Tide launches easy access Cash ISA for sole traders

Tide has launched an easy-access Cash ISA for sole traders, expanding its savings offering for self-employed customers in the UK.

The account pays 3.25% variable AER tax-free interest and allows annual ISA contributions of up to £20,000. Users can access funds instantly without penalties and manage the account through the Tide app.

The launch builds on the fintech group's broader push into savings products. Tide introduced its Instant Saver in 2023, and the new account is aimed at sole traders who already use its platform for business banking and administration.

ClearBank provides the account. Eligible deposits are protected up to £120,000 under the Financial Services Compensation Scheme, according to Tide.

Tide now supports more than 800,000 small businesses in the UK, representing about 14% of the market. It has built its position around digital accounts and business management tools for smaller firms and self-employed workers.

For sole traders, the launch adds a personal savings product to a platform best known for business services. Users can hold and manage a cash ISA in the same app they use for day-to-day business finances.

Savings push

The Cash ISA launch comes as providers compete for retail savers seeking flexible access to cash while retaining tax advantages. Tide's offer targets sole traders, a segment that often blends personal and business financial management more closely than incorporated companies do.

The annual contribution limit matches the current UK ISA allowance of £20,000. Tide also noted that the allowance for individuals under 65 is due to fall to £12,000 from April 2027.

That change may increase focus on cash ISA products before the lower threshold takes effect. For digital financial platforms, it also creates another way to deepen customer relationships beyond core current accounts and payments.

Market context

Launched in 2017, Tide has expanded from business accounts into a broader range of financial and administrative services. Alongside the UK, it serves small businesses in India and has entered Germany and France.

The company says it has more than 1,000,000 SME members in India and employs more than 2,500 people worldwide.

Unlike many savings products aimed at consumers more broadly, the new ISA is positioned around a specific working group. Sole traders often face irregular cash flow and may value immediate access to money, making the easy access feature a notable part of the offer.

The tax-free structure of a cash ISA may also appeal to self-employed workers looking to separate some personal savings from business operating funds. Integrating that option into the existing app may reduce the need for a separate provider.

Heather Cobb, Tide's UK Managing Director, outlined the rationale for the launch.

"We're making it easier for sole traders to grow their wealth. Our Tide Cash ISA gives them a straightforward, tax-efficient way to save, with the flexibility to access their money whenever they need it," Cobb said.