Digital banks – online-based with no physical branches – have become very popular in the UK in recent years. According to research from Finder, around 40 per cent of UK adults already have a digital bank account – attracted by lower fees and better savings rates than traditional high street banks.
However, not all digital banks offer the same benefits.
Some cater primarily to personal banking, while others are tailored for business use or frequent travellers. With many different features, pricing plans, customer support and rewards structures, it can be hard to figure out which digital bank account is right for you.
So to help decide which you should use, we’ve analysed four of the UK’s most popular digital banking providers: Monzo, Revolut, Starling, and Chase UK.
Here’s how they compare for personal banking – rates or fees mentioned are correct at time of publication but are subject to change.
Monzo: Good for budgeting and everyday banking
Monzo is well-known for its budgeting tools and fee-free spending within the UK. Its app provides real-time spending insights, savings pots, and early salary access. You can also create separate pots for saving, which can be automated based on your spending habits. Additionally, Monzo’s split-bill feature allows you to split expenses so you only pay for what you order – after all, who likes the old-fashioned way of splitting the bill ‘equally’ when you order Bucks Fizz but your friends always get Dom Perignon?!
Key features:
- Budgeting tools with spending categories
- Get your salary paid a day early
- 24/7 chat support
- FSCS protection (up to £85,000)
- Overdrafts and loans available
- Free UK bank transfers
- Automate your savings to save time
- Split the bill for shared expenses
- Earn 3.35 per cent* on cash in a standard account, or 3.85 per cent* for Plus, Premium, Perks or Max account
International payments fees:
- 1 per cent currency conversion fee for receiving payments from another currency to GBP (capped at £1,000)
- Fixed fee of £0.50 to £2.68, or a variable fee of 0 per cent to 1.3 per cent, for sending payments in a foreign currency
Drawbacks:
- Limited free international cash withdrawals
- Some features, like travel insurance, require a paid plan
Best for: Everyday banking, budgeting, and saving in the UK.
*Annual Equivalent Rate (AER), variable, up to £500,000
Revolut: Good for travel and currency exchange
Revolut is a good pick for frequent travellers. The UK’s largest digital banking provider (by customer base) offers multi-currency accounts and access to stock investing or crypto trading from just £1. Revolut’s wide choice of currencies make it a popular option for those who frequently make or receive international payments. With the paid plan, you benefit from more features like disposable virtual cards, travel insurance and even discounted airport lounge access.
Key features:
- Hold and exchange money in over 30 currencies
- Fee-free currency exchange on weekdays (monthly limits apply, 1 per cent exchange fee on weekends)
- 24/7 in-app support
- Cryptocurrency and stock trading options with certain limitations
- Premium plans come with travel insurance and lounge access
- Virtual cards for added security when shopping online
- Advanced analytics help you track your spending in multiple currencies
- Up to 5 per cent cash interest* on balances in GBP (Revolut Instant Access Savings account)
International payments fees:
- Free payments in EUR within the Single European Payments Area (SEPA)
- Fees apply for other international payments
Drawbacks:
- The free plan has strict limits on fee-free withdrawals and exchanges
- Not FSCS protected (but funds are safeguarded under e-money regulations)
- Some advanced financial tools are locked behind premium subscriptions and travel insurance requires specific criteria followed
Best for: Frequent travellers, people interested in investing and international spenders.
*Annual Equivalent Rate (AER), variable, interest paid daily
Starling Bank: Good for human support
Starling Bank offers a comprehensive digital banking experience with human-based customer support and no hidden fees. You can organise your money in different ‘Spaces’, which act like virtual change jars in your account, for simpler day-to-day budgeting. The Easy Saver account has no minimum deposit requirement.
Key features:
- 24/7 human support available
- Fee-free spending abroad
- FSCS protection (up to £85,000)
- Good business banking options
- Integrated accounting software compatibility
- Free digital cheque deposits
- Starling’s 1-Year Easy Saver account offers a cash interest rate of 4 per cent (variable), or 4.05 per cent for the Fixed Saver account*
International payments fees:
- Free for the Euro account
- Fees apply for other international payments
Drawbacks:
Best for: Full-featured digital banking, freelancers, business owners
*Annual Equivalent Rate (AER), based on deposits between £2,000 and £1m
Chase UK: Good for cashback and automatic saving
Overview: Backed by JPMorgan Chase, Chase UK offers 24/7 customer support and focuses on cashback rewards and automatic savings with its round-up account. You’ll get cashback on all spending for the first year, which will appeal to anyone looking to earn rewards on regular transactions (the maximum monthly reward is £15 per month).
Key features:
- Round up your spending to the nearest £1 and the app will autosave the difference
- The Chase saver account offers a cash interest rate of 4.5 per cent* for the first 6 months if you open within 31 days of joining Chase
- Get a 5 per cent* variable interest boost for the round-up account
- 1 per cent cashback on everyday spending (for the first year)
- No fees for UK or international spending
- FSCS protection (up to £85,000)
- High-interest savings linked to round-ups
- In-app money management tools for savings
International payments fees: You can’t use your Chase UK digital bank account for international payments
Drawbacks:
- No international payments
- Limited options for business banking
- Cashback offer is only valid for the first 12 months
Best for: Cashback, high-interest savings, and everyday spending.
*Annual Equivalent Rate (AER)
Comparison table
|
Feature |
Monzo |
Revolut |
Starling |
Chase UK |
|---|---|---|---|---|
|
Customer service rating on Trustpilot |
||||
|
FSCS protection |
Yes |
No |
Yes |
Yes |
|
Cashback |
Eligible purchases |
Eligible purchases |
No |
1%, for 12 months |
|
Interest on balances |
No |
No |
No |
Yes, on roundups |
|
Fee free UK transactions |
Yes |
Yes |
Yes |
Yes |
|
Fee free overseas transactions |
Limited |
Limited |
Yes |
Not with UK card |
Which digital banking provider is right for you?
The best digital bank account depends on your needs.
- For budgeting and everyday spending: Monzo’s budgeting tools and early salary access make it a decent choice.
- For frequent travellers: Revolut’s multi-currency features and fee-free international spending provide plenty of flexibility.
- For freelancers: Starling Bank stands out with strong business banking features.
- For cashback and rewards: Chase UK is tempting with its 1 per cent cashback and the chance to earn 5 per cent AER in a round-up account.
Each digital banking provider has its pros and cons, so think about which features matter most to you before making a decision. Always compare the latest rates and terms to ensure you get the best deal.
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
