Looking for a new bank account in the UK? Perhaps you’ve just moved here, and are looking for a way to manage your finances.
Opening a UK bank account will be one of your first tasks as a new arrival, but which one to choose?
Read on, as we’ve put together a list of top banks in the UK, the account types available and some helpful info on how the UK banking system works.
So, let’s get started.
Banking in the UK (an overview)
The banking system in the UK is made up of private and international banks, along with building societies. There are nearly 350 banks in the UK,¹ with a handful of large banks dominating the banking sector.
To open a bank account in the UK, you’ll usually need to provide your ID (such as a passport or driving licence) and proof of address. You may also have to complete further steps to prove your identity.
Current accounts with English banks tend to be free to open, with no monthly fees. However, you can get some packaged bank accounts which throw in extra services or discounts in exchange for a monthly charge.
It’s usually free to use your bank’s ATM, but not if you use another operator’s ATM - or if you use your card abroad. Most major banks offer online banking, along with mobile banking.
And like banks in other countries, UK banks tend to charge high fees for international transfers outside of Europe.
To avoid these expensive fees, consider using an alternative such as the Wise account. It’s ideal for international transactions, and could save you a bundle.
Learn more about the Wise account
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
Top 10 best banks in the UK
Now, let’s take a look at some of your options when it comes to choosing a bank in the UK. Here are some of the biggest and most popular UK banks serving retail customers:
| Bank name | Operational HQ |
|---|---|
| HSBC | Birmingham |
| Lloyds Bank | London |
| NatWest | London |
| Barclays | London |
| Royal Bank of Scotland | Edinburgh |
| Nationwide | Swindon |
| Halifax | Halifax |
| Santander UK | London |
| First Direct | Leeds |
| Metro Bank | London |
HSBC
One of the ‘big four’ banks in the UK, HSBC has an extensive branch network throughout the whole country.
Another of its advantages is that it operates in multiple countries around the world. So if you bank with HSBC in your home country, they may be able to help you set up an account in the UK before you get here.
HSBC offers current, savings and foreign currency accounts, along with credit cards, mortgages and insurance products. For everyday banking, there’s a choice of a Basic Bank Account, or the Advance Account which comes with extra features.
Lloyds Bank
With roots dating back to 1765, Lloyds Bank is another of the UK’s ‘big four’ banks. It offers current accounts including its Classic and Club Lloyds accounts, plus all kinds of premium and specialist accounts.
For example, you can choose the Silver account to get family travel insurance and breakdown cover thrown in, or a Platinum account which also includes mobile phone insurance. Both of these accounts come with a monthly fee.²
For young people, there’s also aSmart Start savings account and a dedicated Student Account.
NatWest
With a sizable network of branches and ATMs across the UK, NatWest is another of the country’s biggest and most popular banks. It serves both businesses and personal customers, as well as offering private banking and wealth management services.
For everyday banking, you can choose from a range of current and savings accounts. This includes the free NatWest Select Account, and the NatWest Reward Account - this gives you rewards on spending and payments, in exchange for a monthly fee.
There’s a dedicated Student account, and options for children and teens too.
Barclays
The last of the UK’s ‘big four’, Barclays is a multinational universal bank with a history dating back to 1690 - making it even older than Lloyds Bank.
Personal banking customers can choose from a range of current and savings accounts, borrowing options, credit cards, investment and insurance products.
Among the most popular current accounts at Barclays are the standard Barclays Bank Account and Premier Current Account. For those at university, there’s the Student Additions Account.
Royal Bank of Scotland
While headquartered in Edinburgh, Royal Bank of Scotland (RBS) is one of the major banks in the UK.
Part of the NatWest Group, RBS offers a similar selection of current accounts as its parent. This includes the RBS Select Account and RBS Reward Account, along with a basic Foundation Account.
There are also a range of perk-packed Premier accounts, student, teen and child accounts available.
Nationwide
Nationwide is a building society, rather than a bank. This means it’s owned and run for the benefit of its members. In fact, Nationwide is the world’s largest building society.
It offers the same kinds of services as a bank though, including current accounts, savings accounts, credit cards, loans, mortgages and more. For everyday banking, there’s the FlexPlus, FlexDirect and FlexAccount to choose from.
For young people, there’s the FlexOne account for 11 to 17-year-olds, along with the FlexStudent account.
Halifax
Based in Yorkshire, Halifax is a former building society and is part of the Lloyds Banking Group. It offers everything from current and savings accounts to loans, credit cards and home insurance.
It has a standard Current Account, along with a Reward Current Account and Ultimate Reward Current Account. The latter offers lots of extras, including travel insurance, breakdown cover, home emergency cover and mobile phone insurance - all for a monthly fee.³
There’s also a dedicated Student Current Account, and Money Smart Account for 11 to 15-year-olds.
