Tide vs Cashplus: Comparing business bank accounts

Writing a business plan, securing capital, choosing your company name, buying equipment, marketing – there’s a lot to consider when you’re starting a business. Opening a business bank account may not be top of your priority list, but it should definitely be up there.

It’s so much easier to keep your personal and business finances separate, especially when it comes to submitting tax returns. Also, if you plan to expand your venture or borrow money at some point, it makes sense to open a business bank account on day 1.

Nowadays, your options for opening a business bank account go way beyond the traditional high street banks. In this article, we’ll compare two of the leading digital-first ‘challenger banks’: Tide and Cashplus.

Table of contents

• The similarities
• How much do accounts cost?
• Paid account plans and smart features
• How easy is it to open a business bank account?
• Using your card in the UK and abroad
• Customer support
• In conclusion: similar yet different

Tide vs Cashplus: the similarities

Whether you’re a sole trader, freelancer, or director of your own limited company, both Tide and Cashplus cater to your needs. Both offer business bank accounts you can manage 24/7 from any device. They also both offer a banking app that can be used to make and receive payments – and you’ll get a contactless Mastercard with either provider.

Cashplus has an account management system that allows you to manage employee expense cards centrally. Tide offers a very similar feature with company expense cards, which allow you to manage employees’ business spending from within the Tide app.

When it comes to protecting your money, Cashplus and Tide accounts are both FSCS (Financial Services Compensation Scheme)-protected up to a value of £85,000.

Tide vs Cashplus: how much do accounts cost?

It’s free to open a Tide account and there’s no monthly fee for the entry-level business account. There are also no transaction fees to transfer money between Tide accounts. Transfers to or from non-Tide bank accounts cost 20p. Your contactless Mastercard is free, and ATM withdrawals cost £1 each.

The Cashplus Business Go account is also a free account with no monthly fee. This account gives you 3 payments per month for free, then charges 30p for each additional payment. Your contactless Mastercard will cost you £9.95, and ATM cash withdrawals cost £2 each.

Tide vs Cashplus: paid account plans and smart features

Cashplus Bank smart features

The Cashplus banking app, together with online banking allows you to send faster payments from your business bank account to pay bills quickly, set up standing orders, make supplier payments, as well as pay your employees.

Additional Cashplus features include the ability to:

• manage your employees’ business expenses and travel costs in one place
• view and track spending, as well as block and unblock cards
• download statements directly from the app
• tag and track your payments with the help of Google Maps data
• integrate your account with both new and existing apps.

Cashplus Business Extra

For £9 per month, the Cashplus Business Extra account gives you 0.5% cashback on your card spending, 10 free payments in-app or online, and your contactless Mastercard debit card comes for free.

With Business Extra, you also get:

• the option to use the Cashplus Creditbuilder feature to improve your credit score
• reduced ATM fees (£1 instead of £2), and
• a higher account balance limit (£250,000 instead of £50,000).

Tide features

The Tide app has a host of smart features to help you manage your business finance admin. Many of these are available for free and others can be accessed with a small monthly charge.

One of the most helpful products is company expense cards. You can order up to 50 cards per account at just £5 +VAT each, and use them to make purchases directly from your business account. They’re the perfect way to get total visibility and control of company spending by you and your team.

Other smart Tide app features include:

• invoicing, which enables you to create and send your own customised invoices, as well as track payments
• sync your account with a wide range of popular accounting software, including Sage, QuickBooks, and Xero with the account integration feature
• Cashflow Insights, which forecasts your cashflow up to 30 days in advance and gives tips for staying in the black
• connect any other business accounts you have via Open Banking, to give you an even more accurate picture of your financial health
• access affordable and flexible credit options and check your credit rating with the embedded Experian Credit Score.

Tide Plus and Cashback

For £9.99 per month + VAT, Tide Plus is the ideal account to upgrade to when your business starts to scale up. With Tide Plus, you get:

• telephone support
• a 24/7 legal helpline
• up to 20 free transfers in and out, and
• a free company expense card for managing your company expenditure.

At £49.99 per month +VAT, Tide Cashback is perfect if you’re running a larger business. In addition to your own dedicated teams of account managers, you will also receive:

• 150 free transfers per month
• 0.5% cashback on all spend on your Tide card, and
• 3 company expense cards for you and your team.

How easy is it to open a business bank account with Tide vs Cashplus?

Both Tide and Cashplus allow you to apply for a business bank account in app within minutes, making form filling a thing of the past.

Cashplus also maintains that, once your account application is approved, you should receive your contactless business Mastercard within 3 to 5 working days.

Tide account sign-up

To open a business bank account with Tide, you’ll first need to download the Tide app from either the App Store or Google Play Store. You will then need to provide a form of ID: either a driving licence, passport, or European National ID card.

You may also be asked to provide evidence that your business is already established, such as HMRC registration, copies of any qualifications you have, or signed contracts.

There will be no hard credit check and your accompanying bank card will be supplied for free. If you lose your card, there’s no fee to order a replacement.

Cashplus account sign-up

You can apply for a Cashplus account directly from your phone once you’ve downloaded the Cashplus app, or you can apply online.

You must be able to verify that your business is based in the UK, and limited companies are required to confirm the date of birth and home address of any other People with Significant Control (PSCs). You will also be required to provide proof of your identity and address.

Tide vs Cashplus: using your card in the UK and abroad

Tide and Cashplus offer free card transactions when spending in the UK and there is a contactless limit per transaction for both of £100. Tide charges £1 per transaction to make a cash withdrawal from an ATM, and Cashplus charges £2 per withdrawal. 

If you travel abroad, you can use your Tide card anywhere that Mastercard is accepted. You’ll also receive the Mastercard exchange rate with no additional mark-up or fees and there is no free-spending limit. However, you will still be charged £1 to withdraw cash at an overseas ATM.

You can also use your Cashplus card abroad, and you’ll pay a 2.99% fee on any purchases and £3 to withdraw cash from an ATM.

However, you can order a separate euro or dollar card for free – and use it to make card payments or ATM withdrawals without incurring any foreign transaction fees. You can also transfer funds onto these cards from your Cashplus business account through online banking.

Tide vs Cashplus: customer support

Tide free account holders can contact Member Support through the app, or send an email requesting a call back during working hours. An automated telephone service is available to report a lost or stolen card.

Tide Plus, Pro or Cashback members have access to telephone support, as well as a 24/7 legal helpline to assist with any tax or contract issues. Tide Cashback offers members their own dedicated team of account managers.

Members, on any plan, can call the Fraud Rapid Response team by calling 159. Use +44 20 4587 0366 if you’re calling from abroad. Lines are open 24/7.

Cashplus provides customer support via telephone Monday to Friday from 8am until 8pm, and on Saturday from 8am until 4pm.

Tide vs Cashplus in conclusion: similar yet different

The business bank accounts on offer from both Tide and Cashplus are both digital accounts that can be managed online or through a mobile app. Their apps contain a range of smart features including easy invoicing, expense card management, and the uploading of receipts.

However, unlike Cashplus Tide is focused solely on small businesses and their specific needs. From company registration, VAT registration and setting up a virtual office address, to invoicing, expense management and managing cashflow, Tide supports small business owners at every step of their journey.

Sources used for this article

1. Cashplus website – https://www.cashplus.com/service-status/

All sources checked as of November 2022