Mettle vs Tide business account: which free account is actually cheaper?

Both Mettle and Tide are marketed around free business banking. The difference is that Mettle is closer to genuinely free if you fit the eligibility, while Tide is free to hold but not always free to use.

By Sam Morris

Mettle is the better choice if you're a simple UK sole trader or single-director limited company that wants genuinely low-cost digital banking and FreeAgent included.

Tide is better if you need a wider eligibility route, stronger admin tools, more invoicing features, or the option to upgrade into a paid business platform later.

That's the trade-off. Mettle is cheaper for the businesses it accepts. Tide is broader and more feature-led, but the Free plan has usage fees that can add up.

If you're opening your first company account, read business bank account for a new limited company. If you're still a sole trader and comparing free options more widely, see free business bank accounts for sole traders.

Mettle vs Tide at a glance

Feature	Mettle	Tide
Best for	Simple sole traders and one-person limited companies	Businesses that want admin tools or a wider upgrade path
Monthly fee	No monthly account fee	Free plan has no monthly fee
UK transfers	No standard UK transfer fee	20p per outgoing UK transfer on Free plan
ATM withdrawals	No standard Mettle fee for UK withdrawals	£1 per withdrawal
Cash deposits	Limited compared with high-street banks	Post Office and PayPoint deposits, with fees
Foreign card spend	No standard FX surcharge wording	1.75% FX fee on Free plan; 0% on paid plans
Accounting	FreeAgent included if you make one Mettle transaction a month	Accounting and invoicing tools, but no FreeAgent bundle like Mettle
FSCS protection	Eligible deposits protected through NatWest up to £120,000	Eligible ClearBank-powered Tide deposits protected up to £120,000
Eligibility	Narrow	Broader, but still not universal
Biggest weakness	The eligibility box is small	Free plan fees can creep up

The quick version: Mettle is the cheaper account if you fit. Tide is the more flexible platform if you need features or don't fit Mettle.

Pricing: which account is actually cheaper?

Mettle is usually cheaper for a simple digital business.

There's no monthly account fee. Standard UK bank transfers aren't the thing that catches you out. The big extra is FreeAgent: Mettle includes FreeAgent as long as you make at least one transaction a month from the Mettle account. If you stop meeting that condition, FreeAgent fees can apply.

Tide's Free plan has no monthly account fee, but that doesn't mean it's free in the same way. On Tide Free, UK bank transfers are 20p each. Cash withdrawals are £1. Post Office cash deposits on the Free plan are £2.50 up to £500, then 0.99% of the total deposit amount over £500. PayPoint deposits cost 3%.

Tide Free also has a 1.75% FX fee for foreign currency card payments. That matters if you buy software, travel for work, or pay for anything in a foreign currency. On Tide's paid plans (Smart, Pro, Max), the FX fee drops to 0%.

So if you're a contractor, consultant, designer, tradesperson or small company making regular UK payments, Mettle can be much cheaper.

A single-director limited company making 30 bank transfers a month will usually prefer Mettle. Salary, dividends, HMRC, accountant, insurance, software and suppliers all create payment activity. On Tide Free, those small costs can start to show. On Mettle, standard UK transfers aren't the cost centre.

That doesn't mean Tide is expensive. It means Tide Free isn't the same as Mettle free.

FreeAgent is the biggest reason to choose Mettle

For many small businesses, Mettle's strongest feature isn't the bank account. It's the FreeAgent bundle.

FreeAgent is proper accounting software. It can help with invoicing, expenses, tax estimates and bookkeeping. For contractors, consultants and small limited companies, that can be worth more than a slightly nicer banking app.

Mettle includes FreeAgent if you make at least one transaction a month from the Mettle account. For a business already planning to pay for accounting software, this is a real saving.

Tide has useful tools too. It offers invoicing, payment features, expense tools and paid plan upgrades. But that's a different proposition. Tide is trying to be a small-business finance platform. Mettle is trying to give simple businesses free banking plus FreeAgent.

If you already use FreeAgent or your accountant recommends it, Mettle deserves serious attention. If you don't want FreeAgent, the comparison becomes closer, because Tide's admin features may matter more.

FSCS protection: both can work, but the setup differs

Mettle is provided by National Westminster Bank plc trading as Mettle. Eligible deposits are protected by the Financial Services Compensation Scheme up to £120,000. In plain English, Mettle is backed by NatWest.

Tide is different. Tide isn't itself a bank. It operates the platform and app. Tide Business Current Accounts are provided by ClearBank. Eligible deposits held in the ClearBank-powered Tide Business Current Account are protected by FSCS up to £120,000.

So both can give FSCS protection, but the structure isn't identical.

With Mettle, the NatWest link is simpler to explain. With Tide, ClearBank is the bank layer behind the current account. That isn't automatically a problem. It just means you should understand where your money actually sits.

Also remember that FSCS protection applies per eligible depositor, per authorised firm. If you hold money with the same authorised bank through more than one product, the limit isn't multiplied just because the brand names look different.

Eligibility: Tide is broader, Mettle is narrower

This is the biggest practical difference after price.

Mettle is deliberately narrow. It's aimed at sole traders and limited companies with up to two owners. For limited companies, only one owner can access the account. The person opening the account needs to be a director and a person with significant control. Mettle also expects the business and owners to fit its UK residency and tax-residency requirements.

