Online banking vs using a branch

Banking in the UK now runs on four routes: an app, a website, the phone, and a branch counter. Most banks let you choose to apply in person or online, and you can usually open, run and close an account without ever visiting a branch¹. What changes between the routes is not the account itself but how you reach it, what you can do at a counter, and what happens when something goes wrong.

The direction of travel is one way. The number of bank branches and cash machines has been falling over the past decade, as consumers increasingly use online banking and digital payments³. For most people the practical question is no longer whether to bank online, but what to do about the handful of things a branch used to handle: paying in cash, sorting out a problem face to face, and getting help when a payment goes wrong.

The good news is that the money is protected the same way whichever route you use. FSCS protection for banks, building societies and credit unions is up to £120,000 per person per banking licence⁴. The differences that matter are in access, identification and complaints, and those are what this page sets out.

Ways to bank: app, online, phone and branch

Online banking is checking your balance, paying bills and transferring money via your smartphone, tablet or computer⁸. With most banks you can use it to check your balance any time of day or night, check your bank statements, transfer money between your bank accounts, send money to people you know, and set up or cancel direct debits and standing orders⁹. Most banks also have their own smartphone and tablet apps, so once you have set up online banking you can download your bank's app from the Google Play Store or the App Store⁹.

Branch banking offers a wide range of face-to-face and automated services, and to access certain services you may need to make an appointment, for example for a mortgage application⁸. Telephone banking lets you pay bills or transfer funds by landline or mobile phone without visiting a branch or cash machine, though call charges may apply⁸.

App-only banks sit at one end of the range. All banking is done through the app and you cannot go into a branch to speak to someone². That suits some people and not others, and it is the single clearest difference between the routes.

There is one group for whom the route matters more than most. Most banks give telephone and online access plus branch instructions to an attorney acting under a power of attorney, but only a small number of banks will give access to the mobile app¹⁰. If you are arranging access for someone else, that is worth checking before you choose where to bank.

Opening an account online or in person

To open a bank account you usually have to fill in an application form, and you can usually do this online, using an app, over the phone or in person, depending on the account you have chosen¹. Most banks let you choose to apply in person or online². Basic bank accounts are slightly different: you will often need to apply for one of the bank's other accounts first, such as their standard current account, and you can usually apply online, by phone or in a branch⁶.

If you are applying online, expect the process to include registering on the bank's website, entering personal details, answering identity verification questions, entering an activation code sent by post or text, and setting up a username and secure password or passcode⁹. To access online banking you must already have an account with the relevant bank, so the online registration comes after the account is open, not before⁹.

Eligibility is broadly the same whichever route you take. You typically need to be aged 18 or over and a UK resident¹. Some online banks offer a current account where you do not need proof of address, which can help if your paperwork is thin².

One practical step before you apply: register to vote with your local council, as some banks use this as part of their checks, and check your credit score and correct any errors before applying¹². It costs nothing and it removes one common reason for a delay.

ID you need: a passport, driving licence or a photo

Most banks will ask for a driving licence or passport to prove your identity, or a photo of these if you are applying online, often along with a selfie¹. You usually have to show the bank two separate documents that prove who you are, for example your passport, and where you live, for example a recent bill¹³.

If you do not have a passport or photocard driving licence, ask the bank what forms of ID they will accept before you try to open an account¹⁰. Banks may accept other documents, such as letters from the DWP, HMRC, JobCentre+, your local council, a GP, a minister of religion, a social landlord, an armed services officer, a warden, a care home manager, an employer, a college or a training provider⁶. Where the standard documents are missing, a letter from a responsible person such as a GP, teacher, social worker or probation officer may be accepted instead¹³.

There is a separate route for people who cannot get a bank account at all. If you are entitled to court funds held for you, you can apply for them when you turn 18 using proof of identity, for example your passport, and either a copy of a bank statement or a letter from your bank dated within the last 3 months¹⁴.

Fees and charges are the same whichever way you bank

The route you use does not change what the account costs. What drives charges is the account type and what you do with it. A current account is for managing money day to day, including paying bills, receiving money such as salary or benefits, and keeping track of spending¹³.

The main charges to know about are these. Using an overdraft costs daily interest, often up to 40% APR until paid back¹. There is a fee if you do not have enough money to cover a payment, usually called an unpaid transaction fee¹. Using your debit card abroad usually brings a foreign exchange fee, often around 3% of the transaction amount, plus a spending or cash machine charge, typically between £1 and £3 each time you use your card, except for Euros in the EU¹.

Basic bank accounts work differently. Because there is no overdraft facility, you will not be charged interest on the account, and there are no fees for returned direct debits or standing orders¹⁰. They still let you set up direct debits and standing orders, use a debit card to pay for items and withdraw money from a cash point, have income paid into the account, and check your balance at a bank, cash machine or online¹⁰.

If you are comparing accounts, the fees and charges page sets out what triggers each one, and overdraft charges explains how the interest is worked out.

