Here Are the 3 Best Alternatives to UK High-Street Banks in 2024

Are you looking for alternatives to high-street banks in the UK? Maybe you're fed up with your current bank's steep charges or cumbersome online banking, or perhaps you're simply not satisfied with one or more aspects of their service.

Fortunately, there are other options available to you. Whether you're seeking a new main bank account or just an alternative provider for specific services such current accounts or foreign exchange, you're likely to find a suitable option to meet your needs.

In this article, we'll examine alternative banking options to traditional high-street banks in the UK, both within and outside the banking industry. We'll weigh the pros and cons of each option to assist you in making an informed decision about which one may be the best fit for your needs. (And, at the very end of the article, you can even filter for your own results using our comparison engine.)

Why Should You Want a Bank Alternative?

Alternative banking options are a hot topic in the UK these days. If you're on the lookout for an alternative to traditional high-street banks, you might be after a financial institution that offers better banking fees, interest rates, or exchange rates. Alternatively, you might seek a more convenient and accessible banking experience. Some people even choose alternative banking options out of principle, not wanting to support the institutional banking industry and instead wanting to find an option that's more sustainable or value-oriented.

Here are two of the critical advantages of bank alternatives in more detail:

Lower Costs

Many alternative banking options in the UK are neobanks, fintechs, or online-only banks that don't have physical branches. Others may have smaller customer support teams and instead rely on automation for customer service. Both strategies can help reduce costs and offer customers lower fees (usually in the range of £0 to £5 per month).

More Accessible

Alternative banking options often have a more relaxed approach to residency requirements, and cross-border accounts are common. Take Revolut, for example, which is available to residents of many countries and offers multi-currency balances in over 30 foreign currencies.

Are Bank Alternatives Always a Good Deal?

It's essential to keep in mind that many alternative banking options are not full-service banks. This means that while they are generally safe, they may not provide the same level of protection as a traditional bank account. Specifically, alternative banking options often don't offer FSCS deposit protection, which means that the government will not reimburse your deposits if the company fails. Additionally, some challenger banks may be less likely to refund you in the event of fraud.

Given this, it's crucial to consider whether to switch from a traditional bank to an alternative option completely. Instead, we typically recommend using neobanks for certain financial services on a pay-as-you-go basis, such as overseas spending, money transfers, and trading. This can save you money compared to using a traditional bank while still providing some protection in the event of financial difficulties at the company.

It's worth noting, however, that some alternative banking options like Starling Bank and Monzo are fully-licensed banks in the UK, which means you can get the best of both worlds. All of that said, let's get started with our ranking:

Starling Bank

Starling Bank is a mobile-only challenger bank that gives you a personal bank account, a debit card, and a range of other financial services through its mobile-only banking app. Setting itself apart from high-street banks in the UK, Starling aims to offer customers a convenient and user-friendly banking experience, focusing on areas like transparency and low fees. It was founded as recently as 2014 and has quickly gained popularity among British customers looking for an alternative to banks and their traditionally high costs in the UK.

• Account name: Personal Account
• Licensed as a bank: Yes
• Monthly fee: £0
• Int'l transfer cost: 0.5% - 3% (depending on the currency)
• Int'l card payment cost: 0%
• Potential costs: £20 per CHAPS transfer in the UK, 0.4% + £5.50 for international SWIFT transfers, £5 for a replacement debit card.
• Noteworthy features: Saving Spaces, pension scheme, youth card, interest, overdraft.
• More info: See our full Starling Bank review.

Monzo

Monzo is a British challenger bank that offers you a mobile-only personal bank account, debit card, and other banking services like loans and savings through its mobile app. An excellent choice if you're looking to escape the high fees of traditional banks, Monzo charges no fees for day-to-day card use (e.g. cashpoint withdrawals and card payments) in the UK and abroad. Because it offers one of the most advanced and comprehensive savings systems from any challenger bank (allowing lots of flexibility over your time horizon and savings goals), Monzo is especially well-suited for managing and growing wealth, regardless of your individual goals.

• Account name: Monzo
• Licensed as a bank: Yes
• Monthly fees:

• Int'l transfer cost: 0.2% - 2.5%
• Int'l card payment cost: 0%
• Potential costs: 3% per withdrawal if you withdraw over £250 per month.
• Noteworthy features: Fixed Pot, Easy Access Savings, overdrafts, loans, bill splitting.
• More info: See our full Monzo review.

Revolut

Revolut is a financial technology company based in the UK that offers a range of financial services through its mobile app, chief among them a personal account with UK bank details (including a GB IBAN and sort code), a debit card, and excellent foreign exchange services. Moreover, the Revolut mobile app offers multi-currency accounts, savings management, travel perks, and more. However, because it's not a bank in the UK, we think Revolut is best used as a powerful spending tool next to your bank account instead of in place of it.

• Account names: Standard, Plus, Premium, Metal
• Monthly fee:

• Int'l transfer cost: 0.5% - 1.5%
• Int'l card payment cost: 0%
• Potential costs: 2% cashpoint withdrawal fee if you exceed five withdrawals or £200 per month.
• Noteworthy features: EU account details, multi-currency balances.
• More info: See our full Revolut review.