11 Best Online Banks in the UK: Features, Fees, & Accounts!

As a student, managing your finances is like starting a new journey. Thankfully, with several best online banks in UK, establishing your financial independence when studying in the UK has become hassle-free. These banks offer a modern solution to transfer money in multiple currencies, open accounts without ever visiting a branch, and even withdraw money from ATMs. The best online banks in UK add the perfect mix of convenience and flexibility. To help you understand how online-only banking can help, we share the advantages and a comprehensive list of the best online banks in UK. 

What is an Online Bank in the UK? 

Online-only or digital banks in UK let you open your account in minutes instead of visiting branches. They allow customers to transfer funds, pay bills, and handle banking services at home. The entire process is at your fingertips; all you need is access to the websites or mobile apps. 

The appeal of these online banks mainly includes low fees and affordable international money transfers. HSBC and Barclays are two of the best student banks in the UK when it comes to traditional banking, and they heavily rely on branches. On the contrary, online banks depend on digital channels: apps and websites. The top UK online banks undercut major banking fees and allow fee-free ATM withdrawals. 

Advantages of Using the Best Online Banks in UK 

86% of adults use online banks in UK now, whereas 53% of UK adults have moved to mobile banking. Especially for international students, the ease of sending money in different currencies is a boon. Below, we share the many advantages of opening an online student bank account in the UK to ease your journey!

11 Best Online Banks in UK 

Features, tools, and monthly fees are the factors to consider when looking for the best bank in UK to open account. Many like banking apps that let you personalise your money-related stuff and offer spending categories. Others focus more on privacy, digital cheque deposits, and convenience. Keeping these aspects in mind, we’ve shared a list of the best digital banks UK below: 

1. Monzo 

Types of Accounts: Monzo, Monzo Plus, & Monzo Premium
‍Potential Fees: 3% of every withdrawal of over £250 per month
‍Best Features: Expense tracking, joint accounts, salary sorter, & custom savings goals 
Monthly Fee: £5/month
Review: “It is fast, easy to use, quirky, fun, and innovative.”

With competitive rates, Monzo is one of the best online banks in UK for many reasons. It is easy and free to use, but you will not receive debit cards or card top-ups. You can have joint accounts, manage your bills, and use Monzo's smart features for budgeting. For international students, Monzo has become one of their favourite and best online banks UK. No fees on card spending abroad and ATM withdrawals up to £200. The multi-currency accounts let them manage money in different currencies. It's a hassle-free feature, especially when making payments back home or travelling abroad.  

2. Monese

Types of Accounts: Simple Account, Classic Account, & Premium Account
‍Potential Fees: £4.95 for every debit card delivery & £1.95 for every cash machine withdrawal
‍Best Features: Global banking, PayPal integration, savings pots, & contactless Mastercard and debit card 
Monthly Fee: Basic - free, classic - £7.95/month, & premium - £14.95/month
Review: Good multicurrency bank. The fees are a little high but overall a good bank with right services.

‍Monese is a convenient option for newly arriving students in the UK. In fact, it is one of the best online banks in UK, with £14.95 monthly fees and free ATM withdrawals. Through its app, you can easily manage your finances in different currencies. You can share accounts with your flatmates and use the budgeting tools. Monese tracks your spending and keeps an eye on your money habits. Monese is the best online bank UK and is compatible with Apple Pay and it doesn't require UK citizenship. You can get virtual debit cards and transfer money to over 30 countries. However, conversion fees for non-GBP, SEK, RON, and EUR are high.

3. Revolut 

Types of Accounts: Standard Account, Plus Account, & Premium Account

‍Potential Fees: 2% of cashpoint withdrawal fee only if you make more than five withdrawals or exceed £200 per month
‍Best Features: Multi-currency balances & EU account details 
Monthly Fee: Standard - free, plus - £3.99/month, premium - £7.99/month, & ultra - £45/month
Review: “I'm extremely satisfied with Revolut! I've had a great experience using their services: so easy and user-friendly.” 

