Best Digital Banks In The UK

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The best digital banks in the UK are:

Starling Bank - o ffers comprehensive banking with personal, business, and joint accounts, plus fee-free international transactions.
Wise - specializes in low-cost international transfers with multi-currency management and transparent pricing.
Bunq - provides real-time notifications, multiple sub-accounts, Green Card for environmental impact.
Revolut - a global financial super-app, ideal for currency exchange, crypto investments, and international transactions.
Monzo - known for its budgeting tools and savings features, with high customer satisfaction for both personal and business accounts.

Digital banks in the UK have transformed how we manage finances, providing accessible, efficient, and innovative banking services. With various options, it’s essential to understand each digital bank's unique offerings to find the one that best suits your needs. In this article, we’ll take a look at the top digital banks in the UK, offering detailed insights, practical advice, and expert recommendations for both beginners and advanced users.

Below is a list of the leading digital banks in the UK, highlighting their strengths, features, and any recent updates to help you make an informed choice.

Starling Bank

Starling Bank Review

Starling Bank is a UK-based digital bank that offers personal and business banking services through its mobile app. Starling's personal current account provides an interest rate of 3.25% AER on balances up to £5,000, with no monthly fees. The bank also provides personal loans with a representative APR of 11.5%, subject to individual circumstances, and overdraft facilities with interest rates ranging from 15% to 35% EAR, depending on the customer's credit profile. Customers benefit from features such as instant spending notifications, in-app budgeting tools, and fee-free transactions abroad. The bank also offers business accounts tailored for small to medium-sized enterprises, including integrated accounting tools and multi-currency accounts. Starling places a special focus on user experience, which is evident through its 24/7 in-app support and user-friendly interface, making banking accessible and straightforward.

Key features:

Fee-free international transactions and real-time spending notifications.
A comprehensive mobile app that integrates budgeting tools.
Personal loans and mortgages available within the app.

Best for: Individuals and businesses looking for a fully-featured, customer-focused digital bank with extensive budgeting and international banking features.

Wise

Wise Review

Wise, formerly known as Transfer Wise, is a UK-based financial technology company specializing in international money transfers and multi-currency accounts. It offers a multi-currency account that allows users to hold and manage funds in over 40 currencies, facilitating seamless international transactions. The account comes with a debit card for spending in multiple currencies without hidden fees, using the real exchange rate. Wise offers an interest rate of 4.12% on GBP balances in its instant access account, providing a competitive return for savers. The platform is transparent with its fees, charging a small, upfront fee for currency conversions and international transfers, which are typically lower than those of traditional banks. However, Wise does not offer traditional savings accounts or loan products, focusing instead on providing efficient and cost-effective solutions for international financial transactions.

Key features:

Low-cost international transfers with transparent pricing.
Multi-currency accounts that support over 40 currencies.
Real-time notifications for all transactions.

Best for: Users with regular international transactions looking for an affordable, transparent digital bank with a global reach.

Bunq

Bunq Review

Open an account

Via Bunq's secure website.

Bunq, a Dutch digital bank, offers a variety of personal and business banking services through its mobile app. It provides several account plans, including Easy Bank, Easy Bank Pro, and Easy Bank Pro XL, each with varying features and monthly fees. The Easy Bank plan, for instance, is priced at €3.99 per month and includes one physical card, one virtual card, and up to five ATM withdrawals per month at €0.99 each. Bunq's savings accounts offer a competitive interest rate of 3.36% per annum, paid out weekly, allowing users to benefit from compound interest. For those interested in loans, Bunq offers personal loans with interest rates starting from 4.5% per annum, subject to credit assessment and approval. The bank emphasizes transparency, with no hidden fees, and provides features like real-time spending notifications, budgeting tools, and the ability to open multiple sub-accounts for better financial management.

Key features:

Earn 3.36% interest per annum on savings, with interest paid out weekly to maximize growth.
Create up to 25 sub-accounts with individual IBANs, facilitating organized budgeting and financial planning.
Receive instant updates on transactions and account activities, enhancing security and financial awareness.

