Online bank accounts

Q: How do I switch to an online bank?

If the bank you want to switch to is signed up to the Current Account Switch Service (Cass), the transition should be straightforward and take no more than seven working days. You can even choose a convenient date when you want the switch to take place - but it must be at least seven working days after your new account is opened. If your new provider isn’t signed up to Cass, you’ll have to switch to it using a manual transfer form. This takes longer and doesn’t offer the same switching guarantees. Read more on switching bank accounts.

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Deposits of up to £120,000 per bank are protected by the FSCS

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What is an online bank account?

Online bank accounts let you manage your money through a mobile app.

Unlike traditional high-street banks, online banks don’t have any physical branches you can pop in to. But you’ll still have access to customer support and advice, usually by live chat or phone.

Online banks are also sometimes called app-based banks, digital banks, mobile banks and challenger banks.

Some of the most well-known online banks include Monzo, Starling Bank, Chase and Revolut.

What can you do with an online bank account?

Online bank accounts typically let you do the same things as any internet banking service, from checking your transactions and paying bills to setting up Direct Debits and making contactless payments.

They also offer digital tools to help you manage your money, such as:

Instant spending notifications
Budgeting tools
Savings pots
Spending insights
Card freezing and unfreezing
Round-up savings features
Real-time balance updates.

Features vary between providers, so it’s worth comparing accounts before applying.

Woman using phone makes internet banking payment at home

Are online bank accounts safe?

Yes, legitimate online banks are safe. They’re all regulated by the Financial Conduct Authority (FCA), making sure they follow strict rules and ethical standards that help keep you informed and your money safe.

Before opening an online bank account, you can use the FCA Firm Checker to see if the provider is FCA-authorised.

Fully licensed online banks, such as Monzo and Starling, are also part of the Financial Services Compensation Scheme (FSCS). This ensures your money is protected up to £120,000 per person, per banking institution, if the provider goes bust.

Bear in mind

Some digital banks, such as Wise and Airwallex, are classed as Electronic Money Institutions (EMIs) – not banks – as they don’t have a banking licence. This means they’re not covered by the FSCS, but they’re still FCA-regulated.

Keep your money safe from scams

Online bank accounts are just as susceptible to scams as any other.

Before opening a new account, check if the provider’s payment systems are covered by the Payment Systems Regulator's authorised push payment (APP) fraud reimbursement rules. This could affect the options available to you if you fall victim to a scam where you’ve been tricked into sending money.

If you ever spot an unauthorised transaction, tell your bank straight away. As long as your report it within 13 months of the transaction date, you should get a refund the next working day.

If the bank refuses your refund, you can file a complaint with the Financial Ombudsman Service.

What are the pros and cons of online bank accounts?

Pros of online bank accounts

Banking on-the-go – manage your account and carry out transactions any time, wherever you are, straight from your phone or tablet
Spending alerts – get real-time notifications on your phone when you use your card
Budgeting tools – many providers let you set monthly spending limits and open dedicated saving pots
Fee-free overseas spending – you may be able to spend and withdraw cash abroad without paying foreign transaction fees
24/7 customer support – get round-the-clock access to in-app banking support.

Cons of online bank accounts

Technical issues – Software glitches and poor internet can make it difficult to access your money, but this can also apply to traditional banks.
Difficulty making deposits – You’ll need to visit a Post Office or PayPoint to pay physical cash and cheques into your online bank account. Some providers charge for this service and some might let you deposit cheques by scanning them with your phone camera.
Limited personal support – It can take longer to resolve issues online.

What’s the difference between online bank accounts and traditional bank accounts?

Wondering if you should go for an online bank account? Here’s how some of its key features differ from a traditional one:

Feature	Online bank accounts	Traditional bank accounts
Access to your account	App-based	App, online banking and branches
Opening an account	Entirely online	Online, in branch or by phone
Branch access	No	Yes
Budgeting tools	Common	Available with some providers
Cash/cheque deposits	Limited	Often easier in branch
Foreign exchange rates	Can be lower than some traditional banks	Often include mark-ups
Overdraft facility	Sometimes available, subject to eligibility	Usually available, subject to availability

Which bank account is right for me?

Before choosing an account, think about how you actually use your bank. If you do almost everything online, an online bank account could cover all the features you need.

But if you regularly handle cash or want in-person support, a traditional bank could be a better fit.

Online bank accounts

Great if you're happy managing your money online
Can suit if you want real-time spending notifications and access to budgeting tools
Ideal if you don't need to visit a branch
Useful if you want to benefit from potentially lower foreign transaction fees.

