The 7 Best Banks in the UK in 2024

Choosing the best bank for your new account isn’t about finding the most popular bank—it's about finding the institution that best meets your financial needs.

Whether you’re a resident exploring new options, just relocated to the country and needing a new bank account, or a business seeking commercial banking solutions, you might be overwhelmed by the choice of banks the UK has to offer.

That’s why we’ve gathered the 7 best banks in the UK, including their customer satisfaction ratings, key services, and pros and cons to help you find the right bank.

Let’s begin with an overview of the UK banking system. 

To ensure you choose the right bank, it is worth taking a look at how the banking system works in the UK.

The UK banking system is a significant part of its financial sector, with over 300 financial institutions operating in the country. It primarily consists of:

• Retail Banks: These are the most common type of bank, offering services like current accounts, loans, and credit cards to individuals and small businesses. Some of the major retail banks in the UK include Lloyds Banking Group, NatWest Group, Barclays, HSBC, and Santander UK.
• Building Societies: Building societies are financial institutions owned by their members (customers) as mutual organisations, unlike banks, which are owned by shareholders. They provide similar products to retail banks but tend to focus more on local or regional communities and specialise in savings accounts. Well-known building societies in the UK include Nationwide Building Society, Coventry Building Society, and Yorkshire Building Society. 
• Challenger Banks: These digital-only banks focus on challenging the traditional banking model. They typically offer lower fees and app-based services that are accessible via mobile phones. Popular challenger banks in the UK include Starling Bank, Monzo, and Revolut.
• Other Financial Institutions: The UK banking system also includes investment banks, credit unions, private banks, international banks, and financial service providers. 

The central bank of the United Kingdom is the Bank of England. The Big Four banks in the UK are Barclays, HSBC, Lloyds Banking Group, and NatWest Group. These banks account for 75% of current accounts in the country.

Banks in the UK are authorised and regulated by the Financial Conduct Authority (FCA). Eligible deposits held in most types of accounts with registered institutions are also protected under the Financial Services Compensation Scheme (FSCS) for up to GBP 85,000 per person per institution. 

Additionally, most financial institutions in the UK are part of the Current Account Switch Service (CASS), which facilitates convenient and secure bank switching for customers. Cash withdrawals from most UK ATMs are also free, and you can typically access basic banking services at post offices across the country. 

Usually, opening a current account with a UK bank doesn't come with any setup or monthly fees, though this can vary based on the type of account or package you choose.

It's essential to recognise that there is no  “best” bank that will be perfect for everyone. 

The best bank is the one that meets your needs, whether you want to save, invest, borrow, or make international transfers. 

Some of the options in the UK are the Nationwide Building Society, Lloyds Bank, HSBC UK, Royal Bank of Scotland, Barclays, Halifax, and Santander UK.

In the next section, we will cover in detail what makes these banks the best options in the UK and who they are best suited for.

The Nationwide Building Society is the largest building society in the world with over 17 million customers. As a building society, Nationwide is owned and operated for the benefit of its members rather than shareholders.

Nationwide has grown significantly since it was founded in 1884. It has over one hundred mergers, including the Anglia Building Society. Currently, Nationwide's headquarters are in Swindon, England.

Like banks, Nationwide offers a wide array of services, such as current accounts, business accounts, mortgages, overdrafts, loans, credit cards, and insurance. 

• Headquarter: Swindon
• Total Assets: Around GBP 272 billion
• Overall Service Quality Survey Ranking: #5 (70%)
• Employment: Over 18,000 employees
• Customer Base: Over 17 million customers
• Number of branches: Over 600 branches around the UK. They have a branch commitment, meaning they promise to remain in place until at least the beginning of 2028. Find their branches on this Nationwide Building Society Branch Locator page.

Lloyds Bank is one of the best choices for everyday banking, with over 500 branches and an extensive ATM network across England and Wales. In Northern Ireland, Lloyds operates both under its own brand and the Bank of Scotland, while customers in Scotland are primarily served by the Bank of Scotland. 

Having been operating since 1765, Lloyds Bank is regarded as one of the "Big Four" clearing banks and one of the largest retail banks in the UK.
The bank started expanding internationally in 1911 under Lloyds Bank International, an offshore banking division of Lloyds Banking Group. It offers a wide range of financial services to personal and business customers in the Channel Islands and Isle of Man, among other locations.

• Headquarter: London
• Total Assets: GBP 865.94 billion
• Overall Service Quality Survey Ranking: #7 (66%)
• Employment: Over 60,000 employees
• Customer base: 27 million customers
• Number of branches: Over 500. To find a branch, visit Lloyds Bank Branch Locator.

HSBC UK is one of the four major clearing banks in the United Kingdom. It is a wholly-owned subsidiary of HSBC Holdings, which is one of the world's largest multinational banking and financial services organisations.

Established in 1865 in British Hong Kong, HSBC Holdings secured a significant presence in the European region after it acquired full ownership of Midland Bank in 1992 and moved its headquarters to the UK in 1993. 

It now operates globally, with an extensive network covering over 60 countries and territories and serving around 40 million customers worldwide. 

