Opening a bank account in the UK: A Guide

The UK is one of the world's melting pots and a country that attracts countless newcomers each year. There is a list of opportunities that travelers and new residents explore: education, with some of the best universities on the planet; job - plenty of available work, and decent living wages, also for low-skilled professionals; wonderful cities with rich history and culture, and incredible museums, mostly for free; as well as vibrant cultural life, with some of the best theaters, music venues, dance companies, galleries, but also restaurants and pubs. It is an especially attractive place for international corporations - with London being one of the key places on the financial and business map of the world, and great connections to other capitals via train and plains.

If you plan to stay in the UK for a while, and want to get a local bank account number, here is a guide for you.

You can also open an account in the UK before your arrival quite easily. One of the options is to ask your regular bank if they can set up an account for - any bank with a correspondent bank relationship with an English bank can do it remotely. Many of the major UK banks also have an international account offer, designed specifically for non-residents. Barclays, Lloyds, HSBC and NatWest provide accounts to clients from overseas, which one can open without the requirement of proving your residency in the UK, and oftentimes - online.

This may not be the right choice for everyone, as with this type of account one is required a deposit, often quite significant. It is expected to bring an amount of 25.000 pounds or equivalent in other currencies when opening an international account with Barclays, for example. Such an account gives a lot of flexibility - 3 currencies in which you can open it, transfers to many countries around the world, online and telephone banking, withdrawals possible in all of the countries, etc. If you maintain the required level of savings, you don't need to pay for the account.

Since services, fees, and charges offered by banks in the UK vary, it is wise to first explore the different available options and compare them before settling on the best one for you.

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Being new in the UK means limited credit history and a lack of some of the expected documents. Luckily, banks have eased their expectations and requirements over the past years, adapting to the global movement and constant influx of people.

By standard, banks and building societies a UK address to open a bank account. This can be proved by showing one of the following:

• Tenancy agreement, if you don't have utility bills yet;
• A letter or payslip from your employer in the UK with your address
• If you are staying in a hotel, you may be able to use their address as a c/o (care of) address

Whatever document or statement you provide, remember to bring the original versions.

If you don't have an address and any of the aforementioned documents, some of the banks will accept an alternative, such as your home address in another country, or will find your identification documents sufficient. It's necessary to check with each of the banks that you consider what are their specific requirements. Normally, it is easier for citizens of the member states of the EEA to open a bank account without some of these documents ready.

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The UK is part of the SEPA zone, which means that all banks here are "SEPA UK banks" and it is possible to perform transactions between its 36 member countries free of charge. Additionally, it is possible for businesses to open a UK bank account or a virtual bank account. For registering a business in the UK read this article.

There are some basic types of accounts one can select in the UK:

Basic bank accounts - good for simple everyday banking and often without a monthly fee. They come with a debit card and access to online and mobile banking in most cases. You can usually connect them with digital payment methods, and they do not offer cheques.

Current accounts are the most common option for most people. They do not have a monthly fee and provide all the features and benefits needed to manage day to day banking. Most of the banks offer such accounts, sometimes based on an additional condition of a credit check, an assessment of your personal circumstances, etc. They would also be compatible with mobile payment options and apps.

Packaged Bank Account comes with extra benefits on top of the basic account features, in exchange for a monthly fee - sometimes mobile phone service (data, minutes), insurance for your mobile phone or travels,

Student Account is similar to a standard current account with some extra perks - for travel, shopping, etc. It will be often automatically changed into a standard current account once you graduate. 

Joint Bank Account is shared between two people. This can be a way of managing joint finances with a partner, such as household bills, and making payments for shared expenditures. You can share various types of accounts, depending on the bank.

Children’s bank account is a current account for children aged between 11 and 18, and come with extra security to prevent overspending.

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A basic current account is free in most high street banks. There are also premium offers with special benefits, such as cashback on household bills, insurance, and interest on your balance. These special offers usually require fulfilling minimum eligibility requirements, often making them inaccessible to people freshly arriving in Britain. In case you didn't go for one of the bonus options, beware of staying within your credit limits, because without a planned overdraft banks may charge you for withdrawing money you don't have. Consult the bank's terms and conditions to make sure which operations are included in your account type.

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There are various banks in the UK that offer Euro and multi-currency bank accounts. There are also banks in other European countries that offer multi-currency accounts with the same effect. The advantage of having an account in Euro is the ability to make transactions in this currency and cheaply, if not completely without costs, send money over to other bank account holders who have their own Euro accounts. You can seek to open them with traditional banks in Europe, or fintech companies, such as N26, Revolut or Transferwise. These tend to offer better rates and have an international reach, which is a plus if you deal with family members, clients or other obligations within European boundaries.

If you want to stick to your options in the UK, you can check Barclays, a bank that offers Euro Account. The catch is that you will need to have a separate sterling account before you can open one in Euros. It comes with a checkbook/credit book, regular statements, and free transfers between your GBP and EUR Barclays accounts. For Euro and US dollars, Barclays offers as well a currency deposit account (USD) and savings account (EUR), allowing you to manage your savings in one of those currencies. You will be able to transfer funds between your sterling and other accounts in Barclays for free, and you will be able to receive money from overseas on that account directly. They have also various options for international transfers from these accounts - letting you send funds standard way, or with priority status, and, of course, SEPA payments i case of transfers in Euro.

HSBC is another UK bank offering Euro and multicurrency accounts. HSBC Currency Account allows you to easily manage multiple currency holdings with no monthly account fee. There are accounts available in 14 major currencies (Australian Dollars, Canadian Dollars, Swiss Franc, Chinese Renminbi, Euro, Hong Kong Dollars, Japanese Yen, Norwegian Krone, New Zealand Dollars, Emirate Dirham, Swedish Krona, Singapore Dollars, US Dollars and South African Rand). Exchange rates are constantly updated, which means your transfers will be done according to the up-to-date rates. Owners can manage their accounts from one online dashboard and you can apply online as long as you already have an active HSBC current account (excluding the basic and the student accounts).

Citi is one of the biggest players on the British market with several variations of accounts offered in different currencies. There is the Global Foreign Currency Account, available in 9 currencies (Australian Dollar, Canadian Dollar, Euro, Hong Kong Dollar, Japanese Yen, New Zealand Dollar, Sterling Pound, Swiss Franc and US dollar) with checking facilities in the US Dollar version, online banking (easy transfer of funds between your accounts and when sending money outside), and a free debit card, which you can use with over 2 million ATM machines worldwide. There is also CitiAccess, allowing you to use checks on your USD account and USD daily savings account.

Lloyds also offers a current account in three currencies - Euro, Dollar, and Sterling. You will need to prove you live in the UK to get one. Your account allows you to perform international bank transfers for free (but remember, the recipient's bank can charge something on their end), you get a visa debit card, access to online as well as phone banking, all that for a fixed fee that applies to all of your multi-currency accounts with the same bank.

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