In this comparison, we’ll dive into the features and benefits of two of the market’s most popular business bank accounts: Tide and Monzo.
Both challenger banks are making inroads into the banking sector with an emphasis on branding, convenience, and minimal fees.
Which is best for your business, what are the pros and cons, how much do they both cost, and are there any drawbacks?
Tide vs Monzo Business Bank Account Comparison: Our verdict
Choosing between Tide and Monzo is no easy task since both accounts are well thought out, with just the types of banking features that make digital-first banks so easy and accessible.
For many, the choice will come down to something as simple as branding. But if you really want to drill down into the specific account differences, we’ll cover that below.
Our verdict is that both are excellent accounts, but Tide offers a slightly better option right now due to its generous offer of £50 for signing up. Also, if you need to set up a limited company, you can get this for free if you choose Tide, meaning you save even more.
However, Monzo offers free switching, simplifying the process of changing accounts if you’re already with another bank.
Tide vs Monzo Business Banking Features
Here is a table comparing the key features of Tide vs Monzo.
Both offer a wide array of features, good customer service, pro accounts, and integration with accountancy software. However, Tide offers integration with more platforms, and its invoicing tool is available even with free accounts. You also get tax pots (which Tide calls ‘sub accounts’) with the Tide Free account, whereas Monzo reserves this for their ‘Pro’ account.
| Feature | Tide | Monzo |
|---|---|---|
| Account Types | Free & Plus | Free (Lite) & Pro |
| ATM Access | ✔ | ✔ |
| Debit Card | ✔ | ✔ |
| Mobile App | ✔ | ✔ |
| Cheque Deposits | X | ✔ |
| Budgeting Tools | X | ✔ |
| Overdraft | X | X |
| Telephone Customer Service | ✔ | ✔ |
| International Transfers | X | ✔ |
| Foreign Currency Accounts | X | ✔ |
| Free Invoicing Software | ✔ | Yes, with Pro account |
| Free foreign card transactions | ✔ | ✔ |
| Multiple Cards | Up to 35 | Up to 2 |
| Accountancy Software Integration | FreeAgent, Kashflow, QuickBooks, ReckonOne, Sage and Xero | FreeAgent, QuickBooks and Xero |
| Free Ltd Company Registration | ✔ | X |
| Free £50 when signing up | ✔ | X |
Tide vs Monzo: how do the Account Charges Compare?
| Fees | Tide Free | Monzo Lite |
|---|---|---|
| Monthly account fee | £0 | £0 |
| Card transaction fee (UK) | £0 | £0 |
| Card transaction fee (abroad) | £0 | £0 |
| ATM withdrawal fee (UK) | £1 | £0 |
| ATM withdrawal fee (abroad) | £1 | Free in the European Economic Area (EEA). Outside the EEA, you get £200 every 30 days for free before a 3% charge applies. |
| Foreign currency exchange fee | 0.5% | Mastercard exchange rate with nothing on top |
| Replacement card fee | £5 | £5 |
| Account closure fee | £0 | £0 |
| Fees 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) | £1 via Paypoint |
| Fee for Payments in and Out | 20p each | £0 |
| Direct Debits | 20p each | £0 |
Tide vs Monzo Interest rates
Neither Tide nor Monzo offers interest on business current accounts.
Tide vs Monzo Bank: Which Has the Better Mobile App?
We spent some time testing both the Tide and the Monzo mobile APPs to compare the functionality and user experience.
Our verdict is that the Tide APP is marginally better, with a less cluttered UX.
Tide has a dedicated business App that currently has 4.5 stars out of 15k reviews on the Google Play store.
The Monzo App is the same for both personal and business, has a 4.2-star rating out of 5m downloads.
Tide vs Monzo Customer service Reviews
Tide and Monzo both offer 24/7 customer support, but their reviews for customer service vary.
Tide has received positive reviews for its customer service, with users praising its responsive and helpful support team. However, some customers have reported longer wait times for the resolution of certain issues.
Monzo has also received positive feedback for its customer service, with users praising its friendly and knowledgeable support staff. However, some customers have reported difficulties resolving complex issues through the app’s live chat function.
Overall, Tide has a 4.3-star rating on Trustpilot and Monzo 4.4 star, so it’s a close match.
Account Switching
Regarding switching services, Monzo Bank is signed up to the Current Account Switching Service (CASS) and can help you migrate over to them very easily.
On the other hand, Tide does not have a switching service available. If a smooth and effortless switch is your priority, Monzo might be the better option.
Tide vs Monzo Safety and Security
Both Tide and Monzo are regulated by the Financial Conduct Authority (FCA) in the UK, which means they are subject to strict security and safety regulations. Both banks use advanced encryption technology to protect their customer’s financial information and account details.
Additionally, deposits in Monzo and Tide up to £85,000 (or equivalent) are protected by the Financial Services Compensation Scheme (FSCS), which provides compensation if the bank fails.
