If you are looking to open a bank account.
Here are the 10 best online bank accounts:
1. Cashplus
Features and benefits
* Banking app and online banking.
* Contactless debit card.
* Deposit money in any Post Office.
* Set up your direct debit and standing orders. Get payment notifications.
* Credit builder, to help you increase your credit score.
Get more information and open an account, here: Cashplus Bank.
2. Barclays
Features and benefits
* Manage your money easily with an app.
* Opportunity to get cash rewards every month.
* Flexible security control, you can freeze and unfreeze your debit card.
* Set daily spending limit.
* Option to arrange overdraft facility.
Get more information and open an account, here: Barclays Bank Account.
3. Starling Bank
Features and benefits
* Manage your money easily with an app.
* Round up transactions when spending and save the rounded amount in a virtual bank.
* Apply for an award-winning account in minutes.
* You can also get a joint bank account.
* Set your own contactless payment limit.
Get more information and open an account, here: Starling Bank Account.
4. Monzo
Features and benefits
* Open a full UK bank account from your phone for free.
* Get interest paid on your money for up to £2000.
* If you already have a bank account or credit card, you can add it to Monzo and see all your balance and transactions.
* Get interest paid on your savings.
* Set budget for spending and get notifications on spending.
Get more information and open an account, here: Monzo Bank Account.
5. HSBC
Features and benefits
* Manage your money with their phone, online and mobile banking app.
* Get exclusive worldwide offers from savings on clothing and days out.
* Gain interest on your savings.
* Set up easy standing orders and direct debit.
* Withdraw up to £300 a day.
Get more information and open an account, here: HSBC Bank Account.
6. Nationwide Building Society
Features and benefits
* You can chose from 3 different accounts, free and paid.
* Arrange overdraft facility.
* Get free mobile phone and travel insurance free, on the paid account.
* Make and change payments and transfers online.
* Set up text notification, to mange your spending and account.
Get more information and open an account, here: Nationwide Building Society Account.
7. Halifax Building Society
Features and benefits
* Manage your banking on the app.
* Get up to £15% cash back.
* You can save your change, by rounding up your card payments.
*Get notifications on your spending.
* Freeze and unfreeze your card or limit how it is used.
Get more information and open an account, here: Halifax Building Society Account.
8. TSB
Features and benefits
* Opportunity to get cash back in the initial 6 months.
* Arrange up to £2000 overdraft facility.
* Few accounts to choose from, including app.
* Get monthly cashback of £5: £5 for 6 months or £5 every month (depending on the account, chosen).
* Round up transactions on spending and save it.
Get more information and open an account, here: TSB Account.
9. Metro Bank
Features and benefits
* Open your free account in 10 minutes.
* Branches open early to late.
* Manage your account through the app.
* A choice of accounts to choose from.
* Free transactions in Europe, on your spending.
Get more information and open an account, here: Metro Bank Account.
10 Lloyds Bank
Features and benefits
*Contactless and mobile banking,
*Get up to £15% cash back ,
* Round up your change you spend and save it,
* Overdraft facility available.
* Get notifications on your mobile, on your spending.
Get more information and open an account, here: Lloyds Bank Account.
What do you need to open an online bank account?
These are what is required to open a bank account in the UK:
- Age: 18 or over. Some banks have children and teen accounts, where you can open an account for yourself if you are 16 and over. There are student accounts available by some banks if you are 17 and over
- ID: You will need to show some form of Identification such as passport, driving licence or a EU and EEA National ID Card
- Proof of address
- Residing in the UK
Documentations required for ID
- UK Passport, Biometric Residence Permit, Foreign Passport and Visa
- EU and EEA National Identity Card
- UK Driving Licence / EU EEA Driving Licence
- Benefits Entitlement Letter (Recent, or up to 12 months)
- Armed forces Military ID
- Northern Ireland Voters Card
- UK Blue Disabled Driver’s Pass
- Home Office Immigration Status Document / Application Card
- Student ID (for student account)
- A Young Scot National Entitlement Card
- Travel Documents Issued By The UK Government
Documentations required for proof of address
- Bank Statement
- Credit Card Statement
- Driving Licence
- Letter from Council
- Gas and Electric Bill
- Mortgage Statement
- Benefit Statement, such as Universal Credit (dated within 12 months)
- HMRC Tax Notification (dated within 12 months)
- UK Credit Union Statement (dated with 12 months)
- Phone Bill
- Satellite or Cable Bill
- Internet Bill
What is online banking?
An online bank account is the same as an ordinary bank account but you can manage all your transactions online. You do not have to go into the high street branch to set up direct debits or make money transfers, you can do it all online. Most come with an app as well, which you can use to manage your account.
Having an online bank account means you have access to your money and account around the clock and do not have to wait a till high street branch is open. If you need to, you can still pop into your local branch for support.
How to decide which bank account is right for you
To decide which bank account, you need to consider what is important for you banking needs, such as:
- Free banking or monthly charges
- Do you want some interest paid in the money in your account
- Do they offer overdraft facilities, if so, how much interest do they charge
- How much can you withdraw daily
- Do you want an app to manage your money
- Do you need additional benefits such as rounding up your money you spend on your cards and saving it for you
- Additional benefits like cash back and special offers
- Free cash withdrawals when you are abroad
- Spending and balance notifications
- Do you offer free insurance for your phone and travel
- Will you be able to build your credit score and apply for mortgage with them
- Do they have budgeting tools
Frequently asked questions
Q: Can you transfer your existing bank/building society account into a online bank account?
A: You can with most banks. So, go to your local bank or building society and ask them.
Q: Can I mange my bank account, if I am out of the country?
A: Yes, for most countries. But, if you are going abroad, ask your bank or building society for detail.
Q: Can I use my desktop, laptop, tablet and phone to do my online banking?
A: Yes, you can.
What to do if you have poor credit history
If you have poor credit history, you might not be able to open a regular bank account. However, you can still open a basic bank account with some banks and building societies. Ask, your local bank or building society for a basic account. A basic account allows you to use it to put your wages in. You can only spend the money you have in your account. They will might not offer you a credit card or overdraft facility. Here are some basic accounts you can open:
Barclays Basic Account
Nationwide Basic Account
Halifax Basic Account
HSBC Basic Account
If you are interested, see our article: Best bank accounts for poor credit.
Credit Union bank account
Another alternative, if you are finding it difficult to open a bank or building society account, is to open a bank account with a Credit Union. A Credit Union is a not for profit organisation. Find out more about opening a bank account with a Credit Union with Money Helper, here: Credit union bank accounts.
If you have poor credit history and cannot get a normal bank account. You can open a basic bank account. Get more information from Money Helper, here: Fee-free basic bank account.
Additional Information
Money Advice Service
For debt management and advice on how to pay for bills go here: Money Advice Service info page.
If you are looking for a home insurance, read our article: Home Insurance – Compare Cheap Quotes.
If you are looking for the best SIM only deal, read out article: Best SIM Only Deals UK – best SIM only plans available
If you are interested, check out: Best Bank Accounts for Bad Credit.
If you are interested in a loan, check out: Loan.co.uk.
If you would like more information about bank regulations, go to: Financial Conduct Authority (FCA).