Five Top-rated Online / App-only UK Banks
Digital or online or challenger banks are no longer a new concept in the UK. Online banks have established their positions in the last few years and challenged the high street banks forever. Although the big banks still dominate the UK banking industry, such as Lloyds, RBS, NatWest, Barclays and HSBC, the digital banks are increasing the customer number very quickly.
Best Digital Bank Comparison Table
We have compiled the top five digital banks for you based on online reviews:
| Bank Name | Headquarter | Founded | Trustpilot Rating | App Store Rating | Google Play Rating |
|---|---|---|---|---|---|
| Starling Bank | London | 2014 | 4.3 | 4.9 | 4.6 |
| Monzo | London | 2015 | 4.3 | 4.9 | 4.7 |
| Atom Bank | Durham | 2013 | 4.6 | 4.7 | 4.7 |
| Monese | London | 2015 | 3.5 | 4.8 | 4.4 |
| Revolut | London | 2015 | 4.4 | 4.7 | 4.7 |
Benefits of online bank accounts
- Hassle-free opening and managing the account online
- Competitive rates on foreign exchanges (FX rates)
- Blocking and unblocking accounts, cards and services using the apps
- Real-time transaction notifications visa apps and text messages
- 24×7 customer service
- Bill sharing
Is my money safe with a digital bank?
Most digital banks are Financial Services Compensation Scheme (FSCS) protected, which means that your money, up to £85,000, is protected if your bank goes bust. Some banking apps might not have received their banking license yet, but still offer some protection under the Financial Conduct Authority (FCA). This means your money is protected because the online bank has stored the money at a registered bank.
Before opening a bank account, you should always check the terms and conditions mentioned on the bank website and app.
Should I switch from a traditional to a digital bank?
This is normal to question yourself if you should switch to a digital bank from a traditional high street bank. There is no right or wrong answer for it. It totally depends on your requirements, satisfaction level with your existing bank accounts, services you are getting, the monthly fees (if you are paying anything), etc.
It would help if you always did enough research before moving to a digital bank solely. Digital banks also have limitations compared to traditional banks too.
If you are confused, you should maintain both traditional and app-only bank accounts simultaneously.
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