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App Based Banking
Providers

Unlike the big names in the banking world, most app-based banks aren’t yet household names so it can be confusing deciding who to trust and which bank you should open an account with. And with app-based banks, there are so many different factors to consider. Our mobile banking comparison table takes into consideration reviews from customers who have had first-hand experience with these apps. We compare banks exclusively on customer experience and product quality. Take a look at our comparison table at the top of this page to find out what is the best app-based bank.

How do app-based banks work?

App-based banks work like traditional banks just without the high street presence. It’s normally free to open an app-based bank account, however, the best app-based bank providers will also offer premium current accounts with extra benefits that you have to pay for.

The apps are available for both Android and iOS phones and can be downloaded for free. Opening a current account in the app can normally be done in a matter of minutes. In most cases, you have to enter a few personal details and normally verify your identity with a photo of your passport or driving licence. Like mainstream banks, you’ll be sent a debit card in the post with a sort code and account number.

Are app-based banks safe?

Yes. App-based banks have security systems in place to ensure that hackers won’t be able to access your account. Make sure you download the official app from the app store and update it regularly so you have the latest security features. You still need to be mindful and make sure you never share your information with anyone else.

Is my money safe?

Many people are hesitant to open app-based banks because they’re concerned about what would happen to their money if the company were to go bust. All fully licensed banks are covered by the Financial Services Compensation Scheme (FSCS). The FSCS protects your savings (up to £85,000 per individual) when financial services firms go bust. There are a number of app-based banks that are covered by the FSCS including Starling Bank and Monzo, however, not all app-based banks have this level of protection.

Revolut, Monese and Cashplus aren’t currently FSCS protected as they don’t hold banking licenses, however, they are covered by the Financial Conduct Authority (FCA). This means that your funds are stored separately in a licensed bank that the app company has partnered with. If the app was to go bust, you’ll get 100% of your money back. However, if the bigger bank that stores your money goes bust, your money may not be protected.

Can I switch to an app-based bank?

It’s not currently possible to make the switch to all app-based banks as some providers don’t allow you to have your salary paid into them or give you the option to pay direct debits. However, some allow you to switch using the Current Account Switching Service (CASS). This service automatically closes your old account and switches all of your direct debits, standing orders and full account balance within 7 working days of making the request.

Can I deposit cash and cheques?

It’s possible to deposit cash and cheques into some app-based banks but not all banks currently offer this. Starling Bank and Cashplus allow you to pay in cash at any Post Office, cash can be paid into Monese at any PayPoint or Post Office and Monzo accept cash at any shop with a Pay Point. Cash deposits via the Post Office are usually available in your account the next day whereas cash deposits paid in via a PayPoint are available immediately.

Monzo accepts cheques via Freepost. They’ll let you know via their in-app chat once they’ve received the cheque and you should see the money in your account five days after this. Starling Bank allows you to pay in cheques via the app by taking a clear photo of the cheque. The cheque normally clears within two working days and you’ll get a notification when the money’s available.