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.
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
– 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
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?
Fees
Accounts and services
5.0
5.0
5.0
0.0
4.0
5.0
Check out why Clare gives Starling top rating here:
Read full review4.5/5
– 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
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?
Fees
Accounts and services
5.0
5.0
5.0
2.0
2.5
4.5
Check out why Monzo has the smartest banking app here:
Read full review4.0/5
– 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.
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:
Fees
Accounts and services
4.0
5.0
5.0
4.0
1.0
4.5
Check out why we recommend Revolut for those seeking cheap FX fees with Clare's full review.
Read full review3.5/5
– Owned by America's largest banking group, J.P. Morgan Chase, Chase Bank launched in the UK in 2021.
For investing: Capital at risk.
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?
Fees
Accounts and services
4.0
4.5
2.5
4.0
3.0
4.0
Find out where Chase rank for fees, services, customer support and app usability.
Read full reviewSometimes 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.
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:
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.
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:
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.
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.