Tide vs Revolut Business: Best Business Bank Account?

When you first start any kind of business, it makes sense to set up finance planning alongside.  Whether you are a sole trader just getting started, or if you’re a freelancer looking to separate your personal finances from your business takings, it’s a good idea to start looking for specialist business bank accounts.  While there are plenty of UK banks out there which offer specific business banking services, I thought I’d take the time in this review to run through a couple of specialist services.

In this guide, I’ll be looking at Tide vs Revolut Business, two popular, modern business financial services continuing to build up firm followings online.  But are these services really going to be worth your while?  Which, if any, is better for you to bank with?  Let’s take a closer look.

Tide vs Revolut Business: Summary

Don’t have time to read my full guide and review?  Don’t worry.  Here’s a full breakdown on what you can expect.

• Both Tide and Revolut Business are app-driven business finance account services.  Both offer free systems, though Tide’s appears to be more feature-rich.
• It’s important to note that Revolut is not licensed as a bank in the UK.
• Revolut offers more subscription levels and an international currency service.  Tide doesn’t supply this option.
• You can pay cash in via Post Office with Tide, and you can’t through Revolut.
• Both services are secure, though neither are FSCS protected.
• They both let you manage your finances and B2B payments via app, though Tide allows you to invoice people on top.
• Both Revolut and Tide are also flexible and scale-able with app based platforms.

Tide vs Revolut Business

What is Tide?

Tide is a contemporary business banking app aimed at freelancers, sole traders.  However, SMEs and smaller firms might also benefit along the way.

The service is free and allows you to keep all your business accounting in one place.  You’ll receive a physical card, and you can manage invoicing and pay for services directly through the app.  You can also apply for a loan of up to £1,500 to help get you started off.  You can also apply for credit cards through the service, too. 

It’s worth remembering that much of what the service has to offer is available through the app alone.  Therefore, if this type of interface is likely to appeal to you, then you’re off to a good start.

Is My Money Safe with Tide?

Yes.  While there are some apps out there which have the authority to move your money and to do all kinds of things with your data, Tide has a pretty strict policy list.  In fact, you won’t be able to do anything with your cash through the app unless you specifically inform Tide that you’re happy to do so.  What’s more, it’s even protected by a selfie system, which means that if you log into the app with a different device, it’ll need you to snap a photo of yourself to match one of you have on file.

What Fees Do Tide Charge?

While Tide is free to use on the whole, it’s worth keeping in mind that there are a few fees involved should you wish to use your money in specific ways, or through specific channels.  Here’s a quick breakdown:

Tide Free Account

• Monthly Charge: Free to use
• Cash Depositing: £1 per transaction
• Bank Transfers: 20p per transaction
• Physical Withdrawals at ATMs: £1 per transaction
• Payments By Card: Free

Tide Plus

• Monthly Charge: £9.99
• Cash Depositing: £1 per transaction
• Bank Transfers: 20 Free per month then 20p per transaction
• Physical Withdrawals at ATMs: £1 per transaction
• Payments By Card: Free

Tide Premium

• Monthly Charge: £49.99
• Cash Depositing: £1 per transaction
• Bank Transfers: Unlimited Free Transfers
• Physical Withdrawals at ATMs: £1 per transaction
• Payments By Card: Free

As you can see, this is a pretty impressive list of figures.  It’s safe to say that Tide is free for the most part, meaning that you can expect only to pay a little on top if you want to move your money around in a very specific way. If you need to make use of more flexibility and free transfers then you can always look at the paid account options.

Is Tide a Real Bank?

Yes, although it is completely managed through an online platform.  Therefore, you can’t expect to go to a physical branch to manage your account.  However, if you do want to speak to a digital teller, you can do so directly through the app.  This is great news for anyone who wants to keep things streamlined and on-the-go, as it were.

Tide also states that you should be able to open an account in five to ten minutes, though this will be subject to the standard ID checks.

Can You Deposit Money and Cheques with Tide?

You can make cash deposits through the service via Post Office counters at a rate of £1 per transaction.  However, the service doesn’t accept cheque payments at this time, which might be a bit of a let-down for some business owners.

Is Tide FSCS Protected?

No.  However, that’s not to say that your money isn’t safe.  In fact, all of Tide’s services are backed up by an FCA-approved company called PrePay Solutions.  As your funds are not up for investment, FSCS protection is irrelevant in this case.  Therefore, there’s no risk.  Tide states that should the company fold at any point, the handling of your finances will automatically transfer to PrePay Solutions, meaning that there is a guarantor in place.

How Does Tide Make Money?

Tide is free on the surface, but as we’ve discovered, there are a few transaction fees and costs which help to keep the service ticking over.  What’s more, there are premium services available for additional charges, which are completely optional.

The service makes money through any loans you take out, too – obviously benefiting from the interest.  Therefore, Tide’s money-making business is pretty clear to see.  That’s going to be a refreshing change.

Company Formation & Business Bank Account Service

One offering which is unique to Tide and definitely worth mentioning is their one stop shop company formation and bank account service. Where you can register your limited company and open a business bank account in one simple process, for free (yes they will even pay the £12 registration fee with companies house for you!).

What is Revolut Business?

