The top 10 banks in UK is often one of most essential things newcomers should know, whether you’ve just moved for study, work, or long-term settlement, as we cannot live without banks. However, have you ever faced so many bank accounts that you feel confused? Have you been treated with impatience in the bank? This requires a list of best banks in UK. To help you compare options quickly and clearly, we’ve created a comprehensive guide to the top 10 banks in UK, covering their strengths, key services, and how to identify the best bank account for you.
List of Top 10 Banks in UK
After deciding to move to Britain, which bank is the best for you? The following part will list top banks in UK for your reference.
| Banks | Headquarters | Founded |
|---|---|---|
| HSBC Holdings | London, England | 1865 |
| Barclays | London, England | 1690 |
| Lloyds Bank | Edinburgh, Scotland | 2009 |
| NatWest | London, England | 1968 |
| Standard Chartered | London, England | 1853 |
| Santander UK | London, England | 2010 |
| Nationwide Building Society | Swindon, England | 1884 |
| Virgin Money UK | Glasgow, Scotland | 1995 |
| Royal Bank of Scotland | Edinburgh, Scotland | 1727 |
| Metro Bank | London, England | 2010 |
Top 10 UK Banks: Elaboration
These top ten banks in UK are ranked based on their assets, services, history and other factors. They are also the banks that British locals are most likely to choose.
1. HSBC Holdings
HSBC is the largest bank in the UK, and one of the largest banking and financial institutes in the world. With around 4,000 offices in 64 countries, it has a large group of customers. Founded in 1864, HSBC was set to provide financial services to British companies in the Far East at that time. Nowadays, HSBC has grown into a multinational financial institute. More than 70% of its turnover comes from other countries.
Overview
- Founded: 1865
- Headquarter: London, England
- Total Assets (£bn): 2,387.03
2. Barclays
Barclays is the second largest bank in the UK, just after HSBC, and also the oldest bank in the UK. It was founded in 1690 and was headquartered in London. As best bank in UK, Barclays was the first bank in the world to have an ATM. It also issued the first credit card in the UK in 1966, and the first debit card in the UK in 1987. Therefore, Barclays has an irreplaceable place in the history of British banking.
Overview
- Founded: 1690
- Headquarter: London, England
- Total Assets (£bn): 1,477.50
3. Lloyds Bank
Lloyds Bank is also one of the best UK banks. Through a series of M&A, Lloyds has become one of Britain’s four largest private banks (the Big Four). Lloyds has branches in four regions: North America, Europe, the Middle East and Asia. It mainly controls banks as follows: Bank of Montreal in London, Lloyds European Bank, National Bank of New Zealand and so on. Lloyds deserves to be one of the top banks in UK.
Overview
- Founded: 2009
- Headquarter: Edinburgh, Scotland
- Total Assets (£bn): 881.50
4. NatWest
NatWest is also one of the “Big Four”, serving over 19 million customers in more than 30 countries. NatWest was founded in 1968 via merging National Local Bank and Westminster Bank, and is now owned by the National Westminster Group.
Overview
- Founded: 1968
- Headquarter: London, England
- Total Assets (£bn): 692.70
5. Standard Chartered
Standard Chartered was chartered by Queen Victoria in 1853. And it is also why it got this name. Standard Chartered is an international financial services institute. Its main business includes deposit, loan business, and international settlement business. Despite being based in the UK, Standard Chartered has a low market share here and even no retail banking business for individuals in the UK.
Overview
- Founded: 1853
- Headquarter: London, England
- Total Assets (£bn): 646.39
6. Santander UK
Santander UK is the UK subsidiary of Santander, the largest bank in Spain and the fourth largest in Europe. In 2010, Santander UK acquired parts of Royal Bank of Scotland’s business in England and Wales and NatWest’s Scottish branch. As a result, it became one of the major UK banks.
Overview
- Founded: 2010
- Headquarter: London, England
- Total Assets (£bn): 275.45
7. Nationwide Building Society
Nationwide Building Society is the largest retail bank, serving over 16 million customers. After merging about 250 building societies, Nationwide became the largest building society in the UK and the world. It is also the only financial institute in the UK that can honour its own cheques and offer a free global transaction service.
Overview
- Founded: 1884
- Headquarter: Swindon, England
- Total Assets (£bn): 271.90
8. Virgin Money UK
Virgin Money UK PLC is a UK-based full-service digital bank that provides products and services to meet the full range of customer, retail and business banking needs. The company operates in four commercial businesses, such as mortgages, unsecured loans, commerce, and deposits.
