The UK has a rich and competitive banking environment, with a combination of old high-street titans and new digital challenger banks competing for customers.
It is subjective to decide the “best” bank and relies solely on personal needs and priorities. This in-depth guide covers ten of the UK’s most notable banks, with their strengths and weaknesses, to enable you to make an informed choice.
The Established Giants (The “Big Four” and Beyond):
HSBC:
A worldwide banking giant with a strong UK presence, HSBC provides a wide variety of services, including personal and business accounts, wealth management, and international banking. Its greatest strength is its global reach, which makes it suitable for those and businesses with global requirements. HSBC also has good 24/7 customer support and solid fraud protection. Customer satisfaction surveys occasionally rank HSBC lower than newer online banks.
Barclays:
The UK’s second-largest bank and oldest, Barclays has a full range of financial products available, from current accounts to savings, mortgages, loans, credit cards, and wealth management. It is viewed as a digital leader with a highly regarded award-winning mobile app and solid global services. Barclays also has numerous reward schemes and add-ons on its current accounts. Though largely well-thought-of, its customer service ratings can be mixed.
Lloyds Bank:
A top retail bank in the UK, Lloyds Bank enjoys a vast branch network throughout England and Wales as well as excellent customer service focus. It has a vast variety of accounts and services available that are perfect for day-to-day banking, saving, and mortgaging. Lloyds Bank has also made digital strides, providing accessible online and mobile banking. There are benefits to some accounts, such as cashback and interest on balance.
NatWest:
As part of the NatWest Group, with millions of customers throughout the UK and worldwide, NatWest offers a wide range of banking services such as personal, business, and premier accounts. It is known for its solid services and an adequate network of branches and cash machines. NatWest has certain accounts designed especially for students and businesses, frequently with appealing bonuses. Customer care is usually decent, with regular efforts to boost digital services.
Nationwide Building Society:
With its status as the UK’s largest building society, Nationwide is member-owned and so can focus on customer service and competitive prices, especially for savings and mortgages. Although not a bank per se, it acts much the same way for most people’s day-to-day banking requirements, with current accounts, savings, loans, and insurance available. Nationwide is regularly top of the league tables for customer satisfaction, especially for branch-based services.
Santander UK:
Owned by Spanish banking behemoth Santander, Santander UK wants to be a top open financial services platform. It provides personal and business banking products, such as current accounts, savings, mortgages, and credit cards. Santander is famous for its student accounts with great traveling perks and its “Boosts” reward facility. Though it has a large branch network, customer service scores can be hit-or-miss.
Halifax:
One of the Lloyds Banking Group, Halifax is a traditional high-street bank with a major presence throughout the UK. It provides a range of current accounts, including reward accounts, savings, and mortgage solutions. Halifax tends to be thought of as a reliable choice for day-to-day banking, having a decent mixture of online and branch facilities.
The Digital Disruptors (Challenger Banks):
Monzo:
Another of the UK’s trailblazing digital challenger banks, Monzo has a reputation for easy-to-use mobile app and forward-thinking features such as spending reports, budgeting, and “Pots” for saving. It provides a completely digital banking experience centered around convenience and openness. Monzo has continually scored highly in customer satisfaction and its mobile banking service. Yet, it does not have a network of traditional branches.
Starling Bank:
Another top digital bank, Starling Bank, provides free current accounts with a well-rated mobile app, spending reports, savings targets, and no-charge spending overseas. It has ventured into business banking as well and provides overdraft facilities. Starling Bank has won several awards for its customer service and overall banking experience. Like Monzo, it doesn’t have any physical branches.
Metro Bank:
Launched more recently than the “Big Four,” Metro Bank sought to bring a customer service focus and longer opening hours to the high street. The bank has an extensive network of physical branches, which are open seven days a week, along with online and mobile banking. Metro Bank also emphasizes transparency and convenience, allowing for instant account opening without the need for appointments. Although once touted for its customer service, recent polls indicate a slight fall in its rating from digital-first banks.
Which Bank is Best for You?
As indicated, the “best” bank is based on your situation:
- For International Needs: HSBC and Barclays’ international networks and services make them good bets.
- For Everyday Banking with Branch Access: Lloyds Bank, NatWest, Halifax, and Nationwide provide wide branch networks.
- For Digital Convenience and User-Friendly Apps: Monzo and Starling Bank lead the way in delivering smooth mobile-first banking experiences.
- For High Customer Satisfaction: Monzo, Starling Bank, and Nationwide have consistently high ratings in customer satisfaction surveys.
- For Savings Accounts: Nationwide tends to have competitive interest rates, although other banks such as First Direct can have attractive regular saver accounts.
- For Students: Santander UK, NatWest, and Lloyds Bank offer student-specific accounts with dedicated benefits.
- For Businesses: HSBC UK, Starling Bank, and Barclays provide a variety of business accounts and services.
Key Considerations When Selecting a Bank:
- Fees and Charges: Be aware of the account charges, overdraft fees, international payment fees, and other possible charges.
- Interest Rates: If you intend to save, compare the interest rates on savings accounts.
- Customer Service: Look at the availability and quality of customer assistance through different mediums (phone, online, in-branch).
- Digital Banking Experience: Assess the ease of use and functionality of the bank’s mobile app and online banking.
- Branch Network: If having a physical branch nearby matters to you, check the banks that have a local presence.
- Additional Perks and Rewards: Banks that include cashback, travel insurance, or other perks with their accounts.
In Conclusion:
The user-friendly UK banking system has a broad selection of options to cater to various financial requirements. Instead of one “best” bank, the best options are those that offer the closest match to your personal priorities, be it online convenience, wide branch coverage, worldwide services, or unbeatable customer care.