How to open a bank account in the UK

How do I open a bank account in the UK?

As you might expect, opening a bank account in the UK requires you providing some important personal information in order to verify your identity. These are usually fairly basic, with banks often asking for common ID, as well as a proof of address.

When it comes to identification, some of the documents that your bank will require include one of the following:

• A passport

• Driver’s licence

• Identity card

They’ll also need to know where you call home. A proof of address can be any legal document that contains both your name and your current address on it, such as:

• A recent utility bill

• A tenancy agreement or mortgage statement

• A council tax bill

• A bank or credit card statement from the last three months (not printed from an online statement)

Once you’ve collected this information, opening an account should be a fairly simple process. You’ll need to fill in a form (either online or in person), before providing your two different forms of identification documents.

At this point the bank itself will make the final call on whether or not they’re happy for you to open an account with them. In the unlikely event you’re rejected, you’ll be able to speak to the bank directly and understand more about what your next steps are.

Opening a UK bank account without a proof of address

If you’re new to the UK, it’s not always a guarantee that you’ll have enough documentation to prove you have a fixed place of residence. In recent years, banks have become more flexible when it comes to the evidence they need for this step.

Good examples of exemptions include things like:

• A letter from a University’s admission office

• A letter from a Jobcentre Plus

• A letter from your employer, as long as it’s less than three months old

If you aren’t able to attain any of these, you can turn to modern online banks instead – which most often won’t ask you for your address to begin with.

Types of bank accounts in the UK

There are a variety of different accounts to opt for, so it’s best to familiarise yourself with the different kinds. Here are some of the most common for anyone looking to bank in the UK.

Basic bank account

A basic bank account is an everyday bank account that allows you to access it without having to pay any monthly fees. It’s often the easiest bank account to open when you don’t qualify for any of the other bank account types. However, it does have some limitations, as this simple account type might not have the same products and features offered by other bank accounts, such as savings, international payments, etc.

Current account

A current account is the most common bank account opened by people in the United Kingdom. It’s used for everyday banking, payments, deposits, withdrawals and will come with a debit card that you can use to access it.

Savings account

Savings accounts offer you the opportunity to earn interest on your deposits within this account. You can transfer money from these types of accounts into a current account, as you won’t be able to connect this type of account with your debit card. It’s strictly for saving money and transferring money in and out of.

International account

Some UK banks will offer an international service or accounts to help people who are travelling a lot, or who are looking to move abroad. International bank accounts can offer you flexibility in terms of payment overseas, meaning no fees or less fees on payments or cashpoint withdrawals.

This can be helpful if you plan to spend extended time in your home country, or if you’re looking to leave the UK to study, move or retire. WorldRemit can also assist you with any international payments you might want to make during this time.

Student account

UK banks may also offer specific accounts for students to help them with their studies. These types of accounts come with some added flexibility around fees and overdrafts to make things easier for the student.

Joint account

A joint account is a single account that is shared between two or more people. This can be helpful for married or committed couples who want to share their financial burdens between each other. The good news is that WorldRemit has no problem facilitating money transfers from joint accounts as well, just in case you need to send money abroad from a shared account.

Choosing the right bank for your needs

You might be wondering how you choose the right bank account for your needs when there are so many options available. There are a number of factors to keep in mind when thinking about the kind of account which works best for you.

• Fees - what does the bank charge for setting up an account?

• Services and products - does the bank offer you everything you need?

• Registration offers - can you get cashback for setting up a new account?

• International accounts and transfers - does your bank facilitate global transfers? If not, we do!

• Flexibility - do you have the freedom to change the type of account or services you’d like to use?

You’ll also want to decide whether you want to bank through an online or a traditional financial institution. Here’s more information on both types.

Traditional banks

There are quite a few major banks to choose from in the United Kingdom. Here are the names of a few of the top players in the finance space. They will have brick-and-mortar branches in addition to online services.

These banks offer a range of account types from checking, to student-friendly to savings accounts. If you open a checking account with them, they’ll issue you a debit card for you to use for daily spending. You can also apply to see if you qualify for a credit card with these banks, so that you can make larger purchases to be paid off in instalments. Plus, traditional banks have a worldwide network of accounts to choose from – in case you need to use their services abroad.

Online banks

There are also a range of challenger banks that have popped up in recent years. These banks offer purely online services, but their interfaces can be very user-friendly and they often offer interesting product features. They are particularly helpful for tracking your spending and maintaining a budget.

