Are you going to go to university in the UK? It means you’re about to grow up. Learning how to manage your money is a necessary step in your growth. Then, you need to open a bank account. If you do not want to go out, and are more willing to manage your money via mobile phones, laptops, etc., you should open an online bank account. What are the best online banks UK? Let’s read on and choose your favourite online bank accounts.
What is the online bank account UK?
In daily life and work, when it comes to online banking, we are more referring to the concept of online banking services. Online banking transfers traditional banking products to the Internet, and its service mode has also undergone certain changes. Because of the application of information technology, there is also a new kind of business.
The bank uses Internet to provide customers with traditional services such as account opening, inquiry, account checking, intra-bank transfer, inter-bank transfer, credit, online securities, investment and financial management, so that customers can safely and conveniently manage current and fixed deposits, checks, credit cards and personal investments without leaving their homes. Because online bank account is not limited by time and space, and can provide financial services to customers anytime, anywhere, and in anyway, many people now choose this way to manage their money.
10 Best online banks UK (detailed)
Here are 10 best online banks UK. Please read on and get more information about these online banks.
1. Kroo Bank
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2022 | Kroo Account, Kroo Plus | 3% of cashpoint withdrawal fee in foreign currency outside the UK; if the amount exceeds £200 in a month |
£0 |
With the rapid progress of science and technology, digital banking has become a shining star in the field of financial technology. Among them, Kroo Bank is a leading UK digital bank that has emerged in recent years. It has one main product, a free current account that can be opened through the app. Kroo offers free, digital-only FSCS-protected current accounts and debit cards to help manage personal and social spending.
2. Revolut
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2015 | Standard Account, Plus Account, Premium Account | 2% of cashpoint withdrawal fee only if you make more than five withdrawals or exceed £200 per month | standard-free, plus-£3.99/month, premium-£7.99/month, ultra-£45/month |
Revolut is a financial technology company located in London, England, founded in 2015, which provides digital bank accounts and a variety of other financial services. At present, Revolut supports the transfer and exchange of a variety of international currencies such as the British pound, US dollar, Euro, Australian dollar and Singapore dollar, and its users can transfer and spend a variety of international currencies for free through prepaid cards and mobile apps, and can also view statements, buy and sell cryptocurrencies or trade other financial products through the App.
3. Monzo
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2015 | Monzo, Monzo Plus, Monzo Premium | 3% of every withdrawal of over £250 per month | £5/month |
Monzo is a financial company founded in 2015, initially with a prepaid debit card. It later received a banking license in 2017, officially becoming a UK Internet bank. It was also one of the first app-based banks in the UK and is often referred to by the British press as a “challenger to traditional banks”. Today, 3.6 million people are using Monzo, and more than £2.1 billion has been spent through Monzo.
4. Starling Bank
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2014 | Starling Personal Account, Starling Business Account | £20 for every CHAPS transfer in the UK, £5 for a replacement debit card | £0/month |
Founded in 2014, Starling Bank is the UK’s first digital bank, authorised by the PRA (UK Prudential Regulation Authority) and regulated by the PRA and FCA (UK Financial Conduct Authority). Starling Bank has more than 3 million customers with deposits totalling £9 billion. Starling Bank offers a wide range of financial services including deposit and withdrawal, overdraft, lending and international transfer services.
5. Chase
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 1955 | Current & Saver Accounts | £0 | £0/month |
Chase is the best virtual bank in the UK. It can provide multiple layers of security and fraud monitoring to help you keep your funds, accounts and personal information safe. Chase Bank has two accounts: a current account and a savings account. You can get 1% cash back on your daily debit card purchases. You can even add your Chase card to Apple Pay or Google Pay to quickly shop in stores or online.
6. Monese
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2015 | Simple Account, Classic Account, Premium Account | £4.95 for every debit card delivery; £1.95 for every cash machine withdrawal |
basic-free, classic-£7.95/month, premium-£14.95/month |
Monese was one of the first app-only digital banks to launch in the UK and was named “Best Challenge Bank” at the European Fintech Awards in 2016. Monese offers smart and flexible apps and mastercard to improve people’s banking experience, whether you have a UK address, credit history or regular income, you can instantly access Monese and open a UK or EU account. Monese allows you to take it with you to 20 European countries, and if you move to another country, the Monese account comes with you. This is one of the best online banks UK.
7. Zopa
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2005 | Zopa Money Full Account, Zopa Money Basic Account | £1 fee for every withdrawal from ATMs outside the UK | £12/month for missed payment |
Zopa is a British financial services company that became the world’s first online lending company in 2005 and was later granted a banking license. The company’s main office is located in London Bridge. Since 2017, Zopa also has a development centre in Barcelona, Spain. After its establishment, Zopa gained wide attention from society and the public with its novel operation model, and its total with a large increase in registered members and a soaring total loan. Today, Zopa is the largest peer-to-peer lender in the UK. The top three purposes of borrowing are: car loans, credit card loans, and consumer loans for household necessities.
