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Top app-based bank accounts
How good is your bank's app?
Updated 31 January 2023
Digital challenger banks come without the large branch networks of the traditional banks, but typically offer slicker digital experiences. We run through the app-based accounts you've rated the best and our top picks. Though take a look at Best Bank Accounts as well, which includes the top accounts for upfront freebies, ongoing rewards and savings interest.
Who's this guide for? Anyone wanting to try an app-based current account that can help you manage your cash.
Not what you want? Other related guides...
Best Bank Accounts | Autosaving Apps | Top Savings Accounts | Prepaid Cards
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What is digital banking?
If you 'do' digital banking, it means you use an app for all, or most, of your banking. Our focus in this guide is on app-based banks, which have great tech and features that help you know where you're spending, and help you save towards your goals, all within the same app and same account.
We know that some of the traditional high street banks have popular apps, and are catching up with their app-only competitors, so we feature the best of these too.
While the app-based banks don't have a high-street presence, most have in-app customer support, with dedicated teams on hand to offer assistance if you've any questions or issues.
All apps featured in this guide are free to download – though some have costs associated with running them, which we clearly explain in our best buys below. You'll also need a relatively up to date smartphone running iOS or Android.
The five digital banking need-to-knows
To get your head around app-based banking, it helps to know the following:
Top app-based bank accounts
To get a current account with one of the challenger banks below, you apply through their apps – the process is quick and easy, typically taking just a few minutes if you're accepted.
Do note these accounts can be beaten if you're looking for £100+ to switch or monthly cashback. But if you're after a high-tech account, these are our top picks. We've also included MSE users' app ratings from our most recent banking apps poll.
| Useful spending notifications, great for budgeting + top for overseas use. Starling Bank* gives real-time notifications when you use your debit card, insights into your spending and lets you set up savings goals. You also earn a (very) small amount of in-credit interest. As an added boon, there are no fees for spending or cash withdrawals abroad, making it a top-pick debit card overseas. | |
|
Overseas fees: None In-credit interest (AER variable): 0.05% up to £85,000 How to pay in? Cash at any Post Office, cheques via app/post Unarranged overdraft cost: None |
| 1% cashback on purchases for a year and no fees to spend/withdraw cash abroad. The app-only Chase current account* gives a top rate of cashback on spending. You can also set up its 'round-up' feature, which rounds all purchases up to the nearest £1, with the difference autosaved into a separate account paying 5% (for example, spend £1.45 and 55p is transferred). You can create up to 20 extra accounts and there's also a monthly spending overview – great for helping to manage your money. | |
Service rating: 94% 'great' |
Overseas fees: None In-credit interest (AER variable): 2.7% on £500,000 via its linked savings account, plus 5% on small amounts saved in the round up account Unarranged overdraft cost: Not available |
| Helps you budget & also offers savings accounts with partner banks. Monzo has similar features to Starling – real-time spending notifications and insights in to where you're spending. It's also good for overseas use, particularly if you won't withdraw cash or will only get small amounts. The difference comes with savings – as well as letting you set up 'pots', Monzo lets you 'move' savings to an account with a partner bank, so you get decent interest – though top-pick savings usually have better rates. | |
Service rating: 87% 'great'
|
Overseas fees: None on spending, though worldwide ATM withdrawals only fee-free up to £200/30-day period, 3% fee after (i) In-credit interest (AER variable): None Unarranged overdraft cost: As above if applicable, or 39% (max £15.50/mth) |
(i) In the UK, EU, Iceland, Liechtenstein and Norway, it's fee-free up to £250/30-day period, 3% fee above. Though if you use Monzo as your main account (pay in £500+/mth and have one or more direct debits) it's always fee-free in these areas. See full info. Our service ratings are from our Jan 2023 poll of 4,000 people.
Top-rated traditional banks' apps
You may want a slick app, but from a banking name you know. We ran a banking apps poll to ask which apps are best – and while Starling and Monzo (above) came out on top for features and ease of use, the two below were the best-rated apps from the traditional banks.
For now, neither of these apps offers the same budgeting help as the newer players, but they're decent options if you want to stick with a name you know and you normally do a lot of mobile banking.
- NatWest – 71% rated it 'great' for usability; 66% 'great' for features.
The NatWest app rates the best of the apps from the traditional banks. Our pick of NatWest accounts is its Rewards Account, which gives users £3/month cashback (it's £5/month but with a £2 monthly fee) every month they use the mobile app and pay out two £2+ direct debits. However, you'll need to be able to pay in £1,250+/mth to hold the account.
The app will let you check your balance, see transactions and manage payees and recurring payments. Plus you can request money from friends with a QR code/link and easily split a bill. Download the app for iOS (rated 4.6/5) or Android (rated 4.5/5).
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- Lloyds – 68% rated it 'great' for usability; 60% 'great' for features.
The Lloyds app is also well-rated by MoneySavers for both features and usability. Our pick of accounts here is Club Lloyds, which pays interest of up to 1.5% when you have up to £5,000 in the account. However, you'll need to be able to pay in £1,500+/mth, or you'll be charged a £3 monthly fee to keep the account. You can also qualify for rewards, including cinema tickets, movie rentals or magazine subscriptions.
The Lloyds app gives you instant spending notifications, lets you see transactions on a map and helps you manage monthly subscriptions. Download it for iOS (rated 4.8/5) or Android (rated 4.6/5).
What can other traditional banks' apps do?
In addition, we wanted to know what other banks are doing in terms of offering budgeting help, letting you freeze your card and other app features. This table summarises what they offer...
App features by bank
| Provider | Freeze debit card in-app? | Instant spending notifications? | Spending categories? | Turn off certain spending? | Any other features? |
| Bank of Scotland | Yes | Yes | Yes | Yes | See list |
| Barclays | Yes | Yes | Yes | Yes | See list |
| Co-op | No | No | No | No | - |
| First Direct | Yes | No | Yes | Yes | - |
| Halifax | Yes | Yes | Yes | Yes | See list |
| HSBC | Yes | Yes | No | Gambling block | See list |
| Lloyds | Yes | Yes | Yes | Yes | See list |
| Metro Bank | Yes | No | Yes | No | See list |
| Monzo | Yes | Yes | Yes | Yes | See list |
| Nationwide | Yes | No | No | No | Savings goals |
| NatWest | Yes | Yes | Yes | Restrict online/phone use |
Savings goals |
| RBS | Yes | No | Yes | Restrict online/phone use | Savings goals |
| Santander | Yes | No | No | Yes | View card PIN in-app |
| Starling | Yes | Yes | Yes | Yes | See list |
| TSB | Yes | No | No | No | Savings pots |
| Virgin Money | No | Yes | Yes | No | Budgeting help |
| Last updated: Sep 2022. | |||||
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