Getting cash without a branch: Post Office and abroad

Post Offices offer simple banking facilities, such as withdrawing and depositing cash and cheques, for customers of nearly all banks⁸. According to UK Finance, 99% of retail banking customers can carry out basic banking at the more than 11,500 Post Offices across the UK⁵. An earlier figure put it at 99% of current account customers in the UK being able to access some banking services over a post office counter¹⁵.

Some banks will let you cash a current account personal cheque or use your cash card at the Post Office, free of charge, so it is worth asking at your local post office what your bank allows¹³. The banking at the Post Office page covers what each counter can and cannot do.

If you cannot get a bank account at all, most benefits are paid direct into a bank account, but a Post Office account or the Payment Exception Service may be available as an alternative¹⁶. The Payment Exception Service lets you get vouchers that you can swap for cash at a Post Office or PayPoint outlet, often found in a corner shop, loaded onto a payment card or sent by email or text message¹². It is for people who cannot get a bank or building society account, and you can collect your benefit or State Pension payment in cash by visiting a Post Office or PayPoint outlet¹⁶.

Fraud and scams: the most complained-about issue

The most complained about issue in relation to current accounts was fraud and scams⁷. In 2025/26, the Financial Ombudsman Service received 18,900 cases involving fraud and scams¹⁷. Consumers lodged 6,800 complaints about fraud and scams in the first quarter of 2025/26, compared with 8,800 cases reported in the first quarter of 2024/25¹⁸.

Banking fraud can occur through three channels: internet banking, telephone banking and mobile phone banking in-app¹⁹. Victims are most likely to report fraud to their bank or account provider, rather than the national reporting service Action Fraud or the police³.

What you get back depends on the type of payment. For unrecognised transactions, check your transactions and report any you do not recognise quickly, and you will usually get a refund if it is fraud¹. The Financial Ombudsman Service covers complaints about the way a financial business has dealt with a scam involving unauthorised payments, stolen details or identity theft²⁰.

There is a protection gap worth knowing about. If you use open banking to make a payment to a business directly from your bank account, instead of using a debit or credit card, you lose Section 75 and chargeback²¹. Paying by bank transfer generally means it is harder to get your money back, and you have much less protection if something goes wrong²².

FSCS protection: up to £120,000 per person

Your money is protected by the Financial Services Compensation Scheme if your bank, building society or credit union goes out of business. FSCS protection for banks, building societies and credit unions is up to £120,000 per person per banking licence⁴. The scheme gives you automatic protection up to £120,000 if your bank, building society or credit union goes out of business²³.

The limit rose recently. It protects up to £120,000 of savings per individual, per financial institution, and before 1 December it was £85,000²⁴. Some older material still quotes the previous figure of £85,000 per person per bank, so check the date on anything you read²⁶.

Two details change what the limit means in practice. First, banks can share a banking licence, so money held in two brands under one licence counts together towards a single £120,000 limit²⁶. Second, business accounts are treated separately: if your business is a separate legal entity, such as a limited company or LLP, you could claim up to £120,000 for each account²⁶. Credit unions work the same way as banks here: FSCS protects up to £120,000 in total across all accounts you hold with the credit union²⁷.

The FSCS protection page explains how shared licences affect the total, and what happens if your bank goes out of business covers the process step by step²⁴.

How to complain and where to get help

Start with the bank. Complain to customer services, then make a formal complaint, and give the bank eight weeks to investigate and give a final response²⁸. The deadlines differ by subject: if the complaint is related to payments, the bank has 15 days to investigate and give a final response, and if it is about anything else, it has eight weeks⁶.

If you are unhappy with the outcome, or the bank has not responded in time, you can take it to the free Financial Ombudsman Service²⁸. Complaints can be sent via the ombudsman's website, using an online form that guides consumers through the information needed²⁹. You can also contact the Financial Ombudsman Service if you are still unhappy after raising a payment issue with your provider³⁰.

Some complaints are specific to the way you bank. If you shared your data with a third-party provider through open banking and something went wrong, complain to that provider first, and if they do not resolve it you can lodge a complaint with the Financial Ombudsman Service²¹. If you were turned down for a basic bank account and were not told why, or feel you were turned down unfairly, you may be able to complain to the Financial Ombudsman Service¹⁰. If you feel a complaint about your credit file has not been resolved fairly, you can escalate it to the Financial Ombudsman Service³¹.

Branch closures do generate complaints. The ombudsman has seen a small number of complaints about lack of access to in-person banking from micro-enterprises and small businesses, including about branch closures and problems with banking hubs, and from small businesses unable to deposit cheques at the Post Office with no local branch³². In one case, a customer complained about his local branch closing; the bank said he could have gone to the branch in the next town, or made the transfer using either telephone or online banking, both of which he was registered for³³.

For free, impartial help with money problems, MoneyHelper offers guidance on banking, benefits and complaints. If a complaint is about a claims management company rather than a bank, the Claims Management Ombudsman takes complaints online or by calling its helpline, and cannot speak to you in person at any of its offices³⁴.