8. ANNA
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2017 | Anna Money, Anna Business Account | £3 fee for international transfers; £35 for forced debit card cancellation |
Basic-£0/month, business-£14.9/month, big business-£49.9/month |
ANNA Online Bank/ANNA Money is a financial technology company founded in 2017. It specialises in business accounts for small business owners, sole tradespeople, start-ups and independent freelancers in the UK. ANNA supports payment in multiple currencies, offers physical and virtual debit cards, and features fast account opening and 24-hour customer support. In addition, it provides comprehensive and convenient additional tax services, and can provide Master card and invoice services for account owners in a short time.
9. Virgin Money
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 1995 | M Plus Account, M Account | £1.25 fee per month for agreed overdraft usage; £5 for cancelling a direct debit |
M Plus-£0/month, Club M-£12.50/month |
Virgin Money is a well-known financial services brand in the UK, and one of the best UK online banks. It focuses on providing consumers and small and medium enterprises with a full range of banking services, including current savings, fixed deposits, mortgages, credit cards, etc. Through its digital strategy, Virgin Money is committed to providing convenient and efficient online financial services to meet the diverse needs of its customers. It operates across a number of economic centres in the UK, with a large customer base and a wide range of financial product lines.
10. Wise
| Founding Year | Types of Account | Potential Fees | Monthly Fees |
|---|---|---|---|
| 2011 | Personal & Business Accounts | Varies by currency (starting from 0.33%) | Free |
Wise is a British financial technology company founded in 2011. It is a bank offering financial services and international money transfers, remittances and currency exchange. Wise supports more than 40 currencies and covers more than 80 countries, and is known for its transparent, low-cost exchange rates and fast money transfer services. Costumers can easily manage their funds through Wise’s online platform or mobile app and enjoy safe and convenient cross-border financial services.
Comparison of best bank accounts UK
After knowing much about which bank is best in UK, we still need to learn more about some online bank accounts UK. The table below shows some of the UK online bank accounts, and lists some information about them. Many students
| Account | Opening/Monthly Fee | In-credit Interest Rate (AER) | Arranged Overdraft | Most Attractive Features |
|---|---|---|---|---|
| Kroo Current Account | None | 0.0435 | Yes – 24.9% APR variable | Fee-free spending abroad |
| Revolut Standard Account | None | Up to 2.29% | No | International transfers + currency exchange |
| Monzo Current Account | None | 0.041 | Yes – 39% APR variable | Smart spending and saving tools |
| Starling Bank Personal Current Account | None | 0.0325 | Yes – 15% APR variable | In-app money management tools |
| Chase Current Account | None | 0.01 | No | Cashback on bills and spending |
| Monese Instant Account | None | No | No | Easy account opening (no credit checks) |
Best UK online banking apps
In recent years, even fintech needs to improve itself to suit the needs of customers. More and more people are willing to deal with some easy and quick financial services on their phones. People do not want to go around to find banks. Sometimes, people need to find two banks located in two districts to handle different services. Therefore, many online banking apps have emerged. Well, what are best UK online banking apps? And which one should you choose? Let’s look at the following list to consider a suitable app.
- Wallester – Best Mobile Banking App spending
- Revolut – Best for holiday spending
- Wise – Best for international transfers
- Monese – Best for international students and credit building
- Starling Bank – Most complete banking app
- NatWest – Student-focused banking
- Chase – Great for cashback rewards
- Monzo – Best for managing budgets
- Lloyds – Great for additional financial products
- Tide – Perfect for freelancers and sole traders
- Atom Bank – Best for competitive savings account rates
Pros and cons of online bank accounts UK
Nowadays, online banks have become more and more people’s first choice. Except for some complex and special businesses, most services can be dealt with through this apps or digital banks. It makes people’s life more convenient. While as a new fintech, it definitely has its pros and cons just like other new technologies.
Pros
- More convenient.
It is the most obvious advantage of online banks, and also one of the most important original intentions. Holding an online bank account, you can manage your money at home or at a distant place. You do not have to find the corresponding banks near you.
- Lower service fees.
Many online banks offer services with lower fees. When you handle some businesses, it is very common to pay account maintenance fees, ATM fees, overdraft fees, and many other fees. However, if you deal with some businesses via Internet, the service fees can be lower and some fees may even be eliminated.
- Higher interest rates.
In order to encourage customers to open online bank accounts, best online banks opt to promise a higher interest rate for these customers. It is a relatively high-return approach to financial management with lower-risks.
- Handle your businesses at any time.
