There are lots of straightforward, fuss-free bank accounts to choose from with no monthly charges, from both the challenger banks and the traditional high street names. Here’s what you need to know.
Finder’s best free bank accounts that you can open online in the UK
There's no monthly fee with this current account from Starling, and you won't be charged for card transactions in the UK or abroad either. It's easy to apply for the account via the app or online in a matter of minutes. All you'll need to provide is a few personal details and a valid photo ID. The account also pays interest on credit balances, and you can save money into different virtual jars as well as round up transactions and save the change. Use the app to track your spending, freeze your debit card and set budgets.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 15% EAR variable
.
No monthly-fees
No overseas fees
100% digital sign-up
24/7 UK customer support
'Settle up' feature to split joint bills
Pays interest on current account balance
Overdrafts available (only on personal accounts)
No branch network
Limited options for depositors
No competitive switch incentives if you switch your account
Limited product range compared to other banks
Lower ATM withdrawal limit than some other digital challengers
Monzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create.
This account from Monzo has no monthly fee and you'll be able to set up your account online or via the app with ease - in fact, Monzo says it will take less than 15 minutes. Once up and running, you'll benefit from free UK bank transfers and be able to set up different 'pots' to separate your money for different purposes. The app gives you instant spending notifications, plus your spending will be categorised so you'll know exactly what you've spent where. You'll also have access to saving accounts as well as loans and an overdraft.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 39% EAR variable
. Account fee of £0.
Easy to set up
Good for budgeting and categorising spending
Automatic saving feature
Fee-free spending abroad
Slick app with face login
Overdrafts and loans available
Free ATM withdrawals outside the EEA limited to £200,
Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit or debit card.
This straightforward bank account from Lloyds offers free everyday banking. You can apply for an account online and you should receive a decision within 10 minutes. You'll need to be at least 18 years old and a UK resident to be eligible. You can manage your account through online banking, but it's also easy to bank on the go with the Lloyds Bank app. Plus, if you sign up to Everyday offers, you can earn cashback when you spend on your debit card at selected retailers. Note that if you use your card overseas, fees will apply.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 39.9% EAR variable
.
This account from Nationwide has a whole host of benefits and no monthly fee. If you stay in credit, you'll earn a competitive rate of interest on your balance up to a limit. But it's also a great account if you need an overdraft as it comes with an interest-free overdraft for the first year. You can open the account online if you're at least 18 years old and a UK resident. You'll need to register for online banking during the application, so you can manage the account online. It can also be managed over the phone.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged
interest at 39.9% EAR variable
.
Pays interest on in-credit balances
Interest-free overdraft for the first 12 months
No monthly fee
Account can easily be opened online
Interest rate drops after the first 12 months
Interest is charged on overdrafts after the first 12 months
Receive 1% cashback on everyday debit card purchases capped at £15.
Open this free current account from Chase and you'll earn interest on your balance and earn cashback on your debit card spending. You will also be able to round up your spare change to the nearest £1 and transfer the difference into a competitive round-up account. On top of this, there are no fees for using your debit card overseas. You can open the account with ease by downloading the app. You'll need to be a UK resident and at least 18 years old.
You'll need to join Kroo through its app, and by doing so, you'll benefit from a competitive rate of interest on your current account balance. Plus you'll be able to spend on your debit card abroad without being charged foreign transaction fees. The account has no monthly fee and it's easy to monitor your spending though the app as well as sort out expenses and payments owed to others. An overdraft is also available on the account.
Free to use
In-credit interest
No fees for using card abroad
2 trees planted for every new customer
Can only be accessed through the app
No branches or face-to-face support
Minimum opening balance
£0
Minimum operating balance
£0
Switch service guarantee
No
Account fee
£0
Overseas cash withdrawals
£0.01
Can you get a free bank account?
Yes, it is possible to apply for a bank account that won’t charge you a regular monthly fee. Many of these accounts also won’t charge you for standard transactions such as paying money in, paying money out and withdrawing cash.
However, banks have to make their money somewhere, and while basic transactions may be free of charge, you’ll still have to pay for certain services. For example, if you have an overdraft on your bank account, you’ll likely be charged interest if you use it. Note that as of April 2020, banks must charge 1 consistent rate of interest on all overdraft facilities and can no longer charge monthly or daily fees.
You might also be charged a fee if there are insufficient funds in your account to cover a direct debit or standing order, or if you use your bank card for foreign transactions abroad. We have a separate guide on bank accounts with low overseas charges. Most banks will also charge you for stopping a cheque, making a CHAPS payment and making international transfers.
How to find a free bank account
You can find a free bank account in the same way as any other bank account. Simply run a comparison and look for the account that suits your needs best, making sure that you meet the eligibility criteria.
While most free bank accounts will let you set up direct debits and standing orders, withdraw money from cashpoints, check your bank balance and transfer money, some will also offer additional features such as:
You’ll need to think carefully about what matters most to you to help you find the right account. For example, if you regularly use an overdraft, your priority should be finding an account that offers an interest-free overdraft. Or if you always stay in credit, look for an account that pays interest – this will usually be payable up to a set balance.
It’s also worth checking which transactions might not be fee free to ensure you find the most competitive account. You might also want to check how each account can be managed. For example, do you want to be able to do some of your banking in branch, or are you happy to manage your account online or via an app only?
Steps to open a bank account online
Follow these steps to open a bank account online.
