Summary
On these facts:
- Everyday account under the UK’s own guarantee: Monzo, Starling, Kroo or Chase UK, whose eligible deposits the FSCS covers up to £120,000 1, 2, 3, 4; Kroo says it has “no monthly account fee” 4, and Monzo’s help pages refer to a free account 5, while the sources give no monthly fee for Starling or Chase UK.
- Travel and FX: Starling and Chase UK charge no fees of their own on card payments abroad and use Mastercard’s exchange rate when you pay in the local currency 6, 7, and Starling charges nothing itself on cash withdrawals abroad 6. Revolut Standard exchanges up to £1,000 a month on weekdays with “no additional fees” and adds 1% at weekends; its plans page does not give the exchange fee above that limit 8.
- An app from an EU provider: N26 announced its UK exit in 2020 9, and bunq says opening new accounts from the UK is paused, with Brexit in effect since 1 January 2021 10.
- If you bank with Revolut: FSCS cover applies to eligible deposits at Revolut Bank UK Ltd, launched on 11 March 2026; Revolut said all customers would be transferred to the bank in the following months, while customers signing up from 11 March 2026 may still be onboarded to an e-money (EMI) account with Revolut Ltd 11.
- Savings: keep eligible deposits within the FSCS limit of £120,000 per person per banking licence 12; basic-rate taxpayers can earn £1,000 of interest a year tax-free, higher-rate taxpayers £500 13.
The shortlist
Eligible deposits at Monzo, Starling, Kroo and Chase UK are covered by the FSCS, the UK’s deposit guarantee scheme 1, 2, 3, 4. Revolut launched a UK bank on 11 March 2026 and said existing customers’ accounts would move to it in phased batches 11; Wise is an e-money institution, not a bank 14. The EU banks N26 and bunq no longer open UK accounts 9, 10, 15.
| Provider | Entity & licence | Deposit protection (scheme, limit) | Local IBAN | Standard monthly fee | Domestic ATM | FX markup |
|---|---|---|---|---|---|---|
| Monzo | Monzo Bank Limited; FSCS information sheet of 23 December 2025 1 | FSCS, £120,000 1, 12 | Not stated | Not stated | UK and EEA, free account: unlimited fee-free if Monzo is your main bank, otherwise £400 every 30 days, then 3% 5 | Not stated |
| Starling | Starling Bank Limited; FSCS information sheet 2 | FSCS, £120,000 2, 12 | Not stated | Not stated | Not stated | None from Starling; Mastercard rate when paying in local currency 6 |
| Chase UK | UK establishment of J.P. Morgan Europe Limited 3 | FSCS, £120,000 3 | Not stated | Not stated | Not stated | None from Chase; Mastercard rate 7 |
| Kroo | Kroo Bank, “a fully licensed UK bank” in its own words 4 | FSCS, £120,000 4 | Not stated | None, per Kroo 4 | Not stated | None claimed: “without foreign transaction fees” 4 |
| Revolut (Standard) | Revolut Bank UK Ltd, a UK bank since 11 March 2026 per Revolut; some accounts still with Revolut Ltd, an EMI, until transferred 11 | FSCS, £120,000, for eligible deposits at Revolut Bank UK Ltd 11, 12 | Not stated | Free 8 | £200 or 5 withdrawals per rolling month fee-free, then 2% per withdrawal (min £1) 8 | “No additional fees” on exchange up to £1,000 a month, Mon–Fri; fee above that not stated; 1% at weekends 8 |
| Wise | Wise Payments Limited, an e-money institution, “not a bank” in its own words 14 | E-money not FSCS-protected: safeguarded 14 | Not stated | No subscription fee for the card 16 | 250 GBP a month free, then 2.69% on the excess 16 | Variable fee: a 0.28% mark-up on the ECB rate in the page’s 1,000 GBP to EUR example 16 |
Not stated: no verified source. No source gives a provider’s IBAN or sort code; the section on salary below sets out what the sources do establish.
Licence and protection statements come from the providers’ own pages; none was checked against a regulator’s register.
N26 does not offer UK accounts: in February 2020 it announced that all UK accounts would close on 15 April 2020 9, and the UK is not among the countries its support page lists (accessed 29 September 2026) 15.
bunq says opening new accounts from the UK is paused, with Brexit in effect since 1 January 2021; existing UK customers can keep using theirs 10.
