Tide Savings Account Review

If you already have a Tide account for your business, you may be considering opening a Tide savings account¹ to make your money work harder while you’re not using it. The Tide business savings account is available to eligible Tide customers, and is an instant access account which pays monthly interest on your balance. But is it worthwhile?

This Tide business savings account review covers all you need to know to decide if it’s right for you. Plus, if you’re looking for alternatives to Tide, read on to learn a little about Wise Business, a smart low cost account option for businesses with global ambition that has an interest feature.

💡 Learn more about Wise Business

Tide business savings account

The Tide Instant Saver Account can be opened by eligible customers, aged over 18, who are UK residents. You’ll need a Tide Business Account to open the savings account product, but once you have that sorted out you can get your savings account all set up easily in the Tide banking app or online. Depending on the underlying Tide Business Account you pick, there may be a monthly fee to pay, but adding on the savings solution doesn’t add any extra monthly costs.

Tide savings accounts are available for sole traders and limited companies, and you can open your account with as little as 1 GBP deposit. Deposit money digitally by making an electronic transfer to your Tide account, for a small Tide fee of 0.2 GBP per transfer. In return, you earn a monthly interest payment which is set based on underlying Bank of England rates.

As the account is designed as an instant access account, you can make withdrawals whenever you need to with no penalty. That makes this a flexible option for businesses which may have excess cash but which can’t lock it away for extended periods.

It’s worth noting though, that you can only transfer in and out of your Tide business savings account from your primary Tide business account². You can’t use your savings account balance to pay suppliers or staff for example.

This can slightly slow down the process of making payments, as you’ll need to move your funds to your main Tide account before making an onward payment.

If you’re looking for a business account you can use to make direct transfers to others, including in foreign currencies, check out Wise Business. More on that later.

Tide business savings account interest rate

When you open your Tide account for saving, you’ll be paid interest on your balance on a monthly basis.

The interest you’re paid on your Tide savings is calculated by Tide taking the Bank of England interest rate and deducting a margin. At the time of writing, the Tide business savings account has an interest rate of 4.33% AER. This is a variable rate, which means it is reviewed frequently by Tide, and can change, depending on Bank of England rates and the margin Tide deducts.

If the interest rate you receive on your savings changes - up or down - because of changes in the underlying Bank of England rate, Tide does not need to notify you in advance. However, if the rate paid to you decreases because of changes Tide makes to its margin, you’ll get 14 days notice so you can decide if the account still presents good value to you.

If you have a Tide account already you’ll be able to see the applicable rate by logging into your online or mobile banking - or, if you’re just researching whether or not the Tide business savings account interest rate is competitive in the market, you can check on their website to get the latest information.

Tide business savings account - FAQs

How to open a Tide savings account?

To open a Tide saving account you’ll first have to open a Tide Business Account, and then set up the savings account afterwards. The whole process is managed online or in the Tide app, making it quick and convenient. Here’s a quick overview of how to open a Tide Business Account:

1. Download the Tide app and click Open an account
2. Follow the prompts to enter your personal and company information
3. Get verified by uploading an image of your ID and a selfie

Your primary Tide account will be approved - once it is set up, you can open the Tide savings account in the Tide app by tapping the Instant Saver option and depositing as little as 1 GBP.

Is a Tide savings account free?

The Tide Instant Access Savings Account has no monthly fee to pay. However, to get this account you must also have a Tide Business Account, which may come with fees, depending on the account tier you select and how you transact.

For the main Tide Business Account product, you can select an account plan which has no ongoing costs, or upgrade to a paid plan which can cost up to 49.99 GBP a month³.

If you opt for an account with a monthly fee you’ll unlock extra features, and may get some free transactions as part of the package. Get all the details on the Tide website to help you decide which account will suit your specific business needs.

Can you withdraw money from Tide savings?

Yes. The Tide savings account is an instant access account product which means you can make withdrawals any time you like with no penalty. You’ll continue to earn interest on any balance you hold until the point you withdraw it, which is paid into your account on a monthly basis.

It’s important to note that you can only move money in and out of your Tide savings account from your primary Tide Business Account. You won’t be able to make a transfer to pay a supplier directly from savings, or use an ATM to get your cash directly for example.

Is Tide safe for savings?

Tide is a safe place to deposit your business savings.

Tide is fully licensed and regulated provider which works with banking partners to offer safe and secure services. When you deposit funds with Tide, the money is safeguarded by ClearBank - Tide’s partner - and covered under the Financial Services Compensation Scheme (FSCS) up to deposits of 85,000 GBP.

This means that your money is held separately to Tide’s own working capital, in an authorised and regulated bank. In the unlikely event that Tide ran into financial trouble, your money is protected. You can learn more about the FSCS scheme online⁴.

Is Tide protected by FSCS?

Yes. Tide works with banking partner ClearBank to offer FSCS protection on savings up to the legal maximum of 85,000 GBP. If you hold more than 85,000 GBP with Tide the excess may not be protected, so if you intend to hold a larger balance it’s worth getting advice about how best to manage your business funds for flexibility and security.

Discover Wise Business and Wise Interest

If you need to manage your business finances across currencies, you might be better off with Wise Business.

Wise Business offers powerful international features including ways to hold and exchange 40+ currencies in the same account, options to send payments to 160+ countries and get paid in 8+ currencies like a local, and linked debit and expense cards you can use in 150+ countries.

There’s a low one-time fee to open your Wise Business account, and then no ongoing costs or minimum balance requirements. Whenever you need to convert currencies with Wise you get the mid-market exchange rate, with low, transparent fees⁵ which make it a cost effective option for sending and spending in a broad selection of foreign currencies.

Once you have a Wise Business account you can also choose to benefit from Wise Interest to earn a return on balances held in GBP, EUR and USD. At the time of writing, rates are set at 4.66% on GBP balances, paid daily. There’s no penalty to access your funds, so you can carry on using your Wise Account as usual, and allow the interest feature to run in the background, bringing you potential daily returns on your multi-currency balances. There’s a small service annual fee of 0.56% for this account. Capital at risk. Current rates do not guarantee future growth.

Variable rate is based on 7 day performance as of 10 Aug 2023. This fund has returned an 0.93% annual average over the last 5 years, excluding Wise and fund manager fees. See full 5 year past performance of funds

Get started with Wise Business 🚀

As a UK business owner, you have plenty of options when it comes to digital accounts to manage your money in GBP and foreign currencies conveniently. Use this guide to decide if the Tide Business Account and Tide Instant Access Savings Account may be right for you - and don’t forget to also consider Wise Business. Wise could be a winner if you need to send, receive or hold foreign currencies on behalf of your business, with mid-market rate currency conversion, low fees, and fast payment delivery times.

Sources used in this article:

Sources last checked 24/05/2024