Interest rates determine how much your savings grow over time. 

The interest rate you receive for the funds you deposit in your Tide Instant Saver account is equal to the published Bank of England Base Rate (gross) minus a certain percentage, determined by Tide. It’s calculated as a percentage of your balance, and the higher the interest rate, the more your savings can grow.

Thе interest rate applicable to your Tide Instant Saver account is a variable rate and can change as the market fluctuates. The interest you earn can either go up or down depending on the rate. You can find the interest rate applicable to your savings account in the relevant Summary Box.

From 1 April 2025, members on our Smart, Pro and Max plans are enjoying preferential interest rates on Instant Saver accounts: 

• Smart – 3.55% AER variable on business savings up to £100,000

• Pro – between 3.86% AER and 4.07% AER variable on business savings up to £150,000

• Max – between 3,86% AER and 4.38% AER variable on business savings up to £1,000,000

The variable rates shown are correct as of 01 April 2025. The interest is applied in a progressive tiered structure, meaning that each portion of the deposit earns interest at the corresponding rate for that tier – rather than applying the highest interest rate to the entire deposit, only the amount exceeding each threshold earns the higher rate.

Compound interest is interest calculated on both your original savings and any interest you've already earned.

This means your savings can grow faster over time, as each interest payment increases the amount on which future interest is calculated. The more often interest compounds, the more your savings can grow.

It depends on how your business is set up.

If you're a sole trader, any savings interest you earn is your personal income - and is subject to income tax if it exceeds certain limits.

If you're a limited company director, your savings belong to the business and any interest earned is company revenue - which may be subject to corporation tax.

Find out more in our savings interest tax guide.