How To Open a Bank Account in the UK

How to open a bank account in the UK 

Welcome to the world of secure and convenient banking! If you're looking at how to open a bank account in the UK, you've come to the right place. 

With a wide range of options available, you can choose the account that best fits your financial needs and goals. Whether you're a resident, student, or business owner, there's a perfect bank account for you. In this guide, we'll take you through the steps to open a bank account in the UK, from choosing the right account to submitting the necessary documents. It is important to know the process of how to open a bank account in the UK for non-residents. 

So, let's get started!

Types of bank accounts

The financial world offers a variety of bank accounts, each serving a distinct purpose. In this section, we will look into the primary types of bank accounts and their intended usage.

Current Accounts

A current account is a helpful tool for managing your finances on a daily basis. It allows for the payment of bills, receipt of income, and monitoring of expenditures. Some current accounts offer interest on the account balance, though this rate is typically lower than other savings accounts.

Savings accounts

In the UK, savings accounts provide a safe and secure way to store your money for future use, whether it be for unforeseen circumstances, big-ticket purchases, or simply for saving purposes. By depositing funds into a savings account, you'll earn interest on your balance, allowing your funds to grow over time. Here are some of the tips and tricks for saving money.

Basic bank accounts

In the UK, those with low credit scores or low income may face difficulties in setting up a conventional current or savings account. This also applies to individuals who currently have an overdrawn current account. Fortunately, for those facing these challenges, a basic bank account in the UK may be a viable solution.

Joint accounts

In the UK, it is possible to establish a bank account with multiple individuals. This can be a practical solution for managing household finances with a spouse, partner, or someone you reside with. Establishing a joint bank account in the UK offers a convenient way to jointly manage expenses.

Choosing a bank

Unfortunately, determining the best option for a UK bank account can be a complex decision as the banking industry in the UK is highly competitive, offering a diverse range of products to cater to various customer segments. On the one hand, this variety is beneficial as it increases the chances of finding a suitable bank account that meets the specific needs of students, professionals, or businesses. On the other hand, it's essential to consider personal circumstances, preferences, and the purpose of the account when making a decision.

Things to consider when choosing a bank

Before you open a bank account in the UK, as a newcomer to the country, you may find it challenging to open a bank account due to your limited credit history and lack of documentation. While some banks enforce strict requirements, it's typically easier to open an account with one of the UK's largest banks, such as Barclays, Lloyds, HSBC, or NatWest. These institutions have a long operation history and are highly secure, with extensive experience in serving foreign customers and more understanding of your situation.

Your nationality also plays a significant role in the process of opening a bank account in the UK. EU nationals may find it easier to open an account compared to individuals from non-EU countries. To ensure a smooth process, it's recommended to contact customer support before attempting to open an account. This way, you can gather more information and clarify any potential obstacles.

Things to consider before opening a UK student bank account

Here are the things to consider before you open a bank account in the UK:

•  A multicurrency account can be beneficial because there may be no conversion fees.
• In the age of handy mobile phone-based banking accounts, enable maximum security features such as fingerprint recognition and two-factor authentication (2FA) where available.
• You might need to schedule an appointment with a traditional bank at your preferred branch, which may take some time.
• If you need to extend your student visa, ask your bank for a posted monthly statement.
• Some international student accounts may cost an opening or monthly fee, depending on the type of account.
• Inquire about any fees imposed if you intend to receive funds abroad.

International students will also need to be mindful of forex rates while they take care of their finances. For more information on Forex, check Forex Explained: Exchange Rates, Forex Cards and More. 

How to choose a UK student bank account?

Before you open a bank account in the UK, consider the following when looking for the most acceptable graduate bank account for your needs:
1. Overdraft protection for students.
2. Select the most extended 0% interest overdraft period available.
3. Examine the linked benefits of opening an account with a specific bank.
4. Before applying, check your credit score.
5. Create a plan to pay off your student overdraft quickly.
You'll have more flexibility with these than with a basic account, but there may be a monthly account charge or a minimum balance requirement. In exchange, you could receive benefits such as free international money transfers or foreign cheque deposits. However, it is still improbable that you would receive any credit for this choice. If you created an international student bank account in the UK at the beginning of your degree, it would be converted to a graduate bank account.

How much does it cost to open a bank account in the UK?

This is a variable factor when it comes to opening bank accounts in the UK. The cost to open a bank account in the UK actually depends from bank to bank. On a general basis, current accounts that are offered by major banks in the UK are mostly free of cost, and they do not charge customers for the same. These accounts typically also include debit cards which mean the debit cards are not charged extra apart from the charges prevailing within the banks. 

Regarding international transfer charges through bank accounts in the UK, the banks mostly charge for services while sending money abroad. These charges can vary based on various factors, including the total amount of transfer, the destination country, and the method which was used to make this transfer. The exchange rate may also apply, which can impact the total cost.

