Gone are the days of serious looking bank cards and signing for every purchase.
These days, we can control our finances from the palm of our hand,
and our wallets are filled with a rainbow of vibrant cards.
But with new digital challenger banks hitting the scene faster than the Spice Girls in the 90s,
picking the right one for you can be overwhelming.
Whether you’re looking to sign up or switch accounts, this video will give you a side-by-side
look at three of the leading digital banks and the one we reckon is the best.
On the surface, there’s not a whole lot that separates Revolut, Monzo and Starling.
When you open a current account with any three of these banks, you get a colourful card
and a slick mobile app. All three apps offer:
* Free day-to-day banking. * Spending insights that break down your purchases
by shop or category to help you budget better. * “Piggy bank features” to help you
save and put money aside. * Quick and easy payments to
friends as well as an option to split the bill. * And total control of your card through your
phone, allowing you to freeze it temporarily or cancel it, if lost or stolen.
Revolut, Monzo, and Starling’s apps are all designed to help you manage your entire finances
from your phone, with loads of extra financial tools and products available. And they are
constantly expanding their app features. Through the Monzo app, you can open a joint
account, set up an overdraft and even apply for a personal loan.
You can also make international money transfers, open an integrated savings account
and get cashback with its energy switching service; although these features are
only available through its marketplace partners, separate from the app.
Starling also offer in-app joint accounts, overdrafts, personal loans and international
transfers. Plus insurance, mortgage and investing products through their external marketplace.
When it comes to features, Revolut is tough to beat, with free international money transfers,
pay-per-day travel insurance, auto-exchange (which lets you switch currencies in a couple of taps)
as well as the option to buy gold, silver, cryptocurrencies and shares through its trading
platform. Revolut also has an amazing rewards feature which gives you cashback and discount
personalised to the brands you love the most. Revolut and Monzo also have two tiers of
additional paid-for premium accounts, that come with exclusive extra features like
travel insurance, airport lounge access and retail discounts. Revolut Metal,
for example, also comes with its own distinct, and very chic, metal card. Visit finder.com/uk
to learn more about these premium accounts. Links are tagged in the description below.
Business accounts are available through all three banks. And Revolut and Starling also
offer junior accounts, designed to help your kids develop better spending habits
while keeping you in control. While Monzo don’t have a junior account,
it does offer a scaled back version of the account for 16 to 17 year olds,
which blocks purchases on anything prohibited for under 18s, like alcohol or gambling sites.
When it comes to aesthetics, Monzo is king. As well as being super easy to use,
set up and manage, its app is colourful and fun. And the ka-ching sound effect, that goes
off everytime you make a purchase, makes grocery shopping feel like a whimsical game show.
Though slightly less intuitive than Monzo, Starling Bank’s app is elegant and streamlined.
It’s easy to navigate, but definitely has a more serious vibe than its competitors.
Revolut has the most pared-down design. But given there are so many features available,
that makes for a super easy to use app.
When travelling, all three cards work much as they would in the UK,
with no charges on any card payments. Revolut offer free ATM withdrawals up to £200 a
month, after which you’ll be charged a 2% fee. Monzo’s withdrawal limit is slightly higher at
£250 a month, with a 3% fee after. It’s also worth noting that Monzo’s limit
includes combined withdrawals from European Economic Area (or EEA) countries and the UK,
so make sure you keep track of your spending so you don’t get stung by the 3% fee.
Starling, then, tops the charts with no fees and no limit on free ATM withdrawals.
Revolut also have a number of extra travel-savvy features including free international transfers
and auto-exchange, which I mentioned before, as well as fee-free spending at the interbank rate
in 150 currencies and a nifty tracker that automatically changes money into
your desired currency, when the exchange rate hits your target pre-set rate.
Revolut, Starling and Monzo all have savings’ tools that allow you to put money aside,
round up your spare change into a separate piggy bank or vault and budget
better with detailed spending insights. Monzo also have a dedicated salary sorter
to organise your income into spending, bills and savings. And Revolut have a Group Vault
feature to help friends and family save for a common goal, such as a holiday.
However, Starling is the only bank that pays interest on your savings. The rate
is pretty low at 0.05% on up to £85,000 but it’s certainly better than the 0%
offered by Revolut and Monzo. Technically, Monzo does offer higher rates.
But you have to open a separate savings account through one of its partners. The account can then
be integrated and managed via your app. If you are looking for a considerable
interest rate on your balance, you may be better off with a traditional bank.
Unlike Revolut, Monzo and Starling both have a full UK banking licence
and your deposits up to £85K are covered by the Financial Services
Compensation Scheme (or FSCS) – as is the standard for UK bank accounts.
Despite not being a bank, Revolut is regulated by the Financial Conduct Authority (or FCA). This
means your money is kept separate from Revolut’s finances and Revolut can not
invest it or use it to pay off debts. All three banks offer in-app card control
so you can freeze or cancel your card in a few simple taps.
Monzo uses ‘magic links’ sent to your email to keep your login secure. You can increase
your security by adding two-factor authentication to your email, too.
Revolut’s and Starling’s apps are protected by passcodes,
passwords and fingerprint ID. And all three apps require authentication in the form of a pin,
fingerprint or face ID when making purchases. Plus, with live transaction records and
notifications, you’ll immediately be alerted to any strange or unexpected payments.
With it’s fee-free international money transfers, auto-exchange and exchange rate tracker,
Revolut is great if you’re planning a holiday or travel often for work. It’s also jam-packed
with loads of unique techy features like cryptocurrencies and share trading.
Starling is especially competitive for travelling abroad with no fees on both card payments and
ATM withdrawals. And with a sophisticated app interface, it’s a great bank for anyone who
wants a solid, no-fuss current account. Monzo comes out on top for user experience.
Its app is well-designed, bright and colourful and really intuitive to use.
Depending on what you need and how often you go abroad, you may be better off with one or another.
However, if we had to pick just one, we’d probably go for Starling based on its low fees,
features and all-round app experience. Is the coral Monzo card your ride or die?
Are you considering the switch to Revolut’s app features? Or hoping to save abroad with
Starling? We’d love to hear what you think. Leave us a comment below or visit finder.com/uk
for more information on these leading digital challenger
banks – links in the description below. Hit this button to subscribe to our
channel or stay tuned for our next video. See you next time. Thanks for watching.