Having an virtual bank account in UK is convenient as it helps you to do banking from anywhere around the world because you do not need to visit any banking office. If you want to open an instant virtual bank account in the UK, this article will show you how this works and what are the online banks in the UK to choose from?
You can open a free virtual bank account in the UK in a few minutes. You do not need to visit the bank and no paperwork is required. Moreover, most virtual banks in the UK also offer zero monthly fees, virtual cards, multi-currency account, money transfers, a UK account as well as an European IBAN number and crypto banking services. UK virtual banks are regulated the same way as traditional banks.
Best Online Bank in UK
The days of the old-fashioned banks are counted. If you want a better experience with more control over your cards and expenses, then some of the best virtual banks in UK are Wise, Monese, Revolut, Monzo and Starling. Find below a comparison of best features of these virtual banks in the UK.
Monese is a well known UK virtual bank account you can use to open an online bank account. It is a great option if you are a frequent traveller. You can open a Monese virtual account if you have an email address, mailing address and ID. You can open the account whether you are in the UK or within the Eurozone.
Monese online bank account simplifies your work. It offers the following:
- Easily create Virtual Credit cards for online shopping
- Lock and unlock your cards on the go
- You can track your spending
- Send money abroad, have multiple currency accounts
You can also make payments, direct deposits, online and offline shopping, money transfer and withdrawals using the app. To pay for goods and services like rent and utility bills, you can pay via bank transfers or using the Monese to Monese option.
Read more: Complete Review of Monese Online Bank
Revolut is one of the leading virtual European bank accounts with its headquarters in London. It is the best bank for holidays. The bank is available to customers in the EEA region, Switzerland, Australia and the United States. You can transact using the bank in 35 currencies, while you can top up in 15 currencies.
You open the account online. Download the Revolut app and start enjoying banking services. You will also get a physical card which you can use to withdraw cash in ATMs. They advance personal loans, phone insurance, virtual cards and travel insurance. This makes it the best bank for travelers.
You can use Revolut virtual bank for:
- Managing wealth like stocks and cryptos
- Sending and receiving money
- Create virtual credit cards on the go
- Freeze your credit cards for better security
- Manage your finances by setting up budgets
- Set recurring bills and split bills so that you can pay different people at the same time
- Earn rewards and redeem rewards
Read more: Complete Review of Revolut Virtual Bank
Monzo is a UK online bank with its headquarters in London. It is the best bank for budgeting and offers personal, joint and business accounts. They also advance loans to their customers just like traditional banks. You can open a current account to be receiving your salary through it. You get to access its services through an app or a debit card. You can deposit money to your Monzo account through a bank transfer, cheque, or cash.
You can also open a business account to manage your business’ finances. With the business account, you enjoy:
- Free bank transfers within the UK
- Have access to Monzo saving pots
- Get digital receipts and invoicing through an app
When you open an account, you will be issued with a free MasterCard debit card you can use the card to make free purchases and withdraw cash in ATMs.
Wise, formerly Transferwise, is an excellent choice if you also want a US dollar or Euro account next to your usual Pound Sterling account. Wise is online bank that offers a multicurrency account, a European IBAN, international money transfers, etc. It was founded in London in 2010 and is regulated by the Financial Conduct Authority. You can open a virtual bank account with Wise. You will be issued with Wise debit card which you can use to make ATM withdrawals and make payments. Wise offers the best money exchange rates. It uses mid-market rates, ensuring that you convert currencies using the prevailing market rates.
The advantages of Wise include:
- No hidden fees
- Cheap money transfer fees
- Borderless money transfers
- Business accounts
- Currency conversion using mid-market rates
Read more: Wise Multicurrency Account Review
Atom Bank is an online UK bank that offers savings accounts, mortgages and business loans. It does not offer current accounts. It is only available to UK customers only. It does not have a minimum deposit for instant savers. The maximum savings balance is 200,000 euros.
Starling Bank is a UK online bank that offers personal, joint and business accounts. It was voted to have the best current account in 2020. You can use the online bank to:
- Send money abroad
- Split bills
- Track your spending habits
- Lock your card on the app in case it is stolen
- Get notifications in case of payments
How to Open an Online Bank Account
In general, most of these online bank accounts work in a similar way. Creating an account is usually relatively easy. All you need is your email address, phone number, and a physical address you can verify. In most of them, you can create an account using their mobile applications. Others, you can only create an account using their desktop apps.
After you register, you will receive a Single Euro Payment Area (SEPA) account. This is a bank account that you can receive funds in. You will also be given a debit card, which you can use to withdraw money at any ATMs. You can also use the ATM to transact where Visa and Mastercard are accepted.
Are Online Banks Safe?
A common question we often hear is whether virtual banks are safe. The answer is that most of these banks are safe. There has been no major collapse of an online-only bank. However, this does not necessarily mean that these banks are 100% safe. According to media reports, most new online-only banks are unprofitable. This is because they are spending a lot of money on growth. Saving money in a company that is unprofitable can have some risks.
Benefits of Virtual Banking
Having an online bank is an advantage compared to conventional banks. You tend to enjoy more benefits. Some of them include:
- Receive salary and pay bills online
- Saves time since you do not need to visit a banking premises
- Convert money into different currencies at your convenience
- Spend money abroad and make ATM withdrawals
- Most online bank such as Wise allow people to open online bank account in UK for non-resident
Benefits of Online Bank in the UK
As you decide whether you want to save money in an online bank, you might ask on the benefits of doing this. There are several benefits of having an online-only bank account:
- Accessible worldwide. You can access and manage your account anywhere you are.
- Cheap to maintain. Online banking in UK has lower fees compared to traditional banks.
- Easy to create an account. You don’t need to visit a bank branch to create an account.
- Insured funds. Most virtual UK banks insure your funds like other traditional banks.
- Discounts. Most UK virtual banks partner with other digital companies to offer them with discounts.
- Tools Manage spending using budgeting tools.
Benefits Opening Virtual UK Bank Account
Having a virtual bank account in the UK is a great deal. It not only saves your money but also time since you do not need to visit a banking hall to make a transaction. Many people are adopting virtual banks to allow them to spend money while travelling. Also, many of these virtual banks have spending trackers to help people manage their finances. Ultimately, you should consider a virtual bank account UK.
Wise, Monese, and Revolut are all well-known virtual bank accounts in the UK. When you open an account with any of the two banks, you will receive a standard European IBAN account at first. You can then open a special British account. With Revolut, you can open a British account from the app. For Wise, you can open a British account from the app or the Wise website.