You might be surprised to know that we have added a non-UK-based bank to our compilation of the best online banks in UK! Why? Revolut has the license of the Bank of Lithuania but is UK’s most popular fintech. If you are looking for the best virtual bank UK app, you have probably heard of it — especially for its innovative platform. The platform offers several financial services: easy money transfers between Revolut users and fee-free spending abroad. You can hold and exchange money through the app, too. As it’s not one of the UK digital banks, it's mostly used as an effective spending tool along with your bank account. 

4. Kroo 

Types of Accounts: Kroo Account & Kroo Plus
‍Potential Fees: 3% of cashpoint withdrawal fee in foreign currency outside the UK & if the amount exceeds £200 in a month
‍Best Features: Real-time information, overdrafts, & shared expenses 
Monthly Fee: £0
Review: “Extremely impressed with Kroo, I opened the account quickly, card arrived within 48 hours.  Easy to pay money into and getting  a great interest rate, which makes having a savings  account less important.”

‍Kroo is 100% online through its mobile app and has quickly become one of the best online banks in UK. It recurs no monthly account fees; you do not have to pay foreign transaction fees either. Through Kroo accounts, you can manage your money across different currencies, too. The app features an automatic rounding-up and savings pots to help users build up their savings balance. Besides, its option to temporarily freeze/unfreeze debit cards via the app is one of the reasons for Kroo to become one of the top UK online banks. With Kroo Plus, you can get interest on credit balances.

5. Zopa

Types of Accounts: Zopa Money Full Account & Zopa Money Basic Account
‍Potential Fees: £1 fee for every withdrawal from ATMs outside the UK
Best Features: Split bills with UK users, 24/7 support, & no monthly account fees 
Monthly Fee: £12/month for missed payment
Review: “Everything was seamless and easy from the loan application to installation of Zopa.”

Though relatively new in the finance system, Zopa has quickly become one of the best online banks in UK. It started as a peer-to-peer lending company and soon gained a full banking license. Zopa offers savings accounts and credit cards with a cash ISA (Individual Savings Account). Zopa is easy and quick to start with; all you need to invest is £1 for cash ISAs. For fixed-rate accounts, you need a minimum investment of £1,000. Plus, you can get competitive rates on the Zopa Money Full account and see your deposits grow faster. 

6. Anna 

Types of Accounts: Anna Money & Anna Business Account
‍Potential Fees: £3 fee for international transfers & £35 for forced debit card cancellation
‍Best Features: Automated tax calculations, multi-currency wallets, & unlimited invoicing 
Monthly Fee: Basic - £0/month, business - £14.9/month, & big business - £49.9/month
Review: “Easiest app I’ve ever used, and when I don’t know what I’m doing I just stick a message in the thread to get it sorted.”

If you have recently started finding freelancing gigs, you need a business current account first. For freelancers, Anna is one of the best online banks UK for its automatic invoicing and invoice management. This digital bank also offers 1% cashback on business transactions. You can access a variety of employee cards, too. You can create pots in your account to save for expenses and connect other accounts through Open Banking. As it’s one of the best online banks in UK for businesses, you can choose a pay-as-you-go plan or pay a fee every month. 

7. Virgin Money 

Types of Accounts: M Plus Account & M Account
‍Potential Fees: £1.25 fee per month for agreed overdraft usage & £5 for cancelling a direct debit
‍Best Features: Easy savings, fixed rate cash ISAs, & self-invested personal pensions 
Monthly Fee: M Plus - £0/month & Club M - £12.50/month
Review: “Excellent. Clear and easy application process. The credit card and service is certainly meeting expectations. Amazing rates too.” 

Virgin Money, one of the best digital banks in UK, allows students to open an account online or through the mobile app with only a few basic details. The accounts have no monthly maintenance fees and let you withdraw money when making purchases abroad. You can also get budgeting insights and track spending. Virgin Money is also one of the top UK online banks, as you can get free debit cards if yours is lost or stolen. Once you sign up, you will receive interest or gift cards. It also offers financial planning and investment advice services. 

8. Starling Bank 

Types of Accounts: Starling Personal Account & Starling Business Account
‍Potential Fees: £20 for every CHAPS transfer in the UK & £5 for a replacement debit card
‍Best Features: Pension scheme, overdraft, youth card, & saving spaces 
Monthly Fee: £0/month
Review: “They make everything straightforward and the way everything works on the app make sense.” 

