7 Best Online Banks in the UK: A Quick Round-Up

It doesn't matter whether you're a UK resident, someone from overseas planning to work in the UK, or perhaps you're just coming for an extended visit? Whatever your situation, if you're looking for the best online banks in the UK, you're in the right place.

Here, I'll provide a quick round-up of some of the finest challenger banks on the market today.

There's lots to discuss, so let's dive in.

But first:

What Is an Online Bank?

Before we delve further into this round-up, let's take a sec to ensure we're all on the same page about what an online bank actually is.

In a nutshell, online banking (also known as web banking and internet banking) empowers you to execute financial transactions via the web. As a result, you don't have to trek to a physical bank branch to conduct basic banking tasks. Instead, you just need a device (smartphone, tablet, laptop, desktop, etc.) and an internet connection to access your chosen online banking service.

Of course, the exact banking products you can access vary from institution to institution. But, generally speaking, most online banking services permit you to transfer money and pay your bills online.

Why Use an Online Bank?

There are several benefits to online banking, most notably:

Convenience: Arguably, this is online banking's most significant perk. Providing you have a stable enough internet connection; you can conduct banking-related tasks from anywhere at any time.
Ease: Keeping tabs on your accounts is easier, making budgeting and governing your monies more manageable.
Speed: Typically, online banking is rapid; you can send and receive monies near-on instantly.

With all that in mind, let's explore some of the best online banks in the UK:

What are the Best Online Banks in the UK for 2023?

Revolut
Monzo
Wise
Monese
Starling Bank
Pockit
ANNA

1. Revolut

Revolut offers an app-based service that enables users to:

Manage money
Travel perks (like airport lounge access across 1,000 locations with Revolut's more expensive plans)
Investments (with just a few taps, you can start trading and build an investment portfolio starting from as little as $1)
Manage card security, etc.

…And more, from the convenience of one centralized place.

Sending and requesting funds is as easy as a tap, including splitting bills with anyone in over 200 countries (they don't have to be a Revolut user!). You'll also receive instant payment notifications to help with money management.

You can also open ‘Savings Vaults.' These are best described as Revolut's version of a saver account, from which you can earn up to a 3% annual interest rate, paid daily.

It's also worth noting that you can connect your Google and Apple Pay accounts.

Plus, Revolut users can earn cashback and discounts with Revolut's partnered brands. In fact, you can get up to 30% cashback in some London pubs and restaurants.

You might be pleased to hear that Revolut offers a free account. After that, there are three paid-for personal accounts, starting at a £2.99 monthly fee, then £6.99 a month, and £12.99 a month, respectively.

Lastly, I want to mention that Revolut offers business accounts. Again there's a free account, followed by three paid-for options. The first starts at £25 a month, then £100 a month, and finally, their most extensive option involves a custom quote.

2. Monzo

Winner of the Best British Bank award in 2022, at the time of writing, over seven million people have a Monzo bank account.

Like Revolut, Monzo provides users with an intuitive app where they can ‘spend, save and manage your money, all in one place.'

Monzo also says you can open a full UK current account from your smartphone, for free, in as little as 15 minutes!

You can organize monies into ‘saving pots' (again, consider these Monzo's answer to a savings account). Interestingly, you can earn up to 4.90% (AER/Gross fixed) interest when you take out a one-year Fixed Pot with a £500 minimum deposit.

You can also monitor your bank account's activity, view your spending trends, and receive instant notifications. You can even set budgets for specific things like food shops and socializing, and if you want, get warnings if you’re spending too quickly.

As you might expect, you can easily pay direct debits. Monzo tells you if next month's payment is more, allowing you to budget accordingly.

Users also benefit from FSCS protection and 24/7 customer support.

A selection of personal, business, aged 16-17, and joint accounts are available. There's a free personal account and two paid versions at £5 a month and £15 a month, respectively. Again, Monzo also offers a free business account and a paid option at £5 a month.

3. Wise

Although available in the UK, Wise bills itself as ‘the international account,' serving 175 countries and 50 currencies. This makes it a fab choice if you want an online banking app to use while you jet set.

More specifically, you can hold, convert, and make cash withdrawals in over 50 currencies.

Where converting finances is concerned, this is done at the mid-market rate and is doable with just a few taps. Alternatively, you can use Wise's ‘Auto Conversions' feature to convert when the market hits your chosen rate!

Wise says they charge as ‘little as possible' when you transfer money abroad. A handy calculator on its website lets you see exactly how much you'll spend on transfer fees, so there aren't any nasty surprises!

You can also receive your salary, pension, or anything else in the best currency for you, including GBP, EUR, USD, and more. Again, this makes Wise a viable solution whether you're a Brit abroad or someone looking to stay in the UK for a while.

You can also receive an overview of your spending to help manage your money better – and set cash aside in individual ‘Jars.' On top of that, you can invest in stocks using Wise's ‘Assets' feature.

Wise is financial conduct authority (FCA) regulated, and your funds are protected by the FSCS. Plus, Wise claims to protect your data to ‘strict standards.'

It's free to get started with Wise. Its costs lie in sending and converting money (from 0.43%), a 1.75% fee on ATM withdrawals over £200 per month per account, 2% on account funding transactions, and £7 to receive a Wise debit card. You can see a full breakdown of Wise's costs on its pricing page.

