Let’s be honest — choosing a bank in the UK isn’t as straightforward as it should be. There’s no shortage of options, but finding one that actually fits your needs? That’s another story.
Whether you’re looking for a bank to manage day-to-day expenses, save for the future, or start a business and need specific banking solutions, each bank offers distinct features, and the most popular option isn’t always the best fit for everyone.
That’s why we’ve created this guide. We’ve selected the top banks by category based on key factors like services, fees, and customer satisfaction so you can make a well-informed decision on the right bank for your needs.
Quick Overview
Category | Best Option | Runner-Ups |
Best for Everyday Banking | Monzo | Metro Bank, First Direct |
Best for Savings Accounts | Nationwide | Halifax, Virgin Money |
Best for Students | Santander UK | NatWest, Lloyds Bank |
Best for Businesses | HSBC UK | Starling Bank, Barclays |
Best Banks for Everyday Banking
Day-to-day current accounts are typically used for managing income, bills, and everyday expenses, so the ideal bank should make it easy to transfer money to and from other bank accounts with minimal costs. It’s important to look for key features that can make managing your personal finances more convenient, which include:
- Easy access to your funds
- Low or no fees
- A reliable and user-friendly mobile app
- Strong customer support
In today’s world, digital banking is also essential, and choosing a current account provider that offers seamless online banking services through mobile phones is crucial for ease of use.
You should also consider additional benefits, such as a switching bonus.
Current Account Switch
| Top UK Banks For Everyday Banking | |
| Monzo |
Key Features: Current accounts offering spending insights, fee-free cash withdrawals, built-in budgeting tools, and the ability to earn 3.35% AER interest (variable) with Instant Access Savings or Cash ISA. Pros: Easy-to-use mobile app for managing finances, 24/7 in-app customer support. Cons: No physical branches; current accounts with perks like insurance coverage and partner discounts have monthly account fees. |
| Metro Bank |
Key Features: Free current account with no minimum balance, the option to apply for an arranged overdraft, and a Mastercard debit card compatible with Apple Pay and Google Pay. Pros: Extended branch hours, including weekends; excellent customer service with face-to-face support. Cons: Smaller branch network compared to larger banks; discontinued personal credit card product. |
| First Direct |
Key Features: GBP 175 switching bonus (T&Cs apply); no foreign transaction fees with the First Direct debit card; virtual card; saving and budgeting tools; travel insurance with Aviva; and card control through the mobile app. Pros: Highly-rated mobile banking app, fast account opening approval, and live support on the app. Cons: No face-to-face services; overdraft rates can be high. |
Our Verdict: Monzo
Monzo is the ideal bank for everyday banking in the UK due to its user-friendly mobile app, which makes managing your finances easy on the go. The app offers real-time spending insights, helping you budget effectively, and features like Savings Pots to help set funds aside. It’s a great option for individuals looking for a simple, easy-to-use account with 24/7 customer support and instant access to their money.
I use Monzo for my everyday expenses because it’s incredibly convenient and user-friendly. It also allows me to track spending across all my other bank accounts directly from the app.
Best Banks for Savings Accounts
A good savings account offers competitive interest rates that help your money grow over time.
When selecting a bank for savings, it's important to look at the following criterias:
- Interest rates
- Minimum deposit required to earn interest
- Maximum limits on the amount that will earn interest
Money-saving accounts can also provide additional benefits such as tax advantages or higher interest rates with certain conditions.
Here are some popular types of savings accounts in the UK:
Instant Access Savings Account
Cash ISA (Individual Savings Account)
| Top UK Banks for Savings Accounts | |
| Nationwide Building Society |
Interest Rate: From 1.80% to 2.00% on the Instant Access Saver account, with unlimited access to your savings. Pros: 9 savings account options and 3 individual savings account (ISA) options; banking with a building society means you become a member and gain access to profit sharing. Cons: Certain accounts require a minimum balance to earn the full interest rate. |
| Halifax |
Interest Rate: From 1.10% to 1.35% AER/gross on the Everyday Saver account, depending on the balance amount. Pros: Easy access to savings through mobile and online banking; strong mortgage offerings with a range of options from a trusted mortgage lender. Cons: Some accounts may automatically convert to a different type after an introductory period, potentially reducing the interest rate or benefits. |
| Virgin Money |
Interest Rate: 1.00% AER/gross p.a. on the M Plus current account, plus 2.00-2.50% AER (2.48% gross p.a.) on the linked M Plus Saver account. Pros: The easy-access savings account is linked to the current account, allowing you to deposit and withdraw money at any time and enjoy other rewards. Cons: The interest on the current account is only applicable to balances up to GBP 1,000. |
Our Verdict: Nationwide Building Society
Although Nationwide is technically not a bank, it is the best fit for a savings account as it offers competitive interest rates and flexible access to your savings. Moreover, as a building society, Nationwide operates differently by reinvesting its profits back into the institution for the benefit of its members rather than distributing them to shareholders. This unique structure makes Nationwide a top choice for savers who want both strong returns and a member-focused approach to banking.
