Tide vs Monzo Business

If you’re a small business owner, you know how important it is to manage your finances effectively. Picking the right business account is key. So today, we’ll be looking at two award-winning options to help you make a choice: Monzo and Tide.

Monzo Business is focused on helping small businesses stay on top of their finances. Their tagline is “It works, so you can too”. Similarly, Tide is on a mission to save small businesses time and money with their “powerful yet simple approach”.

So, to sum up:

• Both Tide and Monzo offer FSCS protection for your funds.

• Both Tide and Monzo have a range of customer service options, including phone, email and in-app live chat.

• Monzo has an interest-earning instant access savings option, while Tide offers sub-accounts for budgeting purposes, but no interest.

• Both Monzo and Tide offer business loans through their partners but don’t have their own lending products.

• Both Monzo and Tide offer integrations with popular accounting software.

Established in 2015, Tide was one of the first UK-based finance platforms with business account offerings. Committed to providing easy-to-use, affordable business banking services, the company is headquartered in London, with branches in Sofia, Hyderabad, and Berlin.

While the financial platform isn’t actually a bank, it provides business bank accounts through its partner, ClearBank. The goal of this setup is to give customers a wider range of products. Also, the financial platform is still regulated by the FCA.

Tide is used by over 400,000 small business owners, freelancers, and limited companies across the UK.

Monzo is headquartered in the UK and is known for delivering personal and business banking solutions to its customers. Its customer base currently comprises over 7 million individuals and businesses, making it a significant player in the banking industry.

Since its inception in 2015, Monzo has offered personal accounts, but it introduced business accounts in 2020. This offering proved popular; 80,000 people signed up for business accounts in just a year. And, they currently have more than 250,000 business users.

Tide and Monzo take your funds and personal data security seriously. Let’s take a look at how they work to keep you safe.

Deposit protection

Both Tide and Monzo offer FSCS-protected bank accounts. This means your money is covered up to £85,000.

Fraud prevention

Both Tide and Monzo offer several measures to ensure the safety of your finances.

Tide implements a two-factor security procedure that verifies new payees through your phone. It also sets default limits for transactions. But, if you feel like these limits are too low, you can speak to the team and get them changed.

Monzo, on the other hand, uses instant notifications to keep you informed about transactions, providing real-time alerts after payments. Also, Monzo users can keep their accounts safe with touch ID, face ID, PIN, or fingerprint, thereby decreasing the risk of unauthorised access.

Both Tide and Monzo enable immediate card freezes in case of theft or loss, which prevents further transactions too. Monzo offers a handy option to "defrost" the account if the card is found later.

Protecting user data

When it comes to safeguarding your data, both Tide and Monzo place great emphasis on establishing robust privacy measures.

As ClearBank provides Tide's bank account, both companies handle your information but maintain similar protocols to ensure that information is securely managed. The provider implements a "need to know" policy that employees must abide by before accessing information. In situations where Tide needs to move your data outside of the EEA area, the company ensures that it is only shared with organisations that agree to comply with the GDPR's regulations.

Meanwhile, Monzo also stores customer data outside of the UK, but only in countries or with organisations that have been verified by the Information Commissioner's Office (ICO) to offer an “adequate level of protection”. In cases where such a guarantee is not met, Monzo uses specific contracts to ensure that customer data is safeguarded as it would be within the UK.

Both companies take a transparent approach to privacy, with policies in place to explain in detail how they handle customer data, which covers all aspects of data protection.

Monzo and Tide have similarly high scores across the most popular review sites. Tide’s aggregate rating suffers as a result of its Google Play score which is slightly lower. However, across all other categories, the two business account providers are closely matched.

Both Tide and Monzo can be described as award-winning banking apps.  Monzo has won multiple awards such as the Best British Bank award, Best Business Account award, and Best Banking App award at the 2022 British Bank Awards. Most recently, in 2023, Monzo solidified its position as a well-regarded financial app by winning the prestigious Best Banking App award from Smart Money People.

On the other hand, Tide has also garnered recognition for its mobile banking solutions, winning the Best Mobile Banking Solutions category at the World Future Awards, and the Banking Tech Award at UK FinTech in 2021.

So whether you pick Tide or Monzo, you’ll be choosing an award-winning app for your business needs.

Both Monzo and Tide offer free basic account options and neither account charges to get started with them.

