New Year’s Offer! Launch Your New Business With 10% Off — Start Now

The 7 Best Banks in the UK in 2024

content image

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. 

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.

magnifying-glass-green

Looking for a bank account for your business? Explore the top UK business bank accounts and read our detailed step-by-step guide to opening a business bank account in the UK

What Are the Best Banks in the UK?

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.

1

The Nationwide Building Society

Best for: Individuals looking for profit-sharing benefits, a member-focused institution, competitive savings interest rates, and a strong branch network with digital services.

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. 

About The Nationwide Building Society

magnifying-glass-green

What is an Overall Service Quality Survey Ranking?

drop down arrow

Key Products and Features of The Nationwide Building Society

Products

Features

Personal Current Accounts

Three types to choose from, with varying benefits. Here’s the overall highlight:

  • No monthly fee, or GBP 13, depending on account type. The GBP 13 monthly fee will increase to GBP 18 starting 1 December 2024
  • Receive GBP 175 when you switch to Nationwide Building Society's current accounts
  • Family mobile and worldwide travel insurance
  • Cashback on eligible debit card purchases
  • Telephone and online banking services
  • Overdraft available upon request at 39.9% APR (variable)
  • Chequebooks upon request 

Personal Savings Account

Choose from 9 savings account options. Interest rates range from 2.25% to 6.50% AER/gross per year (variable)*

Options include not withdrawing at all for a higher interest rate, limiting withdrawals to a maximum of 3 per month, or withdrawing anytime with a reduced interest rate.

Effective 1 November 2024, Nationwide will reduce some variable interest rates.

Business Savings Account

Business Savings for turnover under GBP 10 million and Corporate Savings for turnover over GBP 10 million. Both accounts are designed for savings only and are not suitable as business current accounts.

Membership

You become a Nationwide Building Society member by holding a current account, savings account, mortgage, or an eligible business savings account (Excluding limited company). Members benefit from profit sharing, access to exclusive products, flexible mortgage deals, and more.

Member Card

Enjoy 0% interest on purchases for an eligible period and no fees for spending abroad

Others 

Award-winning student current accounts with fee-free banking, mortgages, loans, investments, and insurance.

Pros and Cons of The Nationwide Building Society

Pros and Cons of The Nationwide Building Society

  • Profit-sharing for members
  • Prioritises competitive interest rates and benefits for its owners rather than external shareholders
  • Consistently ranks high in customer satisfaction surveys
  • Strong branch network across the UK with a user-friendly digital banking platform

Cons of The Nationwide Building Society

  • Fewer current account and investment options compared to high-street banks
  • Limited international presence
  • The business account is solely for saving. 
  • Limited access to telephone support and in-person banking at branches if you are using the FlexDirect current account type.
  • Only UK residents are eligible to apply.

2

Lloyds Bank

Best for: Retail banking customers looking for a variety of current accounts that offer cashback, family travel insurance, and no fees on frequent debit card transactions, both domestically and internationally.

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.

About Lloyds Bank

  • 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.

Key Features of Lloyds Bank

Products

Benefits

Personal Current Accounts

There are 6 types of current accounts, each offering different benefits. Here are the key highlights:

  • No monthly fee or monthly fee of GBP 3 to GBP 22.50 depending on account type
  • GBP 200 switching bonus (excluding Classic Lloyd)
  • Cashback from select retailers
  • Option to apply for an arranged overdraft
  • Earn interest on eligible balances
  • European and UK family travel insurance is available for ages up to 65 or 80
  • No debit card fees for transactions made at home or abroad

Personal Savings Account

Choose from over 10 options. AER/tax-free variable rates range from 1.20% to 6.25%, with some interest paid monthly and others after a year. 

Most accounts allow unlimited withdrawals, except for a few that limit withdrawals to 3 times.

Business Account

For sole traders, partners, or company directors with an annual turnover of less than GBP 25 million. Open your account with a minimum of GBP 1 and start earning interest immediately. Send and receive funds in various currencies and schedule payments in advance.

Free monthly fee for the first 12 months, then GBP 8.50

Credit card

Choose from 5 options, including those designed for cashback, everyday spending, and large purchases. 

Others

Kids, teens, and student accounts, mortgages, car leasing, ready-made pensions, life insurance, personal loans, business loans, private banking and international banking services

Pros and Cons of Lloyds Bank

Pros of Lloyds Bank

  • Strong presence in retail banking
  • Extensive branch and ATM network
  • Wide range of banking solutions for personal and business customers
  • Fee-free for eligible debit card transactions abroad

Cons of Lloyds Bank

  • Certain accounts and services may come with higher monthly fees than other banks.
  • It may not offer the most competitive interest rates on most savings accounts.
  • Overdraft interest is charged daily.

3

HSBC UK

Best for: Individuals and businesses needing global banking services and foreign currency accounts

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. 

About HSBC UK

  • 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. 

