UK's Best Online Banks (2024)

By offering low fees, easy application, and convenient web and mobile apps, online banks have risen rapidly in prominence across the UK in recent years, going even so far as to challenge traditional banks for a new tech-savvy generation of customers.

In 2022 — as both the popularity and the market share of the UK's online banks continue to rise — you might find yourself wondering which of the many options available offers the best comprehensive service to suit your needs. In this guide, we whittle down the top online banks in the UK fintech scene to the prominent contenders and explore which one might make sense for you.

Go to Revolut ❯

How Monito Scores Online Banks

To determine which online banks scored better than others within the UK market, we used a consumer-first framework to analyse several vital factors. To begin, we weighed several concrete metrics relating to factors such asfees and rates, ease of use, credibility, service and coverage, transparency, and customer satisfactionto piece together a reliable all-around picture of which top digital banks offer the savviest solutions to UK residents.

Next, we explored these results and presented our findings in the form of a series of key takeaways that we believe you should know about the three digital banks ranked highest.

In our definition of "online bank," we only consider online-first banks and not traditional legacy banks that have pivoted to digital banking in recent years while still maintaining a brick-and-mortar infrastructure.

While we ranked these online banks on an overall list, remember that this list does not mean that our choice for the UK's best digital bank is necessarily the best choice for you. As you'll see, each online bank has its unique set of pros and cons that may impact its overall relevance to you.

Without further ado, let's go through our rankings for the best online banks in the UK in 2022 —

Key Facts About UK Online Banks

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Starling Bank: Best All-Round

Starling Bank is a fully-authorised bank in the UK that's well known for its fee-free current account. In fact, because this account is entirely free and gives you access to an impressively complete range of financial services (including overdraft facilities, loans, joint accounts, youth cards, pensions, Euro and US dollar accounts, interest, etc.), we think Starling offers the best online bank in the UK — one we recommend as a complete replacement for an account at a high-street bank.

9.3

• Account name: Personal Account
• License:

  Full banking license

  Authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA under registration number 730166.

• Monthly fee: £0.00
• Potential costs: £20 per CHAPS transfer in the UK, 0.4% + £5.50 for international SWIFT transfers, £5 for a replacement debit card.
• Noteworthy features: Saving Spaces, pension scheme, youth card, interest, overdraft.
• More info: See our full Starling Bank review.

Starling Bank in Short

UK-based digital-onlyStarling Bankwas founded by Anne Boden in 2014 and has gone from strength to strength in its bid to shake up the banking sector. Determined to embrace the sector’s technological changes, the neobank received its UK banking licence in 2016 and launched theUK’s first mobile-only current accountin 2017.

When it comes to the accounts on offer, Starling Bank is a bit of an all-rounder. As well as offering personal and joint accounts for adults, customers can also choose from a debit card for younger children and an account for teens. Businesses are also catered for, with the neobank offering a business account for limited companies and other registered businesses, as well as sole traders.

What Monito Likes About Starling Bank

• Innovative features and services that can be managed in-app.
• Categorised spending insights that make it easier to budget.
• Interest paid on account balances.
• No monthly account fees.
• Fee-free ATM withdrawals and transactions abroad.
• Compatible with Google Pay, Samsung Pay, Apple Pay, Fitbit Pay and Garmin Pay.

What Monito Dislikes About Starling Bank

• Overdrafts are charged at 15% EAR.
• Additional accounts cost £2 per month.
• Replacing a card lost overseas could cost £60.
• Interest of -0.5% is payable on balances in the Euro account of over €50,000.

Try Starling Bank ❯

Monzo: Best for Savers

Monzo is a regulated UK bank and probably the country's most famous online-only account. An excellent choice if you're looking to escape the high fees of traditional banks, Monzocharges no fees for day-to-day card use (e.g. cashpoint withdrawals and card payments) in the UK and abroad. Moreover, because it offers one of the most advanced and comprehensive savings systems we've seen from any challenger bank (allowing lots of flexibility over your time horizon and savings goals), we think Monzo is especially well-suited for managing and growing wealth, regardless of your individual goals.

9.0

• Account name: Monzo
• License:

  Full banking license

  Authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and PRA under registration number 09446231.

• Monthly fee: £0.00
• Potential costs: 3% per withdrawal if you withdraw over £250 per month.
• Noteworthy features: Fixed Pot, Easy Access Savings, overdrafts, loans, bill splitting.
• More info: See our full Monzo review.

Monzo in Short

Having some of the most competitive rates out there, opening a Monzo account and using it within the UK is completely free to do. However, it's only when you go abroad that you'll find yourself subject to a3% feeon cashpoint withdrawals over £300. per month. In addition, you'll also be met with a£0.50 per dayfee if your account falls into overdraft.

