Tide vs Monzo Business: at a glance
| Feature | Tide | Monzo Business |
|---|---|---|
| Provider type | Tide is not a bank; accounts may be ClearBank-powered or PPT e-money | Licensed UK bank (Monzo Bank Ltd) |
| Money protection | FSCS up to £120,000 (via ClearBank, subject to eligibility) | FSCS deposit protection (up to £120,000) |
| Free plan available? | Yes — Tide Free | Yes — Monzo Business Lite |
| Monthly fee (entry paid plan) | £12.49/month (Smart) | £5/month (Monzo Business Pro) |
| Outbound transfers (free plan) | Charged per transfer (20p) | Free (unlimited) |
| Cash deposits | Post Office & PayPoint (charged) | Post Office (charged) |
| Built-in invoicing | Yes — included on all plans | Yes — basic invoicing |
| Receipt capture | Yes | Yes (via integrations) |
| Expense cards for team | Yes — from Smart plan | Yes — from Pro plan |
| Instant Saver / savings pot | Yes — Tide Instant Saver (interest-bearing) | Yes — Monzo savings pots |
| Accounting integrations | Xero, FreeAgent, QuickBooks, Sage | Xero, FreeAgent, QuickBooks |
| International payments | Yes — FX conversion in-app | Yes — FX conversion in-app |
| Company formation | Yes — in-app alongside account opening | No |
| Current sign-up offer | Up to £200 cashback with REFER200 | Check Monzo directly |
Bank status and money protection
The most important structural difference between Tide and Monzo Business is regulatory status. Monzo Business is provided by Monzo Bank Ltd, a fully licensed UK bank. Eligible deposits are protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, subject to the scheme’s eligibility rules.
Tide is not itself a bank. Tide Business Current Accounts powered by ClearBank, a licensed UK bank, can hold eligible deposits protected by FSCS up to £120,000 per eligible person, per authorised firm, subject to eligibility and aggregation rules. Some Tide members use PPT-powered e-money accounts instead; those funds are safeguarded and are not FSCS deposits.
For most businesses holding a modest working balance, the practical difference is limited. For a business planning to hold a large reserve — a tax pot, a client deposit, or retained profit — the distinction matters and should be the first thing you check, not an afterthought.
Fees and pricing compared
The headline difference at the free tier is significant: Monzo Business Lite includes unlimited free outbound bank transfers, while Tide Free charges 20p per transfer. For a business sending 50 transfers a month, that is £10/month in transfer fees on Tide Free — enough to make Monzo's free tier materially cheaper for transfer-heavy businesses that do not need Tide's bundled admin tools.
The calculation shifts when you factor in invoicing software. Tide's built-in invoicing and receipt capture are included on all plans. A business that would otherwise pay £15–£30/month for standalone invoicing software may find Tide's Smart plan (£12.49/month) cheaper in total than Monzo Business Lite plus a separate invoicing subscription.
| Charge | Tide Free | Tide Smart (£12.49/m) | Monzo Business Lite (Free) | Monzo Business Pro (£5/m) |
|---|---|---|---|---|
| Monthly fee | £0 | £12.49 | £0 | £5.00 |
| Outbound bank transfers | 20p each | Included (allowance) | Free (unlimited) | Free (unlimited) |
| Incoming transfers | Free | Free | Free | Free |
| Cash deposits (Post Office) | £1 per deposit | £1 per deposit | £1 per deposit | £1 per deposit |
| ATM withdrawals | Free | Free | Free | Free |
| FX fee (international payments) | 2.75% | 2.75% | Varies — check Monzo | Varies — check Monzo |
| Additional expense cards | £5/month each | Included (1 card) | Varies | Varies |
Transfers and everyday payments
Both Tide and Monzo Business support Faster Payments, standing orders and Direct Debits through a mobile-first app. Monzo's free tier includes unlimited outbound transfers at no charge, which is a genuine advantage for businesses with high payment volumes. Tide's Free plan charges per transfer; paid plans include a monthly allowance.
For a business sending fewer than 20–30 transfers per month, the difference in transfer costs is modest. For a business sending 50 or more, Monzo's unlimited free transfers represent a meaningful saving over Tide Free, and the comparison shifts to whether Tide's bundled admin tools justify the cost difference.
Invoicing, receipt capture and admin tools
Tide's built-in invoicing is one of its strongest differentiators. You can create, send and track invoices directly within the Tide app, with automatic payment matching when a client pays. Receipt capture and expense categorisation are also built in. For a sole trader or small company doing their own bookkeeping, this removes the need for a separate invoicing subscription.
Monzo Business offers basic invoicing functionality, but its product centre of gravity is clean everyday banking rather than deep admin tooling. Businesses that already use dedicated accounting software (Xero, QuickBooks, FreeAgent) and want it to connect cleanly to their bank account will find both providers offer good integrations — the advantage of Tide's built-in invoicing is most relevant to businesses that do not already have a separate invoicing tool.
Savings: Tide Instant Saver vs Monzo pots
Tide Instant Saver is an interest-bearing savings pot within the Tide app. It pays a variable AER that increases with plan tier (from 2% on Free to 3.75% on Max), with instant access. It is also central to the REFER200 offer: depositing £5,000 into Instant Saver within 7 days of account opening and holding it for one month earns £125 cashback.
Monzo Business offers savings pots that can be used to separate funds — for example, a VAT pot or a tax reserve. Interest rates and terms vary; check Monzo's current savings terms directly. Both approaches are useful for businesses that want to ring-fence funds without moving them to a separate account.
International payments and FX
Both Tide and Monzo Business support international payments with FX conversion. Neither publishes a rate that consistently beats a dedicated multi-currency specialist like Wise on all corridors. A business making frequent or large international payments should compare the live rate and fee at the point of sending rather than assuming either provider is the cheapest route.
Tide charges a 2.75% FX fee on foreign currency transactions on the Free and Smart plans, reducing to 0.5% on Pro and 0% on Max. Monzo Business has its own FX terms — check Monzo's current pricing directly for the most accurate comparison.
Who should choose Tide vs Monzo Business?
| Business type | Better choice | Reason |
|---|---|---|
| New limited company wanting formation + banking in one flow | Tide | Tide offers company formation alongside account opening; Monzo does not |
| High-transfer-volume business (50+ transfers/month) | Monzo Business | Unlimited free transfers vs Tide's per-transfer charge |
| Sole trader needing built-in invoicing | Tide | Tide's invoicing is more developed; saves a separate subscription |
| Business wanting FSCS deposit protection | Monzo Business | Licensed bank with FSCS protection up to £120,000 |
| Business holding a large cash reserve (£50,000+) | Monzo Business | FSCS protection more relevant at higher balances |
| Business with existing invoicing software (Xero, QBO) | Either | Both integrate well; transfer costs become the deciding factor |
| Business trading internationally at volume | Neither (consider Wise) | Both charge FX fees; Wise is typically cheaper for FX |
| Cash-heavy business (daily cash deposits) | Neither (consider traditional bank) | Both charge per cash deposit; traditional banks better for cash |
The REFER200 offer in this comparison
The REFER200 cashback of up to £200 applies specifically to opening a Tide account via the campaign link on this site. It pays £75 after £100 of qualifying card spend within 30 days, and £125 after depositing £5,000 into Tide Instant Saver within 7 days of account opening and holding it for one month.
The offer is worth having if Tide was already the right choice for your business. It should not pull you away from Monzo Business if Monzo's unlimited free transfers, FSCS protection or simpler pricing model genuinely fits your business better. A one-off £200 cashback will be offset within a few months by higher transfer costs if your payment volume is high.