Been my bank since 2009, great bank… Nationwide always makes me feel like it makes the best decisions for my money. I now have savings accounts and a member credit card, great organisation.
Best Banks for Students
Starting university is a big step, and finding the right bank to support you through your student years is key. You’ll need a bank that’s not only a safe place to store your funds but also one that helps you manage your finances while offering benefits designed for student life.
A good bank for students should:
- Be easily accessible, either through nearby branches or a user-friendly mobile app
- Have no or minimal fees to help keep costs low
- Offer student deals and discounts to save on everyday essentials
| Top UK Banks for Students | |
| Santander UK |
Key Feature: A Santander Edge Student account that comes with a free 4-year 16-25 Railcard, an interest-free arranged overdraft of up to GBP 2,000, and travel benefits. Pros: Free account with travel perks, including a Railcard worth GBP 115; no fees for cash withdrawals from Santander ATMs abroad with a Santander debit card. Cons: Must pay at least GBP 500 into your account every 4 months. |
| NatWest |
Key Feature: A fee-free current account for university students aged 17 and over. This account includes a discount card offering exclusive deals such as 2-for-1 meals and 50% off food, along with access to an interest-free overdraft. Pros: Wide branch coverage with NatWest Group and Royal Bank of Scotland (RBS) branches; access to an overdraft of up to GBP 2,000 from year one. Cons: Requires the account to be the main one for depositing student finance, wages, and regular income, which may limit flexibility. |
| Lloyds Bank |
Key Feature: A student current account that allows you to earn up to 15% cashback on shopping, gadgets, and other purchases, as well as the "Save the Change" feature to round up your card payments and automatically transfer the difference to a nominated savings account. Pros: A wide range of lifestyle offers, easy-to-use mobile app, and access to an arranged overdraft. Cons: Overdraft terms may not be as flexible as other accounts. |
Important: The common eligibility requirement to apply for a student bank account in the UK is that you need to have lived in the country for at least 3 years or be a permanent resident, with proof of address.
Our Verdict: Santander UK
Santander UK is the best choice for students because of its 16-25 Railcard, which provides significant savings on travel. The interest-free overdraft is another standout feature, offering financial flexibility throughout the academic year. Additionally, Santander’s travel benefits and a range of discounts through the Santander Boost reward service make everyday student life more affordable.
The railcard offer and overdraft have been invaluable over my time at university. Plus the edge savers account interest is great for a year.
Best Banks for Businesses
Having a separate business bank account is a good practice for managing your business finances, and choosing the right bank can make a big difference.
A good business bank should offer a wide range of banking services and financial products tailored to business needs, such as:
- Corporate bank accounts
- Payment processing solutions
- Business loans and financing options
- Merchant services
- Financial advice and support
| Top UK Banks for Businesses | |
| HSBC UK |
Key Features: Business account options for sole traders, SMEs, and large enterprises; promotional monthly fee waiver for certain periods (typically 12 months); foreign currency accounts; international payments to send and receive money to and from over 200 countries. Pros: Wide banking network internationally; comprehensive financial services for scaling businesses; well-recognised brand. Cons: Complex fee structure that may be challenging to understand or navigate. |
| Starling Bank |
Key Features: Online-based business accounts for sole traders and registered limited companies with no monthly fees or UK payment charges; 24/7 support via app; optional bookkeeping Business Toolkit add-on for easier HMRC tax calculation; free cheque deposit in-app for up to GBP 1,000. Pros: Integration with accounting software and other business services; ability to connect other business accounts with other banks; responsive customer support. Cons: No physical branches; more suitable for smaller businesses. |
| Barclays |
Key Features: Business accounts for startups to established companies, as well as for charities; savings and foreign currency accounts; international trader services; cards and business finance options. Pros: Free, complimentary invoicing and accounting software; access to a community hub for businesses; easy online application. Cons: The bank has faced some criticism for customer service. |
Tip: Explore the best bank accounts for businesses and how to open one in the UK in our guides.