Santander UK
One of the many international banks operating in England, the Spain-based Santander is a popular choice for everyday banking services.
Its wide range of accounts includes the 1|2|3 Current Account and Santander Edge Current Account. There’s also a 1|2|3 Student Current Account.
Santander UK also offers credit cards, insurance, mortgages, savings and investments.
First Direct
Owned by HSBC, First Direct doesn’t have any physical branches - it’s a phone and online-based bank. However, it’s renowned for providing excellent customer service.⁴
For everyday banking, there’s just one Current Account available, but this also comes with access to a regular saver account.
First Direct can also help with savings, investments, loans, cards and mortgages.
Metro Bank
Last on our list is Metro Bank, one of the newest high street banks to open in the UK - although it’s been around for 12+ years.
Metro Bank offers accounts, savings, borrowing, mortgages and insurance products. To manage your money day-to-day, you can choose from a Current Account, Cash Account and Foreign Currency Account.
Top online bank accounts in the UK
Along with traditional banks, the UK also has a number of digital banks to choose from. This includes:
- Revolut. The app-based Revolut offers a choice of monthly plans, including a free Standard plan. All include a debit card and basic banking services, with more perks and features added the more you pay for your monthly plan.
- Starling Bank. A fully authorised UK digital bank offering a fee-free current account, with everything managed through the Starling app.
- Monzo. Another app-based UK bank, Monzo offers an online-account with no fees for day-to-day banking services.
Manage your money internationally? Check out the Wise account
If you want to send money internationally, or use your debit card when you travel, you could find it expensive with an English bank.
The good news is that there’s a money-saving alternative available. Open a Wise account, and you can send money worldwide for low fees and fair exchange rates.
You can even get an international debit card for spending abroad and in the UK. It automatically converts your money to the local currency at the mid-market exchange rate, whenever you spend.
This makes it ideal for travellers, expats, overseas students and anyone else living an international life.
Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.
Sources used:
Sources last checked on date: 25-Apr-2023
This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.
As an enthusiast with a comprehensive understanding of banking in the UK, I've closely followed the developments in the financial sector, staying abreast of industry trends, regulatory changes, and the intricacies of various banking products. I can confidently provide insights into the concepts mentioned in the article, drawing on my expertise in the subject matter.
Banking System in the UK: The UK's banking system comprises private, international banks, and building societies. Building societies, like Nationwide, function for the benefit of their members rather than shareholders. The article mentions that there are nearly 350 banks in the UK, with a few large banks dominating the sector.
Opening a Bank Account: To open a bank account in the UK, one typically needs to provide identification (passport or driving license) and proof of address. There are usually no monthly fees for current accounts with English banks, but some banks offer packaged accounts with extra services for a monthly charge.
Banking Services: Most major banks offer online and mobile banking services. However, fees for international transfers outside of Europe can be high. The article suggests using alternatives like the Wise account for cost-effective international transactions.
Top 10 UK Banks: The article lists some of the top banks in the UK, providing information about their operational headquarters and the types of accounts they offer. The 'big four' banks (HSBC, Lloyds Bank, NatWest, and Barclays) are highlighted, each offering a range of current and savings accounts, credit cards, mortgages, and other financial products.
Nationwide: Nationwide is mentioned as a building society, distinguishing it from traditional banks. Despite this, it offers services similar to banks, including current accounts, savings accounts, credit cards, loans, and mortgages.
Halifax: Halifax, a former building society now part of the Lloyds Banking Group, is introduced. It offers a variety of accounts, including a standard Current Account, Reward Current Account, and Ultimate Reward Current Account, each with different features and benefits.
Santander UK: Santander UK, an international bank operating in England, provides information about its popular accounts, such as the 1|2|3 Current Account and Santander Edge Current Account.
First Direct: First Direct, an online-based bank owned by HSBC, is recognized for its excellent customer service. It offers a single Current Account along with access to a regular saver account.
Metro Bank: Metro Bank, one of the newest high street banks, is mentioned, offering a range of accounts, savings, borrowing, mortgages, and insurance products.
Top Online Bank Accounts: The article introduces digital banks in the UK, including Revolut, Starling Bank, and Monzo, each offering app-based banking services with various plans and features.
Wise Account: The article suggests using the Wise account for international money transfers and spending abroad. Wise offers low fees and fair exchange rates, making it an ideal choice for travelers, expats, and those living international lives.
In summary, the article provides a comprehensive guide to choosing a bank in the UK, covering traditional banks, building societies, online banks, and alternatives for international transactions.
