Arriving in the United Kingdom as an expat or student, one of the first financial tasks you’ll need to complete is opening a UK bank account. Having a local debit card and banking access is crucial for things like daily payments, receiving your salary, paying rent or tuition, purchasing a phone plan, and money transfers.
The process of setting up a UK bank account can be confusing as a foreigner when you’re still adjusting to a new culture and environment. In this guide, I’ll compare the major UK banks and share tips on choosing, applying for, and opening a UK bank account as a newcomer to the country.
Table of Contents
Choosing Your UK Bank
With countless options in the wide variety of UK bank accounts, selecting the right one to open your first account can be daunting. As a newcomer, you want an accessible bank that makes getting started easy and provides good customer service.
Here are some key factors to consider when researching banks:
1. Account fees
Some UK bank accounts charge monthly maintenance or admin fees while others offer free accounts without such fees. Having a bank account with no monthly costs is ideal when you are first arriving in the UK and your balance is likely to be lower initially. Paying a monthly fee on top of that can quickly drain funds.
2. Minimum balance
Basic entry level accounts aimed at students or non-residents may require you keep a minimum deposit amount in the account to avoid paying extra fees. Look closely at the minimum balance requirements and seek accounts that have little or no minimum balance, which provides more flexibility managing your money.
3. Physical branches
While the UK banking sector is rapidly shifting to be more digitally-focused, having the option to visit a physical bank branch in person can provide additional assurance and ability to get assistance when you are first starting out in the country. However, even large banks are reducing branch presence, so in-person access is diminishing.
4. Customer service
Look for banks that offer more robust customer support options and account opening guidance for non-residents who are new to the country. Having access to helpful customer service provides invaluable assistance navigating unfamiliar banking processes and addressing any issues. Seek banks catering proactively to newcomers.
5. Mobile apps
Look for a bank that offers a highly rated, user-friendly mobile app. Being able to conveniently manage your new bank account digitally via your phone, tablet or computer is extremely helpful, especially when getting started. A smooth, useful app makes a big difference.
6. Debit card included
Be sure to verify that getting a Visa or Mastercard debit card is included with the account you choose, as having this is essential for smoothly making both in-store and online purchases in the UK on a daily basis. Don’t take a debit card for granted.
7. Overdraft availability
Having a small overdraft option on your account may be helpful as you establish yourself financially in the UK, since it provides a bit of a buffer or safety net in case of unexpected short-term shortfalls. Some banks offer minimal overdraft access even to new immigrants with no prior UK credit history yet.
8. Switching incentive
Some UK bank accounts offer cash bonuses or other financial rewards for switching your existing current (checking) account to them from another bank. This switching perk can be quite worthwhile, especially for newcomers, so consider if banks are promoting special offers.
With these criteria in mind, I narrowed down my options to a few recommended picks:
- HSBC – Large global bank with a robust offering for international customers. No monthly fees on their ‘Basic Bank Account’.
- Barclays – Longstanding major bank with a customisable account. The ‘Barclays Student Additions’ waives fees for students.
- Lloyds – This large high street bank offers a ‘Student Account’ with no monthly fees and other newcomer options.
- NatWest – Longstanding major retail bank with physical branches. Their ‘Student Account’ has no monthly fees.
- Monzo – Trendy mobile-only bank with easy account opening for residents of any nationality. No fees.
- Starling – Another popular fintech disruptor making digital-only banking user-friendly. Great interface and customer service.
- Nationwide – Solid choice for visiting a physical branch and talking to advisors. Checking accounts have low minimum deposits.
Research thoroughly, as the best fit depends on your specific needs and situation as an immigrant. Compare account features, mobile apps, branch access, overdraft availability, and any switching incentives or newcomer perks. But choose wisely when deciding on your first UK bank, as switching accounts later can be quite tedious. Consider both major established banks as well as the slick new digital challenger banks tailored for mobile users.
Applying for a UK Bank Account
When it comes to opening your first UK bank account, you’ll need to go through a formal application process. Here are the typical steps:
1. Gathering identity documents
You’ll need to have your passport, UK visa or BRP (Biometric Residence Permit), and proof of your address from government-issued mail, tenancy agreement, utility bills, etc. Photocopy or scan these key identity documents to provide verification of ID and UK residence.
2. Filling the application
Most major bank allow you to begin an account application online via their website. Have your scanned documents ready to upload and submit along with your application.
3. Video verification
As part of the account approval process, banks will likely require scheduling a quick video call interview. This is so they can see you over video chat and directly verify in person that you are who you claim on your application documents.
4. Providing UK address
Make sure to have a local UK address to list in your application even if you are only staying at temporary accommodations initially after arriving in the country. You can update it later.
