How to Open a Bank Account in the UK

So you’re an expatriate who has just moved to the UK and you should open a local account. You’ll need an account for many reasons. It’s for setting up your internet and getting a place to rent.

The UK has plenty of banking options for residents and non-residents. If you want to open a bank account in the UK this guide will take you through the paperwork, discuss the important things to consider when choosing a bank and give you practical tips on how to do it. Here’s the process.

Documentation

ID Documents

To open a bank account in the UK you’ll need to provide several documents to prove your identity and address. These may vary from bank to bank but typically include:

Passport from your home country
ID card if you have ID in the UK
UK driving license
Biometric residence permit

Check with the bank you’re applying to for any additional documentation or more info. And make sure your documents are not expired and are valid.

Address proof

Another document you’ll need is proof of address. You’ll have to prove you’re a UK resident and for that you’ll have to provide documents about the place you’re staying. Each bank has its requirements but we’re listing here some of the documents that will be needed.

Statement from another bank in the UK (This will be a document with a statement of the last 3 months. This has to be an original letter from the bank)
Recent mortgage statement
Letter from Jobcentre Plus confirming your National Insurance number
Credit card statement (statement of last 3 months)
Letter from your university confirming your UK address
Recent council tax bill
Recent household utility bill
Letter from your employer
Tenancy agreement, but only if it’s a letter from a registered housing association or the local council.

But if you just moved to the UK and you don’t have any documents regarding residency, you can ask the bank to make some exceptions. Then they will open a non-resident bank account for you.

Types of Bank Accounts

UK banks offer several types of accounts. You can choose one that suits you.

Basic Accounts

These are your everyday accounts. They come with a debit card and no checkbook and are as cheap as they come. Because there are very low or no monthly fees.

Current Accounts

These are your next step up from basic accounts. Often called traditional bank accounts. They come with a debit card and a checkbook. Won’t cost you an arm and a leg with low or no monthly fees.

Multi-currency Accounts

These accounts allow you to do transactions in more than one currency. A lifesaver for newcomers who make international transfers frequently. You’ll get lower currency exchange fees. In some cases you can even send money abroad without paying a penny.

Student Accounts

These accounts are for international students flying to the UK to study, these accounts often come with overdraft protection to save students from expensive fees while they’re still finding their feet. These accounts are low or no fees but you’ll need to prove you’re a student to open one.

Business Accounts

These accounts mean business. For companies not individuals. If you’re an immigrant entrepreneur you’ll need to jump through a few extra hoops to open a business account, including providing extra documentation.

Packaged Accounts

Packaged accounts are premium bank accounts. They offer everything current accounts have plus some extra goodies. Like roadside assistance or fee-free ATM usage. But these extras aren’t free. These accounts have a monthly fee.

Savings Accounts

These are your rainy day accounts. To save for emergencies or big ticket items. You can deposit checks or cash. If you have a current account with the same bank you can transfer money to and from your savings account.

You’ll earn interest on your savings. But some banks will charge you a monthly fee. Or penalize you if your balance goes below a certain level.

Which Bank to Choose?

It’s hard to choose a bank when you just moved to a new country and don’t know much. You need to make a list.

Online Services

First, see if you want digital services like online banking. If yes then go for the banks that offer good digital services. Some banks have robust and user friendly apps. Some banks are just digital and have no physical branches.

Physical Services

But if you want in-person services, some banks have different branches. If you’re an in-person kind of person then an extensive branch bank will be good for you. Also see which bank has the nearest branch.

ATM Availability

Also see if the ATM is nearby. If you’re a cash kind of person, an ATM might be useful to you. Also you can deposit and send money with ATMs. It’s good to check how many ATMs the bank has. Also, are they near you or not?

Customer Service

Most UK banks offer similar types of account services. The types of accounts can range from current savings to investment accounts. But what differs them is their customer service.

While all major UK banks can handle your money securely, the quality of customer service they offer can vary. Go and read online reviews about the bank you’re considering to get feedback from actual customers.

You’ll need quality customer support when you need help with your account. Both online and traditional banks have a support helpline and many big UK banks have live chat customer service.

Before choosing a UK bank, check their customer service hours to make sure they’ll be available when you need them most. For example if you work nights and sleep during the day, a customer service team that only operates in the morning and afternoon might not be good for you.

Competition

Another important factor to consider when choosing a UK bank is:

Monthly fees: Banks charge fees for different accounts. Check these fees and if they can be waived if you have a certain balance. There are different criteria, like setting up direct deposit to waive fees.

Interest rates: A good interest rate is needed for savings and investment accounts. Online banks sometimes offer better rates. They have lower overheads than traditional UK banks with physical branches.

Extra fees: Before you open an account compare fees for ATMs, overdrafts and other banking services.

You Have Options

There are several big banks to choose from in the UK. Every bank has its own features and benefits. Here are some of the banks we think are best for you.

Barclays

Barclays has a wide range of banking services and good online banking. So it’s a good option for those who want to manage their finances remotely.

HSBC

HSBC has international presence and offers specialist accounts for expats, students and frequent travelers. This can be good for those who move between countries or conduct transactions in different currencies.

Lloyds Banking Group

Lloyds has simple banking options and has branches all over the UK. So it’s a good and accessible option for those who want in-person banking services.

NatWest Group

NatWest has good customer service. They have different account options that can be tailored to the person’s financial needs—for example student accounts or business accounts.

When choosing a bank consider things like fees. These fees include interest rates, accessibility and extra rewards. Take your time to research and compare each bank’s offerings to find the one that suits you best.

Application

Once you’ve chosen a bank. You’ll do the application process. Here’s the application process:

Fill out an application form
Most UK banks have online application forms. It’s easier to start the process from the comfort of your own home. But you can visit a local branch to fill out the form in person.
Provide ID and proof of address
You’ll need to submit copies of the required documents. This is to verify your ID and address.
Choose your PIN
Choose a PIN that’s unique and secure for your new account.
Make an initial deposit

Some banks may require you to make an initial deposit to open your account. The minimum deposit amount will vary depending on the account type and bank.

Some helpful tips!

Use online banking and mobile apps, they can give you extra convenience, security and access to your account.
Check for introductory offers like higher interest rates or cashback rewards. Just read the small print.
If you’re not sure which account to choose, contact the bank or a personal finance advisor.
Make sure you keep track of your accounts activation process.