A UK bank account is essential for day to day living in the UK. It sounds obvious but you need a UK bank account to receive payments from UK employers, to store your money safely, to transfer money between accounts and to pay for all your daily living expenses. It is also a well-respected proof of identification.
When you land in the UK, you will also quickly realise how highly valued the British pound is. It’s not fun seeing your money halve in value. Hence, the faster you can set up a UK bank account and start earning and paying with British pounds, the easier your life is going to be and the less you will need to rely on savings back home.
However, getting a UK bank account has previously been notoriously difficult for people who have just moved to the UK. Luckily it is much easier nowadays and there are many more bank account options available. This article will help guide you on the different options and how to open your own UK bank account!
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Summary
If you are planning to live in the UK, it is strongly recommended to apply for a Wise multi-currency account before you even fly to the UK. You can use the Wise multi-currency debit card linked to your account to pay for things while you are travelling to the UK, and when you first arrive in the UK. Once you have arrived and have a physical address you can call home, you should apply for a Starling account (Don’t apply for a Starling account until you have a physical UK address). You can receive job payments into both bank accounts but Starling has a UK bank licence which means your money will be more secure there. Revolut and Monzo accounts are also worth considering once you arrive in the UK. Read here for a comprehensive side by side comparison of these four UK banks.
I think you can live in the UK just fine with the above cards. However, some people who stay long term may want to set up a bank account with one of the major UK banks: HSBC, Lloyds, Barclays, NatWest, Santander. Major UK banks are more established and offer a greater range of financial products and services. However, these banks have stricter application requirements and will generally take longer to set up. Other people may want to add Monzo and Revolut cards to their wallets as back up cards or to increase their total ATM withdrawal limits while travelling.
UK Bank Account Options
Broadly speaking, there are four major types of banks you can use in the UK:
UK Digital Banks
Digital banks are the latest type of banks which have appeared in the UK. These banks are completely online. They are also easier to get accounts from and they usually have cheaper fees than your traditional banks. They also have features better suited for travelling to Europe. Hence, they are great for people moving to the UK and for people who are living in the UK who travel often.
Two popular UK digital banks are Starling and Monzo. Both of these digital banks have UK bank licenses so your money up to £85,000 is protected by the Financial Services Compensation Scheme (FSCS).
Read here for more details on Starling and Monzo’s application requirements, features and fees.
HOT TIP: Make sure you have a physical UK address before applying to Starling or Monzo. If you do not, you will be rejected and you will not be able to apply again.
UK Digital Financial Services
These are financial service companies which effectively operate like the above digital banks. However, they do not have UK bank licences and hence do not guarantee the first £85,000 you deposit despite having a lot of security measures and having bank licences in other countries.
Although they may not be your first choice for keeping your savings (or large amounts of money), they are great for travelling with cheap international transfers, currency exchanges and ATM fees overseas. They are also super convenient as you can apply for accounts without a permanent UK address. You can also receive salary payments into these accounts if you start working in the UK before you find a place to rent.
Examples of these types of accounts: Wise, Revolut. Read here for more details on Revolut and Wise’s application requirements, features and fees.
Traditional UK Banks
These are your traditional banks in the UK. They have a wide range of financial services and will have multiple brick and mortar stores in most towns and cities. Their debit cards are not good for use overseas though and they can have higher fees especially for currency exchange.
These used to be the only option for people moving to the UK and even their most basic accounts were difficult to get. This is because they require you to show proof of a physical UK address (utility bill, tenancy agreement, UK credit card statement) along with your Biometric residence permit (BRP). However, Lloyd’s bank may ask for only your BRP to prove your identity in some cases (use your phone to apply as they need a photo of your face too).
Examples of these types of banks: HSBC UK, Lloyd’s Bank, NatWest, Barclays.
International Bank Accounts
Some big banks offer international bank accounts which you can use in multiple countries. However, I do not recommend opening an International bank account as they typically require large sums of money deposited for them to be opened. If you are like me, who flew over with only a few thousand pounds, then this will not be a suitable option for you.
The problem with getting a UK bank account
Most Australians and New Zealanders run into problems getting a UK bank account as traditional UK banks require a current UK passport or a current UK photo driving licence (proof of identity) to create a bank account.
If you do not have either of those then you will need to provide both proof of identity and proof of address documents. The proof of identity can be your biometric residence permit which is easy enough to provide. However, the proof of address is much harder as most people who have just come to the UK do not have a permanent UK address. They will most likely be living in a hostel, Airbnb or sleeping on someone’s couch. All places you wouldn’t really want your bank account information sent to and all places which aren’t really going to add your name to their utility bills or tenancy agreement.
