In this article, I’m gonna show you in detail, the top 10 digital banks in the UK you can try out.Just as the name suggests, digital banks exist in a completely online form, usually on the web or apps. And since they operate online, usually, they don’t have any physical branches you can walk into like physical banks. But the amazing feature is this; you have access to customer support and you can have a live chat with a representative when you want to make an inquiry about something or when you have a problem with your bank account. And this wonderful feature might be in the form of the bank’s phone line or a live chat support system in-built with the mobile app.
The best online banks are free to use. Isn’t that amazing?
But before I outline the top 10 digital banks in the UK, let me put you through the special abilities of digital banks that physical banks don’t have.
Special Abilities of Digital Banks
We all know about all these physical banks and all these commercial banks but over the last few years, digital banks have grown so much massively in such a way that they are now competing with physical banks. What’s the main reason for that? Have you ever asked yourself?
The reason behind the success of digital banks today is because they have some features physical banks don’t have. Let’s dive down to details.
Firstly, have you ever had a problem with your local bank account? Can you imagine the stress of going to the bank out of your tight schedule to clear out the problem? That’s the reverse for digital banks. Whenever you have a problem with your digital bank account, you can just go to their webpage or their mobile app and have a live chat with one of their representatives and in a few hours, your problem would be resolved. That has saved you from the stress of going to the bank to do that.& nap/p>
Secondly, digital banks have low-interest rates on loans and overdrafts compared to physical banks. Isn’t that cool? Physical banks collect an average of 5% to 10% interest on loans per annum but digital banks collect 1% to 2.5% interest rate on loans. Isn’t that much better compared to physical banks?
Also, you can make transactions anywhere in the world using digital banks. You can withdraw money from any part of the globe using a digital bank. For example, let’s say you opened a UK digital bank account, and you eventually traveled to Asia or Africa. Do you know there in Asia or Africa, you can withdraw your money and have it in cash despite the fact you opened your account in the UK? Isn’t that a nice feat?
Most digital banks have their superpowers, one usually better than the other in one aspect. So with that, it might be a difficult task for you to figure out which banks have the best services, and which bank is best suited for you. Fortunately for you, after a thorough analysis, I’ve picked out the top 10 best digital banks with great services and nice customer reviews. The analysis is based on
⚫The services they offer.
⚫Online reviews.
⚫Stand-out features.
This is the first on my list. It is the fastest-growing digital bank in the UK because it has the interest of its customers at heart. One major reason why it is better than all is that it supports different kinds of currency which means you can top up your card in several currencies as you want with minimal fees.
That’s not all! You can get free travel insurance through REVOLUT bank. You can also store your cryptocurrency balance in your REVOLUT wallet. As of the time of writing this article, Revolut has more than 7M downloads, more than 1M reviews and it is rated 4.7/5.0 on the Google Play store.
2. WISE (formerly Transfer Wise):
With wise, you can transfer cash across borders with low charges. You can also hold your funds in more than 40 different currencies. It is eight times cheaper than regular banks. So, if you’re the type of person who makes a lot of transfers overseas, this is the best account for you. As if that’s not all, you can receive payment in GBP, USD, EUR, and AUD without paying any fees.
As of the time of writing this article, Wise has more than 1M downloads, more than 135k reviews, and It is rated 4.5/5.0 on the Google play store.
The third on my list is Monese. It is a banking service that does not bar customers based on their residency or lack of credit history. At first, Monese provided all of its services free of charge, with the exception of international cash transfer which comes with minimal fees.
At the time of writing this article, Monese has more than 1M downloads on the Play store with 73k reviews and 4.4/5.0 ratings.
Monzo is now making its name in the digital world. The company has developed a series of features to help you manage and save your money better. You can create savings pots, set budgets, and keep money aside for bills. This bank is the best for you if you really want to save money. You will also get free overseas cash withdrawals (up to £200 per month with no transaction fees on overseas spending.
Best of all! Monzo has other features like loans, joint accounts, and overdraft, making it a possible choice as the main account. Right now, Monzo has more than 1M downloads, 60k reviews, and 4.7/5.0 rating on the play store.
Starling Bank has many features ranging from loans to overdrafts and also, a classic current account for your business. The bank gives customers access to a full current account that they can manage easily from their mobile app. 1There are plenty of features available and it takes less than 3 minutes to enjoy the full features. Unlike other digital banks, interest is paid on your account balance, as well as access to an overdraft and loan.
STARLING mobile app has more than 1M downloads, 56k reviews, and 4.6/5.0 rating on the Google play store.
Curve is the very best choice if you use different bank cards but you don’t want to carry them all everywhere. It won’t replace your bank but would replace all your bank cards. Curve supports cards of different denominations and also allows limitless spending with no fee attached. You can open a Curve account for free and without any maintenance fee.
Curve combines all your debit and credit cards into one app and a linked smart card you can use for transactions. Curve isn’t trying to tell you to replace your normal bank account but it is working as a cloud-based digital platform that operates “over-the-top” of existing banking and payment facility.
Curve has more than 100k downloads with over 25k reviews and 4.4/5.0 rating on the Google play store.
Bunq is relatively new to the digital banking space, but they are trying to do things in a more unique way. Partnering with Wise, you get the same low charges on international transfers. You’ll get access to 10 free ATM withdrawals per month. They also have an array of incentives for their customers.
BUNQ has more than 100k downloads, 15k reviews, and 3.7/5.0 rating on the play store.
If you want a sure alternative to a physical bank, POCKIT is the best to try out. Pockit allows users to perform everyday banking operations via their smartphones. It allows you to perform most of the account operations that you would get from a physical bank. Pockit provides current account services, allowing you to send and receive money from around the globe as you normally would. You also get a MasterCard, which you can use easily to buy things in-store and online.
Pockit has more than 50k downloads, 12k reviews, and 3.8/5.0 user rating on the play store.
Atom Bank is a fully licensed bank, but it only specializes in offering savings accounts to its customers through digital banking. It doesn’t offer current accounts like Monzo and Starling.
At the moment, you can’t use ATOM to do day-to-day spending. You can only use it for saving your money. You can open an account within minutes and can start saving from £50 – £100,000. For each savings account, you can choose between monthly or annual interest (you will get a slightly better deal if you go for monthly interest).
ATOM has more than 50k downloads, 3k reviews, and 4.8/5.0 rating on the Google play store.
If you are new to the world of business banking, ANNA can help you to keep track of your finances. ANNA gives you an online current account you can use for your business with maximum features to help you manage your finances. The account gives you access to a Master debit card. Features include 1% cashback on your business spending and access to a number of additional employee cards.
Anna has more than 10K downloads, 908 reviews, and 4.3/5.0 user rating on the Google play store.
Conclusion:
Many people are careful about saving their money in an app-only bank that depends on digital banking. What happens if the digital bank suddenly closes down? Will you lose all your money?
Starling Bank, Monzo, and Atom Bank are protected by the Financial Services Compensation Scheme (FSCS). This means that your money is protected even if the bank closes down.
Revolut and Monese don’t hold UK banking licenses at the moment so they are not insured by FSCS but are stamped by the Financial Conduct Authority (FCA). This means your funds are stored completely in a licensed bank that the app company partners with.
This means if one of these digital banks runs down, you will get 100% of your money back.