Overview
- Founded: 1995
- Headquarter: Glasgow, Scotland
- Total Assets (£bn): 91.79
9. Royal Bank of Scotland
Royal Bank of Scotland is the biggest bank in UK, and one of the largest banks in the world. In March 2000, the RBS merged with NatWest, making the Royal Bank of Scotland the largest commercial bank in the United Kingdom. The deal has reached a record high in British banking takeover, up to £21 billion.
Overview
- Founded: 1727
- Headquarter: Edinburgh, Scotland
- Total Assets (£bn): 90.40
10. Metro Bank
Metro Bank is a retail and commercial bank operating in Britain. It was granted a licence by the Financial Services Authority on 5 March 2010, becoming the first high street bank to be granted such a licence in over the past 150 years.
Overview
- Founded: 2010
- Headquarter: London, England
- Total Assets (£bn): 22.25
UK banking system: Overview
The UK, especially London, is one of the major financial centres in the world. The banking sector in the UK is significant for Britain, and even the world. There are over 300 financial institutes in the UK, including banks and building societies.
Central Bank
Bank of England was nationalized in 1946 and then became the central bank of Great Britain. In 1997, Bank of England became an independent public sector, which means it is totally owned by the government, but has its own independent monetary policy.
The Big Four
UK banking has been highly consolidated since the early 20th century. Unlike some other major economies, the UK does not have large, independent local banks. After a series of mergers and acquisitions, the retail and commercial banking market is dominated by the Big Four:
| Banks | Headquarters | Total Assets (£bn) as of December 31, 2023 |
|---|---|---|
| HSBC Holdings | London, England | 2,387.03 |
| Barclays | London, England | 1,477.50 |
| Lloyds Banking Group | London, England | 881.50 |
| NatWest Group | Edinburgh, Scotland | 692.70 |
Building societies
Building society is a kind of mutual financial institution, and the main business includes savings, mortgages, etc. Some also offer debit and credit cards. This kind of financial institution exists mainly in the UK. Lenders and depositors are also the actual owners of the building society. Compared to high street banks, building societies are less complex. There are 5 largest building societies in the UK.
| Building Societies | Headquarters | Total Assets £000s |
|---|---|---|
| Nationwide | Swindon, England | 271,893,000 |
| Coventry | Coventry, England | 58,867,100 |
| Yorkshire | Bradford, West Yorkshire, England | 58,754,100 |
| Skipton | Skipton, North Yorkshire, England | 33,571,300 |
| Leeds | Leeds, England | 25,513,900 |
Best UK Current Account
Current account means a type of bank account that helps you save and manage your money. It’s a convenient way to buy and sell products. Although you may use other financial products, a current account is the most commonly used and most convenient one. However, with so many banks, how to choose the best current account? Finder has compiled a list of the best current accounts in the UK based on user feedback.
| Banks | Current Account (Best) | Min. Opening Balance | Account Fees | Interest (AER) |
|---|---|---|---|---|
| Starling Bank | Best all rounder and for overseas spending | £0 | £0 | 3.24% AER |
| Monzo | Best for extra features & green banking | £0 | £0 | 0% AER |
| Lloyds Bank | Best for payment features | £1 | £0 | 0% AER |
| Nationwide | Best for linked savings account | £0 | £0 | 0% AER |
| Chase | Best for cashback | £0 | £0 | 0% AER |
1. Starling Bank: Best all rounder and best bank account for overseas spending
Pros:
Cons:
- No monthly-fees
- No overseas fees
- 100% digital sign-up
- 24/7 UK customer support
- "Settle up" feature to split joint bills
- Pays interest on current account balance
- Overdrafts available (only on personal accounts)
- No branch network
- Limited options for depositors
- No competitive switch incentives
- Lower ATM withdrawal limit than some other digital challengers
- No group savings feature
- Doesn't have a specific monthly budgeting tool
2. Monzo: Best for extra features & green banking
Pros:
Cons:
- Easy to set up
- Good for budgeting and categorising spending
- Automatic saving feature
- Fee-free spending abroad
- Slick app with face login
- Overdrafts and loans available
- Free ATM withdrawals outside the EEA limited to £200
- £1 fee for depositing cash at PayPoints
- Maximum cash deposit of £1,000 every 6 months
- No rewards program
3. Lloyds Bank: Best for payment features
Pros:
Cons:
- No monthly fee
- Earn cashback on spending
- Overdraft available
- 24/7 banking
- FSCS protection
- Interest charged on overdraft
- No interest paid on balances
- Limited account features
4. Nationwide: Best bank account for linked savings account
Pros:
Cons:
- No monthly fee
- Arranged overdraft available
- Access to exclusive products such as linked savings account
- Easy to apply for
- FSCS protection
- Interest charged on overdrafts
- No interest paid on balances
- Limited account features
- Withdrawal limit on linked savings account
5. Chase: Best bank account for cashback
Pros:
Cons:
- Rewards when you spend
- Award-winning account
- No fees abroad from Chase
- No branches if you prefer face-to-face banking
- Can’t deposit cash or cheques into the account
- Overdrafts not available yet
Best Student Bank Accounts
Compared to common accounts, student bank accounts often offer additional benefits for those in higher education. After confirming a place in universities, you can open a student bank accounts. For many students, it is a new stage of their life, representing their independence. Therefore, opening the best student bank accounts is a tough but important challenge for students. According to Money Saving Expert, here are some best student bank accounts.