Trade Republic describes itself as “Trusted by millions across 18 European countries” 17; the comparison site investingintheweb.com, in an article updated on 15 September 2026, says it “is still unavailable in the UK” 18.
Zopa appears only under protection: this guide has no verified Zopa fees.
Is your money protected?
FSCS: the UK scheme
The FSCS (Financial Services Compensation Scheme) states: “If you hold money with a UK-authorised bank, building society or credit union that fails, we’ll automatically compensate you up to £120,000 per eligible person, per bank, building society or credit union.” 12
That limit applies where the firm failed after 30 November 2025; from 30 January 2017 to 30 November 2025 it was £85,000 12. FSCS says it will pay compensation within seven working days of a bank, building society or credit union failing; more complex cases take longer 12.
The PRA had consulted on £110,000 in CP4/25 and set £120,000 in its policy statement PS24/25, published on 18 November 2025 19. Citing FSCS data, it put the share of depositors who would have been fully protected in 2024 at 99.0% under the £120,000 limit 19.
Banks that share a banking licence count as one bank, so a single £120,000 limit covers your eligible deposits across them 12. Certain temporary high balances are protected up to £1.4 million for six months from when the money was first deposited 12; Monzo’s FSCS sheet lists deposits connected with the purchase and sale of your main home and major life events such as death, marriage or civil partnership, divorce, retirement and redundancy 1.
Monzo Bank Limited and Starling Bank Limited give the £120,000 limit per depositor in their FSCS information sheets 1, 2. Kroo and Zopa describe themselves as licensed UK banks with FSCS cover up to £120,000 4, 20. Chase UK says eligible deposits held by a UK establishment of J.P. Morgan Europe Limited are protected up to £120,000 3.
Revolut: bank or e-money account
Revolut says the PRA lifted restrictions on its banking licence and approved the launch of its UK bank, Revolut Bank UK Ltd, announced on 11 March 2026, with FSCS protection for eligible deposits held with the bank 11.
Existing customers’ accounts were to move to the bank in several phased batches taking “a number of weeks”, with at least two months’ notice, and Revolut expected the whole migration to take “a few months in total”; customers signing up from 11 March 2026 could still be onboarded to an e-money (EMI) account with Revolut Ltd, and Revolut said all customers would be transferred to Revolut Bank UK Ltd in the following months 11.
Revolut’s March 2026 announcement is the latest source here, so whether the move has finished, and what protects money still held by Revolut Ltd, is not stated. On these facts, FSCS cover depends on which Revolut entity holds your account: the FSCS protects money at UK-authorised banks, building societies and credit unions 12, and Revolut Ltd offers EMI (e-money) accounts 11.
Other providers
| Provider | Legal set-up | Protection |
|---|---|---|
| Wise | Wise Payments Limited describes itself as an authorised e-money institution under the Electronic Money Regulations 2011 14 | E-money safeguarded in cash at banks, secure liquid assets (mainly government bonds) and a comparable guarantee, not FSCS-protected; Wise states FSCS cover up to 85,000 GBP for money invested in Assets through Wise Assets UK Ltd 14 |
| bunq | Describes itself as authorised and regulated by De Nederlandsche Bank and “deemed authorised” by the PRA, and, since Brexit, required by the FCA to be part of its Supervised Runoff Regime 10 | Scheme and limit not stated for UK customers |
| Zopa | Describes itself as a licensed UK bank 20 | FSCS, £120,000, for eligible deposits 20 |
Wise states that “the e-money and payment services provided to you by Wise Payments Ltd are not subject to the Financial Services Compensation Scheme (FSCS)” 14. N26 said the timings and framework of the EU Withdrawal Agreement meant it would in due course be unable to operate in the UK with its European banking licence 9.
Local IBAN, salary and IBAN discrimination
The EU rule
In the EU, Article 9 of the SEPA Regulation bars a payer making a euro credit transfer, and a payee accepting a credit transfer or collecting by direct debit, from specifying the Member State of a reachable account in the EU; Revolut calls breaches IBAN discrimination 21, 22. Revolut’s explainer, live on its UK site when accessed on 29 September 2026, frames it around euro accounts: “Employers and merchants cannot discriminate against your Revolut Euro IBAN because of its country code, length or any other reason.” 21
On these facts, it does not bind a UK employer paying wages in pounds: the SEPA Regulation “lays down rules for credit transfer and direct debit transactions denominated in euro within the Union” 22.