As of 30 October 2020, Monzo introduced a 3% fee on UK cash machine withdrawals that exceed £250 per month. While travelling abroad, you’ll be allowed to withdraw up to £200 in cash for free every month, after which a 3% fee on each withdrawal will apply. In addition, Monzo will also be introducing a £5 fee to replace a lost Monzo card after 30 October 2020.

In terms of exchange rates, Monzo will offer you a good deal all-round. The online bank itself charges no additionalexchange rate marginson the margins already levied by Mastercard. This means that the exchange rate margins you do end up paying will be relatively low, typically around 0.80% of the total transfer.

What's more, Monzo goes above and beyond to provide this information to you unambiguously and transparentlyon its website— to a much greater degree, in fact, than many banks, challenger banks, and currency exchange services do.

What Monito Likes About Monzo

• Easy to set up and free to use.
• Flexibility over savings goals.
• Handy in-app bill splitting feature that works instantly.
• Joint accounts can manage rent and bills.
• Smart features to manage your budget, instant mobile notifications, and a well-designed app.

What Monito Dislikes About Monzo

• Free withdrawals abroad are limited to £200 per 30 days.
• Only available in the UK.
• Debit and credit card top-ups aren't supported.

Monzo Plans

Monzo offers three different types of accounts:

• Monzo:The simple Monzo account has no monthly fee. Cashpoint withdrawals are free up to £250 a month in EEA countries and the UK, and up to £200 a month in countries outside the EEA. After that, you’ll be charged 3%.
• Monzo Plus:This account costs £5 per month and offers interest of 1% AER on balances up to £2,000. You’ll get fee-free cash machine withdrawals in EEA countries and the UK, but they are limited to £400 per month in non-EEA countries. Anything over is charged at 3%.
• Monzo Premium:This account costs £15per month and pays interest of 1.5% AER on balances up to £2,000. Cash machine withdrawals in EEA countries and the UK are free, while withdrawals outside the EEA are free up to £600 each month. Anything over your allowance is charged at 3%.

Go to Monzo ❯

Revolut: Best Secondary Account

Probably the UK's most famous fintech,there's a good chance you've heard of Revolut. Using its innovative banking platform, you'll not only have access to a broad range of financial services unique among online banks, but you'll also be able to take advantage of these services at a comparatively low price. However, because it's not yet a bank in the UK, we think Revolut is best used as a powerful spending tool next to a main bank account instead of in place of it.

8.6

• Account name:Standard
• License:

  Economic Money Institution

  Authorised by the Financial Conduct Authority (FCA) under the registration number 08804411.

• Monthly fee: £0.00
• Potential costs: 2% cashpoint withdrawal fee if you exceed five withdrawals or £200 per month.
• Noteworthy features: EU bank account details, multi-currency balances.
• More info:See our fullRevolut review.

Revolut in Short

Revolut is not a bank in the UK. Interestingly enough, however, it is a fully-fledged bank (licensed by the Bank of Lithuania and offering deposit insurance and products such as loans and credit cards) in parts of the EU/EEA, including France, Italy, Portugal, Estonia, Greece, Latvia, Romania, and a few others. The platform offers a range of financial services typical of traditional banks, making it an attractive alternative to high-street banks due to its unique ability to offer low fees and impressive scope of service.

Opening up a 'Standard' account with Revolut is completely free, but the delivery of the first debit card will set you back around £5. While cash machine withdrawals are also free, a2% fee (at a minimum of £1)will be charged on all withdrawals after the first £200 or five withdrawals every month. Moreover, transferring money to other Revolut users is free and instant. This makes the service a reliable choice if those you most frequently send money are also Revolut users themselves.

In addition, Revolut offers low fees on international money transfers, leaving the service an attractive choice for those who send money across borders frequently. They charge no exchange rate margins on weekdays, with users only subject to a flat0.5% feeon all transfers sent abroad. However, Be aware that Revolut charges twice the fee for international money transfers made on weekends — bumping the fee to 1% on Saturdays and Sundays.

What Monito Likes About Revolut

• An extensive range of bank-like and multi-currency options.
• Debit card is well-priced for international spending.
• Includes investment functionality.
• Slick mobile app with many features.
• Foreign transactions up to £1,000 are exempt from FX fees.

What Monito Dislikes About Revolut

• Access to some interesting perks is restricted to 'Standard' users.
• Many foreign currency transactions incur a fee.
• Higher currency conversion costs on weekends.