Revolut is a service which initially started offering personal account services, but which has since made the leap into the world of business.  Unlike Tide, Revolut Business offers a paid service which will give you the most features, though the amount you pay really depends on the size and stature of your business.  There is a free account, however, which you can set up for access to minimal features.

Much like Tide, Revolut Business runs through an app, though you do also get a physical card in the post.  The app itself is pretty intuitive and will give you a full breakdown on your balances, your card activity and any companies you wish to send money to.

The service lets you add multiple users, and what’s more, you can access your money in multiple different currencies.  Even the free service lets you add one more person to the service, though if you need to finance a full team, you’re going to need to look into the paid service.  Revolut Business will also work with a variety of different business accounting systems, making it super-flexible.

Is My Money Safe with Revolut Business?

While technically your money is safe with Revolut, it’s important to note that they have faced a number of regulatory problems. This includes failing audits, an inability to secure a banking license in the UK for more than 2 years from the application date, departures of a number of senior executives from the firm, and serious questions about its corporate culture.

While Revolut does continue to operate normally for now, its regulatory and audit related challenges do give us serious concern.

If you do like some of Revolut’s tech-forward features – and there are a number of them – I would urge you to limit the amount of money that you have inside your Revolut account at any time.

What Fees Do Revolut Business Charge?

That all depends on whether or not you run a free account, or a paid service through Revolut Business.  Here’s a breakdown of what to expect.

Free Accounts

• Monthly Charge: Free to use
• Cash Depositing: N/A
• Money Transfers: Five free local transfers per month
• Physical Withdrawals at ATMs: 2% per transaction

Grow Accounts

• Monthly Charge: £25 Per Month
• Cash Depositing: N/A
• Money Transfers: 100 free local transfers and 10 free international transfers per month
• Physical Withdrawals at ATMs: 2% per transaction

Scale Accounts

• Monthly Charge: £100 Per Month
• Cash Depositing: N/A
• Money Transfers: 1,000 free local transfers and 50 free international transfers per month
• Physical Withdrawals at ATMs: 2% per transaction

Enterprise Accounts

• Monthly Charge: £1,000 Per Month
• Cash Depositing: N/A
• Money Transfers: Unlimited transfers
• Physical Withdrawals at ATMs: 2% per transaction

Please note that with ATM withdrawals or certain transactions involving 3rd parties, additional fees may apply from the third parties. With ATMs, weekend marks-ups may apply too.

As you can see, there are a number of levels which are likely to appeal to different types of business and service.  There are a few perks to using the service’s different levels, which, again, will likely appeal to you in different ways depending on the size and nature of your firm.

Is Revolut Business a Real Bank?

No – however, it offers financial services. You can read more about it here.

Can You Deposit Money and Cheques with Revolut Business?

No – this is one major drawback of the service, and a clear way in which Tide pulls ahead.  There are no physical deposits available through Revolut Business, which makes the physical card all the more pointless!

Is Revolut Business FSCS Protected?

No – but again, Tide isn’t protected in this way either, and that’s as a result of there being no risk to your money.  That being said, some form of cushion for your cash is always a good thing.  There shouldn’t be much need for you to worry.

How Does Revolut Business Make Money?

Transaction fees at all levels, as well as subscription fees, are where the brand makes its cash regularly.

Tide vs Revolut Business: Pros and Cons

Tide: Pros and Cons

• Tide is completely free to set up and use.  There are a few subscription levels which will give you extra perks, but for the most part, it’s a free service.
• Fees for transactions and withdrawals are very reasonable.  Therefore, it might well appeal to freelancers and small businesses who are just getting started.
• It’s very easy to manage your money and to organise it however you wish.  What’s more, you can use the app service to invoice and pay business customers as you see fit.  It’s FCA registered, too.
• There’s no FSCS backing, though as the brand states, there isn’t really any call for it.
• You can’t set up a basic current account through the platform, which means you might still need to depend on a physical account at some level.
• You won’t be able to transfer money overseas, which is likely to be drawback for some growing businesses.

Revolut Business: Pros and Cons

• Revolut offers a range of business account services which rank up depending on how many transfers you wish to make.  It’s also free to use from the start and very flexible on the whole.
• It’s one of the most secure services of its kind, and there are plenty of options for you to send money overseas, and to trade in different currencies.
• The app itself is very smooth and streamlined and will appeal to more app-savvy bankers.  You can set up prepaid cards through the service, too.
• Fees through Revolut Business may cost more in the long run for general users.  What’s more, there are higher fees through cash withdrawals than through some other services.
• You won’t be able to make cash deposits on your account, which is a little bit restricting given the other freedoms you receive.
• The free account is fine on the whole – but it’s unlikely to give you much to work with.
• Revolut faces regulatory scrutiny and has struggled to obtain a banking license in the UK. They have also faced concerns from auditors.

Tide or Revolut Business: Which is the Best Business Finance Account?

Both Tide and Revolut Business offer plenty of perks and features for new business owners.  However, Tide is restrictive in terms of there being no international system, and Revolut could cost you more in the long run.  What’s more, there is no way for you to pay cash in with a Revolut Business account!

On the whole, both services offer a fair amount of flexibility – but you may still need to have a physical bank account on side if you really want to make the most of your money.  Definitely take out a business account – though whether or not either of these options will support you is down to you.