Best digital bank account

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

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 ISA
• A cash ISA is a type of individual savings account where you can earn tax-free interest on your saved cashCash ISA
• 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 account

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

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 ISA (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 ISA (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 ISA (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 account (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 pension (through Nutmeg)