| Banks | Student Accounts | Service Rating |
|---|---|---|
| Santander UK | Santander Edge Student | 60% “great” |
| Nationwide | Nationwide FlexStudent | 87% “great” |
| Royal Bank of Scotland | RBS Student | 47% “great” |
| HSBC | HSBC Student | 49% “great” |
1. Santander UK
0% overdraft:
- – £1,500 in years 1 to 3
- – £1,800 in year 4
- – £2,000 in year 5
2. Nationwide
0% overdraft:
- – £1,000 in year 1
- – Up to £2,000 in year 2
- – Up to £3,000 in years 3+
3. Royal Bank of Scotland
0% overdraft:
- – £500 in the first term
- – Up to £2,000 from the second term until the end of year 2
- – Up to £3,250 in years 3+
4. HSBC
0% overdraft:
- – £1,000 in year 1
- – Up to £2,000 in year 2
- – Up to £3,000 in years 3+
Greenest Banks in UK
For the earth’s future, all walks of life encourage environmental protection. In banking sector, there are also some green banks that can achieve this goal. These banks are also called ethical banks or sustainable banks. Here are the UK’s greenest banks.
1. Co-operative Bank
Co-operative Bank won the CFI Most Ethical Bank Award in 2021, and is also the only high-street bank in the UK with a customer-led ethical policy. The bank has been described as “beyond carbon neutral” for 15 years — adding an additional offset of 10% each year to reduce emissions.
2. OakNorth Bank
OakNorth Bank is an emerging digital bank headquartered in London, UK, founded in September 2015. OakNorth’s core business is to provide loans between £500,000 and £45 million to SMEs, especially those enterprises focusing on sustainable development.
3. Triodos
Founded in 1980, Triodos is an ethical bank based in the Netherlands. And Triodos UK is just a branch of it. Just like Co-operative Bank, Triodos also won the CFI Most Ethical Bank Award in 2021. Regarding sustainability as its mission, Triodos only finances those companies focusing on environment, culture and agriculture.
How to Find the Best Bank Account?
When you first come to the UK, how do you find the best British bank? Here are some essential things to consider when choosing a bank.
- Distance. What are the nearest banks to your home or school?
- Service Charge. You have to make sure that the bank you choose is free, because some banks may charge a monthly fee.
- Discounts. Please confirm if there will be any discount when you open an account. If you are a student, ask if the bank has any special offers for students.
Materials required
After you choose the bank, you can make an appointment. Here are the materials you need to open an account.
- Identification (passport, BRP card)
If you are a student, you need to present a Student Status Letter from your school.
- CAS
- Reservation list from the bank
- Additional materials (Two 2-inch passport ID photos, cash, rental contract)
Top 10 Banks in UK: Conclusion
Listing top 10 banks in UK is important. When you first come to Britain, opening best bank account is the first and foremost thing you have to address. Actually, you don’t have to choose top banks in UK listed above. You can choose the best bank in UK according to your requirements. If you prefer digital service, First Direct, Monzo and many other online banks are more suitable. If you have an overdraft need, you can choose a bank with lower overdraft charges. Fully considering your own needs and top 10 banks in UK, you can open the best bank account to better and faster integrate into the UK and start a new life.
FAQs about Top 10 Banks in UK
The top 10 banks in UK are: 1.HSBC 2.Barclays 3.Lloyds 4.NatWest 5.Standard Chartered 6.Santander UK 7.Nationwide 8.Virgin Money UK 9.Royal Bank of Scotland 10.Metro
HSBC is the largest bank in the UK and even Europe, and the second largest bank in the world. It was founded in 1865 and is based in London, England.
Barclays is the most popular bank in the UK, with 48 million people choosing to bank here.