Challenger banks like these are particularly helpful for spending money abroad as some don’t charge fees on overseas spending. You can use their personalised savings pots features to keep track of your savings. Some also allow for business banking and cryptocurrency trading as well.

The big four UK banks

The UK has four major banks which offer tried and tested services to both UK citizens and non-residents alike. They’re good names to turn to if you’re interested in setting up an account, because they’re safe, well-regulated, and very experienced. The four major banks are:

• Barclays. As one of the oldest banks in the UK, Barclays offers accounts which are perfect for foreign nationals. You’ll even be able to hold money in one of three different currencies (Pound Sterling, Dollars, or Euros).

• HSBC. Another trusted name in the UK banking sector, HSBC has over a thousand branches spread across the country. What’s more, they have banks across the world, making it easier to shift between them if your home nation has a HSBC of their own.

• Lloyds. This bank has more current accounts open than any other in the UK. All you need is a form of identification and proof of your address. Account types include standard, business, and personal, while a range of tools make managing your money incredibly simple.

• Natwest. This bank places a strong focus on ensuring they provide an international service for customers. They offer global mortgages, as well as international savings and regular current accounts.

How much does it cost to open a bank account in the UK?

Opening a bank account will help protect your money in the long run. But some might worry about initial costs and setup fees. Luckily, a lot of banks tend to be free to open in the UK. This table compares some of the major providers with some of popular online banks and reveals that most allow free transactions for opening a current, or basic account.

Debit card fees

Most of the major banks won’t charge you for domestic use of your debit card. Where you may incur some fees is for international withdrawals. You may also need to pay money when dipping into your overdraft, or if you need a replacement card.

International transfer fees

But while opening an account is usually free, that’s not the case when it comes to sending money abroad. There may be an international transfer fee if you choose to send money abroad. The fee your bank will charge will depend on the country you are sending to – these fees differ on sending within Europe versus other countries worldwide.

Source: MoneyHelper

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Managing your UK bank account

Staying on top of your finances has never been simpler. There are loads of ways for someone banking in the UK to manage and monitor what’s going into and coming out of their bank account. Some of the most efficient include:

• Mobile banking. Most mainstream banks now make it possible to access and manage your account from a smart device like a phone or tablet. You’ll be asked to enter a two-factor passcode when you sign in, but beyond this you’ll be able to move and transfer money freely.

• Online banking. This kind of banking offers a similar experience, allowing account holders to log in from anywhere in the world to access their funds. These websites offer elite level security, making it harder for anyone to access your funds without your knowledge.

• In-person banking. Despite a recent shift to online banking formats, there are still thousands of brick and mortar branches open across the UK. Those who feel more comfortable talking in-person with their bank can easily do so.

Making international payments through a UK bank account

Sending money abroad is easier than it’s ever been – but that doesn’t mean the fees for doing so have gotten any cheaper when transferring directly through a bank. Thankfully, international money transfer specialists like WorldRemit exist to make the process quick, easy, and cost-effective.

In order to send money through them, all you need to do is:

1. Make an account. Sign up through the website or on the WorldRemit app.

2. Wait to be verified. We’ll send you security codes to make sure you are who you say you are.

3. Begin your transfer. Select the country you want to send money to, and choose the method of transfer. You’ll be able to see your fees and exchange rates at this point.

4. Enter your receiver’s details. Have all the details of the person you’re sending money to ready to go.

5. Pay for your transfer. Decide if you want to pay for your transfer via bank deposit, credit card, or debit card.

Send money with WorldRemit

Opening a bank account in the UK: FAQ

How many bank accounts can you have in the UK?

There is no limit to how many bank accounts you can have in the UK. You can have as many current accounts with as many financial institutions as you like. Your only problem might be keeping track of them all!

Can a foreigner open a bank account in the UK?

Yes, a foreigner can open a bank account in the UK, provided that they have the requisite proof of identity and a proof of address (often asked for by traditional banks).

What is the easiest bank account to open in the UK?

You may find it easiest to open up a bank account with an online, challenger bank, as these banks may not require a proof of address. However, traditional banks such as Barclays and HSBC have great international links so you may find it easy to open an account with one of these providers as well. Research all banks beforehand and choose the one most suited to your needs.

This communication is intended for marketing purposes only and does not constitute or provide legal advice.