Key Features of HSBC UK

Products

Benefits

Personal Current Accounts

Choose from a range of options, including for daily banking needs with retail offers, and a more premium account with rewards. Key highlights include:

  • No monthly account fee
  • Support for Apple Pay, Google Pay, and Samsung Pay
  • Home & Away discounts and rewards program
  • Emergency cash up to USD 10,000 (Premier or Advance accounts)
  • Free international transfers between your HSBC accounts (Premier or Advance accounts)

Personal Savings Account

Multiple options, including fixed rate, tax-free, flexible savings, and more. Interest is paid daily, monthly, or yearly, depending on the account type. Rates range from 1.98% to 5%.

Effective 18 November 2024, HSBC UK will reduce variable interest rates on some savings accounts.

Business Account

Various account types, including for sole traders, small businesses and international businesses. Most include a commercial card or credit card (subject to approval), international payment options, no monthly fee for the first 12 months, and an optional overdraft.

Savings account interest rates are up to 2.02% AER.

Foreign currency account 

Foreign currency account options for both personal and business use, offering current and savings accounts. You can open local accounts overseas. Store, send, and receive money in major currencies like USD, AUD, EUR, and more.

Credit cards

A range of credit cards, including purchase credit cards, credit-builder credit cards, and rewards credit cards

Others

Children's bank accounts, graduate accounts, student accounts, international student accounts, insurance, financing, borrowing options, investments, and corporate banking services.

Pros and Cons of HSBC UK

Pros of HSBC UK

  • Comprehensive services for individuals and businesses
  • Established global presence with branches and subsidiaries in over 60 countries 
  • International banking services for personal and business customers, including foreign currency accounts and local account openings overseas.

Cons of HSBC UK

  • Complex fee structure that may be challenging to understand or navigate
  • Although a multinational corporation, some services and offers may not be available in all countries and regions
  • Some accounts may have income criteria or minimum balance requirements.
  • The interest rate for business savings accounts is relatively low.

4

Barclays

Best for: Customers who prioritise mobile banking and access to an extensive branch network, as well as businesses seeking a variety of account options. 

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. 

About Barclays

  • 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.

Key Features of Barclays

Products

Benefits

Personal Current Accounts

Choose from 3 options, each with different benefits. Here are the highlights:

  • No monthly fee or GBP 5 for the reward account 
  • Personalised debit card, compatible with Apple Pay or Google Pay
  • Money management tools
  • Optional arranged overdraft
  • App, online, and telephone banking
  • Purchase foreign currency through the Barclays app and use your debit card as a travel money card.
  • Cashback reward (not available for regular accounts)

Personal Savings Account

Choose from several options, including a tax-free account
Open with just GBP 1. Get Instant access or up to 3 withdrawals before fees apply.

Rates range from 0.85% to 5.12% AER.

Credit card

Multiple choices including reward, credit building and balance transfer 

Business Account

12-month fee-free current accounts for startups and established businesses. 
A business foreign currency accounts with same-day settlement for EUR, USD, and AUD, and 2-day settlement for other currencies.

Business Savings Account

Choose from savings account options, including instant access or fixed-term accounts, with a choice of no minimum balance requirement.

Others

Children account, mortgage, investment, insurance, premier banking, personal loans, international trade, wealth management, corporate banking services.

Pros and Cons of Barclays

Pros of Barclays

  • Highly-rated mobile banking app
  • Large branch network across the UK
  • A complete range of business accounts, including current, savings, and foreign currency accounts.
  • 24/7 business support via the mobile app

Cons of Barclays

  • The bank has faced some criticism for customer service
  • Overdraft charges and some transaction fees may be higher than some competitors
  • Current accounts are available to UK residents only.

5

Halifax

Best for: Mortgage seekers and individuals seeking current account options that offer rewards and benefits on debit transactions.

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.

About Halifax

  • 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.

Key Features of Halifax

Products

Benefits

Mortgage services

A well-known product from the bank. A comprehensive range of options, including first-time buyer mortgages, moving home mortgages, remortgages, buy-to-let mortgages, and mortgage calculators.

Personal Current Accounts

Choose from three options: Regular, Reward, and Ultimate Reward. Key features include:

  • No monthly fee or GBP 3 - GBP 19 for higher tiered account
  • A 6-month interest-free arranged overdraft when you switch.
  • A contactless Visa debit card
  • GBP 5 or a lifestyle benefit of your choice each month (For Reward and Ultimate Reward accounts)
  • Family travel insurance (For Ultimate Reward account)
  • No fees for debit card transactions, whether you're at home or abroad (For Ultimate Reward account)

Personal Savings Account

Halifax provides easy access to savings accounts, fixed-term, and more. Rates range from 1.20% to 5.50% AER.

Withdrawal options include unlimited withdrawals, unlimited withdrawals with reduced interest after the third withdrawal, and access only through account closure or transfer.