Our Verdict: HSBC UK
HSBC UK stands out as the top choice for most businesses when considering where to bank because of its global reach and comprehensive financial services. The bank provides a range of business accounts for all sizes, from sole traders to startups and large corporations, which makes it easy to switch accounts as your business grows.
HSBC have provided personal and business banking for a good number of years now. There has been the occasional hiccup but not enough to cause any issues. The sign of a good company is the speed of response and HSBC always very quickly resolve my issues...
Best Banks Ranked By Customer Satisfaction
Customer satisfaction is a crucial factor when selecting a bank. In the UK, one reliable source for measuring customer satisfaction with current account providers is The Ipsos Overall Service Quality Survey Ranking.[1]
This independent survey measures how customers rate their banking experience, including service quality, ease of use, and overall satisfaction. The survey is part of a regulatory requirement established by the Competition and Markets Authority (CMA) to ensure transparency and competition in the banking sector.
Here is the current ranking:
- #1 (81%) – Chase
- #2 (80%) – Monzo
- #3 (79%) – Starling Bank
- #4 (79%) – First Direct
- #5 (79%) – Nationwide
- #6 (67%) – Lloyds Bank
- #7 (66%) – Halifax
- #8 (65%) – Bank of Scotland
- #8 (65%) – Metro Bank
- #10 (63%) – Barclays
What can we tell from the ranking? Most customers are satisfied with the service quality of challenger banks, likely because these banks offer app-based chat support that is accessible 24/7 on mobile phones with fast response times, compared to traditional high street banks.
What You Need to Know About Banks and Banking in the UK
Understanding the banking landscape in the United Kingdom is essential to managing your finances effectively because it allows you to choose the right banking products, avoid unnecessary fees, and make informed financial decisions. Whether you’re opening your first bank account or just exploring your options, these are the five key points you need to know.
1. Current accounts are the most common type of bank account
2. Deposit protection guarantees the safety of your money
3. Banks offer overdraft and borrowing options for flexibility
4. Building societies and specialised services offer competitive alternatives
5. Eligibility and credit checks may be required for certain accounts
How to Open and Close a Bank Account in the UK
After selecting a bank, the next step is to open an account. Both opening and closing a bank account in the UK are generally straightforward processes, with most banks providing clear instructions on how to proceed.
Opening a Bank Account
Each bank has its own account opening process, which may vary depending on the type of account. Typically, the steps are as follows:
- Step 1: Prepare the required documents. You’ll need proof of identity (passport or driver’s license) and proof of address (utility bill or bank statement).
- Step 2: Submit your application. You can apply online or in person, depending on the bank’s services.
- Step 3: Review terms. Make sure you understand any fees or features related to the account.
Closing a Bank Account
Closing a bank account in the UK is relatively straightforward, but there are a few steps to follow:
- Step 1: Pay off any overdrafts or outstanding fees.
- Step 2: Ensure all pending transactions (e.g., direct debits or standing orders) have cleared or been transferred to another account.
- Step 3: Request account closure. You can do this in person at a branch or via the bank’s online platform.
- Step 4: Get written confirmation from the bank that the account is closed. This ensures there are no further charges or issues down the line.
Bottom Line
Whether you’re opening a bank account for your business, managing your finances as a university student, growing your savings, or simply exploring current account options, there are banks that can meet your needs. The key is to compare the offerings, fees, and customer satisfaction to make sure the bank is the right fit for you, and don't hesitate to switch if it's not.
While we've highlighted the top options, they aren’t the only ones available. Take the time to explore other choices and determine which bank best suits your financial goals.
FAQs
What are the best banks in the UK?
The best banks in the UK depend on your specific needs, whether it's for everyday banking, savings, or business accounts. Popular options include Monzo and Starling Bank for their digital-first approach and HSBC and Barclays for their comprehensive range of services.
What factors should I consider when choosing a bank in the UK?
Can I open a bank account online in the UK?
Which UK banks offer the best customer service?
Which UK bank is best for business accounts?
