Top 5 Best Banking Services in the UK

If you plan to stay in the UK for some time, it's essential that you select a bank that meets your needs. The best banking services in the UK provide various features designed to help manage money more effectively.

Digital banks such as Wise, Revolut, Monzo and Starling offer ease of setup with a range of benefits; however they're not regulated as strictly as traditional bank accounts so it is important to do your due diligence prior to opening an account.

1. Starling Bank

Starling Bank is a challenger bank that caters to UK residents. It offers personal and business accounts with no physical branches and competitive fees.

Starling offers a number of features to make banking with them simpler, such as its mobile app and contactless debit card. Through the app, it's simple to set up direct debits, standing orders, and manage your spending - making banking with Starling an effortless experience.

The bank offers budgeting tools and instant notifications. Its goals feature allows you to set savings targets and save money regularly. Plus, personalised spending reports let you see where your money is going and how much room there is left for saving.

Furthermore, the app features an integration with the Marketplace service, allowing users to take advantage of other financial products from third parties such as insurance and mortgages.

Starling is regulated like a regular bank by the Financial Conduct Authority, meaning your deposits are insured up to PS85,000 per person under the Financial Services Compensation Scheme in case the bank goes bust.

Another advantageous feature is the free opening of a Euro account in addition to their local GBP one. This can be especially advantageous for European students and frequent travelers who require regular sending or receiving of euros.

Personal and business accounts are free to open and maintain, though you will have to pay a fee if you wish to add more bank accounts. Debit card sending/receiving of cash abroad using your debit card may incur fees from the ATM provider; so before making plans for travel abroad it would be wise to consult Starling about cash withdrawal and spending costs beforehand.

2. Monzo

Monzo is one of the UK's most sought-after digital banks, boasting a full banking license. This makes them an ideal option for consumers looking to switch banks - they are regulated by the Financial Conduct Authority and boast reliable and transparent service offerings.

They boast one of the highest customer satisfaction ratings in the UK and provide many innovative features like 'Get Paid Early' and 'Bill Splitting. Plus, their community spirit is second to none with 24-hour live chat help centres ready to answer all your queries.

Monzo bank accounts can be opened with just your smartphone and a valid ID card (such as a driving licence or passport). After approval of your application, you'll receive your Monzo card in the mail.

Monzo app allows you to freeze your card, stopping any payments from being made and ordering a replacement if needed. Furthermore, the app lets you defrost it if you believe your card may have been lost or stolen.

Another outstanding feature is Mastercard's exchange rate, which lets you spend abroad without incurring fees. This ensures you get the best deal possible and won't need to worry about additional charges on top of what already applies in terms of currency conversion.

Additionally, your card can be used at pay-at-pump fuel stations across the UK without worrying about foreign ATM fees when withdrawing cash abroad. Furthermore, you can set up a 'Bills Pot' to automatically save up money for you when bills come due - so when they're due they are paid straight from the pot!

Monzo has experienced rapid growth despite its low ARPU, becoming the largest neobank in the UK with 5.8 million customers compared to Revolut's 3 million and Starling and Monese each having 2 million users.

3. NatWest

NatWest is one of the 'Big Four' UK clearing banks, boasting over 7.75 million personal banking and 850,000 small business customers. Additionally, it operates in Ireland through its subsidiary Ulster Bank.

It offers a comprehensive selection of business accounts for both startups and established enterprises, many with free introductory periods and no monthly fees.

Some provide features to assist businesses with payroll, e-invoicing and cash management. They provide online and telephone banking as well as support to help maximize your account's potential.

The bank's mobile app is an efficient and convenient way to manage your account, even while on-the-go. It includes features like 'GetCash' that allows you to withdraw money from ATMs without using a debit card.

NatWest customers have access to both in-branch and telephone banking, with the latter enabling them to check their balances and recent transactions. They may pay with cash or cheque, as well as withdraw money from an ATM using their debit card at a NatWest branch.

NatWest boasts an excellent reputation for its banking service. It consistently scores highly on consumer happiness surveys, and many people report being satisfied with their interactions with the bank.

Despite this, the bank has plenty of negative reviews on sites like Trustpilot. Many people cited 'constant issues' and 'unhelpful service' as the causes for their unsatisfied experiences.

Finally, you must decide if NatWest is suitable for you. Be sure to consider all costs and charges before signing up; in the UK, NatWest's business banking rates are relatively low when compared with some of its rivals.

4. Lloyds Bank

Lloyds Bank is one of the UK's foremost providers of business banking. With over 250 years in existence and branches throughout England and Wales, this bank offers a vast range of products and services like savings accounts, current accounts, loans and insurance.

Lloyds offers a selection of financial services for businesses that can be utilized online or via mobile platform. Furthermore, there are various card payment solutions available to business customers, such as the Cardnet service.

Lloyds Bank is a popular choice among UK customers, boasting an impressive range of options to suit everyone's needs. As one of the biggest players on the high street, it truly offers something for everyone.

Despite these successes, there are still some areas that could be improved. For instance, the app could be significantly better and they haven't released many new features recently.

Opening a business account with Lloyds can take up to six weeks, which can be an inconvenience for small business owners who need their operations up and running quickly.

However, the introductory offer gives you a chance to test out the service without risking your money. If you don't like it, you can switch your business account to another provider before the introductory period ends.

If you're thinking about opening a business account with Lloyds, be sure to check their website to see if they offer any introductory deals. If so, applying for the product should be your top priority. It's an ideal opportunity to try out banking services and determine whether it fits your needs.

5. Nationwide

Nationwide offers a comprehensive selection of insurance products and services, such as auto, homeowners, life, and business coverage. Plus it has features designed to make managing your policy and filing claims simpler than ever. Nationwide's mobile app lets you monitor policy details, pay premiums, and file claims on-the-go with ease. Plus it offers a complimentary On Your Side review - an opportunity to speak with an insurance professional about how well your current policy meets your needs.

When purchasing insurance policies, you'll want to assess a company's financial strength and customer satisfaction ratings. Nationwide has impressive financial stability and earned an A+ rating from AM Best--a credit rating agency that assesses insurers' creditworthiness--indicating it has enough resources to fulfill its obligations and reimburse claims promptly.

It's essential to assess how well-reviewed an insurer is by the National Association of Insurance Commissioners (NAIC), a group which compiles complaints about insurers and makes them accessible to consumers. If there are many complaints against an insurance provider, it may be worth exploring other options.

It's worth testing a company's mobile apps and dashboards to see how user-friendly they are. These options can be especially handy for people who work from home or are often on the go. Nationwide's app allows you to log in from any device and manage your policy details, pay your premiums, and file a claim with ease. Plus, it has several features like usage-based auto insurance that make managing your policy simpler - perfect!