How to open a bank account in UK: You will eventually require a bank account, whether you\’re planning to move to the UK or are currently there.
It used to be exceedingly challenging to How to open a bank account in UK if you were a foreigner. Thankfully, things have become a little bit simpler lately.
Do you need a bank account in the UK?
In the UK, having a bank account is not legally required, and not all citizens are bank account holders. Building societies, credit unions, and National Savings and Investment accounts (previously known as Post Office Savings accounts) are some alternative options for money management in the UK. However, opening a bank account there will make your move much simpler.
When it comes to things like paying UK utility bills, you\’ll probably need one, and it might be necessary with some lenders if you wish to obtain a mortgage in the UK. It is definitely worthwhile to think about opening an account with a UK bank because many of them provide basic accounts that can be opened even with poor credit.
What Documents do You Need?
Two documents—one proving your identification and the other your address—are required in order to create a UK bank account. This holds true both offline and online.
Identity verification is easy to do.
All you need is a valid passport, a driver\’s licence, or an identity card (if you are an EU citizen).
You\’ll also need to present another document to confirm your address.
Each bank maintains a list of acceptable documents for use as proof of residence. These broadly speaking are
- An apartment lease or mortgage statement;
- A recent gas or electricity bill, no older than three months;
- A current (less than three months old), physically printed bank or credit card statement; or
- A recent council tax statement
Prior to How to open a bank account in UK
If you have debit or credit cards that may be used abroad, you can manage your finances before opening a UK account from an overseas account. However, be aware that you might have to pay expenses like transaction and exchange fees.
Before moving to the UK, you have a few alternatives for setting up your life. If your home bank has a correspondent banking relationship with a UK bank (you\’ll need to ask if this is the case), it could be able to assist you in How to open a bank account in UK account there.
Alternately, you might open an account in advance of your move since many UK banks offer international accounts for non-residents that can be opened from abroad. However, some banks charge monthly fees for these accounts, so be sure first and avoid opening an account months before relocating if it will result in high expenses.
Types of bank account in UK
There are various sorts of bank accounts available in the UK, allowing you to choose the one that best meets your needs. In the UK, the three primary types of bank accounts are
Current Account Opening in UK
You can use this type of bank account for daily needs like paying bills, shopping, and receiving paychecks. It is the standard and most popular type. Current accounts come with a debit card, can be opened for free or at a low fee (premium accounts will cost more), and frequently provide features like credit cards and overdraft protection. For groups like students and young people, the majority of banks provide customised versions of these accounts. How to open a bank account in UK
Savings Account Opening in UK
The majority of banks offer a variety of savings and investing choices, starting with straightforward savings accounts. Depending on the account type, these accounts may have minimum deposit requirements and minimum holding periods yet offer greater interest rates overall. Additionally, building societies and friendly societies offer saving accounts.
Normal Basic Account Opening in UK
If you have bad credit or are having trouble opening a current account, several UK banks offer free basic accounts. However, you won\’t have access to credit cards, loans, or overdrafts with these accounts. They do, however, provide basic products and services like Visa Electron debit cards and direct debit payment options. If your personal circumstances change after opening a basic account and you meet the criteria for a credit check, you can typically upgrade to a current account.
Joint account Opening in UK
Additionally, you can open a joint bank account in the UK with another person. This is frequently done amongst married couples and those who have been living together for a while.
Foreign accounts Opening in UK
Opening a foreign bank account overseas may be the most effective way for expats living in the UK to manage their finances. While working or residing abroad, it is feasible to open an international offshore account in the UK. Offshore accounts accept deposits in GBP, EUR, and USD and typically have higher minimum balance requirements than traditional bank accounts. They provide some benefits over domestic banks, like favourable tax policies.
How to open a business bank account in UK
You can set up business banking with any of the major banks in the UK if you\’re beginning a business. Freelancers and unlimited sole traders/partnerships typically need to present proof of identity for each partner, along with proof of both their personal and business addresses. Limited companies often must additionally give their Companies House registration number, information on all of their directors, and an estimate of their annual revenue.
A credit check is typically required of every person involved in the operation of the business. Most UK banks that offer business banking have a business manager or staff member who is solely responsible for handling business-related matters. They\’ll typically want to meet with you to talk about opening the business account, your company\’s objectives, and what you hope to gain from the relationship.
Online and mobile Banking Apps
Customers in the UK can now also open a number of bank accounts that are only accessible online or via mobile. Compared to larger main street banks, these banks typically offer a smaller selection of accounts, goods, and services, but they are more adaptable and frequently more affordable. There are several online and mobile banks accessible in the UK:
- Revolut
- Monzo
- Starling Bank
Transferring money internationally in the UK
There are less expensive and more practical alternatives to banks for international money transfers, including:
- CurrencyFair
- Moneycorp
- Remitly
- Wise
- WorldRemit