Imagine that you get a sudden notice that you need to pay the school bill, but the bank does not open, and you have no way to transact through the bank account. Do you feel anxious? Because the working hours of the bank are fixed, it is difficult for you to do business outside of working hours. All these problems can be solved if you have a online bank account. You can handle your businesses at any time.
Cons
- Increase account risks.
With the development of Internet and technologies, more and more online fraud also appears. There are many ways to cheat online, and many people are too vulnerable. This is also a big test for the bank’s network security. They need to maintain their own network firewalls constantly to ensure the security of users’ information and money.
- Handle businesses more difficult.
If you are unfamiliar with the business you need to deal with, or have some questions to ask, online banking may make it more difficult. Because online banks will first use the robots to communicate with you, they may not fully understand your needs.
- Limited options.
For most banks, they only provide popular and mature services online. The options are very limited. If you want to know more details or open other bank accounts, it may not be successful.
How to open best bank accounts UK?
Knowing so much information about best online bank accounts in UK, are you willing to open one? Opening an online bank account is as easy as doing business with it. You can do it anytime, anywhere.
- Find the official website or app of the bank you want to open an account with.
- Sign up for an account.
- Prepare the essential documents (including your ID card/UK passport/driving license and other supporting materials).
- Fill out the application form.
- Make an initial deposits (if required)
- Set up your account features (such as, spending limits).
- Activate your card.
Conclusion
Dealing with businesses through online bank accounts is the trend of banking services. Nowadays, almost everyone owns their online bank accounts, especially for young people. They seek for a more convenient and faster life, which is also the direction of the future. Technology should help human’s development and facilitate people’s life. Online banks are a good example. Choosing the best online banks UK will not only make your life cosier, but also reduce account risks and get more discounts. Join us and make your life easier by opening your own online bank account UK.
FAQ
If you want to choose one of the best online bank accounts in the UK, you have to consider several factors.
- Choose the features you want. Some banks offer free basic bank accounts, while some provide free ATM withdrawals. You need to search for their information and choose the online bank account with all features you want.
- Calculate fees. Most people choose good online banks due to their competitive fees. You can compare these online banks’ fees to choose the best one.
- Know how they provide customer services. If you think a real bank is more reliable, then you need to eliminate the online-only banks. Some banks offer online human services, others rarely. Some banks have fixed working hours, while others offer round-the-clock services. You need to choose your preferred best online bank according to your needs.
The easiest bank account to open online UK may be HSBC Bank Account. Its monthly fee is £0, and is best for discount offers. In addition to HSBC, there are several easiest bank accounts to open online.
| Account | Monthly fee | Best for |
|---|---|---|
| HSBC Bank account | £0 | Discount offers |
| Barclays Bank account | £0 | Money management tools |
| NatWest Select account | £0 | Fraud protection |
| Lloyds Bank Club Lloyds account | £3 or £0 if you pay in £2,000 that month | Lifestyle benefits |
| Halifax Current account | £0 | Everyday saving (Save the Change® feature) |
| Starling Bank Current account | £0 | Travelling abroad |
| Santander Basic Current account | £0 | A good choice if you have poor credit history or you’ve been rejected for another account |
| Nationwide FlexDirect account | £0 | Interest-free arranged overdraft for 12 months |
| Co-operative Bank Current account | £0 | Access to exclusive savings accounts |
| Monzo account | £0 | Sending and receiving money without sharing bank details |
Looking to open a bank account without submitting an address proof in the UK? Services provided by Wise, Monese, Revolut, and Monzo offer a solution that enables you to set up a UK online bank account without needing to be a resident. They provide you with UK account numbers, sort codes, and debit cards, which you can use for shopping in-store or making online payments.
- You should keep in mind that there is no high-return investment with low risk. If there is, it’s probably a scam.
- If someone asks you to act quickly, it is probably a scam, because the bank doesn’t give you short notice. And banks don’t mind waiting if they really want you to order the service.
- Check your bank account and credit card statements regularly.
- Do not provide your bank account or credit card details to anyone or platform unless you are sure you are making a legitimate transaction.
In a popular vote, NatWest and Starling were considered to be safer and more reliable. People prefer to trade their large deposits and investments through these two banks.
Here is a list of the banks that let you pay in cheques online:
- NatWest
- RBS
- TSB
- Santander
- First Direct
- Barclays
- HSBC
- Starling Bank
- Virgin Money
- Bank of Scotland
- Halifax
- Lloyds
There are several ways to transfer money to another online bank account.
- Internal Electronic Funds Transfers: Transfers can usually be made immediately. If the two accounts are already linked, the speed will be even faster.
- External Electronic Funds Transfers: The transfer can be completed within a maximum of two working days.
- Peer-to-Peer Transfers: Transferring money from your account to another person is quick, but it takes longer if you transfer to your bank.
- Wire Transfers: The transfer can be completed within a maximum of two working days.