Credit card

Credit cards with options for everyday spending, travelling, and large purchases

Others

Youth and student accounts, personal loans, car finance, car insurance, and life insurance

Pros and Cons of Halifax

Pros of Halifax

  • Diverse mortgage options and competitive interest rates
  • Various current account options with customisable rewards and travel insurance
  • User-friendly online and mobile banking platform with features like budgeting tools and mobile cheque deposit

Cons of Halifax

  • Does not provide business banking services
  • A slightly higher monthly fee for the higher-tier account compared to other providers

6

Santander UK

Best for: Those seeking benefits on household bills, businesses looking for basic, straightforward accounts, and newcomers to the UK.

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. 

About Santander UK

  • 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. 

Key Features of Santander UK

Products

Benefits

Personal Current Accounts

Choose from several options with these main benefits

  • No monthly fee or GBP 3 - GBP 5 for higher tiered account
  • Contactless debit card
  • Cashback on selected household bills, at supermarkets, and for travel expenses.
  • No fees for using your debit card outside the UK.
  • Basic current account that may be suitable for those with poor credit histories or newcomers to the UK for work or study.

Personal Savings Account

Easy access, regular, and fixed-term savings options, offering an interest rate of 1.20% to 6.0% AER.

Business Account

Simple current accounts for UK-registered businesses with up to two directors, owners, or partners. It offers free expert HR and health and safety advice, access to co-working spaces in Leeds, London, and Milton Keynes, Elavon card payment acceptance, and free cash withdrawals and card payments outside the UK for selected accounts.

Business Savings Account

A 1.05% interest rate with instant access through online, phone, and ATM transactions, or a fixed-term account with a 3.50% interest rate.

Credit card

Balance transfer, purchase options, rewards, and travel credit cards.

Others

Student accounts, insurance, loans, mortgages, investments, borrowing and finance, and private banking.

Pros and Cons of Santander UK

Pros of Santander UK

  • A basic business account with a distinctive service offering, such as access to co-working spaces.
  • An account option designed for individuals with poor credit histories or newcomers to the UK.
  • Often offers promotional packages for new account holders.

Cons of Santander UK

  • Most benefits are subject to meeting certain conditions like maintaining a minimum balance

7

Royal Bank of Scotland

Best for: Residents and businesses in Scotland seeking a range of current and savings account options.

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.

About RBS

  • 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.

Key Features of RBS

Products

Benefits

Personal Current Accounts

Choose from a variety of options, including a regular current account, reward account, premier account, and more. Here are the key features:

  • 0 monthly fee or starting from 2 for a reward account 
  • Use Apple Pay, Google Pay™, or contactless debit card (subject to limits)
  • Arranged overdraft options
  • Spending categorisation tools
  • View your credit score
  • Earn 1% rewards when using debit cards at partner retailers (Reward account)
  • Dedicated one-on-one support (Premier account)
  • No fees for transactions in foreign currencies or payments made outside the UK (Premier account)

Personal Savings Account

Various options, such as instant savings, tax-free savings, fixed-term, and flexible accounts. 

Interest rates up to 4.00% AER for tax-free savings and up to 6.17% AER (variable) on the first GBP 5,000 for digital savings. You can get started with just GBP 1. 

Some interest rates will begin to decrease from 14 October 2024.

Business Account

Startup accounts for businesses operating for less than a year and with a turnover under GBP 1 million, designed for managing finances, receiving payments, and paying bills.

Business accounts for companies with a turnover exceeding GBP 1 million or those that have been in business for over a year.

Enjoy free banking on everyday transactions for two years when you switch, if your annual turnover is up to GBP 2 million.

Business Savings Account

Interest rates range from 1.46% to 3.75% (variable). Access your savings instantly with no notice for lower interest rates, or provide 35-95 days' notice for higher interest rates.

Business cards

Business cards include credit cards, debit cards, cash cards, and virtual cards, with cashback on eligible fuel and electric vehicle purchases, plus access to emergency cash.

Others

Student, child, and teen bank accounts, a Ukrainian refugee account, accounts for non-profit, insurance, personal loans, business loans and trade finance.

Pros and Cons of RBS

Pros of RBS

  • Strong presence in Scotland
  • Two years of free business banking on everyday transactions if you meet the conditions.
  • A diverse selection of business products with reasonable savings interest rates.

Cons of RBS

  • Significant branch closures in recent years may reduce convenient access to in-person banking services

What Do You Need to Open a UK Bank Account?

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:

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.

green-lightbulb

Tip: If you're opening a business bank account, additional documents will be required. Check out our guide on how to open a business bank account in the UK for more information.

Bottom Line

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. 

A dropdown of some supported currencies by the Statrys business account.

FAQs

What are the best banks in the UK?

arrow
The Nationwide Building Society, Lloyds Bank, HSBC UK,  Barclays, Halifax, Santander UK, and the Royal Bank of Scotland are our picks for the best banks in the UK.

What is the most used bank in the UK?

arrow

How big is the banking system in the UK?

arrow

What is a High Street Bank?

arrow

Which bank is the largest in the UK?

arrow

Looking for a business account?

CheckCircle
CheckCircle
CheckCircle
Statrys Logo
app-store
play-store
apk-download