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Best digital bank account

Once upon a time, the ‘big four' dominated retail banking and the high street was your only option if you wanted to open a current, savings or business banking account. But with the rise of digital banking, we consumers now have more choice than ever. Find out if you're missing out on some of the best accounts, offers, perks, interest rates and smart banking features with my list of the UK's top digital bank account providers.

check Fact Checked
  • By Clare West
  • Published: August 13, 2024
  • Edited by: Clare West
  • Disclosure
  • Last Update: 2 months ago

My quick list

5.0/5

Starling Bank – A bank that truly feels like it's on the side of the consumer. Starling is an excellent all-rounder but particularly stands out for its fee-free travel money.

For investing: Capital at risk

4.5/5

Monzo – Extremely popular smart-banking innovator with good deals on travel money and lots of paid-for account options if perks are your thing.

For investing: Capital at risk

4.0/5

Revolut – Revolut has recently secured a UK banking licence after many years of trying. This popular e-money brand can now extend its services to include those offered by rivals.

For investing: Capital at risk.

3.5/5

Chase – Owned by America's largest banking group, J.P. Morgan Chase, Chase Bank launched in the UK in 2021.

For investing: Capital at risk.

* Wondering whether we get paid for writing good things about platforms? Good question! It's how many comparison sites get paid.

The answer is – no, we proudly do things a little differently at Investing Insiders. Our sole criteria is what's best for you – the consumer. So, although we do receive a commission if you choose to click through and open an account from any of our reviews, we will never bend our opinions to suit the requests of providers, or the needs of our bank balance. Bottom line – what you read on this page is what I'd recommend to my family, friends and colleagues, and indeed, what I choose for my own money.


5.0/5

Starling Bank

– A bank that truly feels like it's on the side of the consumer. Starling is an excellent all-rounder but particularly stands out for its fee-free travel money.

For investing: Capital at risk

check

Reasons to use

  • Which? Banking Brand of the Year, 2024 and 2023
  • No fees for spending abroad
  • Uses the Mastercard exchange rate + 0% fee
  • Innovative smart banking features such as bill splitting
  • Budgeting tools
  • Spending habits insights and analytics
  • Award-winning, UK-based teams customer services team available 24/7
  • 3.25% The annual equivalent rate (AER) is used to describe the percentage of interest you’ll receive on your savings and investments. AER accounts for compound interest whereas the gross interest rate does not. AER is also known as APY (the annual percentage yield). AERinfo* (3.19% gross) interest paid on current account balances
  • 4.48% AER/gross interest on 1-year fixed savings account
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Reasons to avoid

  • No in-house ISAs
  • No general investing accounts
  • No cashback on spending
  • Requires a smartphone

Clare says

Starling is less flashy than some of its rivals – and it works to their advantage. Rather than the kinds of perks and subscriptions you can get on paid-for accounts with the likes of Monzo and Revolut, Starling concentrates on the essentials – good-natured, consumer-first banking.

Indeed there's no chance of upgrading your current account at all with Starling so it's not the provider for you if you want all the partnership benefits that Monzo and Revolut offer their premium accountholders, or the cashback that comes with a Chase account. However, what it does focus on, it does extremely well.

Customer service is great. There's smart features like round-ups, in-app cheque deposit, and split the bill. There's no interest for unarranged overdraft usage. And Starling will pay you interest on your current account balance as well as decent rates of interest for savings accountholders. Their travel money proposition is the most generous I've found, with none of the caveats you have to watch out for with many other providers. That means you can go abroad and spend and withdraw money without having to double check your terms and conditions all the time.

All this encourages me to feel confident with this provider and pay perhaps the greatest compliment I could pay any bank – I don't feel like Starling is ever trying to catch me out.

Who do I recommend Starling Bank for?

  • Holiday-makers and travellers wanting a debit card to use abroad without any fees. It's particularly good if you want to withdraw from ATMs.
  • Those looking for a free digital bank account with excellent customer service and smart features and spending insights.

Fees

  • No fees for opening or holding a Starling Bank current account
  • No fees for using your debit or credit card anywhere abroad
  • No fees for withdrawing cash from an ATM in the UK or abroad
  • ATM withdrawal limit is £300 per day
    Deposit cash for free (up to £1000 p.a) at the Post Office
  • Starling Bank uses the Mastercard exchange rate

Accounts and services

  • Current account
  • Savings account
  • Business banking
  • Overdrafts and loans
  • Under-16s bank account
  • Money transfers
  • International debit card use

Scores

Fees:

5.0

Trading platform:

5.0

Account opening:

5.0

Research:

0.0

Education:

4.0

Customer service:

5.0

Check out why Clare gives Starling top rating here:

Read full review

5.0out of 5

4.5/5

Monzo

– Extremely popular smart-banking innovator with good deals on travel money and lots of paid-for account options if perks are your thing.