Shop around to find the best bank account. Factor in the card type, minimum balance requirements for savings accounts, whether you can bank online or via an app, and any fees, including cashpoint withdrawal fees, monthly fees and whether the account waives fees if you make direct deposits.
If you open a single account, you’re the sole owner and no one else can access your money. But with a joint bank account, you share ownership with someone else, usually a family member, significant other or business partner. They have equal access to the account and can use the money however they wish.
Click Go to site and a new window will open, sending you to the account provider’s website and a secure online application. You’ll need to provide basic information about yourself such as your name, date of birth, address and social security number. Make sure you have this information on hand before you start the application as the webpage can time out and close if you leave your computer unattended for too long.
After you complete an online application for a bank account, you’ll get an email from the account provider with information about what happens next. This email should come within a minute or two after you submit the application to the bank. It may come with instructions on verifying your identity, or you may need to do that first.
You’ll need to provide a government-issued ID before you’re approved for an account. Most banks will let you take a picture of your ID with your phone, though some will require you to verify your identity in person. If you’re already a customer of the bank, you might be able to skip this step.
Most accounts will require you to make an opening deposit using a debit card or an account and sort code for an existing bank account. But if this is your first bank account and you plan to make an opening deposit in cash, you’ll probably need to sign up for an account at a bank branch.
If the account you signed up for includes a debit card, it’ll arrive in the mail after you’ve been approved – you’ll find out how long it takes to ship in the confirmation email. The debit card and PIN are sent to you separately for security reasons. When you get your card, you need to sign the back and activate it so you can make withdrawals. This is a simple process that can be completed over the phone or online. A number of banks and e-money providers allow you to use your debit card virtually through Apple Pay, Google Pay and other services. These are known as virtual debit cards and can be setup faster than waiting for a debit card to arrive in the post.
Your account is ready to go. You’ll be able to make deposits and withdrawals, as well as use any other features associated with your account. To finish setting everything up:
Set up Internet banking. This lets you manage your money and make payments to other accounts from your phone, computer or tablet. Download the account provider’s app and follow the on-screen instructions to set up your online banking.
Switch your direct debits and automatic payments. If you signed up for a current account, decide whether you want to transfer all of your automatic payments to your new account. If so, you’ll need to sign into your existing accounts and change your bank account information.
Eligibility requirements
To open an account online, you’ll generally need to:
Be a UK resident with proof of a UK address
Be at least 18 years old – some banks will let minors open an account with a guardian
You don’t have to pay for a bank account and there are lots of excellent free accounts to choose from. With a paid-for account, you’ll usually have travel insurance and breakdown cover thrown in – among other things – so if you’re already paying for these separately, it’s worth checking if it’ll be cheaper to access them through a paid-for bank account. If it’s not, choose a free one and buy the products you need separately.”
What do I need to open a bank account online?
Identification
Personal information
Deposit
The whole process shouldn’t take more than 10 minutes. If you’re at least 18 years old, you can apply for most accounts online. You’ll be provided with a checklist of things you should have with you before you apply. If you’re an existing customer of the bank, make sure you have your relevant customer ID or account number.
Identification
Requiring ID helps banks to protect you from fraud. They need to verify your ID to make sure it’s really you opening the account, and not someone trying to steal your identity.
Personal information
Most accounts allow you to apply for a joint account with one or more people. If you’re applying for a joint account, all account holders will need to provide their personal information, including proof of address and ID.
Deposit
Some institutions will let you open a bank account online with no deposit, but most times you’ll have to put a little money down. Minimum required deposits often increase with a higher interest rate or better features offered.
Pros and cons of opening a free bank account online
Pros
No monthly fee to pay
They are easy to open
They offer a straightforward way to manage your everyday banking needs
You may be offered an overdraft
Cons
You might be charged for using your overdraft or carrying out certain transactions
Additional perks and features on the account will be limited
You may not qualify for the account
Bottom line
If you’re looking for a convenient and cheap way to carry out your everyday banking tasks, a free bank account could be right up your street. Just make sure you check the eligibility criteria carefully and keep in mind that additional features and perks of the account will likely be more limited compared to one that charges a monthly maintenance fee. You can compare current accounts here.
Frequently asked questions
You’ll usually need to be at least 16 years old to apply, with some accounts having a minimum age requirement of 18. You’ll also usually need to be a UK resident and have a good credit rating. There are a range of bank accounts for children plus bank accounts for those with bad credit.
Yes, some business bank accounts won’t charge a regular monthly fee – although again, you’ll usually need to pay for certain transactions. You can compare business bank accounts here.
You can switch to a new account through the Current Account Switch Service which guarantees your switch will be completed within 7 working days.
You can activate your card online or over the phone. The primary account holder will generally need to activate their card first before additional cardholders can do the same.
Once you’re approved for the account you can register for online banking. In most cases you'll be able to do this online or via the app, but some banks will require you to call customer service to set up a password.
By default paper statements are sent to you in the mail each month after your account is open. You can choose to get electronic statements instead by calling the provider or by logging on to the online banking facility.
Possibly, but it depends on the bank and whether or not you're a UK citizen or resident. Call the bank you're interested in for more information.
This will depend on the type of bank account you’re opening. However, basic bank accounts, which are designed for those with a poor credit history, won’t usually require you to pay in any money to open the account.
Basic bank accounts are, as the name implies, basic. So you’ll be able to carry out standard transactions such as paying bills by direct debit and withdrawing cash from an ATM, but your account won’t offer an overdraft or any perks or other benefits.
Banking scores
★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rebecca Goodman, a member of Finder's Editorial Review Board.
Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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