Best bank for international students in the UK

Why should you open a bank account in the UK?

Keeping your money in a bank account rather than having cash lying around helps your finances stay safe. It will also make your life a lot easier when studying in the UK, as you will be able to conveniently spend your money without the hassle of relying on an overseas account. You’ll also be able to deposit money if you gain employment while studying.

While in the UK, managing your finances from a bank account in your home country can be hard work. Some of the major challenges include:

• You will likely be charged currency conversion and withdrawal fees when you withdraw money in the UK.

• You need to keep up with changes in the exchange rate and how this impacts your transfers.

• UK employers will want to pay your salary into a UK bank account if you are working.

• Payments to friends in the UK can be complicated and expensive.

• It makes paying for bills, accommodation, membership fees and mobile phone contracts difficult.

• If something goes wrong with your bank account, it is a lot harder to resolve any problems.

Are you eligible to open a bank account in the UK?

Before you can even think about opening an account, it is important to find out whether you are eligible.

The good news is that you do not need to be a UK citizen to open an account. As long as you provide the documentation listed below, there are no further rules or restrictions to prevent you from doing so.

In most cases, you will need:

• To be over 18 years old

• A valid passport

• A qualified visa

• A statement from your bank at home (past three months)

• Proof of address in the UK or abroad

• A student ID or a letter of acceptance from your university.

It is worth noting that the above documents are relevant to international student bank accounts only. If you wish to open an international account, then some of the criteria may be different.

Things to consider before opening a UK bank account

Fortunately, opening a bank account in the UK is a pretty straightforward process. However, there are some important factors to think about before you do. Understanding these will help you to narrow down our list of the best banks for international students in the UK later in this article.

Fees and costs

If you are regularly sending and receiving money from home, then you have to find out exactly how much each money transfer will cost, and pick a bank with the most favourable rates.

Banks will often take a commission fee for converting your home currency into pounds, while also charging a fee for sending money in the first place. As different banks charge varying fee amounts, choosing the right option can help you save money and budget.

Overdraft

Not all UK banks offer overdrafts to international students. Some often only offer a small amount, but every penny helps when you are a student. The longer you are committed to staying in the UK, the more favourable your overdraft is likely to be.

Location

There’s no point in opening up a bank account if there is not a branch near your place of study. Having a local branch is especially useful when you need face-to-face advice rather than sitting on the phone for hours at a time. While you can withdraw cash at any ATM, having a branch around the corner is still hugely beneficial.

Credit history

For those students that like to plan ahead and wish to work in the UK once they have finished their studies, having a good credit history will help you financially in the future. For those banks that offer overdrafts and credit cards to international students, think about the possible impact this may have on your credit rating. Equally, choosing the right bank can help you to build financial stability faster.

It’s worth looking into whether your current bank account operates in the UK already. A lot of banks are operated by global corporations, reducing fees for international money transfers when both accounts involved in the transfer are registered with them. It could also save you all the admin of opening a UK bank account in the first place.

Another important consideration is that opening a bank account in the UK can take weeks. It is always recommended that you start your application before you arrive in the UK, so you do not run the risk of being unable to access your finances when you arrive, or being on the receiving end of lengthy delays.

Best bank for international students in the UK

Now that you know the relevant background information for opening a bank account in the UK, it is time to look at what the best banks for international students in the UK are.

HSBC International Student Bank Account

Designed specifically for international students, with no monthly account fee, access to the banking app and eligibility for discounts and offers. However, with this account, you will not have access to any HSBC credit cards or loans.

You can also apply for this account before you arrive in the UK and an arranged overdraft can be granted in some circumstances.

Criteria to apply:

• 18 or over

• Live in the UK, Channel Islands or Isle of Man

• Have a valid ID and proof of address

• Have read the important account documents online

Natwest International Select Account

While this account is not directly geared towards students, it is still an excellent option should you be able to afford the initial deposit amount. The monthly account fee is £8.

The account allows you to manage your money in the UK and internationally using their mobile app. Other features include the ability to manage multiple currencies, transfer up to £100,000 each day and lock your debit card should it get stolen.

Criteria to apply:

• Aged 18+

• A resident in one of their listed countries

• Be able to open the account with a minimum deposit of £25,000

Santander International Student Current Account

Available for a £5 monthly fee. Only one account can be open at any time and it must be used as your primary current account – meaning your student loan, parental contribution, income and other payments must be paid into it.

Overdrafts are not available with this account, but it does come with plenty of benefits to make your life easier. This includes qualifying for interest if you credit your account with a minimum of £50 per monthly statement period.

Criteria to apply:

• Be an overseas student aged 18 or older

• Studying a course in the UK that is one year or longer

• Have a UK-registered residential address

Lloyds Bank Classic Account

Our final best bank for international students in the UK may not be specific to students, but this account is still one of the better options. You can apply once you are living in the UK, and as long as you stay in credit you will not incur any monthly fees. You can also withdraw up to £500 a day.

Unfortunately, as an international student, you are only eligible for an overdraft if you have lived in the UK for less than three years.

Criteria to apply:

• Aged 18 or older

• Lives in the UK

• Able to provide your proof of identification and address.

See the full list of documents you can choose from here.

This communication is intended for marketing purposes only and does not constitute or provide legal, tax, investment or financial planning related advice.