When deciding between Starling Bank and Tide Bank for your business account in the UK, you’ll find both offer compelling features tailored to different needs. Starling Bank impresses with its international transfers and 24/7 customer support, while Tide Bank stands out with its advanced cashflow insights and cashback on business spending. Each bank has its own strengths, but which one aligns better with your business priorities? To make an informed decision, you’ll need to weigh the pros and cons of their unique offerings and consider how they match your specific requirements.
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Account Features
When comparing account features, it’s clear that both Starling Bank and Tide Bank have distinct offerings tailored for UK small businesses. If you’re looking for business bank accounts that cater to specific needs, you’ll find some differences worth noting.
Starling Bank excels in international transfers and cheque deposit services, essential for businesses dealing with overseas clients or needing to deposit cheques regularly. They also offer free domestic transfers and waive all ATM withdrawal fees, making it cost-effective for cash access. You get complimentary business debit cards with Starling, adding convenience for daily transactions.
On the other hand, Tide Bank stands out for its advanced cashflow insights and unlimited free invoicing tools, which are invaluable for managing your finances and keeping track of payments. Additionally, Tide provides a 0.5% cashback on business spending, a feature Starling doesn’t offer. If your business handles a lot of cash, Tide partners with Post Office and PayPoint for cash deposits, offering flexibility and accessibility.
While Starling applies real mid-market exchange rates with a 0.4% fee for currency exchange, Tide doesn’t provide this service.
Both banks aim to support small businesses, but the choice between them depends on which features align with your specific needs.
Fees and Costs
Comparing the fees and costs between Starling Bank and Tide Bank reveals important considerations for UK small businesses choosing a business account. Starling Bank stands out with no monthly fees for their business accounts, which can be a significant advantage. On the other hand, Tide offers a free entry-level account without monthly fees but charges 20p for transfers in or out. In contrast, Starling doesn’t charge for electronic payments or domestic transfers, making it more cost-effective for frequent transactions.
For cash deposits, costs vary. Tide charges £2.50 for deposits up to £500, whereas Starling imposes a 0.7% fee for Post Office deposits, with a minimum charge of £3. If your business often handles cash, these fees can add up, making Starling potentially more expensive for larger deposits.
Both banks offer additional services at a cost. Starling’s Business Toolkit is available for £7 per month, providing extra features for managing your finances. Tide offers Tide Plus for £9.99 per month, which includes additional benefits.
Ultimately, the choice between Starling and Tide will depend on your business’s specific needs regarding fees, transfers, and cash handling. Evaluate these costs carefully to determine which bank aligns better with your financial habits and requirements.
Mobile App Experience
Choosing the right bank for your business isn’t just about costs and fees; the mobile app experience also plays a significant role in daily operations. Both the Starling Bank app and the Tide Bank app offer user-friendly interfaces on iOS and Android devices, making account management a breeze for business account holders.
The Starling Bank app is highly rated, boasting a 4.7/5 on the App Store and a 4.6/5 on Google Play. It offers real-time notifications, secure login, and allows you to manage various banking tasks such as making payments and viewing transactions. The seamless and intuitive design ensures you can handle your business finances effortlessly.
On the other hand, the Tide Bank app also provides a solid mobile app experience with a 4.5/5 rating on the App Store and a 4.3/5 on Google Play. It excels in quick and easy account management, letting you manage invoicing and perform transactions on the go. Real-time notifications and secure login features are also present, ensuring your business activities are always under control.
Security and Insurance
In terms of security and insurance, both Starling Bank and Tide ensure your business’s financial safety with robust protection measures.
You’ll find that Starling Bank holds a full banking license in the UK, guaranteeing regulatory compliance and customer protection. Your business account with Starling is safeguarded by the Financial Services Compensation Scheme (FSCS) up to £85,000, offering peace of mind in case of financial troubles.
Tide, although not a bank, is authorised by the Financial Conduct Authority (FCA) and provides FSCS protection through its partnership with ClearBank. This means your funds are equally secure under the same £85,000 FSCS limit, ensuring your business assets are protected.
