If you’ve just landed in the UK, sorting out a bank account is probably high on your to-do list. But let’s be honest: traditional high street banks don’t always make it easy. That’s why more and more people—locals and newcomers alike—are turning to digital options. These banks live on your phone, giving you quick access to your money and fewer headaches along the way.
At Remitly, we know how important it is to feel financially settled when you’re starting fresh in a new country. We’ve put together this guide to walk you through the most popular online banks in the UK today, so you can choose one that truly fits your needs.
What exactly is an online bank?
Over the past decade, the way people in the UK manage their money has changed dramatically. Instead of visiting branches, over 80% of the UK now has access to their bank accounts from their smartphones. These new online-only banks—also called digital banks or challenger banks—are designed to make banking faster, cheaper, and more flexible.
Everything is managed digitally, usually through an app. Because online banks don’t have the cost of running physical locations, they can offer lower fees and competitive rates. For customers, this means you can open an account in minutes from your sofa.
Regulated and safe
Most online banks in the UK are authorised by the Financial Conduct Authority (FCA), and your money is protected by the Financial Services Compensation Scheme (FSCS), up to £85,000 per person, per bank. That’s the same level of protection you’d get with a traditional bank.
Why people love them
- 24/7 banking from anywhere
- Instant spending notifications (helpful when budgeting)
- Fast sign-up with just your ID and proof of address
- Lower costs for everyday banking and travel
Top 10 online banks in the UK for 2025
There are lots of digital banks in the UK, but here are ten that people have been talking about the most in 2025.
Monzo
Monzo is one of the original challenger banks in the UK, and it’s still a favourite. You’ll get instant spending alerts, fee-free spending abroad, and “pots” to help you save for different goals. Signing up is quick, and the basic account is free (though you can upgrade for extras like travel insurance).
If you’re looking for a straightforward account that works for daily spending and budgeting, Monzo’s a solid choice. The downside is that it’s not great for mortgages or investments.
Starling Bank
Starling is another big name in digital banking and is often praised for its customer service. The app lets you create savings “spaces”, spend abroad without fees, and apply for overdrafts or loans. Unlike Monzo, Starling has strong business banking options, which makes it popular with freelancers and small business owners.
It’s great if you want one bank for both personal and business needs. Just don’t expect stock trading or crypto features here.
Revolut
Think of Revolut as a financial super app. Beyond standard banking, it lets you exchange currencies, invest in crypto or stocks, and access travel perks. The free account is good, but premium tiers unlock extras like lounge access and better exchange rates.
If you travel a lot or send money abroad regularly, Revolut can help too. The trade-off is that some of the best features aren’t free, and support can feel slow during busy times.
Atom Bank
Atom keeps things simple by focusing on savings and mortgages. The app is clean, and the savings rates are often among the best in the UK. It also uses biometric logins for extra security.
It’s not your everyday current account, but if you want to grow your savings or get a mortgage, Atom is worth a look.
Tide
Tide is designed for entrepreneurs and freelancers. It offers features like invoicing, expense tracking, and accounting software integration, which make it easier to run a small business. The basic plan is free, but there are paid tiers with more tools.
If you’re starting a business in the UK, Tide can save you hours of admin. Just note that it doesn’t do personal accounts.
Zopa Bank
Zopa started as a peer-to-peer lender and now offers savings accounts, personal loans, and credit cards. Rates are competitive, and the app is easy to use.
It’s a strong choice if you want flexible borrowing alongside savings. But it’s less appealing as your main current account.
Chase UK
Chase is backed by JPMorgan Chase, which makes it feel reassuringly established. In the UK, it’s known for its 1% cashback on spending, competitive savings rates, and round-up features that help you save without thinking.
It’s a good all-rounder for everyday banking. The only drawback is that it doesn’t yet have as wide a product range as older banks.
Kroo
Kroo is the new kid on the block with a focus on sustainability. You can track your carbon footprint, earn interest on your current account, and spend abroad without fees.
If eco-friendly living is important to you, Kroo could be a perfect match. Since it’s new, the range of products is still limited, but it’s growing.
Tandem Bank
Like Kroo, Tandem leans into green finance. It offers eco-focused credit cards, savings accounts, and loans for energy-efficient home improvements.
For anyone who wants their money to support sustainable goals, Tandem is appealing. But it’s not the best choice for everyday current accounts.
Marcus by Goldman Sachs
Marcus focuses purely on savings and has become popular for its high-yield easy-access accounts. It’s backed by Goldman Sachs, so it feels secure and trustworthy.
It’s not a full-service bank, so you won’t get a debit card or current account. But as a savings option, Marcus is one of the best.
How to choose which UK online bank is right for you
With so many digital banks to pick from, it can feel overwhelming to know which one actually fits your needs.
The trick is to start by thinking about your priorities. Are you mainly looking for an account for everyday spending, a place to grow your savings, or tools to help you manage a business? Knowing your main goal will narrow down the options quickly.
Look at the essentials
Once you’ve chosen your priorities, take a closer look at the details that make a difference.
