Mobile Challenger Banks

jeandenham66

I've been using my normal barclays bank account (personal account) for as long as I can remember, I've never really looked at changing it due to it being so fixed in my life.


recently a friend of mine started using Starling and another swears by Revolut. Both look great, I wanted to know if anyone has switched over full-time to these banks and made them their main account? Also, I've heard that these companies have had down time in the past.


Call me old-fashioned, sometimes old is gold. Convince me otherwise?

colsten

Having more than one current account, at unrelated banks, is a good idea. Relying on a single one can have devastating consequences, as tens of thousands of customers of "old" banks like Natwest, RBS, Ulster and TSB have experienced. Barclays isn't immune, either. None of them is.

Be careful that any bank / account provider you choose has the full FSCS protection. Revolut, for instance, doesn't. Starling does. All the 'old' ones do. I would never keep any money in an outfit that does not come with FSCS protection.

ColdIron

I wouldn't have just one account and I certainly wouldn't switch my only proven account for an unknown quantity. Why not open one as well and see how you go? For my part I wouldn't want an app only bank as my main (whatever that means) account but others are OK with this. I opened a Starling account for using ATMs in Vietnam and Thailand last winter and it worked well enough. I haven't used it since though

System

I tried Starling and really wasn't impressed. Primarily I wasn't happy with the way they include uncleared transactions in your transaction list and running balance. I realise some people like that as they feel it gives them a clearer idea of how much money they have to spend. Unfortunately it doesn't work. Other pending transactions like offline transactions or direct debits are not included in the transaction list until they're debited - therefore unless you do some accounting elsewhere you are none the wiser. Likewise, where a store earmarks funds but has no intention of debiting them - like Amazon and Apple does occasionally, or a hotel - you will see these funds in the transaction list yet they will disappear a few days later. I found it thoroughly confusing to have some pending debits included but not others. It is, IMO, the worst possible way of doing things and really won't help those who are determined not to monitor their spending using basic accounting software, a spreadsheet or even a piece of paper.

Then I found I really didn't like a mobile-only interface. Screen estate is too small to be effective. I really prefer the Metro Bank mobile app which seems just as 'modern' and effective as Starling but you have a desktop version too should you wish to use it.

I tried it for a while then closed my account. It satisfied my curiosity but there is no way I would recommend it.

Fiona_CW

I really like my Starling account - I love the instant notifications, the app is great and unlike the previous poster I like the uncleared transactions showing in my transaction list. It is easy to check my direct debits and when they are due - I get a notification the day before so if there isn't money to cover I can transfer from my main account. My main account is with HSBC - my salary goes into there and most of my direct debits come out of it. I generally just leave enough money in it to cover direct debits plus a small buffer and transfer the rest to Starling. Also Starling pays interest which most current accounts don't do these days

jonnygee2

Starling is worth a try, definitely. Some people love app based banking (like me!), some people hate it, but it's so easy to set up an account you might as well give it a go.

Monzo is another one worth trying. Monzo has really good social features, so it's best used in conjuction with a partner or friends who use it (by social I mean making payment sharing easy!).

Revolut is really a travel card. It's not a registered bank in the UK. Although it claims to offer something like a current account, I personally wouldn't touch it with a barge pole as a main account.

System

Fiona_CW wrote: »

I really like my Starling account - I love the instant notifications, the app is great and unlike the previous poster I like the uncleared transactions showing in my transaction list.

I prefer the Metro Bank approach where you can see pending transactions should you wish but they're not included in your main transaction list or your balance.

I'm interested to know why people prefer to see them in the transaction list given there are other transactions due during the week/month which won't appear?

colsten

Fiona_CW wrote: »

Also Starling pays interest which most current accounts don't do these days

Whilst 0.5% AER is better than nothing, I doubt this would be enough to get people off their 1.5% / 3% / 5% AER accounts. Mind you, we still have legions of people who are happy with 0% AER.

jonnygee2

I'm interested to know why people prefer to see them in the transaction list given there are other transactions due during the week/month which won't appear?

Very few payments don't appear, though. Monzo, at least, tells you when your direct debits are due. Offline transactions - it's probably over a year since I made one of those (drinks on an easyjet flight probably!), not really relevant for day to day spending.

I really hate the 'pending' thing and the delay in transactions affecting your balance you get with older banks. To me, it's overcomplicating a simple thing (you have spent x, and have y remaining).

tryin

Sometimes there is a payment pending which doesn't get taken in the end. I just added a card to my amazon account, and it makes a £1 pending payment just to confirm the details are accurate, but the money doesn't come out. After a few days the charge is cancelled.

System

jonnygee2 wrote: »

I really hate the 'pending' thing and the delay in transactions affecting your balance you get with older banks. To me, it's overcomplicating a simple thing (you have spent x, and have y remaining).

But you don't have y remaining if y is just your Starling balance because there will likely be debits occurring through the month at various intervals (direct debits or continuous credit authorities) which you need to be aware of.

The other issue is that not all transactions are 'online', ie. made in a store with live access to the internet or through an internet store. Sometimes, for whatever reason, a transaction is made 'offline' - maybe on a train or aeroplane - and this won't be posted at all until it is actually debited. Using your debit card at a petrol pump will show a pending debit of £1 - the real amount will be shown a couple of days later. There are too many exceptions to make posting pending transactions immediately much use.

It is a problem for those of us who use software to monitor our spending. My software shows two balances - a cleared balance (what the bank sees) and my balance (what I have really spent or committed) which includes all my direct debits for the rest of the month, continuous credit authorities, pending payments etc.. Trying to use this with a Starling account is much more difficult than it need be. Only pending transactions made online and other debited transactions are shown in Starling's running balance.

For those who never bother to keep track of what they have available in their account I imagine it's a little better to have pending transactions appear. It is not good accounting though and smacks of amateurism. To me it doesn't feel like a professional outfit and they're trying to please those who take accounting less seriously.

As I mentioned before, Metro Bank shows pending debits in a separate list - which is much better solution and they're not included in the running balance until the actual debit is made.

It's not about 'older banks' vs 'new banks' it's about doing things properly and consistently.