Opening a UK bank account as an international

Choosing a new bank after moving to the UK can be intense with so many choices. In this guide, we’ll discuss the best bank accounts in the UK to help you decide!

Ellie

6 minute read

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18 Jul 2024

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Living

Picking just one bank of the 350 banks in the UK can be daunting as an international having just moved to the UK. Knowing what to look out for, how to open an account and how to use your new bank is crucial in choosing a bank. To make your decision easier, we’ll walk you through:

• Who needs a UK bank account
• The types of UK bank accounts
• How to open a UK bank account
• The best UK bank accounts for expats

A UK bank account is essential for internationals who plan to stay in the UK long-term. There’re certain workarounds that you can pursue if you already have an online bank that functions internationally (like Revolut, for example). But for convenience and safety, having a local and certified bank account is your best bet.

You’ll typically need a UK bank account for salary payments, utility bills and to get your UK SIM card. If you’re used to dealing in a different currency, having a UK bank account will help you quickly adjust to the British Pound while avoiding exchange fees.

Anyone can open a UK bank account regardless whether they’re resident or non-resident. However, most banks will require you to provide proof of your current UK address when opening your account.

Different types of UK bank accounts cater to the varying needs of the account holders. Let’s look at the different types of bank accounts to help determine which is best for you.

Current account

A current account is the most common bank account used by locals and internationals in the UK. A current account allows you to complete everyday transactions like paying utilities, grocery shopping, receiving your salary, etc. When you open a current account, you’ll receive a debit card, and the monthly fees to run a current account are usually very low, if not free. Some current accounts will have overdraft and credit card facilities too.

Savings account

Savings accounts offer a higher interest rate on the money added to your account; however, they typically have a minimum deposit requirement. You may also be required to keep the money in the account for a minimum length of time. This ensures you have money set aside for a rainy day. A current and savings account will go hand-in-hand, and you can usually open them at the same bank.

Basic account

If you have bad credit or find it difficult to open a current account, you may be able to open a basic account. This account type is similar to a current account as it allows you to receive a salary and complete payments using a debit card or direct debit. However, with a basic account, you won't be able to get a credit card, have an overdraft, or get a loan. Your basic account can be converted to a current account later on once your credit improves.

Student account

A student bank account is a current account designed specifically for students with some additional benefits. You’ll pay lower (or usually no) fees to hold the account. Many student current accounts offer interest-free loans and overdrafts, and there’re often great freebies or discounts offered alongside a student account.

Typically, you can open a UK bank account in person at a local branch or online. As the UK has many partnered banks worldwide, you may be able to use your current bank account from your home country to open a bank account in the UK. Check out if your bank is eligible for this, and they’ll do most of the setup for you!

If your bank isn’t partnered, don’t worry. It’s very easy to set up your UK bank account. You’ll need to complete the application form of your desired bank and submit a credit check, if applicable. Your bank account usually opens in 1 to 2 business days.

While each bank will have its own requirements for opening an account, most will require you to have the following documents:

• A valid form of photo identification
• A recent utility bill to prove your UK address
• A current bank or credit card statement
• A work contract or payslip (if you’re employed)
• Evidence that you’re studying in the UK (if you’re a student— this can be your proof of enrolment)

As a non-resident of the UK, you can still open a bank account if you meet certain requirements. You’ll have fewer banks to choose from, but some of the bigger banks provide services to UK non-residents.

The main requirement that most non-residents will need help with is providing current proof of address in the UK. Certain banks will accept that you cannot provide this and ask for some alternative documents, such as:

• Proof of residence in your home country
• Your Tax ID from your home country
• Proof of existing bank account in your home country

You’ll also need to provide the same documentation required by residents of the UK:

• A valid form of photo identification
• A current bank or credit card statement
• Proof of employment or active education

Whether you prefer a traditional or an online bank, you’ll find something to suit your needs in the UK. Keep in mind your requirements for a bank account as you compare different UK choices.

The best traditional UK banks

The top 3 traditional banks in the UK are:

• 1. HSBC: One of the UK’s biggest international banks, choosing HSBC may save you a lot of hassle in setting up your bank. As HSBC operates in over 80 countries, you can take advantage of their international reach. HSBC offers a number of free current accounts, basic and saving accounts, and even free foreign currency accounts for certain currencies. They offer accounts for non-residents and have excellent mobile banking with their app. However, HSBC's customer care has ranked quite poorly in recent years.

—2. NatWest: One of the most popular UK banks with over 900 branches, NatWest is incredibly popular with locals and expats. NatWest offers “Cash Management” accounts to help you complete international transfers, but you’ll have to pay fees. NatWest offers a number of free current accounts and savings accounts. NatWest offers a “Select” account for non-residents, which you can open online.

• 3. Lloyds: Lloyds is another popular bank amongst expats and locals in the UK. With Lloyds, you can open a basic, current or student account free of charge with no monthly fees. You can also open a savings account. Lloyds offers a premium current account to avail of insurance benefits and credit-related perks. Lloyds also has account options for non-residents. While Lloyds do offer free international transfers with an international account, you must earn £25,000 minimum per year to open this account.

The best online UK banks

The top 3 online banks in the UK are:

• 1. Monzo: Monzo ranks highest amongst all banks, including traditional banks, in the UK regarding customer satisfaction. They operate entirely online, so if you prefer to go to a branch, this is not the bank for you. It’s quick and free to set up and your money's protected by the Financial Compensation Scheme (FCS) up to £85,000. Unfortunately, as it’s an online bank, Monzo has restrictions on ATM withdrawals outside of the UK. You can withdraw up to £200 abroad for free, after which they’ll charge 3% per withdrawal.

You can pay an additional £5 for a premium account that unlocks some additional banking features. Monzo offers current accounts, savings accounts, personal loans and credit cards. You cannot open a Monzo account if you don't have a UK address.

• 2. Revolut: One of the most popular online banks across Europe, Revolut is a top choice for UK bank account holders. One of the biggest advantages of using Revolut is the convenience and transparency of their international transfers. With Revolut, you can send money for low- or no-fees in almost any currency. Like Monzo, it’s quick to set up, protected by the FCS up to £85,000, and the basic current account is free— but has limitations. Revolut doesn’t offer savings accounts, overdrafts or credit cards. One unique advantage of Revolut is the in-app budgeting tools. You can set up saving “pockets” that automatically put aside money for subscriptions, bills, groceries or a rainy day fund.

Because Revolut is active in many countries, you don’t necessarily need a UK address to open an account. You may be able to open an account at home before you come to the UK.

• 3. Chase: Chase offers cheap and convenient online banking services and doesn’t charge additional fees for using your debit card abroad. If you already have a Chase account, it’s worthwhile checking to see if you can already open your UK Chase account before you move. With Chase, you can open a current account and benefit from 1% cashback on debit card transactions for the first 12 months (up to £15 per month). Chase also has a lot of in-app budgeting tools to help you manage your money each month, and you can even earn up to 5% AER interest on your “spare change” account. Chase also offers savings accounts and is fully regulated by the UK's Financial Conduct Authority (FCA). Your money is protected by the FCS up to £85,000, too. Chase doesn’t offer an overdraft or credit card on your UK account.

To open a Chase account, you must be a tax resident and hold a UK address.

So there you have it, everything you need to know about banking in the UK. Hopefully, this guide will help you choose the perfect UK bank account. If you’ve already found a job in the UK, receiving your salary with a UK account will be much easier. Having this account will make day-to-day transactions simple, with no hidden fees or currency exchanges.