Anne Boden, a Welsh tech entrepreneur, introduced Starling Bank in 2014 to stir up the financial sector. This neo-bank got its license in 2016 and rolled out its mobile-only current account in 2017. With its innovative features, Starling Bank became one of the best online banks in UK. Plus, you do not have to pay monthly account fees and can make fee-free ATM withdrawals. Another reason for Starling Bank to become one of the best digital bank in UK is its compatibility with Samsung Pay, Garmin Pay, Google Pay, and Fitbit Pay. Plus, you can see spending insights to understand how to budget. 

9. Chase

Types of Accounts: Current & Saver Accounts
Potential Fees: £0 
Best Features: 1% cashback for a year, 3.85% AER interest on your savings, a numberless card, no fees abroad, & free extra accounts
Monthly Fee: £0/month
Review: “Chase's app is incredibly user-friendly. Creating new accounts is a breeze, and saving for specific goals like holidays or car maintenance is a great feature.”

Next on our list of the best online banks in UK is Chase. With Chase, you can easily set aside money and save. The Chase team offers 24/7 support, so you can get your queries resolved anytime. Intuitive and easy-to-use, this best virtual bank UK provides layers of security and fraud monitoring to help you keep your money, account, and personal information safe. Chase has two accounts: current and saver. You can get 1% cashback on your daily debit card spending. You can even add your Chase card to Apple Pay or Google Pay for a quick way to shop in-store or online. Indeed, one of the best online banks in UK! 

10. Zing

Types of Accounts: Multi-currency card
Potential Fees: £0 for international outbound transfers & £2 for international and domestic ATM withdrawals
Best Features: Simple to send, no transfer fees, no mark-ups, & Real-time, competitive rates
Monthly Fee: £0/month
Review: “One of the best new cards in the market. Customer service is quick and easy and it offers fast support.”

An international money app and multi-currency card, Zing is your go-to partner when studying abroad and one of the best online banks in UK. Offered by HSBC, Zing is an e-money institution (EMI). Zing, the best online bank UK, offers international payments, multi-currency card, and real-time exchange rates. With the card, you get competitive rates and track your payments. There is a 24/7 customer support to resolve all your queries, and earn rewards.

11. Wise

Types of Accounts: Personal & Business Accounts
Potential Fees: Varies by currency (starting from 0.33%)
Best Features: International money transfers, average 5X cheaper, & use Google or Apple Pay
Monthly Fee: Free
Review: “Of particular interest and concern to me is the transparent manner in which it operates. I get an email for every transaction so I always know where I stand with my account.”

Last on our list of the best online banks in UK is Wise, launched in 2011. With the vision of making international transfers cheap, fair, and simple, Wise enables thousands of students to easily manage their money across the world. With Wise, you can save on fees when sending money and get a 4.46% variable rate return on your GBP balance. The Wise card allows you to take out cash abroad for free. You can even freeze and unfreeze and get notifications for every transaction you make.

Tips for Using the Best Online Banks in UK 

With the rapid development of best digital banks UK, you should keep a few tips in mind. Knowing how to open a bank in the UK is not the sole way to have full control over your finances. If you know these tips, you can make the best online bank UK. 

1. Privacy is the Key 

Create a strong password and never share login details. If two-factor authentication is available, always go for it. Also, check whether the website URL has "https://" and a lock icon. Even if you have the best UK digital bank account, do not use public WiFi. Hackers can steal your data! 

2. Check before Sending Money 

The best online banks in UK have peer-to-peer payment networks so that you can send money to other account holders immediately. Always double-check the recipient's information! The best digital UK bank is not liable to reverse the transaction if you send money to the wrong recipient. 

3. Use the Budgeting Features 

Spending insights and savings pots are common for the best online banks in UK. Monthly reports help you understand where your money is going. Are you spending too much on travel or groceries? Also, turn on the notifications whenever you use your card to spot fraud right away. 

Now that you have gone through our list of the best online banks in UK, you should have an idea of the best online bank UK for your needs. Convenience, low costs, and financial control are the main factors in choosing your e-bank. However, no matter how impressive the best digital banks in UK sound, watch out for the hidden banking charges. So, review the features and document requirements before signing up.