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. In fact, it’s more like finding the right institution that can cater to 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: Unlike banks, which are owned by shareholders, building societies are mutual organisations owned by their members (customers). Building societies such as Nationwide and Coventry Building Society have a strong local or regional focus and specialise in savings accounts. 
• 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. 

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. 

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 is free of opening and monthly fees. However, it also depends on which type of accounts or packages you choose.

First, it is important to understand that there is no  “best” bank account 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. 

The Nationwide Building Society is the largest building society in the world, with over 16 million members. 

As a building society, Nationwide is a mutual financial institution that operates for the benefit of the members and is also owned by them, not 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 any other bank, Nationwide offers a wide array of services, such as current accounts, business accounts, mortgages, overdrafts, loans, credit cards, and insurance.

• Total Assets: GBP 272 billion
• Overall Service Quality Survey Ranking: #4 (69%)
• Employment: Over 17,000 employees
• Customer Base: 16.3 million customers
• Number of branches: 605

• Current accounts, with options for children and students
• Business savings account for businesses with an annual turnover of less than GBP 10 million
• Member credit cards that allow you to make unlimited worldwide commission-free purchases with no monthly or yearly fees
• Usually, better rates on savings accounts compared to banks
• GBP 0-13 monthly fees, depending on the type of account
• Telephone and online banking services

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.

• Total Assets: GBP 605 billion
• Overall Service Quality Survey Ranking: #7 (63%)
• Employment: 63,000 employees
• Customer base: 27 million customers
• Number of branches: Over 500

• Current account options to suit every need, including contactless debit cards and family travel insurance (included with certain accounts)
• Business accounts for sole traders and organisations that have an annual turnover of less than GBP 25 million
• Private banking and international banking services
• Credit cards with options including cashback credit cards, everyday spending credit cards, and World Elite Mastercard®.
• Mobile banking app
• Account maintenance fees range from free to GBP 22.50 per month

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. 

• Total Assets: GBP 332 billion
• Overall Service Quality Survey Ranking: #11 (56%)
• Employment: Roughly 221,00 employees
• Customer Base: 42 million worldwide
• Number of branches: 327

• Current accounts for the everyday banking needs of individuals, students, children aged 11-17, and businesses
• Multi-currency accounts supporting up to 18 currencies in one account
• A Basic Bank Account for people who do not meet the eligibility requirements of other current accounts
• A range of credit cards, including purchase credit cards, credit-builder credit cards, and rewards credit cards
• Track your spending, deposit cheques, confirm online card payments, chat with customer support, and more on the HSBC mobile app

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. 

• Total Assets: GBP 1.477 trillion
• Overall Service Quality Survey Ranking: #9 (59%)
• Employment: Over 90,000 worldwide
• Customer base: 48 million customers
• Number of branches: About 1,445  in the UK

• Bank accounts for businesses and individuals, including options for children under 18 and foreign students
• Free premier current accounts with exclusive benefits for those who meet the eligibility requirements
• Foreign currency accounts that allow you to save and make transactions in your selected foreign currency, including EUR, USD, HKD, and JPY
• 24/7 business support via the mobile app

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.

• Total Assets: GBP 321 billion (HBOS Group as a whole) 
• Overall Service Quality Survey Ranking: #5 (66%)
• Employment: 4,382
• Customer base: 27 million (across all Lloyds Banking Group brands, including Halifax)
• Number of branches: Around 420

• Bank accounts for individuals, including current accounts, reward current accounts, youth and student accounts, savings accounts, and joint accounts.
• Credit cards with options for everyday spending, travelling, and large purchases
• Mortgage services, including options for first-time buyers, home movers, remortgages, and buy-to-let properties, with mortgage calculators and tools to help you find the right deal
• Life, home, and car insurance 

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. 

• Total Assets: GBP 275 billion
• Overall Service Quality Survey Ranking: #8 (61%)
• Employment: 19,500
• Customer base: 14 million active customers
• Number of branches: 444 in the UK

• High-interest current accounts (with conditions).
• Free cash withdrawals and card payments outside the UK with certain accounts
• Free expert HR and health and safety advice line for business customers
• Co-working spaces for businesses in Leeds, London, and Milton Keynes
• Monthly account fees range from free to GBP 5 for personal current accounts.

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.

• Total Assets: GBP 90.38 billion
• Overall Service Quality Survey Ranking: #15 (48%)
• Employment: Over 71,000 employees
• Customer base: More than 3 million personal customers
• Number of branches: 86 in Scotland

• Personal current and savings accounts to manage personal finance
• Bank accounts for businesses with turnover above GBP 1 million or below GBP 1 million but have been trading for over a year
• Fee-free premier banking services with a Banking Manager and round-the-clock support for eligible customers
• Online banking platform 

In order to open a bank account in the UK, you'll have to provide two documents: proof of address and proof of identity.

Some banks may require additional documents depending on which type of account you intend to open. 

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. For instance, it is possible for foreign nationals holding a BRP to open a standard current account in most cases.

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

However, some banks may have their own list of valid documents as proof of address, so you should always check with the bank of your choice first. Nevertheless, the documents you provide should be recent, preferably from within 3 months, and not expired in order for the bank to verify where you live.

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. 

Ultimately, the best bank for you is the one that meets your banking needs and helps you reach your financial goals.