Best Banks in the UK: Which One Actually Deserves Your Money?
I’ve had accounts with five different UK banks over the past seven years, and let me tell you—they’re not all created equal. Some have frustrated me to the point of closing my account, while others have genuinely impressed me with their service. If you’re trying to figure out which UK bank deserves your business, let me save you some trial and error by sharing what I’ve learned.
What Makes a Bank “Good” Anyway?
Before diving into specific banks, let’s talk about what actually matters. Everyone’s banking needs are different, but these factors consistently separate the best from the rest:
Ease of opening an account: Some banks make you jump through hoops with endless paperwork. Others let you open an account in 10 minutes from your phone.
App quality: Since most banking happens on your phone now, a clunky app is a daily frustration. The best banks have intuitive, fast apps that actually work.
Customer service: You don’t need it often, but when you do, you want real help, not endless automated menus and 45-minute hold times.
Fees and charges: Overdraft fees, foreign transaction fees, account maintenance fees—these add up fast with the wrong bank.
Branch access: Increasingly irrelevant for many people, but if you need face-to-face banking, branch locations matter.
International features: If you travel or send money abroad, exchange rates and transfer fees become crucial.
With that framework, let’s look at the actual banks.
The Traditional High Street Banks
HSBC: The Global Player
HSBC is one of those banks everyone knows. They’ve been around since 1865 and have branches everywhere.
The good: If you’re an expat or travel internationally, HSBC is genuinely useful. I used them when moving to the UK because they had accounts in both my home country and Britain, making the transition smoother. Their Premier account offers perks like airport lounge access and preferential exchange rates if you maintain £75,000 across your accounts.
The frustrating parts: Their app is functional but feels dated compared to newer banks. Customer service can be hit or miss—I’ve had brilliant phone support and also been stuck in automated menu hell for 20 minutes. Standard accounts don’t offer much beyond basic banking.
Who it’s for: International professionals, frequent travelers, people who genuinely use branch services.
Barclays: The Tech-Forward Traditional Bank
Barclays has made real efforts to modernize while maintaining their traditional banking infrastructure.
The good: Their app is actually decent for a traditional bank. I particularly like the spending categorization feature that shows where your money goes each month. They were early adopters of contactless payments and Apple Pay integration. Branch network is extensive if you need it.
The annoying bits: Their overdraft rates aren’t competitive. When I accidentally went overdrawn by £50 for three days, the fees were ridiculous—£35% EAR (Effective Annual Rate). Also, opening an account required visiting a branch with multiple forms of ID, which felt unnecessarily bureaucratic.
Who it’s for: People who want a modern banking experience but value the security of a established institution with physical branches.
Lloyds Banking Group: Solid But Unexciting
Lloyds owns several brands—Lloyds Bank, Halifax, and Bank of Scotland. I’ve banked with Halifax, so I can speak to that experience.
The good: Halifax’s Reward Account pays £5 monthly if you deposit £1,500 and have two active direct debits. Free money is free money. Their Clarity credit card offers no foreign transaction fees, which I’ve used extensively while traveling.
The meh parts: The app works fine but isn’t exciting. Customer service is adequate. Nothing about Lloyds/Halifax makes me enthusiastic, but nothing makes me want to leave either. It’s reliably average.
Who it’s for: People who want straightforward banking without complications or surprises.
NatWest: Trying to Catch Up
NatWest (part of the Royal Bank of Scotland group) has been playing catch-up with digital banking but has made progress.
The good: They’ve invested heavily in their app recently, and it shows. Features like spending insights and the ability to freeze/unfreeze your card instantly are handy. Their customer service has improved—I actually got helpful support when my card was fraudulently used.
The downsides: Still feels a step behind the digital challengers in terms of user experience. Their savings rates aren’t competitive. Branch services are fine if you need them, but branch networks are shrinking.
Who it’s for: People comfortable with traditional banks who want decent digital banking without going fully challenger bank.
The Digital Challenger Banks
This is where things get interesting. These banks don’t have physical branches (or very few) and operate primarily through apps.
Monzo: The Cult Favorite
Monzo has developed an almost cult-like following in the UK, and honestly, I understand why.
Why people love it: The app is beautiful and intuitive. Spending is categorized automatically and accurately. You get instant notifications for every transaction. Splitting bills with friends is effortless. The hot coral card is weirdly fun. Customer service happens in-app and is consistently helpful—I once got a response at 11 PM on a Saturday.
The reality check: Monzo is fantastic for day-to-day spending, but less impressive as your sole bank. Their savings rates aren’t great. Some merchants don’t accept Monzo for whatever reason (rental car companies can be funny about it). I’ve had friends whose accounts were suddenly frozen for “security checks” with no clear explanation.
My take: Monzo is brilliant as a spending account. I keep my salary account elsewhere but use Monzo for daily expenses. The spending insights alone have helped me reduce unnecessary expenses by probably £150 monthly.
Who it’s for: Tech-comfortable people who want to actively manage their spending, perfect as a secondary account.
Starling Bank: Monzo’s Quieter, More Mature Sibling
Starling doesn’t get as much hype as Monzo but is arguably better in some ways.
The standout features: Savings “spaces” let you organize money into different pots with better interest rates than Monzo. Their business accounts are genuinely good—several self-employed friends swear by them. Spending insights are comprehensive. Euro and dollar accounts are built-in, making international transactions easier.
What’s missing: Less community vibe than Monzo. The card is plain green instead of Monzo’s distinctive coral (shallow, I know, but branding matters). Slightly fewer integrations with other apps.
