So-called challenger banks... any good?

[jonspectre]

I'm doing an annual review of my personal banking arrangements, and I can see that the retail banking world has moved on considerably since I last looked a year or so ago.

Aside from the multitude of usual offers from big-named banks, I've noticed that more and more of the so-called challenger banks are now getting a mention and are becoming far more popular.

In the past I've had a variety of packaged accounts (travel insurance, breakdown cover, etc.) and came to realise that they aren't usually particularly good value. This last year I've been with Santander 'Select', which is okay, but I've only once had call to use my 'relationship advisor'. I take advantage of the 1.5% interest on balances up to £20k, but as I don't really need access to these funds I could place most of the balance on deposit at a much better rate elsewhere. I do use the World Elite card a lot for access to airport lounges, but haven't so much recently so it's not a deciding point.

I think I just want a bank account where our salaries can be paid into, investments can be transferred out and then direct debits and debit card payments can come out of. Rinse and repeat every month. The challenger banks seem to be able to offer all of this and more.

Does anyone use one or more and recommend (or not?).

[colin79666]

I get on fine with Starling. 0.5% interest on small balances and fee free foreign transactions were the attractions to me. The app is good and does near instant notifications of any spending along with enabling you to turn off online transactions, atm withdraws etc. for extra security. Everything is done in the app, including opening the account which took about 5 minutes.

The cherry on the cake is that it is a proper UK registered bank headed up by someone with a background in banking and technology, not some dodgy character registering elsewhere.

[Jimmy Recard]

I'm with Starling for my main current account and it seems good. I signed up mainly for using the card abroad and that was more than a year ago. No complaints from me

[williaa68]

For what you are looking for a combination of Nationwide flex plus and Santander 1,2,3 would seem to be unbeatable by any of the chalengers. The benefits on flex plus more than pay the monthly fee (IMHO), and the 123 more than pays for itself with both interest and cashback on council tax, utilities etc?

[mikeiow]

williaa68 said:

For what you are looking for a combination of Nationwide flex plus and Santander 1,2,3 would seem to be unbeatable by any of the chalengers. The benefits on flex plus more than pay the monthly fee (IMHO), and the 123 more than pays for itself with both interest and cashback on council tax, utilities etc?

I’d agree with this.
I do have a Monzo & Starling, & both are fine..... but I find I “need” my finances on a big screen to really manage it: I use the Monzo as a beer card (thus monitoring my frivolities!), & both give low cost foreign exchange rates and some free foreign cash withdrawals.