plus account (£9.99 per month) provides one additional MasterCard for a member of your team. You receive 20 free monthly transactions, phone support, and a complimentary legal helpline.
The Pro account (£19.99 per month) provides the same benefits as a Plus account, including two additional MasterCards and unlimited monthly transactions.
As you can see, if you have many monthly transactions, opting for the Plus or Pro account is more effective.
It all depends on how your business operates.
How to open a Tide business account
The onboarding process is simple if you want to open a Tide account.
- Download the Tide app from the Android or Apple Store.
- Enter details about the type of business you run.
- Upload your ID to verify your identity. And upload a selfie.
- Your new bank account could be ready within minutes.
Tide may require additional information in a few cases before completing your application.
Bytestart visitors are eligible for an exclusive Tide – £50 cashback offer.