Top digital banks & autosaving apps
Current & savings accounts you can manage with your smartphone
Most current accounts can now be managed online, but some banks are built primarily around their apps and offer extra budgeting, saving and spending features with no physical branches. This guide compares the top digital banks to help you choose.
What are app-based banks?
Some banks operate entirely via an app or online, without any branches, so you only need a smartphone. They offer the same core features as top normal current accounts – debit cards, Direct Debits, overdrafts and so on – and also come many helpful tools...
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Spending alerts. Instant notifications when you spend (for example, if you bought something for £5 in Boots, it'd pop up on your phone right away).
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Spending insights. This shows how much you spend at different shops or within different categories (for example, shopping, fuel, eating out, bills etc).
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Spending caps. Once you've used the spending insights feature, you might find it helpful to set yourself a spending cap to limit the amount you can spend on certain things.
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Savings pots. A 'pot' is a separate place you can put money to separate it from your main balance – like a digital piggybank. Some banks allow you to hide or lock your pots.
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Round-ups. Save small amounts regularly – this rounds up your card payments to the nearest pound and automatically transfers the spare change into your designated pot.
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Autosaving. The app analyses your income and spending to estimate what you can afford to save, then moves money automatically. This requires you to give the bank access to your info – see our explainer below, or read our full Open Banking guide.
What are the pros and cons of app-based bank accounts?
Managing your money can be quick and easy, but having no branches won't suit everyone...
✔️ Manage your money wherever you are. Make payments, transfer money, set up standing orders & Direct Debits, and manage your account from your phone.
✔️ Extra digital features. Most app-based banks offer tools such as spending notifications, budgeting pots, spending insights and bill splitting to help you manage your money.
✔️ Build savings habits. Features like round ups and auto-savings can help put money away for those who struggle to budget and save themselves.
❌ Paying in cash or cheques can be harder. Some banks don't accept them at all, while others let you pay in cash at places such as the Post Office or PayPoint, sometimes for a fee.
❌ No branch support. If you prefer dealing with someone face-to-face, an app-based bank may not be for you. Support is typically provided through in-app chat or by phone.
❌ Lower savings rates. Top easy-access savings usually pay far more. If you know how much you can put aside each month, top regular savers are also a decent option.
Top app-based bank accounts
Almost all UK banks now let you manage your account online or through an app, so check what your existing bank offers first to see if it has what you need. You can also open one of the accounts below alongside your existing current account.
Top-pick current accounts | |
New. Top all-rounder + easy FREE £25 | - Overdraft: 15%, 25% or 35% EAR |
Top for cashback & savings | - Overdraft: None |
Top for hands-on budgeting | - Overdraft: 19%, 29% or 39% EAR |
Top for splitting costs & managing currencies | - Overdraft: None |
Top for current account interest | - Overdraft: 39.9% EAR |
Top-pick standalone auto-saving app | |
Top for auto-savings, but no current account | - Overdraft: None |
(1) Cash can be paid in at Post Office; cheques can be paid in via app or post. (2) Cash can be paid in at PayPoint or Post Office for a £1 fee (max £750 a month); cheques can be paid in via app (over £500 via post only). (3) You can exchange £1,000 a month into another currency with no exchange fee on weekdays (1% fee above this & at weekends). Cash withdrawals are limited to £200 or five a month. (4) If you want to switch your existing bank to Kroo, you'll need to move all your payments, Direct Debits & standing orders manually.
Want a debit card that connects to all other cards?
Curve is a Mastercard debit card that you can link to your existing debit or credit cards, so you only need to carry one. Then when you use it to pay, it passes on the transaction to your linked card. This allows you to view payments from all cards in one app, which can make budgeting easier. The basic tier is free.
You can also set spending rules, retroactively assign payments to different cards, and set up backup cards if payments are declined. Plus, you get Section 75 protection on both credit AND debit card purchases.
How to open an app-only bank account
They're easy to apply for because the application and identity checks are done digitally – you just need a smartphone to complete a few simple steps (some let you to use a computer instead). All of the above apps only do a soft credit check, so there's no impact to your credit file – unless you're also applying for an overdraft, in which case there's a hard check.
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Ensure you meet the eligibility criteria before you start. Usually you need to be over 16, live in the UK, and have valid photo ID, such as a passport or driving licence.
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Download the bank's app from the relevant app store or scanning a QR code.
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Provide some personal details such as your full name, address, email and mobile number. You may also be asked to give details of your salary, citizenship and what you plan to use the account for. Some banks may text or email a code for you to enter too.
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Verify your identity by uploading a document such as your passport or driving licence. You may also need to upload a selfie or make a short video.
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Activate your card. If you've applied for a current account, the bank will send you a debit card that's linked to your new account once you've finished signing up. Follow the instructions that the bank gives you to get your card up and running. You can usually start using a virtual card immediately.
App-based e-money accounts such as Monese can be easier to open as they may not require the same proof of address, income or credit history. But they're not bank accounts and don't have FSCS protection, so a basic bank account may be a better option.
