Challenger banks in recent years have been all the rage in the finance world- giving a modern face to an otherwise traditional space.
We’ve seen the likes of Starling and Monzo gain much attention despite the fact they are merely a few years old.
Now although Cashplus hasn’t received as much notoriety as some of its competitors, is that warranted?
Particularly when Cashplus finds itself in the unique position of being the first example of a challenger to the ‘big four’.
That today, is the question we are going to answer with this comprehensive Cashplus review.
What Is Cashplus?
Cashplus is what’s known as a challenger bank- a rival of the bigger, more established banks like:
- Barclays
- Lloyds
- HSBC
- Natwest
Cashplus can be thought of as a fresher alternative to its traditional counterparts.
A fresher alternative that just so happens to have been founded in 2003- making it the oldest challenger bank in the Uk.
Cashplus originally started out by offering prepaid debit cards for general purposes- the first of its kind in the Uk.
Continuing this trend they rolled out the first credit builder product in Europe (2008) and the first instant approval business current account in 2013.
Since then, they’ve focused on expanding their user base to over 1,600,000 customers.
How Does Cashplus Work?
Cashplus works just as any other banks do- the only difference being that they are an app-only bank.
In other words, you’re not going to find a Cashplus bank on your local high street.
Instead, you’ll manage your finances through their app or online.
You’ll be able to do things like:
- Set Up Direct Debits
- Manage Standing Orders
- Build Your Credit
- Send Payments
A Cashplus card will be sent to you via the post after you sign up.
It’s worth noting that all Cashplus cards come with contactless functionality and can easily be paired with Apply pay.
A list of money management features will also be made available after your account is set up.
Cashplus Features
Lock Your Card- Easily lock/unlock your card via the app
Categories– Categorise your spending
Pay Someone- Send payments to new or existing contacts
Credit Builder- Potentially increase your credit by repaying a loan from Cashplus
Idraft- Overdraft access (Optional feature)
Payment History- View your payment history all in one place
Support- Reach support simply through the app
Account Types
Cashplus offer both a personal and business account- both of which you can sign up to in minutes.
Let’s first take a look at the numbers involved with a business account.
| Cashplus Business Bank Account | |
|---|---|
| Card Issue Fee | Free |
| Uk Purchases | Free |
| Account Fee | £69/year |
| Electronic Payments & Transfers (Including Standing Orders) | First 3/Month Free Then £0.99 each time |
| Direct Debits | Free |
| Additional Cards | £5.95 |
| Depositing With Cash At Post Offices | 0.3% Added To Total Amount Paid In (£2 Minimum) |
| ATM Withdrawals (Uk) | £2 |
| ATM Withdrawals (Abroad) | £3 |
| Deposit Via Bank Transfer | Free |
A personal bank account with Cashplus is split into 3 different plans.
Below you can find a side by side comparison of what each has to offer.
| Activeplus | Flexiplus | Deluxe | |
|---|---|---|---|
| Card Issue Fee | £5.95 | £5.95 | £5.95 |
| Uk Purchases | Free | £0.99 Each | Free |
| Monthly Account Fee | £5.95 | Free | £9.95 |
| Electronic Payments & Transfers (Including standing Orders) | Free – up to 9 each month1 | £0.99 each | Free |
| Direct Debits | Free | £0.99 each | Free |
| Additional Cards | £5.95 | £5.95 | £5.95 |
| Depositing With Cash At UK Post offices | 0.3% fee will apply to the total amount paid in (minimum £2) | 0.3% fee will apply to the total amount paid in (minimum £2) | 0.3% fee will apply to the total amount paid in (minimum £2) |
| ATM Withdrawals (Uk) | £2.00 | £2.00 | Free |
| ATM Withdrawals (Abroad) | £3.00 | £3.00 | £3.00 |
| Deposit By Bank transfer | Free | Free | Free |
Is Cashplus Safe?
Cashplus is regulated by the FCA meaning they must adhere to strict rules and regulations.
The job of the FCA is to:
- Uphold The Integrity Of The UK Financial System
- Safeguard Customers
- Promote healthy Competiton
If Cashplus was to go bust for any reason, your money would be protected by the FSCS up to £85,000.
On top of these factors, Cashplus also has in place a whole host of security systems to ensure your data and money is protected.
You can find out more about Cashplus’s security and privacy policies here.
Cashplus Reviews
According to Trustpilot, Cashplus has an overall score of 3.6 out of 5.
This score is made up of over 5,500 reviews from customers-a healthy and largely representative number.
It’s worth noting that 47% of the Cashplus reviews are rated Excellent and 35% are rated as bad.
A strong disparity such as this indicates what I like to call the ‘marmite phenomena’- you either hate them or you love them.
Positive Cashplus reviews include things like:
- Overall good service
- Fast and easy-to-use app
- My business account was set up quickly
Negative Cashplus reviews include things like:
- Issues transferring funds
- Account restriction with little to no warning
- Long wait times for a response
Cashplus Competitors
Cashplus vs Starling Bank
Starling Bank is arguably the front runner in the conversation for best challenger bank in the Uk.
Having won the Best British Bank prize 3 years in a row, it’s hard to compete with the likes of Starling.
What I will say, however, is they do share some similar features and are constantly pushing to bring innovative products to their customers.
It’s also worth noting that Cashplus is in the unique position of offering users its credit building feature- one which could potentially be of high value to some of you.
But if you are to look at both as an overall package, Starling Bank is:
- Cheaper (In Fact It’s Free)
- Full Of Money Management Features
- Better Reviewed
Related: Starling Bank Review
Cashplus Vs Monzo
While Cashplus prides itself on being simple, Monzo likes to bring more to the table.
Monzo has some of the best money management features including:
- Salary Sorter
- Pots
- Budgets
When it comes to controlling your finances, Monzo gives you more in the form of useful tools such as those noted above.
Cashplus is more targeted at those of you who are looking for a bank that ‘does what it says on the tin’- providing you with what you expect.
Related: Monzo Review
Cashplus Vs Revolut
Revolut, like prior competitors mentioned above, offers more features than Cashplus overall.
Revolut cards allow you to:
- Split Bills
- Invest In Various Investment Products
- Set Budgets
- Implement Roundups
Where Revolut particular shines, however, is when you take their card abroad.
Although Cashplus cards can be taken abroad, you’ll still have to pay fees for things like:
- ATM Withdrawals
- Spending
- Sending Money Abroad
Therefore I would suggest if you travel abroad or send money abroad frequently, Revolut is the better option of the two.
Related: Revolut Review
Cashplus FAQS
How To Close A Cashplus Account?
Contact support and request they cancel your card.
Is Cashplus A Bank?
Cashplus obtained its full banking licence in February 2021.
Who Owns Cashplus Bank?
Advanced Payment Solutions Limited.
Does Cashplus Do Any Credit Checks?
No, Cashplus does not check your credit history.
Can I Pay Cheques Into My Cashplus Account?
No- you can’t currently issue or cash in cheques with Cashplus.
Conclusion Of This Cashplus Review
Now that this Cashplus review is drawing to a close I hope you have enough information to make an informed decision about whether or not it’s right for you.
For me, Cashplus is a good fit for those of you who are looking to improve/rebuild your credit score, with few questions asked.
Aside from that, I see competitors beating Cashplus on every other aspect.
You can quite easily find challenger banks that offer:
- Lower Prices
- More Features
- Better Customer Service
That leads me to believe Cashplus has been outgrown in recent years but their fresher, trendier and cheaper competitors.
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