Tide and Monzo alike have paid options too. Tide offers a tiered price structure that includes several paid features. For instance, if you're willing to pay a little extra, you can gain access to a 24/7 legal helpline and in-app support options. If you opt for their most expensive plan, priced at £49.99 per month + VAT, you'll receive cashback offers and a dedicated account manager.

Monzo’s paid plan is called Monzo Pro and it costs £5 per month. With Monzo Pro, you'll get access to a whole host of features including invoicing, integrated accounting options, and an optional 6-month trial of Xero. Also, there is their tax pots feature which automatically sets aside a percentage of your earnings for taxes.

All in all, both accounts offer transparent price structures and the opportunity to get started for free.

Based on our recent spot check, we found that both Monzo and Tide are operating with full functionality.Although Monzo experienced a slight disruption in their SMS Outbound Delivery during a previous spot check we carried out, it was not a major incident that halted their operations. Similarly, Tide faced some issues in May with delayed payments in and out of their customers’ accounts. This issue was resolved swiftly, and there were frequent updates throughout the day to keep customers informed of progress.

Both providers seem to fix issues quickly and remain transparent when functionality is affected, suggesting they’re reliable.

Monzo and Tide alike offer customer support options via phone, email, and live chat. So whatever your preference, you’ll be able to get the support you need.The only sticking point here is that if you want to speak to someone at Tide, you’ll need to request a callback. You can’t just call them yourself unless you’re using their automated line to report a lost or stolen card.

Other than that, both providers offer pretty similar options.

When it comes to international payments, Monzo has the edge over Tide. But that’s mainly because Tide doesn't offer the ability to make international payments just yet. However, they are actively working on implementing this feature. In the meantime, Tide customers have to use third-party services to facilitate their international payments.

Monzo, on the other hand, has partnered with Wise to enable their customers to make international payments. If you need to send money overseas, you'll be able to use the Wise integration to do so. It's worth keeping in mind that Monzo will create a Wise account for you if you don't already have one, so you won't need to worry about setting up an account with Wise separately.

But, if you want to receive international payments into your Monzo account, this is currently only possible if the funds are in Euros. If you're expecting payments in other currencies, you will need to receive them into your Wise account, and then transfer them to your Monzo account after converting them into pounds.

When it comes to ease of use, Monzo and Tide alike have a lot going for them. Firstly, both apps seem to be highly rated in the App Store, with Monzo scoring 4.9/5 and Tide close behind with 4.8/5.However, Google Play reviews suggest that Tide's iPhone app is better than its Android counterpart, scoring only 3.5/5 based on user reviews. Monzo, on the other hand, scored 4.3/5 on Google Play, suggesting it has a slight edge on Google at least according to Android users.

We also ran a Google Chrome accessibility audit and found some interesting results. Tide scored well with an accessibility score of 92/100 on both mobile and desktop versions of the app.Monzo, on the other hand, scored lower with an accessibility score of 79/100 for their desktop version and 77/100 for their mobile version. The audit flagged some accessibility best practices that Monzo did not follow, such as making it difficult for screen readers to understand the information displayed and not accounting for zooming in for users with low visibility.

In terms of web-based access, both Tide and Monzo offer web apps to help you manage your business via your laptop if you prefer.

Monzo’s business saving product is their instant access saving pots. You can earn up to 1.5% AER interest (variable) on your funds. With no minimum deposit requirements and the freedom to access and withdraw funds on your own terms, this savings option is great for businesses looking to earn interest on their spare funds while maintaining flexibility.Plus, with the ability to create multiple savings pots with customised names such as "wages" or "rainy day funds," you can keep your finances organised and easily accessible.

While Tide doesn't offer a traditional savings account, they do provide a similar feature in the form of sub-accounts. These sub-accounts act as mini-accounts designed to help you budget and manage your funds. With the ability to create sub-accounts for expenses, tax payments, or employee wages, you can stay on top of your finances and streamline your accounting processes.

Monzo’s product has the option to earn interest and similar functionality to Tide’s. So if you’re keen to earn some interest on your funds, Monzo might be the better option for you in this case.

When it comes to overdrafts, Monzo and Tide differ in their offerings. Monzo only provides arranged overdrafts to personal bank account users, while Tide does not offer overdrafts at all. However, Tide has the Tide Credit Line, which operates similarly to a credit card and allows you to access credit for your business needs.