For investing: Capital at risk

check

Reasons to use

  • Pay anywhere and in any currency on your debit or credit card
  • Uses the Mastercard exchange rate + 0% fee
  • Ability to set up ‘Pots' means you can separate money, pay bills and save
  • Split bills and spare change round-up features
  • Investment options available
  • Savings account has good rates of interest
  • Cash ISA available
  • Stocks and shares ISA available
  • Loans and overdrafts available
  • Can pay in cash and cheques
  • Cashback offers available to all customers
cross

Reasons to avoid

  • Complicated rules around allowances
  • £1 charge for depositing cash (top-tier accounts get 3 free deposits per month, however)
  • 3% FX fee for non UK/EEA ATM withdrawals over £200/£600 per month (depending on plan)
  • Must have a smartphone
  • Must treat Monzo as a main bank account to get unlimited foreign ATM use (and offer only applies within European Economic Area)
  • No interest on your current account balance, unlike Starling Bank
  • No physical bank branches

Clare says

Monzo is the smartest of all the digital bank accounts listed on this page. It's a digital innovator and, although many other banks have followed where Monzo laid down a path, they continue to release new features and products that keep them ahead of the game.

I'm talking about features such as: automated roundups; savings pots; customisable budgeting tools; and even early a payday option where you can access your salary one working day early. One of my favourite things about Monzo is their use of Open Banking to allow you to pull all your bank accounts and credit cards onto one screen in your app. That allows you to see what you've got – and what you're owing – across all your banks.

With Monzo, everything is made easy to do, and the app sets the gold standard.

Monzo's travel money perks are not quite as generous as Starling but still excellent, although you'll need to get your head around the terms and conditions if you don't want to get caught out, and how excellent they are does depend on what type of account you have.

Unlike Starling, Monzo also offers investment options although, as a gateway into investing rather than a specialist investment platform, the investment options are limited.

Who do I recommend Monzo for?

  • Holidaymakers, travellers and those who frequently send money abroad.
  • Those looking for a modern bank account with extras and perks, by which I mean insurance cover, a railcard, a gateway into investing or crypto, and advanced spending insights.
  • Anyone wanting to get organised with their finances, budget and keep on top of spending.

Fees

  • No fees for using your debit or credit card anywhere abroad
  • Unlimited ATM withdrawals overseas if you're travelling within the EEA (and use your Monzo account as a main bank account)
  • Monzo uses the Mastercard exchange rate
  • Paid for accounts range from £3 – £17 per month
  • Monzo charges £1 for every cash deposit (although top-tier accounts get 3 free deposits per month)
  • 3% charge for overseas (non UK/EEA) ATM withdrawals over £200 per month
  • Cheaper investment platforms available

Accounts and services

  • Current account
  • Savings account
  • Business banking
  • Overdrafts and loans
  • Under-16s bank account
  • Money transfers
  • International debit card use
  • Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAStocks and shares ISAinfo
  • A cash ISA is a type of individual savings account where you can earn tax-free interest on your saved cashCash ISAinfo
  • General investment account (GIA) is an account designed to provide access to investments. You may be liable for tax on any income or capital gains earned within a general investment account but this can be a useful vehicle for anyone who has maxed out their ISA allowanceGeneral investment accountinfo

Scores

Fees:

5.0

Trading platform:

5.0

Account opening:

5.0

Research:

2.0

Education:

2.5

Customer service:

4.5

Check out why Monzo has the smartest banking app here:

Read full review

4.0/5

Revolut

– Revolut has recently secured a UK banking licence after many years of trying. This popular e-money brand can now extend its services to include those offered by rivals.

For investing: Capital at risk.

check

Reasons to use

  • Fee-free currency exchange on weekdays (limits apply with some accounts)
  • Fast money transfer times
  • Perks on paid accounts including insurance cover and discounted shopping
  • Commission-free stock trading
  • Between 2.29% – 4.75% interest on savings (depending on plan)
  • Crypto trading with fees from 0%
cross

Reasons to avoid

  • Currency conversion is only free on weekdays
  • At weekends, 1% is added to foreign transactions
  • Fee-free foreign ATM withdrawals are limited to £200 – £2000 p/m
  • Only business customers get the interbank exchange rate
  • Penalties of between 0.5% – 1% for exceeding allowances
  • Physical debit card costs £4.99 for Standard and Plus customers
  • No stocks and shares ISAs or Cash ISAs

Clare says

Revolut isn't yet a bank – it's an e-money institution. However, after three years of trying, Revolut has now secured a UK banking licence. That means it can now join rivals, Monzo and Starling in providing overdrafts, loans and savings products to its more than 9 million UK customers, although they're not available just yet. There will be a transition period before the full range of banking products are available.