Both Starling and Tide prioritise security to keep your business account transactions safe. They employ advanced fraud protection technologies to detect and prevent unauthorized activities.
To further enhance security, both banks use two-factor authentication and encryption, safeguarding your sensitive business information from potential threats.
Customer Support
When it comes to customer support, Starling Bank and Tide both offer a range of ways to assist you with your business banking needs. Starling Bank provides 24/7 customer support via in-app chat, email, and telephone, ensuring you can always reach a customer service adviser whenever you need help. This round-the-clock availability has garnered positive feedback, contributing to their impressive 4.3/5 rating from over 40,000 reviews. Users often praise the ease of use and helpful customer support.
Similarly, Tide offers various support options through the app, telephone, and email. While Tide doesn’t provide 24/7 support, they’re recognized for their fast response times and helpful support, as reflected in their 4.1/5 rating from over 19,000 reviews. Customers appreciate the quick and efficient assistance they receive, although the lack of round-the-clock availability is a notable difference compared to Starling.
Both banks excel in providing multiple channels for customer support, but Starling’s 24/7 service and higher rating might give it an edge if constant availability is crucial for your business.
However, Tide’s quick response times and helpful support also make it a strong contender.
Cash and Cheque Handling
Handling cash and cheques efficiently is crucial for many businesses, and both Starling Bank and Tide offer different solutions to meet these needs.
When it comes to cash deposits, Tide charges a 3% fee for PayPoint cash deposits. They also charge £2.50 for deposits up to £500 and 0.5% for higher amounts.
On the other hand, Starling Bank charges a 0.7% fee for Post Office cash deposits, with a minimum fee of £3. This means you’ll need to consider the volume and amount of cash deposits your business typically handles to determine which fee structure is more cost-effective for you.
When it comes to cheque handling, the differences are more pronounced. Starling Bank allows you to deposit cheques up to £1,000 via their app, making it convenient for smaller amounts. For higher amounts, you can send them by post.
Tide, however, doesn’t accept cheque deposits at all. This could be a significant drawback if your business frequently deals with cheques.
Frequently Asked Questions
What Is Better, Starling or Tide?
When choosing between Starling and Tide, consider your business needs. Starling Bank has higher customer satisfaction and supports international transactions. If you deal with cheques or need global transfers, Starling’s your go-to.
Tide Bank, however, offers a cashback plan and unlimited free invoicing, which is great if your business frequently sends invoices.
Both have their strengths, so it depends on what features matter most to you.
Which Bank Is Best for a Business Account in the Uk?
When deciding which bank is best for a business account in the UK, you should consider your needs. If you value no monthly fees and free domestic transfers, Starling Bank might be the best choice. They also offer international money transfers and free ATM withdrawals.
On the other hand, if you need unlimited invoicing and advanced cashflow insights, Tide Bank could be better. Tide also partners with Post Office and PayPoint for cash deposits.
What Are the Disadvantages of Starling Bank?
When you use Starling Bank, you’ll face fees for international transfers and might be limited in the number of free cash deposits.
You won’t get as many cashback or expense card options compared to other banks.
Some users report occasional technical glitches with the app, and customer service response times can vary, which might impact your support experience.
These factors could be drawbacks for your business needs.
Is Tide a Good Business Account?
Yes, Tide is a good business account. You’ll find their free account with no monthly fees appealing.
Managing your account online is simple and efficient. Tide offers cashback on card spending and expense cards for business transactions.
The Invoice Assistant feature is handy for free invoice creation and tagging. If you need more, Tide Plus offers extra benefits like phone support and free transfers for a small monthly fee.
Conclusion
When choosing between Starling Bank and Tide Bank for your UK business account, consider your priorities. If you value international transfers, free domestic transfers, and stellar customer support, go with Starling.
If you need advanced cashflow insights, free invoicing, and cashback, Tide’s your best bet. Both have strong mobile app experiences and unique features, so weigh what matters most for your business.
Either way, you’ll find a reliable banking partner.