My experience: I switched to Starling as my main account last year and haven’t regretted it. The app is reliable, customer service is responsive, and I’ve had zero issues with merchants not accepting the card.
Who it’s for: People ready to go fully digital but want something slightly more established-feeling than Monzo.
Revolut: The Traveler’s Best Friend
Revolut isn’t technically a bank (it has a European banking license but operates as an e-money institution in the UK), but it functions like one for most purposes.
The killer feature: Exchange rates. If you travel or buy things in foreign currencies, Revolut’s rates are unbeatable. I spent three months traveling and saved hundreds in exchange fees compared to using traditional banks. You can hold and convert between 28+ currencies.
The good stuff: Cryptocurrency trading, stock investing, travel insurance options, and disposable virtual cards for online shopping security all in one app. The metal card looks cool if that matters to you.
The problems: Customer service is notoriously poor. Everything happens through a chatbot that often can’t help with complex issues. Account freezes happen seemingly randomly, and getting them unfrozen can take days. They don’t have UK deposit protection up to £85,000 like traditional banks (though they have some protection through their European entity).
When to use it: Travel, foreign transactions, or as a complementary account for specific features. Not as your primary bank where your salary goes.
Who it’s for: Frequent travelers, digital nomads, people comfortable with some risk for better features.
Chase UK: The American Newcomer
JP Morgan Chase launched in the UK in 2021, bringing American banking sensibilities to Britain.
What they did right: Their initial cashback offer (1% on spending for the first year) was genuinely generous. The app is slick—clearly they learned from watching Monzo and Starling. Savings rates have been competitive. Roundup feature automatically saves your spare change.
The concerns: They’re still relatively new, so long-term reliability is unknown. Some features feel designed to lock you into the Chase ecosystem. As an American bank, some people worry about data privacy and how they’ll use your financial information.
Current status: They’ve reduced the cashback offering (now 1% for six months on new accounts), which makes them less compelling than initially. Still worth considering if their current offers match your needs.
Who it’s for: People who want modern banking with the backing of a massive American financial institution.
The Building Societies: The Forgotten Option
Building societies like Nationwide, Yorkshire Building Society, and Coventry Building Society operate similarly to banks but are owned by members rather than shareholders.
Nationwide: The largest building society, and I’ve been consistently impressed. Better savings rates than most high street banks. Their FlexPlus account (£13 monthly) includes worldwide travel insurance, phone insurance, and breakdown cover—actually good value if you’d buy those separately. Customer service is genuinely helpful.
The downside is their app isn’t as polished as challenger banks, though it’s functional. They have fewer branches than they used to, though still more than digital banks (obviously).
Who they’re for: People who like the security of an established institution but want better customer service and rates than traditional banks.
My Honest Recommendations
After banking with multiple institutions, here’s what I’d suggest:
For your main salary account: Starling Bank or Nationwide. Both reliable, good features, decent customer service.
For day-to-day spending: Monzo. The spending insights and instant notifications genuinely help manage money better.
For travel: Revolut, but keep a backup card from another bank. Don’t rely on Revolut alone internationally.
For savings: Shop around. Banks change rates constantly. Currently, savings apps like Chip or Plum, which connect to multiple banks, often offer better rates than keeping money with your main bank.
For business banking: Starling or Tide (another digital bank specializing in business accounts).
If you want branches: Nationwide or Barclays. Both have made efforts to maintain physical presence while modernizing.
The Multi-Banking Approach
Here’s what most financially savvy people in the UK actually do: they don’t use just one bank. I currently have:
- Starling: Main account where salary goes, bill payments come from
- Monzo: Daily spending, going out money
- Nationwide savings account: Emergency fund and savings
- Revolut: Travel and foreign currency purchases
This sounds complicated, but it’s not. Each app takes 30 seconds to check. The benefits of using each bank’s strengths far outweigh the minor inconvenience of managing multiple accounts.
Opening a UK Bank Account: What You Actually Need
If you’re new to the UK, opening a bank account can be frustrating. Here’s what you’ll typically need:
- Proof of identity: Passport or driving license
- Proof of address: Utility bill, council tax bill, or tenancy agreement (dated within 3 months)
- Proof of immigration status: Visa documents if you’re not a UK citizen
The catch-22: You need proof of address to open an account, but you need an account to set up utilities that provide proof of address.
Solutions:
- Some banks accept a letter from your employer or university as proof of address
- Monzo and Starling are generally more flexible with address proof requirements
- Get your name on a utility bill or council tax bill as soon as you move in
Red Flags to Avoid
Not all banks and bank-like services are legitimate. Watch out for:
- Prepaid card services claiming to be banks: Some charge ridiculous fees for basic transactions
- Accounts requiring upfront fees: Legitimate UK banks don’t charge to open standard accounts
- Anything promising guaranteed loans or credit: Scams often pose as banks
Stick with banks regulated by the Financial Conduct Authority (FCA) and covered by the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 of your deposits if the bank fails.
The Bottom Line
The “best” UK bank depends entirely on what you need. Want cutting-edge features and brilliant spending insights? Go digital with Monzo or Starling. Need international banking and branch access? HSBC or Barclays. Want better rates with decent service? Try Nationwide.
My advice? Don’t stress too much about choosing the “perfect” bank. UK banking has become competitive enough that switching is easy (Current Account Switch Service transfers everything in seven days). Start with one that fits your immediate needs, actually use it for a few months, and adjust if it’s not working.
The best bank is the one you’ll actually use effectively to manage your money. Everything else is details.
