Tide vs Cashplus: Comparing business bank accounts
Keeping your business finances in order
There’s a lot to consider when taking the plunge to work for yourself: writing a business plan, securing capital, choosing your company name, buying equipment, marketing – the list may seem endless. Opening a business bank account may not be your number one priority, but it should be. It’s so much easier – particularly where tax is concerned – to keep your personal and business finances completely separate. In addition, if you have plans to expand your venture at any point, or borrow money for future investment, it makes sense to open a business bank account from Day 1. You can read more about the benefits in our article why you need a separate business account for your business.
The lowdown on challenger banks
There’s a mind-boggling choice when it comes to selecting a business bank account. As well as the traditional high street banks, there are now a wealth of online accounts provided by challenger banks. These can be defined as new, smaller banks that were set up to ‘challenge’ the main High Street banks and transform the banking space. They provide new digital, financial practices and many have turned their backs on a traditional branch network, preferring instead to operate through online-only banking or a mobile app. You’ll still get the same security as you would with a traditional bank. Tide, for example, is regulated by the Financial Conduct Authority (FCA). Our ClearBank-provided bank accounts all have FSCS protection. We are also one of the leading providers of digital business banking services in the UK.
In this article, we will both compare and explain the various account features provided by both Tide and Cashplus.
So much more than a business bank account
At Tide, we support those who work for themselves. When you become a Tide member, you don’t just get a business account, but access to our business finance platform saving you time with your admin. You can register your company for free and get a virtual office address all in one go. And, once you’re up and running, you can easily send invoices, track your expenses, add expense cards for your team and let Cashflow Insights help you stay cash flow positive.
Say goodbye to spreadsheets and get started with a free business bank account today 🚀
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 have accounts to cater to your needs. Established in 2015, Tide is one of the first digital-only finance platforms to provide business bank accounts exclusively for those who work for themselves. Cashplus was established in 2005 and secured a full UK bank licence in early 2021.
Tide and Cashplus both offer business bank accounts that you can manage 24/7 from any device. They also both offer a banking app that can be used to make swift payments in and out of your account and you’ll receive a contactless Mastercard. Cashplus has a centralised account management system that allows you to manage employee expense cards centrally. Tide offers a very similar feature with company expense cards which enable to manage employee purchases from within the Tide app.
You can be safe in the knowledge that your funds will be secure, as Cashplus accounts, as well as Tide bank accounts provided by ClearBank, are FSCS (Financial Services Compensation Scheme)-protected up to a value of £85,000. To find out more about FSCS protection, see our article about e-money vs bank accounts. However, there are also significant differences between the two, and throughout this article, we will explore the features that set them apart.
Tide vs Cashplus: how much do accounts cost?
|Account charge||Free||£69.00 per year|
|Paid Plan||Plus £9.99 + VAT/month||Only 1 type of account|
|Paid Plan||Cashback £49.99 + VAT/month||Only 1 type of account|
|Fee for cash deposits||£2.50 for deposits up to £500 |
or 0.5% of cash amount for deposits over £500
(at Post Offices)
3% (at PayPoints)
|0.3% fee (min £2) (at Post Offices)|
|Electronic payments and transfers||Free||First 3 each month free, then £0.99 each|
|ATM cash withdrawals||£1 each||£2 each (UK) |
£3 each (non-UK)
Firstly, 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 in or out of your account cost 20p. International transfers will be coming soon with Tide.
Unlike the Tide standard account, Cashplus charges an annual fee of £69 for its business account. Any other charges will be based on how you’re using the account and Cashplus maintains that you won’t end up paying for features that you don’t use.
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. Cashplus also has a centralised account management system that allows you to manage any of your employees’ business expense or travel cards in one place. You also have the facility to view and track spending, as well as block and unblock cards. Another feature of the Cashplus business bank account aimed to make your finance admin easy is the facility to download statements directly from the app.
You can also keep track of your transactions with the Spending Insight function which lets you both tag and track your payments with the help of Google Maps data. The Cashplus API also allows you to integrate your account with both new and existing apps.
The Tide app could be likened to a business toolbox, providing a host of smart features to help members manage their finance admin. Many of these are available for free or can be accessed with a small monthly charge. One of the most helpful products is company expense cards, which can be used to manage your team’s business purchases. You can order up to 50 cards per account for your team members, which cost just £5+VAT each. These enable your team to make purchases directly from your business account. You’ll have complete visibility, as all transactions are itemised and receipts can be scanned and uploaded directly to the app. You also have the facility to block and unblock cards, as well as set spending limits for each member of your team.
Another smart free feature within the app is invoicing, which enables you to create and send your own customised invoices, as well as track payments. You can also sync your account with a wide range of popular accounting software, including Sage, QuickBooks, and Xero with the account integration feature.