Best for: Individuals seeking a flexible, transparent, and user-friendly banking experience with competitive savings rates and comprehensive financial management tools.

Revolut

Revolut Review

Revolut is a UK-based digital bank that offers a variety of financial services through its user-friendly mobile app. Users can choose from different account plans, including Standard (free), Plus (£3.99/month), Premium (£7.99/month), Metal (£14.99/month), and Ultra (£45/month), each providing unique benefits like personalized cards, priority customer support, and fee-free ATM withdrawals up to certain limits. With Savings Vaults, users can earn interest on their savings, with rates depending on the chosen plan: up to 2.29% AER for Standard, 2.39% for Plus, 3% for Premium, 4% for Metal, and 4.75% for Ultra. These rates are variable and may change over time. In July 2024, Revolut secured a UK banking license, allowing it to offer personal loans with competitive interest rates and flexible terms. The platform focuses on transparency, providing real-time spending notifications and avoiding hidden fees.

Key features:

Multi-currency accounts and budgeting tools.
Supports currency exchange, cryptocurrency, and stock trading.
Recently licensed as a bank in the UK, expanding its service range.

Best for: Globally-oriented users and those interested in diverse financial products beyond traditional banking.

Monzo

Monzo Bank Review

Monzo is a UK bank that operates entirely through its mobile app, offering a variety of accounts to suit different needs. You can choose from free accounts or opt for Monzo Plus (£5/month) or Monzo Premium (£15/month) for extra perks. For saving, Monzo provides accounts with attractive interest rates; their Easy Access Savings Pot offers up to 4.35% AER, and fixed-term accounts can go up to 4.1% AER. If you're looking for a loan, Monzo offers personal loans between £200 and £25,000, with APRs starting at 13.9% for amounts between £10,000 and £25,000. The app is packed with features like instant alerts for your spending, tools to help you budget, and the ability to set up separate pots for your savings goals. Monzo is ideal for those who prefer managing their finances through a straightforward and efficient app.

Key features:

Savings "pots" for easy budgeting and categorized spending.
Real-time notifications on every transaction.
Flexible lending options, including overdrafts and personal loans.

Best for: Users looking for a straightforward, budget-friendly digital bank with tools for everyday money management.

Digital banks in the UK
No.	Bank	Main services	Key features	Unique selling points	Open an account
1	Starling Bank	Personal and business current accountsSavings accountsOverdrafts and loans	Fee-free spending abroadIn-app budgeting toolsIntegration with accounting software for businesses24/7 support	Fully licensed UK bank with FSCS protectionMarketplace offering third-party financial productsCompetitive interest rates on savings
2	Wise	Multi-currency accountsInternational money transfersDebit card	Real exchange rates with low feesHold and manage funds in multiple currenciesBorderless account for global transactions	Transparent fee structure with no hidden chargesFocus on international transactions with competitive rates	Study review
3	Bunq	Personal and business accountsSavings accountsInvestment options	Real-time notificationsMultiple sub-accountsGreen Card for environmental impact	Emphasis on sustainability with tree-planting initiativesHigh level of account customization	Open an account Via Bunq's secure website.
4	Revolut	Multi-currency accountsCryptocurrency tradingStock tradingSavings accounts	Competitive exchange ratesAccess to cryptocurrencies and commoditiesBudgeting and analytics toolsOverseas medical insurance (with premium accounts)	Global spending in multiple currencies with interbank exchange ratesComprehensive financial services beyond traditional banking
5	Monzo	Personal and business current accountsSavings accountsOverdrafts and loans	Instant spending notificationsPots for budgeting and savingFee-free spending abroad (limits apply)24/7 support	Early salary access featureIntegration with various financial services through Monzo Plus and Premium accounts

Step-by-step guide for beginners

Research and select a bank. Use the top list above to choose a bank with features that fit your needs.
Open an account. Most digital banks offer easy online registration that requires minimal documentation.
Set up security features. Enable two-factor authentication (2FA), biometric login, and any other available security measures.
Explore account features. Familiarize yourself with budgeting tools, spending notifications, and savings options.
Manage finances regularly. Monitor account activities, set savings goals, and review financial insights provided by the app.