Traditional bank accounts

Are better suited if you often need to visit a branch
Helpful if you prefer face-to-face support
Suitable if you regularly deposit cash or cheques
Can be useful if you want to access specialised products, such as mortgages.

Do online bank accounts charge foreign transaction fees?

Yes, some online banks charge foreign transaction fees, but some, such as Starling and Chase let you spend abroad for free.

If they do charge foreign transaction fees, it’s often at the interbank exchange rate without the mark-ups you usually get with a regular bank account.

Some digital banks also let you hold accounts in multiple currencies and exchange between them with low or no fees.

Cropped shot of a man and a woman's hand holding smartphone, sending money through digital wallet, using online banking mobile app device. Friends holding mobile phone to activate NFC. Smart banking with technology

Which banks offer online bank accounts?

Some of the most well-known FSCS-protected providers that offer online bank accounts include:

Monzo

Good budgeting features with individual ‘pots’ to help you save. Fee-free overseas spending and overdraft facility available.

First Direct

Get a virtual card and no monthly fees for opening or managing your account. Access saving tools and additional financial services, such as credit cards and insurance.

Revolut

Features competitive exchange rates – ideal if you often send or receive money in foreign currencies. Earn interest on your balance and budget with ‘pockets’ for all your bills.

Starling Bank

Fee-free spending abroad and useful budgeting features and spending insights.

Chase

No overseas fees and get cashback on certain transactions. No overdraft facility available.

How do I open an online bank account?

The criteria varies between providers but, in most cases, it only takes a few minutes to open an online bank account.

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Check your eligibility

You’ll typically need to be 18 or over to open an online bank account. However, some providers have ‘teen accounts’ for 16-17-year-olds.

You’ll also need to provide a photo or screenshot of a valid photo ID, such as your passport or driving licence.

Download the app

Simply download your chosen provider’s app, fill in your personal details and set up a security password and pin.

Set up your security features

Some apps also ask for a selfie or short video to verify who you are. You should also be able to set up a biometric login, such as fingerprint and face ID to help keep your account secure.

Get your card

Once your account is open, a debit card should be posted to you automatically.

Some online banks even offer ‘virtual’ cards. These work in the same way as a debit card, but they let you spend without having a physical card on you.

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What our expert says...

“According to UK Finance, over 90% of UK adults manage their money online. That’s no surprise, considering that today’s sophisticated tech and fast, secure apps mean we can pay, transfer and receive cash without ever stepping foot in a branch.

“But it’s understandable to feel unsure about digital banks if you’ve never used one. The good news is that they’re regulated in the same way as any other high street bank, and those with full banking licences are automatically registered with the FSCS.”

Sajni Shah, Personal finance expert

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FAQs

Which is the best banking app?

There’s a host of banking apps to choose from, all offering different features. The best one for you depends which of those features matters most to you.

Some of the best known banking apps currently on the market include Starling Bank, Monzo and Chase.

How secure is app-based banking?

Most mobile banking apps don’t store your financial details directly on your phone. Instead, they access them from a secure data centre to prevent cyber criminals from hacking into your account.

You still need to be vigilant though. Never send your online bank account passwords to anyone and make sure you have antivirus software installed on your phone.

When downloading apps, always choose the official version. And update them when new security features are issued.

How do I switch to an online bank?

If the bank you want to switch to is signed up to the Current Account Switch Service (Cass), the transition should be straightforward and take no more than seven working days. You can even choose a convenient date when you want the switch to take place - but it must be at least seven working days after your new account is opened.

If your new provider isn’t signed up to Cass, you’ll have to switch to it using a manual transfer form. This takes longer and doesn’t offer the same switching guarantees.

Can you open an online bank account with no deposit?

Yes, most online current accounts are free to open. The process only takes about five minutes, although you’ll need to wait a few days to receive your debit card by post.

How easy is it to set up online banking?

Setting up online banking is quick and easy. If you have a traditional bank account, simply contact your provider and ask if it has online banking facilities.

You should also be able to find this information on their website.

When you set up online banking, your bank will typically send you the information you need and registration details via email.

If you’re switching to a new bank, they’ll usually let you set up online banking during the application process.

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Reviewed 08 Oct 2026 bySajni ShahPersonal finance expert

Sajni is passionate about finding money products to help you make great financial decisions. She keeps track of the latest trends and evolving markets to find new ways to help you save money.

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¹Based on Trustpilot ratings (July 2026).