On the other hand, Monzo offers business loans through their partner Funding Xchange, and eligible limited companies can obtain loans of up to £100,000 from multiple lenders. If you're looking for more tailored loan options, Tide provides start-up loans, business cash advances, and invoice finance.

If you're looking to open a business current account, both Monzo and Tide offer an easy and straightforward application process. Monzo requires basic information about your business, such as:

• The type of business

• The industry you’re in

• The business address

• How big your business is

• What your expected revenue is

You'll also need to verify your identity and select either the free Lite version or the paid Pro version.

Tide has separate applications for sole traders and businesses. But, the basic requirements you need to apply are as follows:

• Be aged 18 or above

• Have a valid UK phone number

• Have a smartphone to complete identification checks

In terms of opening timescales, Monzo boasts that 82% of applicants are able to start using their business accounts on the day they apply. On average, however, it takes 2 days to get access, and 99% of customers get their account within 18 days of applying.

Tide, on the other hand, claims that over half of applicants opened their account in less than ten minutes, 70% in under an hour, and 81% within 48 hours.

Both providers aim to get you up and running on their app quickly and efficiently as evidenced by the quick turn-around.

When it comes to cash deposits and withdrawals, Tide and Monzo offer different options and fees. Tide allows customers to deposit cash at Post Office and PayPoint locations. The fees and limits are as follows:

• A flat fee of £2.50 for deposits up to £500 at the Post Office

• A 0.5% fee for deposits above £500 at the Post Office

• A 3% fee on any cash deposits via PayPoint

• A monthly limit of up to £25,000 at the Post Office

• A daily limit of between £10 to £500 at PayPoint

Monzo also allows cash deposits at PayPoint, but customers are charged £1 for every cash deposit. The limits are much lower at Monzo; customers are only allowed to deposit up to £1,000 every six months. The maximum amount of cash that can be deposited in one go at Monzo is £300.

When it comes to cheque deposits, Tide currently does not offer this functionality, but they are working on introducing it in the future. Monzo, on the other hand, only allows customers to deposit cheques via post, and this process can take up to 4 weeks depending on the type of postage used.

Tide doesn’t publish ATM withdrawal limit information, but a user reported they were allowed to withdraw up to £500 per day from an ATM in 2020. At Monzo, limits are lower. Customers can withdraw up to £200 every month for free, then they are charged 3% on further withdrawals.

If you’re a cash-heavy business, Tide might be the better option here. They have bigger limits than Monzo. However, if you receive a lot of cheques, then Monzo might work better as they have the functionality to process your cheque.

When it comes to making large payments, both Tide and Monzo have limits in place based on your account type. As a Tide user, your transaction limits will vary depending on whether you’re a sole trader or a limited company. To see your individual limit, you’ll need to access your account via the app, then tap “Accounts” within the in-app “More” menu. And if you require a higher limit, you can request an increase as necessary.

Also, the payment method you use with Tide may also have its own separate limits. For example, Tide Payment Links have a monthly cap of £20,000. This won’t apply to other payment methods, but it’s something to keep in mind nonetheless.

If you’re a Monzo user, you’ll be subject to limits when it comes to making larger payments as well. Sole traders have a limit of £75,000, while limited companies can send up to £200,000 per month. If these limits don’t quite meet your needs, you can talk to Monzo about increasing them.

So, while both providers place limits on your account, there is room for flexibility if you need to make larger payments.

Tide and Monzo both integrate with a range of popular accounting software, including:

• Xero

• FreeAgent

• Quickbooks

It’s worth noting that Monzo’s integrations and invoicing features are only available via the paid plan.

Tide offers further integrations with a range of other accounting software like Coconut, Kashflow, and Crunch, among others. The list is growing too. Plus, Tide has an Open Banking feature that allows you to connect to a range of third-party products and financial tools, allowing for a more custom experience.

Tide and Monzo alike offer award-winning business accounts that have high scores across popular review websites. They are reliable, secure, and easy-to-use platforms with helpful features like savings pots.

But which one is right for you? That ultimately depends on your needs. For instance, if your business is cash heavy, you might appreciate the higher cash deposit limits Tide has. Likewise, if you deal with a lot of international clients and suppliers, you might prefer Monzo’s Wise integration which allows you to make payments abroad.

All in all, both accounts are decent options, but depending on your needs, one might work better for you than the other.

If there are other business bank accounts on your radar, our detailed comparisons will help you decide which one is best for your business:

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