How to open a bank account in the UK

Every process begins with confirming your identity; let it be a Google captcha that confirms that you are not a robot or a bank! 

The good news is that opening a bank account in the UK is a cakewalk! It is surprisingly a very easy 3-step process. 

Gather your documents 

The first step in how to open a UK bank account is to accumulate all your important documents. Most of the banks in the UK would ask you to present some sort of proof to verify and confirm your identity. 

Some of the most commonly asked documents for opening a bank account in the UK include 

• Government Identity card,
• Driver’s Licence, 
• A passport 

Other important documents that you require would be your residency proof. Many banks in the UK have this added security measure to ensure that accounts aren’t opened for illegal or money laundering purposes. So, any document with your name and address, like a utility bill, tenancy agreement, or council tax bill, is valid. Voila, you have covered the most frustrating part of your how-to open a bank account in the UK process. 

Fill in your application form.

The second step on how to open a UK bank account is filling out an application form. This application form can be filled out either online or offline at the bank at which you wish to open an account. While you are researching, be aware of how to open a UK bank account online. 

Final call

After you have submitted your application and documents, the bank will screen your profile to see if you are eligible to open an account at their bank. The bank usually lets you know if they have rejected or accepted your application. If the bank rejects your plea, you can reach out to the bank to understand the reason and the ahead procedure. Don’t worry it wouldn’t be as stressful as your university application process! 

Managing your bank account in the UK

After opening the bank account in your chosen bank and in their respective branch, you must manage it. Some banks also have a protocol for the users to maintain a minimum amount in the account. The students in the UK must be aware of the rules and protocols that the bank follows to maintain it well. One of the most important parts of managing your bank account after opening a bank account in the UK is to:

Set up online banking: Explore the online banking services in the bank where you have opened your bank account. This would ease your banking experience as it allows you to manage, pay, and track transactions more conveniently from anywhere in the world. 

Student offers or discounts: Take advantage of the student offers and discounts the bank offers. Always make sure you have your student ID at hand while exploring such options. 

Be aware of the fees and charges: Familiarize yourself with the fees associated with your bank account. These may include transaction fees, overdraft charges, international transfer fees, and ATM fees. Understanding the fee structure will help you avoid unnecessary expenses.

International Transfers: As an international student in the UK, having international money transfers and transactions will be quite common for you. Although, always go through and consider the options your bank provides for international transfers. The fees are the exchange rates, and choose the most cost-effective way to do the same.

Seek Financial Advice: Seek advice from financial advisors and consider contacting the university’s financial support services available for students. This will make it easier for you to sort your finances out, especially since you are in a completely new country. This will also help you sort your budget and deal with other student-centric financial issues. 

International Transfers

Many factors come into play regarding international money transfers for students studying in the UK. After sharing your bank details with the sender, ensure accuracy to avoid any type of complications. After this, verify the method through which the sender/receiver is going to go by with the transaction. They have multiple options at hand, such as bank-to-bank transfers and an online transfer service. There are several other options, such as PayPal or TransferWise. 

Can a foreigner open a bank account in the UK?

The short answer to this question is yes! 

If you are a foreigner or an international student, you can open a bank account in the UK. Here is how to open a bank account in the UK for non-residents. The process on how to open a bank account in the UK as an international student is the same as a UK national. 

However, foreigners and international students should remember that they might not have enough proof to prove their residency. Even though this isn’t necessarily a hurdle, banks in the UK have made it easier for foreigners and students for this step

Instead of utility bills, tenancy agreements, or council tax bills, students and foreign workers can produce the following documents instead: 

• A letter from the university office (In the case of a student) 
• A letter from the employer (Incase of working employee)

Regarding identification, you can show your valid passport or visa will suffice the need to prove your identity.

Benefits of Opening a Student Bank Account in the UK

• You won't be charged currency conversion fees if you withdraw money
• You will be issued a debit card which you can use everywhere instead of cash
• You can withdraw money 24/7 from any ATM
• You can register for telephone and Internet banking
• Crediting money will be easier for your employer if you have a UK bank account
• Using a bank card to make purchases is the most common way to make payments in the University and the UK. Some retailers and outlets do not accept payment in cash.

Requirements for opening a bank account in the UK

To open a UK bank account, you’ll need two documents: one to prove your identity and one to prove your address. This applies both in-branch and online.

Proving your identity is simple. You just need your passport, driving license or identity card (if you’re an EU national). You’ll also have to prove your address by providing another document. Every bank has its own list of acceptable documents as proof of address. Broadly speaking, these include

1. a tenancy agreement or mortgage statement;
2. a recent electricity or gas bill (less than 3 months old);
3. a recent (less than 3 months old) bank or credit card statement that’s not printed off the internet; or
4. a current council tax bill.