HSBC UK offers commercial banking products and services, from current accounts, savings accounts, and multi-currency accounts to loans, mortgages, insurance, and financial advice services for investments. 

• Headquarter: London
• Total Assets: GBP 330.474 million
• Overall Service Quality Survey Ranking: #13 (55%)
• Employment: Over 40,000 employees
• Customer Base: Over 14.9 million active customers
• Number of branches: 327 Branches. Find branches in the HSBC UK branch locator. 

Barclays is another leading UK bank to consider. Headquartered in London, the bank has been at the forefront of the UK banking industry since it started operating in 1690. 

As a multi-national universal bank, Barclays operates under Barclays UK and Barclay International, providing banking and investment services in the United Kingdom and several other locations worldwide. 

Barclays offers a full range of financial and commercial banking services for individual, business, and corporate clients, including current and savings accounts, merchant services, credit cards, and convenient features like standing orders for regular payments. 

• Headquarter: London
• Total Assets: GBP 1.526 trillion
• Overall Service Quality Survey Ranking: #11 (57%)
• Employment: Over 90,000 worldwide
• Customer base: Over 20 million UK customers
• Number of branches: About 850 locations in the UK. You can use Barclays Branch Finder to find a location near you.

Halifax, previously Halifax Building Society, is another recognisable UK bank specialising in personal finance and insurance.

Founded in 1853, Halifax was the UK’s largest building society until it became a public limited company in 1996 and merged with the Bank of Scotland to form HBOS plc in 2001. The bank is now operating as a trading division of Bank of Scotland and is currently a part of Lloyds Banking Group. 

In addition to offering a full range of financial products for individuals, Halifax is also known for being one of the major mortgage lenders in the UK, offering a wide range of mortgage products and competitive interest rates.

• Headquarter: Halifax
• Total Assets: GBP 130.48 million
• Overall Service Quality Survey Ranking: #7 (66%)
• Employment: 4,382 employees
• Customer base: 27 million (across all Lloyds Banking Group brands, including Halifax)
• Number of branches: Around 420. Find your nearest branch using this Halifax Branch Finder.

Santander UK is a wholly-owned subsidiary of the Spanish multinational Santander Group. The bank entered the UK market after acquiring Abbey National, Bradford & Bingley, and Alliance & Leicester from 2004 to 2009 and has been operating as Santander UK since 2010. 

As one of the leading banks in the UK, Santander offers a wide range of financial products to individuals, businesses, and corporations, including personal and business current accounts, merchant services to accept payments via Elavon, and premier banking service. 

• Headquarter: London
• Total Assets: GBP 264.2 billion
• Overall Service Quality Survey Ranking: #10 (60%)
• Employment: Around 19,600 employee
• Customer base: 14 million active customers
• Number of branches: 444 in the UK. Use this Santander Branch Locator to find your nearest branch. 

The Royal Bank of Scotland (RBS) is another major commercial bank in the UK, operating as one of NatWest Group's retail banking subsidiaries. 

RBS's headquarters are in Edinburgh, and it has around 86 branches across Scotland. RBS also has 19 “mobile branches,” providing banking services to customers in rural areas in fully equipped converted vans.

The Royal Bank of Scotland offers a full range of commercial banking services, including fee-free basic bank accounts, business accounts, mortgages, home and life insurance, and more.

• Headquarter: Edinburgh
• Total Assets: GBP 38,440 million
• Overall Service Quality Survey Ranking: #17 (46%)
• Employment: Over 71,000 employees
• Customer base: More than 3 million personal customers
• Number of branches: Approximately 69 branches in Scotland. You can use this Royal Bank of Scotland Branch locator to find ones near you.

To open a bank account in the UK, the requirements can vary depending on the bank and the type of account. Generally, you will need two common types of documents: proof of identity and proof of address, regardless of whether you apply in person or online.

For proof of identity, you could use one of these documents:

• Passport
• Driver's licence 
• Identity card
• UK residence permit
• Biometric Residence Permit (BRP)

You can open a bank account in the UK without being a citizen as long as you provide the required documents and residency is not a specific eligibility requirement of the account. In most cases, it is possible for foreign nationals holding a BRP to open a standard current account 

For proof of address in the UK, most banks accept the following documents:

• Recent utility bill
• Current council tax bill
• Recent credit card or bank statement 
• Rental agreement or mortgage statement

These documents should generally be recent, typically from within the last three months, except for tax bills, which can be from the current year. 

Banks may have specific requirements for proof of address, so it’s a good idea to check with your chosen bank beforehand. Additionally, depending on the type of account you plan to open, banks may ask for additional documentation.

While the traditional banks above offer comprehensive banking services covering every need, there are also other options to consider if you haven’t found the right match.

If you prefer a fully digital experience beyond online banking services offered by traditional banks, you might consider opening an account with virtual bank account providers like First Direct, Monzo, or Starling.

For specialised financial needs, such as start-up business accounts or multi-currency accounts, consider non-bank financial service providers or neobanks. These companies often offer tailored services with lower fees.