Instead, you have several options:
- Ask a trusted friend or family member to use their UK address.
- Create a Revolut and/or Wise account for your daily living expenses. Next, rent somewhere and use this new address for applying for UK bank accounts.
- Use a company like Britbound who help people move to the UK and allow you to use their address to get a UK bank account.
I personally got an HSBC basic bank account when I first arrived but it was very hard to get. I was very lucky to have landed a job before entering the UK and my UK employer who was also my landlord was very helpful in providing the required documents to help me set up my bank account. However, if I didn’t have an employer to help I would have definitely gone with the second option.
I also have a friend who recently applied for a Lloyd’s bank account and they only asked her for her BRP and her photo before approving her application. Lloyd’s website does mention they may request a proof of address sometimes during their application process but it is still worth a try if you want a traditional bank account.
How can I get a UK Bank Account?
Opening a bank account in the UK is relatively straight-forward. For UK digital banks, just go to the chosen bank’s website (Starling, Monzo, Revolut, Wise) and sign up. For traditional UK banks, you will need to organise an appointment at your local branch and make your application in person. What makes it difficult to get a UK bank account is providing all the necessary application documents the bank requests.
Remember for Starling, Monzo and any of the traditional bank accounts you need a physical UK address. As mentioned before, do not apply for Starling or Monzo without one. If you do, your application will be rejected and they will not give you a second chance to apply.
What do I need to open a UK bank account?
The major banks all differ in their application requirements to set up a bank account. However, the main requirements are:
- You are 18 years or older
- Proof you are a UK resident (UK passport, Biometric Residence Permit)
- Proof of identity (Passport with a valid UK visa or Biometric Residence Permit)
- Proof of address (utility bill, telephone bill, council tax bill, mortgage statement, rent agreement)
UK digital banks, Monzo and Starling, will require you to have a UK address.
Revolut and Wise accounts can be opened without a UK physical address. As they are international companies, you can use your local (Australian) details.
What is the easiest UK bank account I can open?
A Revolut or Wise account will be the easiest to open as you do not need proof of a physical address in the UK. However, they are not considered UK banks as they do not have a UK bank licence yet. Hence, the easiest UK bank accounts to open are Starling and Monzo banks.
How can I get a UK Bank Account before moving to the UK?
You cannot open most UK bank accounts before you arrive in the UK. You can apply for a Wise and/or Revolut account before entering the UK but they are technically not UK banks as these companies do not have UK bank licences yet. This is important to know as the UK FSCS does not cover these companies although they do have a lot of security measures to keep your money safe. They are still very useful accounts especially in the first few months of living in the UK and while travelling. Just keep the amount of money stored in these accounts to a minimum.
Note: If you get a Revolut card outside of the UK you can change your address in the settings to a UK address once you move over. However, I am not sure if your terms and conditions including card and bank fees will switch to the Revolut UK’s terms and conditions when you do this. I applied for my Revolut card in the UK which you can do too as it doesn’t take very long for them to send you your Revolut card.
How can I get a UK Bank Account without a UK Address?
The only UK accounts you can get without a UK address are international bank accounts and the Revolut and Wise accounts.
What is the best UK Bank Account to get while Living in the UK?
The Wise multi-currency account is the best account to set up before you have a permanent UK address. You can even set it up before you arrive in the UK! It is useful for your initial international money transfers as you send money to the UK to set yourself up. The Wise debit card also has competitive currency exchange rates and it is overall a great card to use for daily spending in the UK and Europe. You can also set it up so you can start receiving payments immediately from a UK employer which is awesome while you are still looking for a permanent place to live.
Once you have a place to rent in the UK ,and hence a physical address, the next account I recommend setting up is the Starling personal current account (I keep mentioning this but do not try to apply for this account until you have a physical UK address because you will be rejected and you cannot re-apply later). This account is super convenient and is a great everyday transaction account for day-to-day living in the UK. It is also good for storing your savings as Starling bank has a UK bank licence so your money up to £85,000 is protected by the FSCS.
Revolut and Monzo are also great value. For a much more detailed side-by-side comparison of the top UK digital banks read here.
What is the best way to transfer money into my UK Bank Account?
The best and cheapest way to transfer money into your UK bank account is to use Wise’s international money transfer service.
How to open a UK Business Bank Account?
If you are a freelancer or contractor, the easiest way to start a business bank account is to get Tide. Think of Tide as the Revolut for businesses. Tide is a very good digital business banking service in the UK. I used Tide when I set up my own contracting business in the UK. To make it easier to set yourself up as a contractor I highly recommend getting Workr as your accountant to help you like I did. Unfortunately UK tax rules are complicated and it’s much better to get professionals who know what they are doing to do it for you.
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