When it comes to keeping your finances in the black, Cashflow Insights is an invaluable tool. As well as providing you with easy-to-read forecasts for up to 30 days in advance, it provides tips and recommendations on steps you can take to improve your cash flow. With our new Open Banking integration, you can connect any other business accounts you may have to give you an even more accurate picture of your financial health. You can also access affordable and flexible credit options and check your credit rating thanks to the embedded Experian Credit Score.
Tide Plus and Cashback
As well as the standard free business bank account, which is ideal for those who are just starting out to work for themselves, Tide also offers upgrade options to support you as you begin to scale your business. For £9.99 per month + VAT, Tide Plus provides telephone support, a 24/7 legal helpline as well as up to 20 free transfers in and out. You also get a free company expense card, which you can use to manage 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 account manager, you will also receive 150 free transfers per month, 0.5% cashback on all spend on your Tide card, as well as 3 company expense cards for you and your team to use to manage business purchases.
How easy is it to open a business bank account with Tide vs Cashplus?
Both Tide and Cashplus have a time-saving approach when it comes to opening a business bank account. It only takes minutes to apply through the Tide or Cashplus app form-filling is a thing of the past. Cashplus also maintains that, once your account application is approved, you should receive your contactless business Mastercard within three to five working days.
|Apply through the app||✔️||✔️|
|Card delivery fee||Free||Free|
|Card delivery timescale||2-5 working days||3-5 working days|
|Replacement card fee||Free||Free|
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 may have, or signed contracts. The Tide pledge states that 53% of new business customers open their accounts in under 10 minutes, 70% in under 60 minutes, and 81% within 48 hours. 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
The application process to open an account for your business with Cashplus is similar to Tide. You can apply directly from your phone, once you’ve downloaded the Cashplus app from Google Play Store or App Store, or you can apply online. To apply for a business account, you must be able to verify that your business is based in the UK. Limited companies will also be required to confirm the date of birth and home address of any Persons of Significant Control (PSCs). A PSC will be the person who owns and controls your company. The PSC names you provide on your application should reflect the ownership and control of your company as stated on Companies House.
You will also be required to provide documentation as proof of identity and proof of address. Identity documents include a copy of your passport and UK driver’s licence. Your licence can also be used as one of the documents to verify your address, along with a bank statement dated within the past 3 months, a council tax bill dated within the current tax year, or a utility bill also dated within the past 3 months. Other acceptable documents can be found on the Cashplus website.
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 £45. It costs £1 per transaction to make a cash withdrawal from an ATM with Tide and this rises to £2 per transaction with Cashplus.
If you travel abroad, then you can use your Tide card to spend at any retailer or outlet where Mastercard is accepted. You’ll also receive the Mastercard exchange rate with no additional mark-up or fees. Unlike many other digital or High Street banks, there is also no free-spending limit. However, you will still be charged £1 to withdraw cash at an ATM (the same charge as applies in the UK).
When it comes to Cashplus, you can also use your Cashplus card abroad, where you’ll pay a fee of 2.99% on any purchases you make and it costs £3 to withdraw cash from an ATM.
In addition, there is also the option of ordering a separate euro or dollar card for free, which you can use to make card payments or ATM withdrawals in both these currencies 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
|Customer service via the app||✔️||❌|
|Customer service via telephone||✔️ with Plus and Cashback||✔️|
Account-holders with a free Tide account can contact Member Support through the app. You can also send Tide an email with your contact number and request a call back from the Member Support team during working hours. An automated telephone service is available to report a lost or stolen card. Members on the Tide Plus or Cashback plans 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 account manager.
Cashplus provides customer support via telephone. Lines are open Monday to Friday from 8 am until 8 pm and on Saturday from 8 am until 4 pm.
Tide vs Cashplus in conclusion: similar yet different
In summary, the business accounts on offer from both Tide and Cashplus are in some ways similar. They are both digital accounts, which 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 facility to upload receipts. However, unlike Tide, Cashplus charges an annual fee and only offers one type of business bank account. Being focused solely on small businesses, Tide is able to offer three different plans within the account portfolio. From company registration, VAT registration, and setting up a virtual office address, to invoicing, expense management, and managing cash flow, Tide supports small business owners at every step of their journey.
Become a member of the Tide community 👷♀️👨🏽🍳
Join over 350,000 fellow business owners, just like you:
✔️ Register your business for free
✔️ Open a FREE business bank account with no monthly fees
✔️ Create and send customised invoices for free
✔️ Predict your cash flow and improve your credit score
✔️ Unlock exclusive member perks and discounts
✔️ Get 24/7 legal support with Tide Plus and Cashback
Open your business bank account with Tide today 🚀
Sources used for this article
- Wikpedia – Cashplus
- Wikipedia – Challenger Banks
- Wikipedia – Financial Crash 2008
- Tide blog – e-money vs bank accounts: how Tide keeps your money safe
- Cashplus website – https://www.cashplus.com/service-status/
All sources checked as of 25th August 2021