tide.co Alternatives

Given the ethical concerns surrounding tide.co’s interest-based financial products, it’s crucial to identify alternatives that align with Islamic financial principles. The focus here is on platforms that facilitate business operations and financial management without engaging in riba (interest), or at least offer tools that can be used in a Sharia-compliant manner, requiring careful usage by the consumer.

Here are some of the best alternatives, focusing on their ethical viability and utility for businesses:

1. Wise (formerly TransferWise)

• Description: Wise is a global technology company specializing in international money transfers, multi-currency accounts, and debit cards. Its core strength lies in providing transparent and low-cost currency exchange, operating on a fee-based model rather than interest.
• Key Features:
  • International Payments: Send and receive money in multiple currencies with competitive exchange rates.
  • Multi-currency Accounts: Hold and manage balances in over 50 currencies.
  • Borderless Debit Card: Spend internationally without hidden fees.
  • Business Accounts: Designed for freelancers and businesses for international transactions.
• Ethical Alignment: Highly aligned. Wise focuses on facilitating transfers at mid-market rates with transparent fees, avoiding interest-based lending or savings. It’s a service for moving and managing money, not generating interest.
• Pros:
  • Transparency: Clear fee structure, no hidden markups on exchange rates.
  • Cost-Effective: Significantly cheaper than traditional banks for international transfers.
  • Speed: Transfers are often completed much faster than traditional methods.
  • Global Reach: Supports a vast number of currencies and countries.
• Cons:
  • Not a Bank: Does not offer traditional banking services like loans or high-yield savings (which is a pro from an ethical standpoint).
  • Limited Features: Focuses primarily on payments and currency exchange, not comprehensive business management like accounting.

2. Revolut Business

• Description: Revolut offers digital banking services with a strong emphasis on international transactions, expense management, and integrated business tools. While Revolut as a whole offers a wide range of products, users can selectively utilize its features in a Sharia-compliant way by strictly avoiding credit lines, interest-bearing “Vaults,” or investment products that involve interest or prohibited assets.
  • Business Accounts: Multi-currency accounts for local and international payments.
  • Expense Management: Tools for tracking and categorizing expenses, issuing virtual cards for teams.
  • Payroll: Streamlined payroll processing.
  • Integrations: Connects with popular accounting software.
• Ethical Alignment: Requires careful usage. The core business account for payments and expense management can be used ethically. However, users must be vigilant to opt-out or avoid any interest-bearing savings, credit facilities, or conventional investment products that Revolut may offer.
  • Comprehensive Features: Offers a broader suite of tools than Wise for business management.
  • Global Payments: Excellent for businesses with international operations.
  • User-Friendly App: Intuitive design and easy to navigate.
  • Feature Control: Requires user discipline to avoid non-halal features.
  • Customer Service: Some users report challenges with customer support.

3. Mercury

• Description: Mercury provides online banking for startups and e-commerce businesses, particularly in the US. It focuses on offering a robust platform for checking and savings accounts without aggressively promoting interest earnings on deposits as a primary value proposition, making it easier for users to manage funds ethically.
  • Checking & Savings Accounts: Designed for tech companies and startups.
  • Virtual Cards: For managing team expenses and online purchases.
  • API Access: For custom integrations and automation.
  • Treasury & Venture Debt (Avoid): While they offer these, users must avoid their interest-based products.
• Ethical Alignment: Better than traditional banks, as their primary model is not built on earning interest from deposits, and their basic accounts don’t inherently generate interest. However, users must still exercise caution and avoid their venture debt or other interest-bearing investment features.
  • Startup Friendly: Tailored services for the unique needs of tech startups.
  • No Monthly Fees: Basic accounts are free.
  • Strong Tech Integration: Excellent for businesses relying on software and APIs.
  • US-Centric: Primarily serves US-based businesses.
  • Limited Physical Presence: Entirely online.