What applies in the UK
The UK’s interbank payment systems include Bacs, Faster Payments and CHAPS 23. A payment firm that is not a direct participant can reach them through an indirect access provider (IAP), a direct participant that provides access to other firms; under “agency access” it has its own sort code, provided by the IAP 23. The PSR names Barclays, HSBC, Lloyds, NatWest, ClearBank, Starling, LHV Pank and Modulr as IAPs 23.
The rule the sources establish in this area governs credit institutions’ dealings with payment firms: under regulation 105(3) of the Payment Services Regulations 2017, a credit institution that refuses a payment firm access to payment account services, or withdraws it, must notify the FCA 23. The PSR received 135 refusal and 153 withdrawal notifications in 2023 23.
The sources establish no UK rule that obliges an employer or merchant to accept a particular UK account.
If an employer refuses your account
In a July 2020 thread on Monzo’s own community forum, a supermarket employee reported that HR refused to pay wages into their Monzo account, calling it “a offshore bank account” that “government rules” barred, and told them to open another bank account 24.
On these facts, the “offshore” label does not fit: Monzo Bank Limited is registered in England and Wales and authorised by the Prudential Regulation Authority 5, and its FSCS information sheet says the FSCS protects its eligible deposits 1.
- Tell payroll that eligible deposits in your account are FSCS-covered, if they are, as at Monzo, Starling, Kroo, Chase UK or Revolut Bank UK Ltd 1, 2, 3, 4, 11.
- Ask your provider for help; in a November 2020 Monzo Community thread, a reply suggested contacting Monzo 25.
- Otherwise, have your salary paid into a second account: this guide’s sources establish no UK right to insist on a particular account.
Fees that matter
| Provider & plan | Fee source | Monthly fee | ATM | Foreign currency | Transfers | Card |
|---|---|---|---|---|---|---|
| Monzo: free account | Help page on fees abroad; accessed 29 September 2026 5 | Not stated | UK and EEA: unlimited fee-free if Monzo is your main bank, otherwise £400 every 30 days; outside the EEA: £200 every 30 days; then 3%; some ATMs charge their own fee 5 | Not stated | Not stated | Not stated |
| Starling: debit card | Blog post of 13 June 2023; accessed 29 September 2026 6 | Not stated | Abroad: no fees from Starling; withdrawal limit £300 a day, at home or away 6 | No fees from Starling; Mastercard rate when paying in local currency 6 | Not stated | Not stated |
| Chase UK: card | Chase’s travel page, accessed 29 September 2026 7 | Not stated | Not stated | No fees from Chase on card use abroad; current Mastercard rate on purchases in local currency 7 | Not stated | Not stated |
| Kroo: current account | About page; accessed 29 September 2026 4 | “no monthly account fee” 4 | Not stated | ”without foreign transaction fees” 4 | Not stated | Not stated |
| Revolut: Standard | UK plans page, accessed 29 September 2026 8 | Free; paid plans £3.99, £7.99, £14.99 or £55 8 | £200 or 5 withdrawals per rolling month fee-free, then 2% per withdrawal (min £1) 8 | “No additional fees” on exchange up to £1,000 a month, Monday to Friday; fee above that not stated; weekends 1% 8 | Not stated | Not stated |
| Wise: card | UK card pricing page, accessed 29 September 2026 16 | No subscription fee 16 | 250 GBP a month free, then 2.69% on the excess; some ATM providers may charge additional fees 16 | Variable fee: 3.29 GBP on 1,000 GBP to EUR in the page’s example, a 0.28% mark-up on the ECB rate 16 | Not stated | 7 GBP to order; digital card free; replacement 2.50 GBP, free if expired 16 |
On these facts, Starling and Chase UK charge no fees of their own on card payments abroad 6, 7, and Kroo says customers can “spend abroad without foreign transaction fees” 4. Monzo’s fee-free cash in the UK and EEA depends on whether Monzo is your main bank; on a free account, one of Monzo’s criteria is at least £500 paid into a Monzo account in your name over a rolling 35 days plus at least one active Direct Debit on that account 5. Each withdrawal counts against the allowance for 30 days, not until the start of a new month: in Monzo’s example, £150 taken on the 2nd and £50 on the 5th free up again on the 2nd and 5th of the next month 5. Revolut Standard’s £1,000 allowance applies Monday to Friday, with 1% on weekend exchange 8. Wise lists its conversion fee as a variable fee; 0.28% is only the page’s 1,000 GBP to EUR example 16. Zopa is omitted: the sources hold no verified Zopa fees.