What you can get, while you wait, are plenty of perks on paid-for accounts, fast and relatively cheap money transfers, and debit cards that can be used abroad with no foreign transaction fees if you stay within the boundaries of what's free. Watch out for weekend fees and going over your ‘fair usage limit' if you want to avoid the extra costs, though.

You'll also find investment and crypto options under the Revolut umbrella. If you're coming to Revolut to invest, however, be aware that Revolut only offers a general investment account, so there are no tax wrappers available, and you'll only be able to invest in US stocks. There are better options out there.

I'd also say the same verdict applies to using Revolut for travel money: there are better options out there. Starling, Monzo and Currensea do better in my opinion, unless you can really utilise all those Revolut perks and subscriptions. If you can, Revolut's fees could be a bargain.

Who do I recommend Revolut for?

Revolut provides low-cost solutions for:

  • Holiday-makers and those travelling abroad
  • Traders looking to avoid or lower FX fees when trading on non-GBP stocks and other assets
  • Those looking to transfer wages or income overseas

Fees

  • Fee-free weekday withdrawals and debit card use abroad
  • Between £200 and £2,000 (depending on plan) can be withdrawn from foreign ATMs free-of-charge
  • Essential plan has no subscription fee
    For investing: a certain number of free trades per month depending on your plan type
  • Dealing fees over and above free trades are reasonably priced

Accounts and services

  • Current account
  • Savings account
  • Business banking
  • Under-16s bank account
  • Money transfers
  • International debit card use

Scores

Fees:

4.0

Trading platform:

5.0

Account opening:

5.0

Research:

4.0

Education:

1.0

Customer service:

4.5

Check out why we recommend Revolut for those seeking cheap FX fees with Clare's full review.

Read full review

3.5/5

Chase

– Owned by America's largest banking group, J.P. Morgan Chase, Chase Bank launched in the UK in 2021.

For investing: Capital at risk.

check

Reasons to use

  • No fees for using your card abroad
  • No fees for withdrawing cash at foreign ATMs
  • 1% cashback on your debit card and contactless spending for your first 12 months
  • Earn 3.85% The annual equivalent rate (AER) is used to describe the percentage of interest you’ll receive on your savings and investments. AER accounts for compound interest whereas the gross interest rate does not. AER is also known as APY (the annual percentage yield). AERinfo variable interest in the Chase Saver account
  • 5% AER variable interest in a spare change round-up account
  • Uses the Mastercard payment network, accepted extensively worldwide
cross

Reasons to avoid

  • 1% cashback offer limited to first year
  • No joint accounts
  • No overdrafts
  • Can't pay-in cash or cheques
  • No international money transfers or payments
  • No interest paid on current account balance
  • Higher interest rates on savings elsewhere
  • Limited to £1500 cash withdrawals per month at foreign ATMs

Clare says

Chase won Best British Bank at the 2023 British Bank Awards, but in my opinion, it has a way to go before it out-shines Starling and Monzo as the best digital current account provider. It's biggest selling point, the 1% cashback on all purchases is limited to just the first year which doesn't encourage loyalty. It's still worth considering if you're looking for a free travel money card, as the only limits on free use are £1,500 per month total foreign ATM withdrawals.

Who do I recommend Chase for?

  • Those looking for a digital bank account with cashback and/or round-ups
  • Travellers and holidaymakers looking for free debit card and ATM use internationally

Fees

  • No charge for using your debit card abroad
  • No fees for using foreign ATMs
  • No fee for opening an account
  • No monthly subscription fees
  • Uses the Mastercard exchange rate
  • 1% cashback on everyday spending for the first year (max £15 p/mo)
  • Withdraw up to £500 per day from cash machines (in the UK and abroad)
  • Withdrawals abroad are limited to £1,500 per month
  • International payments not currently supported
  • No interest paid on current account balance (unlike Starling)

