How To Open A Bank Account For Non-UK Residents | William Russell (2024)

Whether you’ve just arrived in the UK, or you’re planning to move soon, it’s important to think about opening your own British bank account.

Not only will having a local bank account help you to avoid transaction fees and currency exchange fees on your everyday purchases, it’s also essential if you intend to work for a British company or conduct business in the UK. You may also need a bank account for many other things, such as if you intend to purchase or rent property, purchase items using credit, pay your bills and take out a loan.

It’s a good idea to open a UK bank account even if you’re only living in the UK temporarily (at least for longer than one year). However, you must remember the process of opening a bank account can take several weeks, so it’s a good idea to start your application as soon as possible, especially if you intend to start work right away.

Please be aware that William Russell is not a financial advisor and nothing in this article should be interpreted as financial advice.If you need professional help, you should speak to a qualified financial advisor.

In this article

Do you have to open a bank account as a non-citizen in the UK?

There is no legal obligation to open a bank account when you move to the UK. Some expats choose not to open a UK bank account at all and continue banking in their home country.

However, you will find that having a UK bank account makes your life much easier as an expat. Here are some of the things you may need a UK bank account for:

1. You may need to pay transaction fees and exchange rate fees every time you take money out of a bank, an ATM, or when you pay for something with your foreign credit or debit card
2. Most UK employers will ask you to have a UK bank account in order to pay your wages
3. You may need to show proof of a UK bank account when taking out a mortgage, tenancy agreement or when starting a business
4. You will need a UK bank account to take out many types of finance agreements, including a mobile phone contract, internet contract, a car purchase lease or personal and business loans
5. Your utility suppliers may ask for your bill payments to come from a UK bank account

If you don’t want to open an account at a normal bank, there are several alternatives available, including:

• Building societies
• Credit unions
• National Savings and Investment accounts (formerly Post Office Savings accounts)

Types of UK bank accounts

• Current account – Referred to as a ‘checking account’ in the US. This is your day-to-day account. It is the one your main salary will be paid into, and from which you do your day-to-day spending. Current accounts offer debit cards and, depending on your circ*mstances, will permit you to go overdrawn up to a set limit. Some of these accounts charge a fee for which you get benefits in return, like cashback on your spending and/or interest on your balance when you’re in credit, or roadside car insurance.
• Credit account – Better known as a credit card, this is where you receive a card that allows you to spend credit loaned by your bank or credit provider. You will pay interest on the money you borrow, and will be expected to repay this credit month-by-month. If you pay back your credit on time, you can build up a good credit rating, which is important if you intend to apply for other forms of credit such as a UK mortgage.
• Basic banking accounts – These are a type of current account, mainly aimed at people with a low income or with a poor credit rating. As the name suggests, they only offer the basics. You won’t get an overdraft, for example.
• Savings accounts – These come in different types, including regular savings accounts where current account customers get a preferential rate, and ISAs, where interest earned is protected from tax.

Several high street banks also provide international student bank accounts. These can offer incentives, such as cashback and gift cards, and international students may be able to apply for a small overdraft.

Some banks offer expat accounts especially designed for those living and working outside their home country. These usually have minimum income or deposit requirements.

Is it difficult to open a bank account in the UK?

Fortunately, it’s becoming easier to open a bank in the UK as a foreign citizen. However, the process can still take several weeks and will require some preparation.

It’s a good idea to start preparing to open your UK bank account before you move to the UK by gathering up the necessary paperwork. Some banks may even allow you to open an account before you arrive in the UK.

What do I need to open a UK bank account?

The type of documentation you will need in order to open a bank account will vary depending on the bank you choose. However, generally speaking you should make sure you prepare as many of the following documents as possible:

• Passport
• Driving Licence
• National Identity Card (for EU citizens)
• UK Biometric Residence Permit (if you have one)
• Residence permit issued by UK Visas and Immigration (for EU citizens)
• National Insurance number card (if you have one)
• Employment contract
• Proof of address in the UK

This last item may be the hardest thing to acquire – especially if you have just moved to the UK – but it is often the most essential document. This is because you cannot open a UK bank account without proof of a permanent address.

Why do I need to submit proof of address when opening a UK bank account?

According to the Money Laundering Regulations 2017, banks and financial institutions are required to ask for appropriate identity evidence when processing certain financial transactions. By checking your ID (name) against a proof of address, this minimises the chance that the account is opened under a false identity.

Therefore, UK banks ask customers to prove that they live in the UK before they open a bank account. Each bank accepts different forms of paperwork, but some of the forms of identity you may be asked to show include:

• A utility bill dated within three months
• Local authority council tax bill for the current council tax year
• UK driving licence showing a UK address
• Bank, Building Society or Credit Union statement
• Mortgage statement
• Council or housing association rent card or tenancy agreement for the current year
• Solicitor’s letter dated within the last three months confirming a property purchase (or the land registry confirmation of address)
• HMRC self-assessment letters dated within the last three months
• Electoral Register entry
• NHS Medical card

How can I obtain proof of address if I’ve just moved to the UK?

Proving your UK address can be difficult if you have only just arrived in the country. This is where many expats experience difficulties.