Account freezes and complaints
What people report
This guide’s sources hold no verified report of a UK provider freezing an account, and no data on how often any provider freezes or closes accounts. The report on file is about payment acceptance: the July 2020 Monzo Community thread above, in which HR refused to pay wages into a Monzo account 24.
On these facts, a second account that your payroll accepts is a fallback; in the Monzo Community thread, HR told the employee to open another bank account 24.
The formal complaint path
The Financial Ombudsman Service describes itself as “a free service set up by Parliament to resolve complaints about financial businesses, for example banks or insurance companies” 26. It lists “Banking and payments” among the complaints it can help with, covering bank accounts, payments, cards, cash machines and other banking services, and separately lists how a bank or payment service provider handled a scam; it says official rules, linked to the FCA Handbook’s DISP 2, set out the full detail of what it can and cannot help with 26.
The Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (SI 2025 No. 688), made on 12 June 2025, set new notice rules, with exceptions, for a provider ending an open-ended account contract (in the regulations’ words, a framework contract concluded for an indefinite period) entered into on or after 28 April 2026 27:
- Open-ended contracts entered into on or after 28 April 2026: unless an exception below applies, the provider must give at least 90 days’ notice, explain its reasons, and tell you how to complain to the provider and about any right to complain to the statutory ombudsman scheme 27.
- Exceptions for those open-ended contracts: the notice requirement does not apply in listed cases, including when the provider cannot complete customer due diligence under the money-laundering rules, when section 40G of the Immigration Act 2014 requires closure, when it has reasonable grounds to suspect use in connection with a serious crime, or when the FCA, the Treasury or the Secretary of State require it 27.
- Open-ended contracts entered into before 28 April 2026: the provider may end the contract by giving at least two months’ notice, if the contract so provides 27.
The sources do not say whether these rules apply to a freeze that stops short of closing an account, or what the ombudsman’s time limits are.
Tax on interest and foreign accounts
Interest on UK accounts
GOV.UK’s guide, updated on 25 September 2026, lists three allowances for savings interest per tax year (6 April to 5 April): the Personal Allowance, the starting rate for savings and the Personal Savings Allowance, each depending on your other income 13:
- Personal Savings Allowance: £1,000 of interest tax-free for basic-rate taxpayers, £500 for higher-rate and £0 for additional-rate 13.
- Starting rate for savings: up to £5,000 of interest tax-free if your other taxable income, not counting savings interest or dividends, is less than £17,570; every £1 of other income above your Personal Allowance (£12,570 in GOV.UK’s example) reduces it by £1 13. You can have both allowances 13.
ISAs
GOV.UK: “In the 2026 to 2027 tax year, the maximum you can save in ISAs is £20,000” 28. GOV.UK’s ISA reform factsheet says that at Autumn Budget 2025 it was announced that from April 2027 the Cash ISA allowance would be reduced to £12,000, while the limit for non-cash ISAs would remain at £20,000 29; “The Cash ISA allowance for those aged 65 and over would remain at £20,000.” 29
Income from abroad
GOV.UK: “You usually need to fill in a Self Assessment tax return if you’re a UK resident with foreign income or capital gains.” 30 If you do not usually send a tax return, tell HMRC by 5 October following the tax year in which you had the income, by registering for Self Assessment; overseas income or gains go in the “foreign” section of the return, and HMRC’s guidance is in “Foreign notes” (SA106) 30.
Different rules may apply if you are eligible for Foreign Income and Gains relief, and before 6 April 2025 different rules may have applied if your permanent home (“domicile”) was abroad 30.
Whether interest on a foreign-currency balance held with a UK provider counts as foreign income is not stated in the sources.
Context
- Revolut launched its UK bank on 11 March 2026 with “an existing base of 13 million UK customers” 11.