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4. Monese

Monese is another banking app. It lets you set up GBP, EUR, and RON accounts within minutes. Once you've created your account, you can use it straight away – even if you don't have a fixed address. You only need a photo ID and a selfie to get up and running with Monese (provided you live in the UK or the EEA).

Monese offers a variety of finance features, including its ‘Credit Builder' (available to all UK customers). This service enables you to set up 12 monthly payments. When you make these payments, Monese tells the credit agencies, demonstrating your reliability and bolstering your credit score. You can then receive your payments back at the end of the 12 months.

You can also save funds using Monese Pots (partnered with Raisin Bank). You can create up to ten ‘pots,' each for a specific purpose. Apparently, you can earn interest on these savings, but I couldn't find a specified rate on their website.

You’ll also receive a contactless Mastercard debit card that you can use worldwide. On top of that, you benefit from real-time notifications for your spending and can set weekly or monthly budgets. You can even track your money visually and organize transactions into spending categories.

As you might have already guessed, you can receive your salary in your Monese account.

Personal, joint, and business accounts are available. Plus, you can transfer money for free to other Monese accounts, regardless of country or currency. Monese has a free personal account; after that, there are two premium accounts at £5.95 a month and £14.95 a month, respectively.

We could go on (as with all the financial institutions listed here), but unfortunately, that's all time allows for!

5. Starling Bank

Impressively, Starling Bank fuels millions of UK accounts, with someone signing up every 38 seconds!

Starling Bank offers ‘award-winning bank accounts' – and that's true. They've been voted Best Current Account Provider by the British Bank Awards for five years running!

Users can open fully regulated UK bank accounts, with their funds protected by the Financial Services Compensation Scheme. You also get access to 24/7 UK-based customer support (with actual humans), and the application process (reportedly) takes a matter of minutes.

Users also benefit from the following:

Instant payment notifications
Access to visual saving spaces, automatic transaction round-ups to help you save, and fixed-rate savings
You can categorize transactions and view monthly spending analytics
For a fee, you can make cash deposits at the Post Office
You can cash mobile cheque deposits
For security purposes, you can instantly lock your card
Starling Bank integrates with mobile wallets
Splitting bills is made easy
For an extra fee, you can send and receive international payments
Access Starling Bank's ‘Budget Planner'
You're not charged ATM or transaction fees overseas.

At the time of writing, Starling Bank is looking to go carbon neutral and, as such, is working towards a one-third reduction target in carbon emissions by 2030 and are dedicated to offsetting its annual emissions.

Starling Bank offers free personal and business accounts and also provides joint, euro, child, and teen accounts. I couldn't see any prices for premium personal accounts. However, Starling Bank does offer three paid-for business accounts starting at £2,£5, and £7 a month, respectively.

6. Pockit

Before going any further, I want to clarify that Pockit isn't a bank. Instead, it's a prepaid Mastercard® account that, apparently, you can open within as little as three minutes with no credit checks.

However, because it isn't a bank, it doesn't benefit from Financial Services Compensation Scheme (FSCS).

Despite that, Pockit is trusted by 700,000+ customers. Just apply for an account via Pockit's website to hit the ground running. Then once approved, add money via a bank transfer, cash, or debit card to start using Pockit.

Some of Pockit's most notable features include:

Earn up to 8% cashback with top brands like Pizza Express and New Look.
Get your wages and benefits paid a day earlier into your account (for free)
Send money to recipients in the UK and abroad.
Set up and pay bills via direct debits
You can add and withdraw cash at your local corner shop
Via the Pockit app, you can manage your money and check your finances in real-time
Receive instant spending notifications
Easily lock the card if it’s lost or stolen.

At the time of writing, you can use Pockit for the first 30 days for free; then, it costs £1.99 a month. Alternatively, the ‘Extra' package costs £5.99 a month.

7. ANNA

ANNA describes itself as a ‘business account and tax app' explicitly designed ‘for small businesses.'

Again, it's not technically a bank.

You can register for an ANNA business account in just three minutes. Upon approval, you'll receive a business debit card within five days. On top of that, you'll also get access to accounting tools, including the ability to create, send, and follow up on professional invoices. You can also monitor expenses and sort your VAT and tax information.

You also don't have to store tons of physical receipts anymore. Instead, you can take a picture of your receipts, and ANNA will automatically log and attach them to the appropriate transactions.

In addition, you can provide your accountant with real-time access to your sales and expense data to ensure they have the information they need to help you come tax season.

ANNA users also benefit from 24/7 chat support from its Cardiff-based team accessible via the ANNA app.

There's a free ‘pay as you go' account – here, you'll only pay things like transfer fees, ATM withdrawals, international payments, etc. After that, two paid-for plans charged at £14.90+VAT a month, and £49.90+VAT per month, respectively.

My Final Thoughts About The Best Online Banks In The UK

So, that brings my round-up of the best digital banks in the UK to a close.

Truthfully, I don't think you can go too far wrong with any of these fintech companies. However, if I had to pick a winner, it would be Starling Bank and Monzo. Not only because of all of their functionality listed above, but when an independent surveyor asked customers whether they'd recommend their banking provider to friends and family, Starling Bank and Monzo came joint first, with 81% saying they would – so these providers have to be doing something right!

That's enough from me, over to you. Which of these are the best online banks in the UK? Crown your winner in the comments box below! Or are you sticking with traditional banks like HSBC, Barclays, Lloyds, Natwest, etc.? Either way, I'm curious to hear your thoughts!