- Fees: Especially if you’ll be spending or transferring money internationally.
- Interest rates: For both savings and overdrafts.
- App design: A clean, easy-to-use app can save you daily frustration.
- Customer support: Check if help is available 24/7 and how quickly they respond.
Consider the extras
It’s also worth looking at the perks that go beyond the basics, like cashback on purchases, travel insurance, or built-in budgeting tools. These little differences can tip the balance when you’re choosing between two banks.
Keep security in mind
Above all, don’t forget security. Make sure the bank is FCA-regulated and FSCS-protected, and check for in-app features like biometric logins and instant fraud alerts. That way, you’ll have peace of mind while managing your money on the go.
Limitations worth knowing about
Digital banks are incredibly convenient, but they’re not flawless. There are a few limitations to be aware of before you make the switch.
- Cash isn’t always easy: Depositing notes and coins can be tricky. Some online banks partner with the Post Office or PayPoint, but not all do.
- Apps aren’t invincible: Every now and then, an app might go down. It’s rare, but if it happens, you’ll need to wait until it’s resolved.
- Support is usually online: Customer service often happens via chat or email rather than face-to-face. For urgent issues, this can sometimes feel slower.
- Not for everyone: If you need complex financial products, like pensions, wealth management, or certain mortgages, you may find a traditional bank better suited.
Making the switch: step-by-step guide
If you’re worried about moving banks, you’re not alone. A lot of people hesitate because they think it’ll be complicated or risky.
The good news is that in the UK, switching is surprisingly simple thanks to the Current Account Switch Service (CASS). This free service is designed to do most of the heavy lifting for you, so you don’t have to stress about missed payments or lost direct debits.
Step 1: Pick your new bank
Start by researching which online bank fits your needs, whether that’s low fees, strong savings options, or handy business tools. Once you’ve made your choice, opening an account usually only takes a few minutes with your passport or ID and proof of address.
Step 2: Use CASS
After your account is open, you can ask the new bank to trigger a switch through CASS. Within seven working days, your direct debits, standing orders, salary payments, and balance will all be moved over automatically. Even better, if anything goes wrong, the service guarantees to put it right.
Step 3: Double-check everything
Although CASS is reliable, it’s smart to keep your old account open for a little while. This way, you can catch any unexpected payments or subscriptions that didn’t transfer right away. For most people, the process is smooth, but having a short overlap gives extra peace of mind.
What’s next for online banking in the UK?
If the last few years are anything to go by, digital banking in the UK is only going to get bigger. Challenger banks have already proven that people are ready to ditch the paperwork and queues for something faster, cheaper, and smarter.
AI as your money coach
Artificial intelligence is already creeping into banking apps, but expect it to go way beyond simple spending notifications. Imagine your bank giving you a heads-up that you’re on track to overspend before payday, or suggesting the exact amount to move into savings based on your past habits.
In the near future, AI-driven budgeting tools and personalised financial advice will become the standard. For immigrants and expats, this could mean apps that automatically help you plan for transfers back home or highlight better exchange rates in real time.
Banks that go green
Sustainability is a growing focus in finance. Challenger banks like Kroo and Tandem are already experimenting with green loans, eco-friendly credit cards, and even carbon footprint trackers that show you the environmental impact of your spending.
As more people look for ways to align their money with their values, expect these features to become the norm. In other words, your bank won’t just help you save money; it could also help you save the planet.
Rules that work in your favour
With more people trusting online banks to handle their salaries, savings, and even mortgages, regulators are making sure the industry stays safe. This means tougher fraud prevention, clearer rules on fees, and stronger protections for customers.
High street banks fighting back
Traditional banks aren’t going anywhere, but they’re definitely stepping up their game. Many are redesigning their apps, adding faster payment features, and even mimicking some of the tools pioneered by digital challengers.
The result is a more hybrid model of banking, where you get the convenience of app-based services with the backup of a physical branch if you ever need it. For newcomers to the UK, that could mean the best of both worlds: modern features with a safety net you can walk into when things get complicated.
Wrapping up
Choosing the right bank can make your financial life in the UK much smoother. Online-only banks offer low fees, flexibility, and convenience, but the best choice depends on your individual needs.
If you’re mainly looking for everyday spending, Monzo or Starling may be ideal. For savings, Atom or Marcus stand out. For business banking, Tide is worth a look. And if you prioritise sustainability, Kroo and Tandem could be the right fit.
FAQ
Are online-only banks safe to use in the UK?
Yes. Most are regulated by the FCA and protected by the FSCS up to £85,000.
Can I deposit cash with an online-only bank?
Some banks allow cash deposits through the Post Office, PayPoint, or partner networks.
What happens if the app goes down?
While rare, outages can happen. Banks usually provide backup support through phone lines or web access.
How do online banks make money without fees?
They earn from card transaction fees, lending, and premium subscription plans.
Can I get a mortgage from an online-only bank?
Yes. Atom and Tandem offer mortgage products.
What if I need to speak to someone urgently?
Most online banks have 24/7 in-app chat and phone lines for emergencies.