- Monzo’s 2026 annual report gives 15.2 million customers after 3 million new ones in FY2026; 10.4 million monthly active users (+26%), 49% of whom use Monzo as a primary bank; and £25.7bn of deposits 31. The same report says Monzo launched in Ireland with a banking licence from the Central Bank of Ireland, and gives no UK-only customer figure 31.
- Starling’s results give 6.2 million “group platform accounts” in FY2026, up from 5.3 million in FY25 32.
- In a Final Notice dated 7 July 2025, the FCA imposed a £21,091,300 penalty on Monzo Bank Limited after a 30% settlement discount; without it the penalty would have been £30,130,475 33. The FCA found that from 1 October 2018 to 4 August 2020 Monzo breached Principle 3 by failing to design, implement and maintain adequate systems and controls to mitigate financial crime risks, in particular in onboarding and assessing the risk of customers 33. It also found that from 5 August 2020 to 30 June 2022 Monzo breached a requirement the FCA had imposed not to take on high-risk customers, opening 26,325 accounts for them in breach of it 33.
- Amounts in this guide are in pounds sterling (GBP), as the sources state them 12, 16.
What people in the United Kingdom ask
Are there dangers in switching to an app-only bank?
MoneySavingExpert forum, August 2017: “However, before I do so, are there any cons or dangers to consider? My concern is that, should I look to take out a loan or mortgage at some point in the future, I would be losing my track record with Barclays.” 34
The sources do not answer the credit-history question. On deposits, eligible deposits at Monzo and Starling are now covered by the FSCS up to £120,000 1, 2; a reply in the thread quoted the £85,000 limit of the time 34.
Can my employer refuse to pay wages into Monzo?
Monzo Community, July 2020: “When I contacted HR they claimed that monzo was a offshore bank account and due to government rules they cannot legally pay my wages into a monzo account” 24
On these facts, Monzo is not offshore: Monzo Bank Limited is registered in England and Wales and authorised by the Prudential Regulation Authority 5, and its eligible deposits are covered by the FSCS 1, 12. The sources establish no UK rule that obliges an employer to accept a particular account.
Why was my card rejected by the bank?
Monzo Community, November 2020: “Hi guys, I need your help im new employ and my card was rejected by the bank” 25
The post gives no reason. A reply suggested pressing “Help” and searching “Contact us” 25.
FAQ
How much does the FSCS protect?
Up to £120,000 per eligible person, per bank, building society or credit union, where the firm failed after 30 November 2025; banks that share a banking licence count as one 12. Qualifying temporary high balances are protected up to £1.4 million for six months 12.
Is my money at Revolut protected by the FSCS?
Yes for eligible deposits at Revolut Bank UK Ltd, the UK bank Revolut launched on 11 March 2026 11. Revolut said existing customers’ accounts would move to the bank in phased batches with at least two months’ notice, and that customers signing up from 11 March 2026 may still be onboarded to an e-money (EMI) account with Revolut Ltd 11; that March 2026 announcement is the latest source here, so whether the move has finished is not stated.
Is money in Wise protected like a bank deposit?
No. Wise says Wise Payments Ltd is not a bank and that its e-money and payment services are not subject to the FSCS; customer money is safeguarded instead 14. Wise states FSCS cover up to 85,000 GBP for money invested in Assets through Wise Assets UK Ltd 14.
Can I open an N26 or bunq account in the UK?
No. N26 announced that all its UK accounts would close on 15 April 2020 9, and the UK is not on its current country list 15. bunq says opening new accounts from the UK is paused, with Brexit in effect since 1 January 2021; existing UK customers can keep using theirs 10.
How much notice must a provider give before closing my account?
For an open-ended account contract entered into on or after 28 April 2026, at least 90 days, with the reasons and details of any right to complain to the statutory ombudsman scheme, except in listed cases such as when the provider cannot complete customer due diligence under the money-laundering rules 27. For one entered into before 28 April 2026, the provider may end it with at least two months’ notice, if the contract so provides 27.
Do I pay tax on savings interest?
Interest within your allowances is tax-free: the Personal Savings Allowance is £1,000 a year for basic-rate taxpayers, £500 for higher-rate and £0 for additional-rate 13, and the starting rate for savings can add up to £5,000 if your other taxable income is less than £17,570, shrinking as that income rises 13. UK residents with foreign income usually need to fill in a Self Assessment tax return 30.