Your money is protected with app-based banking
Eligible money in a UK bank account is protected by the Financial Services Compensation Scheme (FSCS) up to £120,000 per person, per authorised firm. If you have accounts with brands that share a banking licence, your balances may count towards the same limit.
Four of the five apps we mention – Starling, Chase, Monzo & Kroo – are fully regulated UK banks, and are therefore covered by the FSCS (Chase's protection is shared with JPMorgan).
Revolut works a bit differently, though it's currently moving existing UK customers from e-money accounts to full bank accounts, which will then have the same protection as the others. In the meantime, its existing e-money accounts do not have that protection.
What happens if my phone is stolen? Contact your card provider immediately to block further use and report any payments you don’t recognise. For Apple devices, putting it into Lost Mode suspends its Apple Pay cards. Consumer protections cover unauthorised payments, subject to the relevant rules. See Tips to protect your phone from thieves.
App-based banking FAQs
Can I use an app-based account as my main account?
Yes. All the accounts in this guide are current accounts that can be used for everyday banking. For most banks, you can switch using the Current Account Switch Service, or open one alongside your existing account. (Note Kroo is not a member of the Current Account Switch Service).
Are online bank accounts better for spending abroad?
Not necessarily. Many high street banks offer accounts with fee-free travel spending. Some banks have overseas cash withdrawal limits, so check yours before you travel. Full info in Top travel debit & credit cards.
How do these banks access your information?
Some digital banks use Open Banking to access your balance and transactions, with your permission. This lets them analyse your finances and estimate what you can afford to save.
Before connecting an account, check the provider is FCA authorised or registered for the relevant service, and read what information it can access and how it will use it. Permission to view your account information is separate from permission to make payments — if you're interest in auto-saving, check how to authorise savings transfers too. Don’t disclose banking security details if you’re unsure who you’re dealing with.
How do I pay with my phone?
On a compatible phone, open Apple Wallet or Google Wallet, add a supported debit or credit card and follow your bank’s verification steps. Some banking apps also let you add your card directly to your wallet.
Once set up, follow your device’s instructions to authorise the payment and hold it near the contactless reader. The money comes from the same account as if you’d used your physical card.
Many cards have a £100 contactless limit per payment, but banks and card providers can now set their own limits, so check yours. You may occasionally need to insert your card and enter your PIN as a security check, even for a small purchase. Some providers also let you lower your limit or switch contactless off through their app.
Payments through Apple Pay or Google Pay can exceed £100 because your device verifies your identity, for example using your fingerprint, face or passcode. Retailer or provider limits can still apply.
What are virtual cards?
A virtual card exists in your banking app and has its own card number, expiry date and security code, separate from your physical card. You can use it to shop online and, where supported, add it to a mobile wallet to pay in shops. Those offered by app-based current accounts are generally debit cards, rather than credit cards.
The main benefit of a virtual card is that you can enter its details at an online checkout without revealing your physical card’s details, even where mobile wallet payments aren’t offered. Depending on the provider, you can freeze or delete it separately, or use a disposable version whose details change after each payment.
Disposable cards generally won’t work for subscriptions, hotel deposits or car hire. And deleting a virtual card doesn’t cancel a subscription contract – you still need to cancel with the company directly.
How does auto-saving and Open Banking work?
Auto-saving apps require you to give them access to your existing online banking, so they can see your current account (and sometimes your credit card) info. This allows them to calculate how much you can afford to save.
Depending on the app, and which bank you use, you may sometimes need to give the app your login details so it can access your data. And because of a regulation snappily called 'the second payment services directive' (PSD2) and reforms to the banking industry called Open Banking, banks must share your banking data with authorised third parties if you've given permission.
By 'authorised' we mean those third parties, such as apps, which have special licences from the Financial Conduct Authority (FCA) or other European regulators – see our Open Banking explained guide for more. Banks may still share your info with unauthorised firms if they choose to. However, if you choose to do this with an unauthorised firm or app, you may be liable for any fraud affecting your bank account.
What if I use an unauthorised app? If you use a third-party provider that's not authorised, you won't get the same levels of protection against fraud. So if you lose money through it, your bank may not pay out. You should always check a provider before you give it access to your accounts – you can do so on the FCA Register or the Open Banking register.
If it's not authorised, ask what security measures it has in place. However, if you're happy with a provider, you can choose to give it access even if it's not authorised, but you need to be aware of extra risks. We asked the FCA what you should do if you have doubts about a provider and it said:
"If you're unsure about whether a company is legitimate, you should ask them for more information, for example, who they are regulated by. If you don't know who you are talking to, or there is reason to suspect that the provider is not who they claim to be, don't disclose your banking security credentials or other personal or financial information.
Bear in mind too that using a firm that's yet to be authorised doesn't automatically mean you're not protected – some apps already adhere to other regulations, such as the e-money regulations, which means your money is safeguarded."
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