Best online banks in the UK include a range of EMI platforms that serve both personal and business customers. But, knowing which one is best for your needs can be challenging.
In this article, we’re going to share how to decide which online banks in the UK to open accounts with and answer common questions that we receive on the topic.
This article is part of our free series on banking in Europe, which includes a step-by-step guide on how to open a European business bank account online, which you can access using this link.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Best Online Banks UK
- How to Choose the Best Online Banks in the UK
- How to Open Online Banking in the United Kingdom
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Best Online Banks UK
Based on customer feedback, Monzo, Starling, and Revolut are commonly referred to as the best available online banks in the UK. Monzo and Starling have banking licenses while Revolut has an Electronic Money Institution (EMI) license, all licenses are issued by the Financial Conduct Authority (FCA) in the United Kingdom.
How to Choose the Best Online Banks in the UK
To choose the best online banks in the UK, you will need to first consider the specific services that you require. Next, you will want to take a look at the available banking options and compare how they meet your needs.
Lastly, you need to consider the individual banks, look at their fees, desired client profiles, and specific customers they serve, and get a better understanding of whether they will be a suitable match for your banking requirements.
Here is a closer look at the specific factors that you should consider when opening a bank account in the UK.
Factors to Considering Before Opening Accounts With Online Banks
- Services offered by each bank
- The fees charged by each bank
- Each bank’s preferred client profiles
- Your (or your business’) eligibility for an account
Additionally, you may also want to consider the specific risks of banking with each online bank. In particular, online banks typically rely on the support of a partner bank or correspondent. These partner banks ultimately hold the deposits of the online banks. So, confirming that you are comfortable with your funds being held by the partner banks is also an important factor to consider.
How to Open Online Banking in the United Kingdom
To open a bank account online in the United Kingdom, you will first need to decide which online bank you want to open an account with. After you have decided, you will either need to visit the bank’s website or download the application from the app store for your mobile device.
However, before starting the online application, it’s important to consider whether or not you are a suitable client to open with each banking platform. This is especially important as many banks have restrictions on the specific clients, income-generating activities, and jurisdictions they serve.
For example, depending on where you are sending and receiving transactions to and from, it’s possible that your account could be frozen or closed immediately after opening. So, it’s important to review the account opening information, client preferences, and feedback from other customers before deciding on the online bank you want to open with.
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Frequently Asked Questions
Below are a few of the most common questions we receive from people looking into open accounts with the best online banks in the UK. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
Which Is Better: Monzo or Starling?
Whether Monzo or Starling is a better banking option for you, ultimately depends on what you are trying to optimize for and the benefits that you want to achieve. With this in mind, it’s important to compare both of these online banks in terms of services, costs, client preferences, and more, before deciding how to proceed.
What Is the Best Online Bank to Use?
There is no single “best online bank” in the UK. Instead, there are a range of banks that you can consider opening with. Importantly, those that you will be able to open depending on your specific client profile, risk factors, transactional behavior, source of income, and many other factors.
What Is the Safest Online Bank in the UK?
It’s impossible to determine the safest online bank in the UK without also looking at the specific partner banks of each online bank. Then you would need to assess each partner bank to determine their capital adequacy and liquidity ratio. That said, there are many large online banks in the UK that individuals can consider opening with. However, in all cases, we typically suggest using online accounts for transactional banking activities.
Do You Want Help Opening Bank Accounts?
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Use the link in our menu above to learn more about GlobalBanks IQ. Or, contact us directly with any questions!