Revolut Plans

Here's a full overview of Revolut's different account offerings:

• Standard:With zero up-front costs, the Standard option offers a digital current account (with a UK IBAN) with no monthly fee and a free debit card. Cashpoint withdrawals are free up to five withdrawals or £200 per month (whichever comes first). After that, it costs2% of the value of the cash machine withdrawal.
• Plus:Plus accounts cost £2.99 per month, including a debit card. Cashpoinwithdrawals are free of charge up to £200 per month, after which a 2% fee applies.
• Premium:Premium accounts cost £6.99 per month, including a debit card, and there are no fees for cash machine withdrawals up to £400 per month. After that, it costs2% of the value of the cash machine withdrawal.
• Metal:Metal accounts cost £12.99 per month, including a debit card. Cash machine withdrawals up to £800 per month are free, and after that, it costs2% of the value of the cash machine withdrawal.

In the end,Revolutis among the best bank-like products currently available on the market and provides a capable spending option next to a main bank account. It is ideal if you'd like to cut down on the high fees associated with basic banking services at high-street banks and is particularly well-suited for travelling abroad, especially if you plan to spend less than £1,000 (or equivalent) and do most of your spending on weekdays. For all these reasons, we rate Revolut as the best secondary bank account in the UK.

Wise: Best for Foreign Currency

Wise isn't a bank in the UK but a money transfer operator that's well-known for offering some of the cheapest international transfers globally. However, money transfers aren't Wise's only speciality — they also offer the Wise Account, a low-cost foreign currency spending account and card product that's best in class for foreign currency spending of all kinds, whether it's holidays overseas, online shopping, or international money transfers.

8.9

• Account name: Multi-Currency Account
• License:

  Economic Money Institution

  Authorised by the Financial Conduct Authority (FCA) under the registration number 900507.

• Monthly fee: £0.00
• Potential costs: £0.50 per cash machine withdrawal if more than two withdrawals are made monthly, plus 1.75% on withdrawals exceeding £200 per month.
• Noteworthy features: International money transfers, multiple account details, multi-currency balances.
• More info:See our fullWise Account review.

Wise in Short

Applying for a Wise Account is fast and easy and can be done not only with a UK proof of residence, but any proof of residence in the EU/EEA and many other countries worldwide. Once you're signed up and your card has arrived (which takes two to six working days), you'll be able to take advantage of the following unique features with the account:

• Local bank details in the UK, Eurozone, US, Australia, New Zealand, Singapore, Romania, Canada, Hungary, and Turkey;
• Hold, exchange, and top-up up to 56 currencies;
• A multi-currency Visa debit card that's handy for paying in foreign currencies without the hidden fees;
• Access toWise's powerful international money transfer service right from your account balance.

What Monito Likes About Wise

• Account details in as many as 10 currencies.
• Hold money in 50+ currencies.
• Send money to 80+ countries from your account.
• Some of the lowest money transfer fees available on the market.
• Pricing is accessible and transparent.
• Mid-market exchange rate offered for currency transfers.
• Debit card can be used to avoid foreign transaction fees.
• No setup fees or monthly charges.

What Monito Dislikes About Wise

• Cash or cheque payments aren't supported.
• Overdraft and loans aren't available.
• Negative interest on large Euro account balances.
• Fees to top up the account via debit and credit card.
• Tight limits and conditions to fee-free cash machine withdrawals.

How Wise Works

To get a sense of just how useful Wise can be for frequent travellers and expats, let's say that you're travelling from the UK to Spain and you'd like to spend in Euros while on holiday there. With the Wise Multi-Currency Account, you'll be able to:

1. Send British pounds from your bank account to your Wise Euro account;
2. Convert to Euros at a low fee (e.g. if you add €1,000 and pay with British pounds, the total fee will be around 0.35% or £3*);
3. Pay with your Wise debit card, make or receiveSEPA(andSWIFT) payments, and even set updirect debits!

You'll also have a dedicated set of British bank details to share with an employer in the UK. These bank details, held by Barclays, are fully legitimate and are functionally the same as those of any local bank account. Note that this account does not offer an overdraft, and you won’t earn interest on any in-credit balances.

It's for the above reasons that we think Wise is the best online multi-currency account available to UK nationals and a product we firmly recommend for holidaymakers, online spenders, and expats alike.

* Conversion made on 05/11/2021

Try Wise ❯

Monese: Best for New Arrivals

Moneseis a mobile-only challenger bank that offersfully-fledged checking accountsto more than two million customers across the UK and much of Europe. Because Monese doesn't require you to prove your residence to meet creditworthiness standards to open an account in the UK, we think Monese is especially well-suited for new arrivals to the UK from the European Economic Area (EEA).

8.0

• Account name: Starter
• License:

  Electronic Money Institution

  Authorised by the Financial Conduct Authority (FCA) under the registration number 08720992.

• Monthly fee: £0.00
• Potential costs: £1.50 per cash machine withdrawal; 2% per foreign currency transaction not in GBP, EUR, SEK, or RON; £4.95 for debit card delivery.
• Noteworthy features: PayPal integration, Avios integration, Money pots, interest.
• More info:See our fullMonese review.

