Tide Business Savings Account - is there a catch?

[Frank the Insurance guy]

Tide are advertising their business bank account https://www.tide.co/business-savings-account/

They say they will give interest at bank of england less 1% (Variable).

Its backed by Clear Bank, so protected up to £85K under the FSCS compensation scheme.

Only charges I can see is a 20p per transaction charge (on their "free"/basic plan).

Is there a catch or something I should be aware of?

 

[Ozzy]

Other than double checking the guarantee is indeed true, because I know Tike make a big thing about them not being a bank - so it depends on how the FSCS guarantee is applied, if at all.

Other than that, no really catch from what I am aware of or can see.

If you do have a reasonable amount available to deposit have a look at Flagstone.

 

[Karimbo]

Other than double checking the guarantee is indeed true, because I know Tike make a big thing about them not being a bank - so it depends on how the FSCS guarantee is applied, if at all.

Other than that, no really catch from what I am aware of or can see.

If you do have a reasonable amount available to deposit have a look at Flagstone.

being a bank to me is a bigger deal than the rate. which is why I put my surplus cash into aldermore business savings which has a lower rate of 3.6%.

FSCS guarantee is all well and good but it's a guarantee of last resort. The bank will have to formally go into administration and then the government guarantee will step in and there's no knowing when you will actually get your money back. Your working capital could be tied into the bank for months before you receive your money. Just tried to google and find out when northern rock customers got their money - which I couldnt find.

You have to wonder why such a big bank would elect out of getting a banking license for their subsidiay. To qualify for a legal "bank" status they have to meet more stringent regulatory requirements which regulates how the bank can invest the money, the lewvel of risk they can take etc.

a tracker rate is interesting though. I am with octupus energy [for my home] which tracks wholesale prices. All the other energy companies are just charging the ofgem price cap, octupus actually charging less because they charge based on the whole price + margin. it's not a fixed tariff, but a variable one sothe ofgen price cap also applies. So they can't exceed that price cap.

best of both worlds for consumer.

 

[Frank the Insurance guy]

Well that went well - Apparently Tide will not open new accounts to Insurance Brokers!

Will have a look at Flagstones - thanks @Ozzy

 

[WaveJumper]

Well that went well - Apparently Tide will not open new accounts to Insurance Brokers!

Will have a look at Flagstones - thanks @Ozzy

I was looking at Starling bank terms etc last week after a conversation here, just check out the long list of business's they won't deal with ......seemed to go on for ever.

 

[Ozzy]

Well that went well - Apparently Tide will not open new accounts to Insurance Brokers!

Will have a look at Flagstones - thanks @Ozzy

Have a look at Shawbrook too. That’s who we deposited with and had best rates when we checked, that was a good few months ago though.

 

[neilsolaris]

Tide are advertising their business bank account https://www.tide.co/business-savings-account/

They say they will give interest at bank of england less 1% (Variable).

Its backed by Clear Bank, so protected up to £85K under the FSCS compensation scheme.

Only charges I can see is a 20p per transaction charge (on their "free"/basic plan).

Is there a catch or something I should be aware of?

HSBC charge £96 per year on the small business plan. That would equate as 40 transactions a month on the 20p per transaction basis. We usually have much more than 40 transactions with the business I help with.

 

[Frank the Insurance guy]

I was looking at Starling bank terms etc last week after a conversation here, just check out the long list of business's they won't deal with ......seemed to go on for ever.

Funny enough, we Starling is our main day to day bank - yes it took a little time to set up as we had to jump through a few hoops, but I've been very impressed with them. Unfortunately they don't really have a Business savings option, so am looking where to put some cash!

Have a look at Shawbrook too. That’s who we deposited with and had best rates when we checked, that was a good few months ago though.

Yep, we have put some cash in a 1 year bond.

Now looking to find a saving account with flexibility to withdraw at short notice so its not tied up for a year.

 

[AlanJ1]

Funny enough, we Starling is our main day to day bank - yes it took a little time to set up as we had to jump through a few hoops, but I've been very impressed with them

Another +1 for Starling here.

 

[Porky]

@Frank the Insurance guy
Not sure how Virgin would compare to Flagstones but currently im finding their rates not bad:-

Compare Our Range of Business Savings Accounts | Business | Virgin Money UK

Credit cards, Mortgages, Savings, ISAs, Investments and Insurance – Our quest to make banking better starts here

uk.virginmoney.com

3.80% Instant.
Although they are merging into Nationwide soon so not sure if that will change things.

 

[Porky]

oh wow, ignore my last post, just looked at that Flagstone facility, have to be honest i had never heard of them but it looks really impressive and a great way to make cash deposits work for you:-

UK Business Accounts | Protect and grow your company's cash | Flagstone

Distribute your company's funds across more than 50+ banks to maximise your interest and FSCS protection.

www.flagstoneim.com

Nice one @Ozzy - Thanks

 

[nelioneil]

oh wow, ignore my last post, just looked at that Flagstone facility, have to be honest i had never heard of them but it looks really impressive and a great way to make cash deposits work for you:-

UK Business Accounts | Protect and grow your company's cash | Flagstone

Distribute your company's funds across more than 50+ banks to maximise your interest and FSCS protection.

www.flagstoneim.com

Nice one @Ozzy - Thanks

Bear in mind for Flagstone requires minimum deposit of £100k!

 

[Ozzy]

Bear in mind for Flagstone requires minimum deposit of £100k!

£100k for personal, £500k for business.

 

[nelioneil]

£100k for personal, £500k for business.

Has this changed recently? When I go to the website the deposit minimum criteria is diffeeent:

Deposit amount:

The minimum deposit amount is £10,000 for personal applicants, and £100,000 for companies, & £1,000,000 charities and trusts.

 

[Ozzy]

Oh it has changed, when we were looking it was 500k minimum for business.

 

[Karimbo]

Had money with tide and aldermore.
They seem to drop the rates pretty fast with BOE rate cuts. Had a look around and saw this thread.

I've noticed that flagstone's shawbrook rate here, is lower that shawbrook rate directly through them. So I went directly with shawbrook.

One issue is "instant access" is not always instant.
If I withdraw funds from aldermore early in the day, I will usually get it a few hours later same day.

But if I withdraw funds from "instant access" shawbrook account before 2:30pm on a Monday, I will get it before close of business on Tuesday. I'm gfuessing that means if I withdraw after 2:30pm on MOnday, I'll get it Wednesday?

That's something to keep in mind. To get the best rates I would recommend keeping some money in a high rate but slow withdraw account like shawbrook and keep a lower balance that's likely to be needed as contingency in a faster withdrawal account like tide.

However I am a bit fed up with tide with the constant spam-like notifictions. I am looking for another business savings account that will offer immediate withdrawals - sent to my current account at faster payments speeds - executed immediately. Any recommendations other than tide?