Accounts and services

  • Current account
  • Savings account
  • International debit card use
  • Sometimes called an investment ISA, a stocks and shares ISA is an individual savings account that allows you to invest in shares, unit trusts, investment funds, and bonds. You will not need to pay tax on any income or capital gains earned on investments within an ISAStocks and shares ISAinfo (through Nutmeg)
  • Junior ISAs (Individual Savings Accounts) (JISAs) are tax-free savings accounts for children under the age of 18. Only a parent can open a JISA but anyone can contribute. You can choose to save for your children through either a cash Junior ISA where you will earn interest on any cash in the account, or a stocks and shares Junior ISA where you will invest your child’s savings on their behalfJunior ISAinfo (through Nutmeg)
  • Lifetime ISAs (Individual Savings Accounts) (LISAs) are designed to help you save for your first home or retirement and come with an automatic 25% government bonus on all contributions up to the value of £4,000. There are stocks and shares LISAs – where you invest your savings – and cash LISAs – where you earn interest on your savings. You must be between 18 and 40 to open a LISA and all income, capital gains and interest earned within LISAs is tax-free, although these funds can only be used to purchase your first home or for retirement. Ensure you are familiar with the rules surrounding this account before utilising itLifetime ISAinfo (through Nutmeg)
  • General investment account (GIA) is an account designed to provide access to investments. You may be liable for tax on any income or capital gains earned within a general investment account but this can be a useful vehicle for anyone who has maxed out their ISA allowanceGeneral investment accountinfo (through Nutmeg)
  • A self-invested personal pension (SIPP) is a type of private pension that allows you to control the specific investments that make up your pension fundSelf-invested personal pensioninfo (through Nutmeg)

Scores

Fees:

4.0

Trading platform:

4.5

Account opening:

2.5

Research:

4.0

Education:

3.0

Customer service:

4.0

Find out where Chase rank for fees, services, customer support and app usability.

Read full review

What do we mean by a digital bank account?


Sometimes called neo-banks or challenger banks, digital banks emerged after a relaxation in rules opened up the market in the aftermath of the 2008 banking crash. After a century of dominance, the big four faced fresh competition when Metro Bank became the first new retail bank in the UK for 100 years.

Digital banking is much the same as any other type of banking – there are current accounts, savings accounts, and sometimes other financial products and services offered alongside. You can receive a debit card and use your digital bank account to deposit money, withdraw money, pay for things and hold your savings. The difference between a traditional high street bank and a digital bank, however, is that conventional banks tend to have physical infrastructure in the form of branches and cash machines. Digital banks, on the other hand, have a largely online, digital infrastructure and are app-based. Some only offer access via an app, while others also allow web-based banking as an alternative.

Some digital banks do still offer physical branches but many don't, requiring customers to open accounts online, use alternatives such as Post Office counters or PayPoints to deposit cash, or eschew physical payments services altogether.

Digital banks have driven innovation in digital banking, using technological advances to enable services such as Open Banking and mobile cheque deposits.

Guide to choosing a digital bank account


The following four factors are well-worth considering if you're seeking out a digital bank – or wanting to weigh up your existing bank with the competition:

  • What types of accounts and services they offer

All banks will offer a basic current account, which is usually free. However, some banks will also offer paid-for premium accounts which come with added benefits such as insurance cover, subscriptions to popular services, or perks such as better interest rates, cheaper travel money or cashback on purchases. If you're not interested in the added benefits and just want a basic current account, go for a bank that concentrates on getting the basics right. Starling is my top choice in this category. If the perks peak your interest, Revolut and Monzo are top choices.

You may also be looking for a bank that offers a savings account with a good rate of interest, or investment opportunities. Finding a bank that ticks the right boxes will help narrow down your search.

  • Fees

None of the banks featured in my list charge for use of their basic current account. However, subscriptions for premium accounts vary hugely as you can see from the table below:

If you're a saver, it's well worth comparing interest rates. We've compiled a table of the best interest rates offered by UK providers, below:

And if it's cheap travel money you're after, here's my breakdown of the best cards for fee-free foreign exchange and spending abroad:

  • Customer service
  • Safety

FAQs

If your provider is classed as a bank and is authorised by the UK FCA, then any money in your account – up to the value of £85,000 – will be protected by the Financial Services Compensation Scheme (FSCS) in the event that your bank fails. If your provider is not a bank, then you may not have the same protections. FCA authorisation also requires that your bank protects your money by placing it in a separate account, where it is kept safe and cannot be inappropriately used by your provider.

Yes – and it can help ensure you're getting the best deal! These days, the majority of online bank accounts are covered by the Current Account Switch Service. That means your payments and Direct Debits will move automatically to the new account when you close your old one, removing much of the hassle that used to accompany changing bank accounts.

Note from the Insiders


Is there something you'd like to know about digital bank accounts that we haven't answered? Drop us a message and we'll try to get you a reply.

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