Monese in Short

While an interesting product all round, we find Monese's weakest point to be its pricing for foreign currency spending and cash machine withdrawals. While its day-to-day fees are admittedly still relatively low in general — at least compared to traditional banks — Monese's 'Starter' plan, for example, charges £1.50 per cash withdrawal, 2% on all non-GBP, EUR, SEK, and RON foreign currency transactions, and an additional 1% on weekends.

What Monito Likes About Monese

• Available even without a UK or EU proof of residence.
• Money transfers to over 30 other countries.
• Supports joint accounts and virtual cards in the UK.

What Monito Dislikes About Monese

• Does not offer overdraft, interest, or loans.
• Upgrading plans usually does not equal lower costs.
• High conversion fees for non-GBP, EUR, SEK, and RON spending.
• Weekend surcharges apply to currency exchange.

Monese Plans

Over and above the 'Starter' plan discussed until now, here are four types of current accounts Monese offers:

• Starter:If you want to limit the up-front costs, go for the Simple account. It’s a full UK current account with no monthly costs and includes a free debit card. However, you will be charged £1.50 on all cash machine withdrawals (unlike most UK challenger banks there is no free monthly allowance) and a 2% fee on foreign currency commission on all non-GBP, EUR, SEK, and RON transactions. There is also a 2.5% fee for foreign exchange transfers when sending to non-Monese accounts, which bumps up to 3.5% on weekends.
• Essential:This plan costs £1.95 per month and has a free cashpoint withdrawal limit of £200 per month, with 2% being charged after that. Foreign currency spending comes at a slightly lower 0.5% per transaction on this plan.
• Classic:Classic accounts cost £5.95 per month and offer free cashpoint withdrawals up to £500 a month. After this, a 2% fee applies. While foreign currency card spending is free on this plan, foreign currency exchange transfers to non-Monese accounts incur a 0.5% fee. As with the 'Starter' and 'Essential' plans, it’s a full UK account with a free debit card.
• Premium:Premium accounts cost £14.95 per month and offer unlimited UK cashpoint withdrawals, free foreign currency card spending, and foreign currency exchange transfers. Once again, it’s a full UK account with a free debit card — one which you can read more about inour dedicated Monese Premium review.

All Monese plans can be paid annually with a discounted monthly rate of anywhere between 20% and 40%.

If you were to open up another type of account, you'd save on fees for international money transfers, among other services, but you'd pay a monthly fee on the bank account. For example, for a 'Classic' account, your monthly fee will be £5.95, while for a 'Premium' account, your monthly cost would be £14.95.

Go to Monese ❯

Pockit: Another Handy Personal Finance Tool

One of the many digital money solutions to have risen to prominence in the UK in recent years,Pockitis a savvy fintech service that offersflexible prepaid debit cardsto nearly half a million customers nationwide. It allows money to be deposited into a prepaid account at any one of around 28 thousandPayPoint storesacross the UK, as well as using a bank transfer or a debit or credit card.

6.7

• Account name: Standard
• License:

  Electronic Money Institution

  Authorised by the Financial Conduct Authority (FCA) under the registration number 900855.

• Monthly fee: £1.99
• Potential costs: £0.99 per bank transfer, £0.99 per direct debit.
• Noteworthy features: Virtual debit cards,

  cashback rewards

  Approximately 2% to 8% at limited retailers.

• More info:See our fullPockit review.

Pockit in Short

Although it's not a fully-fledged bank, Pockit's prepaid account functions much like a regular current account does, meaning that you can have your paycheck deposited there just as you would with a Lloyds or a Barclays account. For this purpose, Pockit provides customers with their dedicated sort code and bank account number.

Once you've signed up,Pockitwill send you a new debit card, which should take between two and seven business days to arrive. Pockit issuesMastercard debit prepaidcards, meaning the card will debit payments directly from your current account.

What Monito Likes About Pockit

• Fast and easy signup process;
• Simple to top up a Pockit account;
• No credit check is required;
• Interesting features such asLOQBOXand cashback.

What Monito Dislikes About Pockit

• Many services come with a fee, all of which stack up over time;
• Daily, monthly, and yearly financial limits can be restrictive;
• Cannot receive money from outside the UK;
• Exchange rates are up to 3.5% worse than the cheapest options;
• Limited number of countries to which you can send money abroad.

Go to Pockit ❯

Why Trust Monito?

You’re probably all too familiar with the often outrageous cost of sending money abroad. After facing this frustration themselves back in 2013, co-founders François, Laurent, and Pascal launched a real-time comparison engine to compare the best money transfer services across the globe. Today, Monito’s award-winning comparisons, reviews, and guides are trusted by around 8 million people each year and our recommendations are backed by millions of pricing data points and dozens of expert tests — all allowing you to make the savviest decisions with confidence.

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