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Starling vs Tide – Which is the Best Business Account for Startups in 2024?

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  • Post last modified:October 14, 2024

Starting a business is an exciting yet challenging journey, and choosing the right business account is crucial for smooth financial management. In 2024, Starling and Tide stand out as two leading options for startups in the UK. Both digital-first banks offer innovative solutions tailored to small businesses, but which is better suited to your needs? In this comprehensive guide, we’ll compare Starling vs Tide Business Accounts, analyzing key features, fees, and customer support to help you decide which is the best business account for your startup.

The Importance of the Right Business Account for Startups

When launching a startup, managing your finances effectively is vital for success. A business bank account helps streamline invoicing, expense tracking, and payments, while also separating your business and personal finances. Both Starling and Tide offer business banking solutions designed for modern startups. Let’s explore how each account caters to small business needs and which one offers the best value in 2024.

Starling vs Tide - Which is the Best Business Account for Startups?

Starling Business Account: Key Features for Startups

Starling Bank is a fully licensed UK bank with an excellent reputation for its mobile-first approach to banking. Here are the standout features of the Starling Business Account:

  • No Monthly Fees: The business account is free to use, with no hidden charges.
  • Real-Time Notifications: Get instant alerts on every transaction.
  • Overdraft & Loans: Access to flexible overdraft and business loans, perfect for startups needing funding.
  • Multi-Currency Accounts: Manage multiple currencies with ease.
  • Integrations with Accounting Tools: Starling seamlessly integrates with Xero, QuickBooks, and FreeAgent, making accounting simple.

Pros:

  • Free to use, even for everyday business banking.
  • FSCS protection on deposits up to £85,000.
  • Excellent customer support and in-app experience.

Cons:

  • International transfers can be more expensive than some competitors.
  • Limited support for physical branches.
Starling vs Tide - Which is the Best Business Account for Startups?

Tide Business Account: Key Features for Startups

Tide offers a business banking solution aimed at startups and small businesses looking for simplicity. Here are the standout features of the Tide Business Account:

  • No Monthly Fees for Basic Accounts: The free account option offers essential features without monthly fees.
  • Quick Account Setup: Start your Tide business account in minutes with an easy onboarding process.
  • Expense Tracking & Invoicing: Effortlessly track expenses and generate invoices through the Tide app.
  • Business Loans and Credit Services: Access loans and Tide’s Credit Builder tool to enhance your business credit score.
  • Pay-As-You-Go Pricing: Fees for certain services, such as cash deposits, are on a pay-as-you-go basis.

Pros:

  • Quick and easy account setup, perfect for freelancers and small businesses.
  • Access to additional services like accounting software integration and business loans.
  • Simple and intuitive app interface.

Cons:

  • No FSCS protection, as Tide is not a bank but an e-money institution.
  • Limited multi-currency support compared to Starling.

Comparing Fees: Starling vs Tide Business Accounts

Starling Business Fees:

  • No monthly maintenance fees for its business account.
  • Free UK bank transfers.
  • Small fees apply for cash deposits via the Post Office (£3 per deposit).
  • Free access to overdrafts and loans (subject to eligibility and interest).

Tide Business Fees:

  • Free account option with pay-as-you-go pricing.
  • UK bank transfers cost £0.20 each on the free plan.
  • Cash deposits at the Post Office are charged at £2.50 per deposit (or 3% at PayPoint).
  • Additional costs for credit-building services and premium features.

Verdict on Fees: Starling offers a more straightforward fee structure with no costs for basic business banking. Tide offers flexibility but can become costly depending on your business needs, especially for cash-based startups.

Comparing Features: Starling vs Tide Business Accounts

Ease of Use:

  • Both Starling and Tide offer simple, user-friendly mobile apps designed for entrepreneurs on the go. Starling’s app provides a more comprehensive suite of tools for managing finances and cash flow.

Invoicing & Expense Management:

  • Tide offers built-in invoicing tools and expense tracking, which are ideal for freelancers and small businesses needing quick solutions.
  • Starling integrates seamlessly with popular accounting software like Xero and QuickBooks, offering more robust financial management tools.

International Transactions:

  • Starling supports multi-currency accounts and offers competitive rates for international transfers, making it more suitable for startups dealing with overseas clients.
  • Tide does not provide extensive support for international payments or multi-currency accounts, which may limit its use for startups looking to expand globally.

Customer Support & User Experience: Starling vs Tide

  • Starling: Offers in-app customer support with 24/7 assistance. Starling’s user experience is consistently praised for its seamless interface and excellent customer service.
  • Tide: Provides in-app support but may have slower response times, especially for users on the free plan. Tide’s focus on simplicity makes it ideal for small businesses that require minimal banking complexity.

Verdict: Starling offers better overall customer support, with 24/7 availability, which can be crucial for startups that need immediate assistance.

Security & Trustworthiness: Starling vs Tide Business Accounts

Starling is a fully licensed bank, meaning deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. It also employs top-tier security features like two-factor authentication and encryption.

Tide, being an e-money institution, doesn’t offer FSCS protection, but it does safeguard funds through licensed banking partners. While Tide is secure, the lack of FSCS protection may be a consideration for startups looking for maximum security.

Starling vs Tide – Which Business Account Should You Choose for Your Startup?

Choose Starling if:

  • You need a comprehensive business banking solution with multi-currency support.
  • You value FSCS protection and want access to flexible business loans and overdrafts.
  • You’re looking for 24/7 customer support and advanced accounting integrations.

Choose Tide if:

  • You want a free, no-fuss business account with quick setup.
  • You’re a freelancer or small business owner looking for simple invoicing and expense tracking.
  • You don’t require extensive international banking features or multi-currency support.

Final Verdict: Starling or Tide for Your Startup?

When comparing Starling vs Tide Business Accounts, both offer fantastic solutions for startups. Starling provides a more feature-rich banking experience, with no monthly fees, FSCS protection, and comprehensive financial tools, making it ideal for scaling businesses. On the other hand, Tide is perfect for startups that need a simple, cost-effective business account with quick setup and essential features like invoicing and expense tracking. Your choice will depend on your startup’s specific needs, whether that’s international growth or simplicity and affordability.

Find out more about Tide Business Account

Find out more about Starling Business Account