4. Starling Bank Business Account

• Description: A UK-based digital bank offering award-winning business current accounts. Starling is known for its excellent mobile app, integrated features, and strong customer service. Similar to Revolut, it operates within the conventional banking system, so users must be mindful to select non-interest-bearing products and features.
  • Business Current Account: Full UK bank account for daily operations.
  • Invoicing & Expense Tracking: Tools built into the app.
  • Marketplace Integrations: Connects with popular accounting software (Xero, FreeAgent).
  • Spending Insights: Detailed breakdown of transactions.
• Ethical Alignment: Like Revolut, requires careful usage. The basic current account for transactional purposes can be used ethically. Users must avoid applying for overdrafts, loans, or any interest-bearing savings pots offered by the bank.
  • Excellent App: Highly rated for user experience.
  • Strong Customer Service: Often praised for its responsive support.
  • FSCS Protected: Deposits are protected by the UK’s compensation scheme.
  • Conventional Bank: Operates under conventional banking laws, meaning interest-based products are offered, requiring user vigilance.

5. Coconut

• Description: A UK-based business current account designed specifically for freelancers, self-employed individuals, and small businesses. Coconut aims to simplify accounting and tax preparation by integrating these features directly into the banking experience.
  • Business Current Account: For everyday business transactions.
  • Invoicing: Create and send invoices.
  • Tax Estimator: Helps track and estimate tax liabilities.
  • Expense Categorization: Automates the tagging of transactions for accounting.
• Ethical Alignment: Similar to Starling, Coconut offers standard banking services. Users can utilize the current account and management tools ethically by avoiding any credit facilities or interest-bearing features that may be introduced.
  • Freelancer Focused: Tailored features for sole traders.
  • Accounting Integration: Simplifies tax and bookkeeping.
  • Intuitive Interface: Easy to use for non-accountants.
  • UK Only: Limited to the UK market.
  • Conventional System: Operates within the interest-based financial system, requiring user discretion.

6. FreeAgent

• Description: FreeAgent is a comprehensive accounting software designed specifically for small businesses and freelancers. While not a bank, it serves as an excellent complementary tool for managing finances ethically when paired with a non-interest-based bank account (or one where interest is avoided).
  • Invoicing & Estimates: Create professional invoices.
  • Expense Management: Track and categorize business expenses.
  • Bank Feed Integration: Connects with various bank accounts (allowing users to choose ethical banking partners).
  • Payroll: Manage payroll for employees.
  • Tax Filing: Helps prepare and file Self Assessment and VAT returns.
• Ethical Alignment: Highly aligned, as it is purely an accounting and financial management software and does not engage in financial transactions itself. It enables users to maintain ethical financial records.
  • Comprehensive Accounting: Covers all key aspects of small business accounting.
  • User-Friendly: Designed for ease of use, even for those without accounting experience.
  • Tax Simplification: Great for preparing and filing taxes.
  • Not a Bank: You still need a separate bank account.
  • Subscription Cost: It’s a paid service, though often bundled free with certain UK business bank accounts.

7. Xero

• Description: Xero is a popular cloud-based accounting software for small and medium-sized businesses globally. Like FreeAgent, it’s not a bank, but a powerful tool for managing financial records, invoicing, and expenses. It can be seamlessly integrated with ethically chosen bank accounts.
  • Invoicing & Quotes: Create and send professional documents.
  • Bank Reconciliation: Automates the matching of bank transactions.
  • Expense Claims: Manage employee expenses.
  • Payroll (add-on): Integrates with payroll services.
  • Reporting: Generate financial reports for insights.
• Ethical Alignment: Highly aligned. Xero is a software tool, not a financial institution that offers interest-based products. It empowers businesses to manage their books in a Sharia-compliant manner when paired with an ethical bank account.
  • Scalable: Suitable for businesses of various sizes.
  • Extensive Integrations: Connects with over 1,000 apps, including ethical payment gateways.
  • User Community: Large user base and extensive support resources.
  • Subscription Cost: Requires a monthly subscription.
  • Not a Bank: Requires a separate banking solution.