Requirements for a UK student account

When opening a UK student bank account, you should confirm the specific criteria with your chosen bank when you apply. Some of the basic documents you will require while applying for a UK student bank account are 

1. A passport
2. A valid visa for your studies
3. Proof of acceptance to your university's programme
4. Evidence of your UK address
5. What are the Best banks for a Bank account in the UK?

What are the Best banks for a Bank account in the UK?

Here are some of the best banks to open an account within the UK: ‍

1. Barclays

Barclays, one of the UK's oldest banking institutions, boasts over 1500 branches nationwide. If you're new to the UK and seeking to open a bank account, Barclays offers a straightforward process. You can even pre-apply for an account online prior to your arrival in the UK. Upon approval, your new Barclays bank account will come equipped with a complimentary contactless Visa debit card and will not incur any fees. However, to activate your account, you must visit a Barclays branch in person and present your reference number, passport, and proof of address. It is also named one of the best banks for international students in the UK.

2. Lloyds

Lloyds, the top provider of current accounts in the UK, operates approximately 1100 branches nationwide. As a newcomer to the UK, you can easily open a bank account with Lloyds. They offer a special " New to the UK '' account that requires only a passport or EU identity card for setup. This account is complimentary and comes equipped with a standard contactless Visa debit card. As Lloyds provides ease of banking with its smooth services, it is known to be one of the best banks for international students in UK.

3. HSBC

HSBC boasts over 1100 branches throughout England and Wales and a smaller number in Scotland and Northern Ireland. Its greatest strength lies in its worldwide presence, operating in 64 countries. If you are already an HSBC customer in your home country, they can assist you in setting up a UK bank account before your arrival. The basic current account at HSBC offers basic day-to-day banking needs with no monthly fees and a convenient contactless Visa debit card. Withdrawals up to £300 per day are allowed, but it's important to remember that this account doesn't include an arranged overdraft. HSBC has a global presence, making it a number-one name in the banking industry and thus making it one of the best banks for international students in UK.

4. NatWest Group

As a holder of a UK Select current account, you enjoy free usage and receive a standard contactless Visa debit card. In case of a lost or stolen card, you can still access your funds through the emergency cash service by simply providing a security code. The bank's customer support team can assist you with your application and answer any questions through a live chat.

Best banks for students in the UK

There are many different banks in the UK for you to choose from. To make your choice easier, we have highlighted some of the best banks to choose from when you open a UK student bank account. Here are some of the best banks for students in the UK:

1. Barclays

Go for The Barclays Student Additions Account (International) if you want to send and receive money from overseas, as it is the best bank for students in the UK. It also offers some of the top UK bank current account deals. You must be 18 and enrolled in a two-year undergraduate or one-year postgraduate course in the UK to qualify for this bank account. This account's sending and receiving costs are among the lowest. There is a £6 transaction fee when sending/receiving money outside of Europe or when it exceeds the £100 limit. Because of these factors, Barclays has become one of the best banks for students in the UK.

2. HSBC

An HSBC Basic Account, while not designed exclusively for overseas students, can be opened by anybody with an EU address. It makes it simple for international students in the UK to have a bank account. Account holders can send money to other HSBC accounts for free and non-HSBC accounts in euros. The basic bank account does not allow for overdrafts. Therefore, stay within your financial constraints. To qualify for an HSBC Basic Account, you must reside in the EU, be older than 16, and have no other accounts in the UK. HSBC is one of the best banks for students in the UK.

3. Lloyds

The Lloyds Classic Account is one of the best banks for students in the UK for an overdraft facility. The facility is free to set up, but there is a daily fee when you use the facility. As with many other international student bank accounts, sending and receiving money in Euros is free. You must have a UK address, be over 18 and be able to stay in the UK for at least one year to be eligible for this bank account.

4. Natwest

The Natwest International Student Account is one of the few bank accounts only accessible online in the United Kingdom. It is the UK's second-best bank for students in the UK. This account is mainly available to international students studying in the United Kingdom. With this bank account, you can send money abroad for free. Furthermore, you get to choose one of three options:

1. a year of Amazon Prime student membership
2. a four-year national express card with a third off all coach travel
3. a four-year free tastecard with a 50% discount on food in restaurants throughout the UK

You must be 17 years old or older and have lived in the UK for fewer than three years to qualify for this bank account. The Natwest International Student Account is among international students' best UK bank accounts. 

That was all you need to know about how to open a UK bank account. We know that moving to a new place can be daunting, so we’ve tried our best to help you make a smooth transition! We hope you’ve found this blog useful and feel better prepared to take on your finances in a new country. For more helpful resources on how to manage your finances as a student, click here!