Martin Lewis' team of financial gurus at Money Saving Expert (MSE) have revealed the top app-based bank accounts. As digital banking increases in popularity, more and more people are opting for apps that they can use for all, or most, of their banking without needing to head to the high-street or fill out hefty paperwork.
Although most app-based banks do not have a high-street presence, the majority still offer round the clock customer support for users who have any issues or questions. Many are available to download for free for those with smartphones, but some may have costs associated with running them.
According to MSE, the top three bank apps available currently are Starling, Chase and Monzo. The experts say Starling is useful for spending notifications, budgeting and comes out on top for overseas use.
While Monzo "helps you budget and offers savings accounts with partner banks." They also say Chase offers one per cent cashback for at least a year on most purchases and doesn't dish out fees to spend or withdraw cash abroad. Below is MSE's list in full.
Starling Bank
"Starling gives real-time notifications when you use your debit card, insights into your spending and lets you set up savings goals," MSE says. "You also earn a (very) small amount of in-credit interest. As an added boon, there are no fees for spending or cash withdrawals abroad, making it a top-pick debit card overseas."
There are no oversea fees with Starling Bank and users can pay in cash at any post office or cheques via the app or in the post. Its in-credit interest (AER variable) is 0.05 per cent up to £85,000 and there is no unarranged overdraft cost. On the Apple Store, the app has a rating of 4.9/5, while on the Google Play Store, it sits at a 4.8/5.
Chase
According to MSE, Chase's current account "gives a top rate of cashback on most spending (max £15/month), though there are some exclusions. There's no minimum pay-in required in the first year, but you'll have to pay in £500+/month after that to continue getting cashback."
Customers can also make use of its 'round-up' feature that enables all purchases to be rounded up to the nearest £1 - with the difference autosaved into a separate account paying five per cent.
The bank also allows users to create up to 20 extra accounts and provides a monthly spending overview, which can be a big help for those trying to manage their money.
However, to use Chase, you'll need a device with at least iOS 14.1 or Android 8.1. On the Apple Store, the app has a rating of 4.9/5, and on Google Play Store, it is at 4.1/5.
Monzo
Monzo is a bit similar to Starling as it also gives users real-time spending notifications and insights regarding where they're spending. MSE says it is "also good for overseas use, particularly if you won't withdraw cash or will only get small amounts."
The experts added: "The difference comes with savings – as well as letting you set up 'pots', Monzo lets you 'move' savings to an account with a partner bank, so you get decent interest – though top-pick savings usually have better rates."
There are no oversea fees on spending, but at worldwide ATMs withdrawals are only fee-free up to £200/30-day period. There is no in-credit interest (AER variable) and users can pay in via cash at any PayPoint with a £1 fee, or pay in cheques via post. On the Apple Store, the app has a rating of 4.9/5, while on the Google Play Store, its 4.7/5.
