Some of the new challenger banks are making waves with several scoring well in a recent study by This is Money.
Several of these banks now have current accounts, with the most recent one being Monzo. The public has a love/hate relationship with these apps, with the less tech savvy more likely to hate them. One of the main benefits of this type of account is the analysis of your spending habits.
So how do the competitors stack up?
Monzo will allow you to spend overseas without any fees, however, you can only withdraw £200 per month with a 3% fee on any excess. You will pay 50p per day if you go over your £20 buffer into overdraft. If you don't wish to have the overdraft feature on your account, it can be disabled. There is no ability to deposit physical cash at this point.
Starling will allow you to see your expenses each month in categories that are sorted automatically. It also has a savings goal feature. You can earn interest of 0.5% on balances up to £2,000 and 0.25% thereafter. The account also offers free overseas purchases, without the limit on withdrawals of Monzo's account. Starling also has an overdraft feature which is charged at 15 EAR%.
B Bank is unlike the first two accounts as you can bank in branch at Clydesdale or Yorkshire bank. It offers similar budgeting features to the other providers, with a 0.5% in-credit interest figure up to £2,000. The account does not offer free purchases overseas however.
This account is a bit different to the others as it is not a current account per se, and as such is not covered by the FSCS, with funds held at another bank. In Revolut's case, this is Lloyds. Otherwise it offers similar features to the first three on the list, with one difference being that you can send money to 120 countries without loading the exchange rate.
There could be big changes in banking in the next few years, but having a sound understanding of your current financial situation and putting a plan in place for your future will always be important. Contact Westminster Wealth Management today.
More than 360,000 customers upgrade to Monzo's current account but does it beat rival digital-only accounts?