Considerations for advanced users

Advanced users can benefit from these digital banks' expanded services, such as:

Investment opportunities. Many banks also offer investment options in cryptocurrency or stocks.
Customizable alerts and analytics. Set up alerts for market changes or international currency rates, and leverage analytics to make data-driven financial decisions.
Referral and cashback programs. Some banks reward users for referrals or offer cashback on specific purchases.
Cross-border transfers. For users with international needs, banks provide cost-effective solutions.

Risks and warnings

Account security. While digital banks provide robust security, users must enable all available security options.
Lending and debt management. Many digital banks offer loans; be cautious with debt, as it may lead to high-interest payments.
Currency volatility (revolut and wise). For accounts handling multiple currencies, changes in exchange rates can impact funds.
Bank licenses and coverage. Ensure that the bank is regulated by UK authorities like the FCA, as regulatory coverage varies.
Limited physical support. As these are digital banks, face-to-face support is unavailable, which can be a limitation in complex situations.

Pros and cons of using digital banks

Convenience. Full control of finances via mobile apps.
Lower fees. Many digital banks offer low-cost or fee-free transactions.
Real-time notifications. Instant updates on spending and account activity.
Global access. Multi-currency options are available for international users.

No physical branches. Digital banks lack in-person support for complex issues.
Security concerns. Potential risk of cyber-attacks requires strict security measures.
Limited product range. Some digital banks may lack certain traditional services, like physical cash deposits.
Dependency on technology. Service outages may temporarily limit access to banking functions.

Look beyond just features

When you’re picking a digital bank in the UK, one key tip is to see how well it matches with your everyday digital life. Don’t just check if the bank has a basic app or online banking — find out if it works smoothly with the finance tools you already use, like budgeting apps or voice-activated assistants. Pick a bank that stays ahead of the game by adopting new tech that makes managing money easier. This ensures that as your financial needs grow, your bank keeps up, giving you a seamless and forward-looking experience.

Another crucial factor is reliable customer support. For beginners, running into a problem can be stressful, so it’s worth finding out if the bank offers more than just chat bots or automated replies. Look for services that offer real support, like video chats or connections to someone who can guide you. Knowing you can get help from an actual person when things get tricky can make your first experiences with digital banking much smoother and stress-free.

Conclusion

Digital banks in the UK are game-changers, offering convenience, low fees, and easy access to your money — all from your phone. For traders, they bring tools like budgeting, real-time spending alerts, and investment options, making them a solid choice for both beginners and advanced users. Each bank has unique features: some are best for international transfers, others for cashback or investment. Just remember, risks like tech issues or no in-person support come with these benefits. With the right pick, a digital bank can make managing finances simpler and more efficient for traders in the UK.

FAQs

Can I open a digital bank account if I don’t have a UK address?

Yes, some banks like Monese allow you to open an account without a UK address, which is helpful for expats or new arrivals.

Do I need a credit check to open a digital bank account?

No, most digital banks don’t require a credit check for standard accounts. However, if you want to access credit products like loans or overdrafts, a credit check may be necessary.

Can I deposit cash into my digital bank account?

Yes, but it varies by bank. For example, Starling allows cash deposits through Post Office branches, while others may not support cash deposits.

Is it safe to store large amounts of money in a digital bank?

Yes, most UK digital banks are FSCS-protected, meaning your money is insured up to £85,000. However, check each bank's protection details.

Team that worked on the article

Rinat Gismatullin is an entrepreneur and a business expert with 9 years of experience in trading. He focuses on long-term investing, but also uses intraday trading. He is a private consultant on investing in digital assets and personal finance. Rinat holds two degrees in Economy and Linguistics.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.

As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).

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