In the past, new residents needed to wait several weeks or even months to receive their first bank statement, utility bill or other official statement of address before opening their UK bank account. Thankfully, there are a couple of options now available to help speed up the process:

1/ Open an account with an app-based bank

A number of ‘challenger banks’ operate within the UK. These are predominantly app-based, digital banks that do things very differently to traditional banks. One big difference is that some of them do not require proof of a UK address when opening an account – although you still need to submit proof of identity, such as a passport or driving licence.

According to a recent study by Finder.com, 14 million Brits have already opened accounts in digital banks, and 18% of Brits plan to switch to an online-only bank by 2027. Convenience, better terms of service and the ability to track spending in real time are the three main reasons British users enjoy using challenger banks.

According to Finder, the following challenger banks do not require proof of address when opening a UK account:

• Monzo
• Monese
• Cashplus Bank
• Suits Me
• Card One Money
• thinkmoney

Each service has different rules, so read the details section for each provider to make sure you find the best service for your needs.

The challenger bank Revolut is another option, although you may need to get in touch with their customer support team to open an account without an address in the UK.

Note that even though you don’t have to submit proof of address, you’ll still need to supply a UK address, as this is where your debit card will be delivered.

2/ Switch the address of your current bank account before moving to the UK

Another option that some expats have reported to be successful involves switching the address of your primary home bank account before relocating to the UK. This will depend on your current bank allowing you to register at a foreign address, and will also require you to have arranged accommodation in the UK before moving. However, if this is an option for you, it should be simple to do – many banks allow you to change your address online or through an app.

By changing your address early, you can then request a bank statement to be sent to your new UK address. When you arrive in the UK, you should receive a letter headed statement from your existing bank with your new address printed on it, thus confirming your proof of address in the UK.

3/ Open an account with a global bank

One more option that some expats have found to be successful is to open an account in their home country with a bank that also has branches in the UK. This may allow you to transfer your account from your home country to the UK with greater ease than you would find with opening a new account.

While you may still need to submit proof of address to your global bank after moving to the UK, you may find that a global bank is able to provide UK account details during the interim. This will all be subject to the bank’s terms and conditions, so make sure you speak to the bank ahead of time to understand your options.

Some international banks that offer their services both in the UK and abroad include:

• HSBC
• Santander
  Barclays
• Lloyds Banking Group
• Deutsche
• Capital One
• JPMorgan Chase
• BNP Paribas
• Citigroup
• Wells Fargo
• Goldman Sachs
• Morgan Stanley

Should I choose a traditional or a digital bank?

If you are looking to open a bank account in the UK as an expat, the type of bank you decide to go for will depend on your own personal circ*mstances and your financial needs.

There are various factors you might want to take into consideration when choosing which type of bank to go for, such as:

• Flexibility – as an expat, if you’re looking for ease of access and 24/7 banking, digital and mobile accounts are well worth considering. This is to be expected of all digital banks, but many traditional banks also provide apps to allow for round-the-clock banking.
• International scope – you may wish to use your UK credit or debit overseas. Traditional banks often offer incentives for travellers such as discounts on airline tickets, while digital banks often provide free currency exchange making it easier to spend money abroad.
• Range of products and services – traditional banks tend to offer a greater range of financial products, from credit and debit accounts, to personal loans, mortgages, overdrafts and savings and investment accounts. Digital banks, meanwhile, may offer a smaller range of services – some digital banks offer nothing but a standard debit account.

What is the easiest digital bank account to open for non-British citizens?

If you’d like to open an account with a digital bank, you will find a number of options available to you.

We’ve listed some of your options, including the types of features you can expect and how easy you will find opening a new account.

Please note: we are not promoting any of these accounts. Always do your own research before committing to any financial product or service. Subject to change. Please check company websites for full information.

Depending on your salary, it might also be worth looking at expat accounts offered by traditional banks. Some of the best options include:

• HSBC Expat Premier account – Sterling, USD and Euro multi-currency accounts and exclusive foreign exchange rates. You will need a salary of £100,000, or to deposit £50,000 in an HSBC bank account.
• HSBC Currency Account – an easy-to-manage currency holding account, with no monthly account fee. You can choose from 14 major currencies and open a separate account for each one to store, send and receive money.
• Lloyds International account – a choice of Sterling, USD or Euro accounts with free international money transfers. You’ll need an annual income of £50,000.
• Barclays International account – offers services in 70 countries and 60 currencies, however, you will need to deposit at least £100,000 (or currency equivalent) across your accounts with Barclays.
• NatWest International Select account – you will need a minimum salary of £40,000. Allows you to manage your money on the mobile app.

Sending money abroad from the UK

While living in the UK, you may wish to send money to your friends and family back home, or across the world. Thankfully, you will find a number of services across the UK that specialise in helping expats to do just this, with competitive exchange rates and easy transfer.

There are a lot of options, so it’s important to shop around for the best rates. You may also wish to check whether your bank will allow you to make international transfers, as they may also offer a favourable rate.

When shopping around for options, be sure to check out:

• Paysend allows you to transfer money online to over 90 countries.
• Wise (formerly TransferWise) offers rates based on the real exchange rate, and allows you to receive money in the UK for free.
• Western Union is a huge global network that gives you the option to send cash to a bank account, Western Union agent overseas, or (in some locations) direct to a mobile number.

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