5. Submitting application
After you’ve entered all details into the bank’s application forms online and uploaded scanned copies of your identity documentation, you’ll submit the completed application through the bank’s website.
6. Receiving decision
The bank will then review your application details, uploaded documents, and video verification interview. In most cases, they’ll reach a decision on whether you’re approved within 1-3 business days.
7. Accepting terms
If approved, you’ll receive account information from the bank and need to electronically sign to accept the full terms and conditions of the account. This is mandatory to activate it.
8. Activating card
Once fully approved and terms accepted, you can go ahead and activate the account. You’ll then be able to request delivery of your debit card to the UK address you provided within 5-7 working days in most cases.
While it may take some time and perseverance as a non-resident immigrant, having all the required documents in order and carefully following each step will help facilitate applying and opening your first essential UK bank account much more smoothly.
Managing Your UK Bank Account Online
Given most immigrants won’t have established credit histories in the UK, your account options will be limited primarily to online banking and debit card use initially
Getting comfortable with digital account management is key to easily accessing your UK bank account anytime. Here are some tips:
1. Download Mobile App
Download your bank’s mobile app for convenient access rather than visiting branches. Most routine customer service needs from checking balances to paying bills to tracking spending can be handled right in the app.
2. Use the Online Web Portal
Log into your bank’s online banking web portal to perform tasks like checking your balance, depositing checks, transferring money, setting up direct deposits or recurring bill payments, updating personal details and more.
3. Set up SMS or push notifications
Set up SMS text or push notification alerts from your bank’s app to monitor account activity and balances in real time. Enabling alerts helps you stay continuously on top of any payments or withdrawals so you can catch concerning activity quickly.
4. Activate Biometric or Face Login
Enable biometric fingerprint or face login access to your mobile banking app for quicker, more secure access to your account. This allows seamlessly opening your app without needing to type passwords.
5. Use Live Chat Features
Contact bank support teams via live chat features in the app or online for any questions big or small. Most major banks also offer the option to video chat directly with customer service advisors for more complex needs.
6. Make Good Use of Bank Budgeting Tools
Consider using handy budgeting tools like Monzo Pots and Starling Spaces to organize your funds into separate pots for spending, bills, savings etc. These make tracking finances intuitive.
7. Order an Additional Debit Card
Order a second debit card linked to your account for a flatmate or partner to allow easily managing shared household and living expenses together.
8. Review Transactions Regularly
Review all account transactions daily when you first get started to catch any errors or suspicious charges. Flag anything concerning immediately to your bank for investigation. Don’t delay.
While exploring new mobile and web banking tools takes some adjustments, digital account management provides significant convenience, security and control. Take time personalizing your settings to maximise functionality.
Using Your Debit Card
Activating your Visa or Mastercard debit card from your chosen UK bank account allows you to start making payments and withdrawals in the UK. Here are helpful tips on using your card:
- Before use, sign the back of the card and if needed, set a PIN. Most UK cards now support contactless pay.
- Withdraw cash from ATMs affiliated with your bank to avoid fees. Look for ATMS with the words “Free Withdrawals”.
- Similarly, pay at stores using your PIN or contactless when possible to avoid transaction costs.
- Use chip & PIN machines rather than swiping the magnetic stripe for enhanced security.
- Set mobile wallet apps like Apple Pay or Google Pay for quick contactless payments. Just hold your phone over readers.
- Check your account after purchases to monitor activity. Flag suspicious charges you don’t recognise.
- As a backup, keep your home country bank account and cards active for overseas transactions/travel.
- If lost or stolen, immediately call bank to freeze your card and request replacement.
- Increase daily ATM withdrawal limits via your account settings if needed. Standard is £250-500 for newcomers.
As you gain comfort using your new debit card, keep an eye out for ways to maximise rewards, cashback, and other perks offered by your bank.
Switching Banks
Once settled in the UK longer-term, if you find your original bank choice isn’t meeting your needs, consider switching to another UK bank account. Reasons to switch may include inconvenient branches, poor mobile banking, lack of interest on savings, or excessive fees.
Many banks make switching straightforward by handling closing and transferring accounts on your behalf. To switch:
- Research alternate banks and apply for new account first. Look for switch bonuses.
- Once approved, initiate bank switch service through new bank using provided forms.
- Stop activity with old account during switch period besides direct debits transferring over.
- After 7 working days, new account will activate with all former details changed over.
- Destroy old cards/checks and only use new account details going forward.
- Inform any regular payees like employer of your new updated account details.
While it may feel daunting at first, selecting the right account bank to start is an important financial milestone. Take advantage of digital banking and customer service help when navigating as a newcomer. The process will enable you to securely manage, access and use your money in the UK. Let me know which bank account you found to be the best!