It also doesn't support several structures, including partnerships, LLPs, charities, CICs, clubs, societies and various other organisation types.

That's why Mettle can be excellent and still not suitable for your business.

Tide is broader in some ways. It supports more small-business use cases and has a clearer upgrade path for growing businesses. But Tide isn't a universal workaround. It still excludes some business types and industries. CICs, for example, aren't supported on Tide either.

The rule is simple: don't compare fees until you know both providers will actually consider your business.

A free account you can't open isn't a free account.

Which is better for sole traders?

For a simple digital sole trader, Mettle is very hard to beat.

You get a free account, low everyday banking costs, pots, invoicing features and FreeAgent included if you meet the monthly transaction condition. If you invoice clients, keep digital records and rarely deposit cash, that's a strong package.

Tide can still be better if you want more built-in business tools or expect to upgrade into a paid plan. It may also suit sole traders who like Tide's invoicing and payment features and are comfortable with the transaction costs.

But if the question is simply "which free account keeps costs lowest for a normal sole trader?", Mettle usually wins.

Which is better for limited companies?

For a simple single-director limited company, Mettle is again strong.

This is especially true for contractors, consultants and new service businesses. The FreeAgent bundle can be a major benefit because many limited company directors need clean bookkeeping, salary and dividend tracking, and tax visibility from day one.

If your company is newly incorporated, read business bank account for a new limited company, because application timing, Companies House records and director details all matter.

Tide starts to look better when the company is less simple. If both directors need account access, Mettle's single-user access can become a blocker. If you want more admin features, cards, payments, invoicing tools or a paid plan path, Tide may make more sense.

So the limited company answer isn't "Mettle always wins". It's: Mettle wins for simple single-director companies. Tide wins when the business needs more than Mettle is built to handle.

Transfers, cash and FX

Mettle is better for normal UK digital payments. If your business makes lots of UK transfers, Tide Free's 20p transfer cost can become annoying. The pounds may not be huge, but it undermines the idea that the account is fully free.

Cash is less clear. Tide gives you Post Office and PayPoint deposit options, but the fees need checking against how much cash you actually handle. Mettle isn't the obvious choice for a cash-heavy business either. If you take regular cash takings, a high-street bank may still be more practical than either app account.

FX isn't a reason to pick Tide Free. The current foreign currency card fee on Tide Free is 1.75%, dropping to 0% on Tide's paid plans. If your business works internationally, pays overseas suppliers or receives money in different currencies, neither Mettle nor Tide Free is the obvious specialist. Tide on a paid plan becomes more competitive for FX, but at that point you're not really comparing free accounts any more.

When Mettle wins

Mettle is the better choice if:

• You're a sole trader or simple limited company
• Your business has one main person managing the account
• You fit the UK residency and tax-residency rules
• You want FreeAgent included
• You make regular UK bank transfers
• You don't need branch banking
• You don't handle much cash

When Tide wins

Tide is the better choice if:

• Mettle's eligibility rules don't fit your business
• You need more admin and invoicing tools
• You expect to upgrade to a paid plan
• You want a broader small-business platform
• You need features beyond a simple one-user account
• Your transaction pattern makes the fees acceptable

Our view

Mettle is the better account for most simple UK sole traders and single-director limited companies.

It's cheaper for everyday digital banking, includes FreeAgent if you meet the monthly transaction condition, and sits under the NatWest banking umbrella with FSCS protection. If you fit Mettle's rules, it's one of the strongest free business accounts in the UK.

Tide is still useful. It's broader, more feature-led and gives businesses an upgrade path. But the Free plan isn't as free in practice as many new business owners assume. Transfers, ATM withdrawals, cash deposits and FX can all create costs. If you also want to compare a fuller bank-first alternative, read Tide vs Starling business account.

So the decision isn't really Mettle versus Tide.

It's this:

Choose Mettle if you fit the eligibility and want the cheapest clean setup. Choose Tide if you need broader tools or Mettle won't work for your business.

FAQ

Is Mettle better than Tide?

For simple UK sole traders and single-director limited companies, Mettle is usually better on cost. Tide is better if you want more admin tools, broader features or a paid-plan upgrade path.

Is Mettle really free?

Mettle has no monthly account fee and doesn't charge standard UK transfer fees. FreeAgent is included if you make at least one transaction a month from your Mettle account. If you stop meeting that condition, FreeAgent fees can apply.

Is Tide really free?

Tide Free has no monthly account fee, but usage fees can apply. Bank transfers, ATM withdrawals, cash deposits and foreign currency card payments can all cost money.

Does Mettle include FreeAgent?

Yes, Mettle includes FreeAgent if you make at least one transaction a month from your Mettle account. Optional FreeAgent add-ons may still cost extra.

Are Mettle and Tide FSCS-protected?

Mettle eligible deposits are protected through NatWest up to £120,000. Tide Business Current Account eligible deposits are protected through ClearBank up to £120,000. Tide itself isn't the bank; ClearBank is the banking provider.

Which is better for a sole trader, Mettle or Tide?

Mettle is usually better for a simple sole trader who wants low-cost digital banking and FreeAgent. Tide may be better if the sole trader wants more invoicing, admin and paid-plan features.

Can two directors access a Mettle account?

Mettle isn't ideal if two directors both need account access. It supports limited companies with up to two owners, but only one owner can access the account. That can be a practical blocker.

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Sam Morris is the pen name of the founder of comparebusinessbanking.com.