How to Open a Bank Account in UK? Know the Requirements

Last Updated on December, 2024

Opening a bank account in the UK might seem hard if you’re new here. But don’t worry! This piece will help you understand how to do it step-by-step.

I’ll explain everything you need to know in simple words so you can feel confident about getting your bank account. Whether you’re a student, working, or want to manage your money, knowing how to open a bank account is really important. Isn’t it?

So, I’ve covered everything, including the papers you need and the different types of accounts from which you can choose.

Quick Summary

To open a UK bank account, you’ll need two key documents: proof of identity (e.g., passport, driving license, or identity card) and proof of address (e.g., utility bill, bank statement, or tenancy agreement). Each bank may have specific requirements, so checking beforehand is advisable.

If you lack a UK address or ID, some banks are flexible and may accept alternative documents like a letter from a university or Jobcentre. Additionally, non-residents can open “International” or “Expat” accounts, often offered by major UK banks, though these may require a significant initial deposit and may include fees.

Various bank accounts are available in the UK, such as Everyday Current Accounts, Savings Accounts, Student Accounts, Digital Mobile Banking Accounts, and International Non-Resident Accounts. The choice depends on individual needs and eligibility, with each account type offering different features and requirements.

What Paperwork is Required to Establish a Bank Account in the UK?

A person reading a paper on a bank background

Listen, it’s necessary to show two main documents when opening an account in the UK. This rule applies whether you’re doing it in person at a bank branch or online.

Proving your identity is super easy. You can use your passport, driving license, or identity card if you’re from the EU.

Different savings banks accept different documents for this. Commonly accepted ones include:

A tenancy agreement or mortgage statement.
A recent utility bill (no older than three months).
A recent bank or credit card statement (less than three months old).
Your current council tax bill.
A letter from HM Revenue and Customs.

Each bank has its own list, so it’s a good idea to check what they require before you apply.

How to Open UK Bank Accounts Without Address Proof?

If you’re new to the U.K., you might not have all the documents banks ask for. But don’t worry; banks are now more flexible about what they accept as proof of address.

For example, if you’re a student, many major UK banks will accept a letter from your University confirming where you live. Some banks will also take a letter from the Jobcentre. You should also verify your national insurance number or a recent letter from your employer.

Here’s another way: before you come to the U.K., ask your bank to change your address to your new one. You might do this online. Then, ask them to send a bank statement to your new address by mail. This statement will prove where you live.

Can I Open a Bank Account Before I Arrive in the UK?

image of a flight landing in the UK on a big Ben clock tower background

You can open an account in the UK even before you arrive.

Some banks in your home country might help you set up a UK account if they work with British banks. Most UK banks offer accounts for people living abroad, known as ‘International’ or ‘Expat’ accounts.

HSBC has one called the expat bank account. You can apply for these online even if you don’t have proof of a UK address. Barclays, Lloyds, HSBC, and NatWest all offer international accounts.

But be careful. These accounts might ask for a big first deposit and require you to put in a certain amount of money every month. Some UK banks also charge a monthly fee on top of these requirements, making the account expensive, especially if you’re not working yet.

There could be other rules, too. For example, you might be allowed to close the account or switch to a better deal after a certain time has passed.

Types of Bank Accounts in the U.K.

Check out the following international bank accounts in the UK to understand which one suits you best for your needs.

Everyday Current Account (Checking Account in the UK): This is the account most people use for everyday needs like paying household bills and getting paid. It has a debit card and lets you spend more money than you have through overdrafts. You can ask for a chequebook if you want one.
Savings Account: This account is for saving money. It usually earns more interest rates than a current account. Some savings accounts don’t let you take out money for a certain period.
Student Accounts: Banks offer these to students, with special features and low fees. However, the fees go up once you finish studying or reach a certain age.
Digital Mobile Banking Account: You can use these accounts from your phone or computer. Different banks, especially online-only banks, offer various levels of services.
Basic Account: Banks in the UK have to offer these to residents. They’re FREE and let you deposit and withdraw money. They stop payments that would put you in debt.
Joint Account: This account is shared by family members, like married couples or parents and children, who need to manage money together.
International Non-Resident Account: This account is for people who don’t live in the UK but need to do banking there regularly.
Offshore Account: Some UK banks and banks from your home country offer these accounts. They have high minimum balances and fees but come with extra banking services like an account manager and can hold money in different currencies. They’re often used for things like managing investments or property.

Which Bank Suits Me Best?

In the U.K., there are many different banks, and they all have many types of accounts to choose from. Whether you’re a student, a worker, or a business owner, there’s something for everyone.

However, finding the right account can be tricky because each bank has its own rules. Since you’re new to the U.K., you might not have much paperwork or credit history. Some banks might make it hard for you to open an account because of this.

So, while it’s great that there are so many options, it’s important to think about what you need and what works best for you.

Which British Bank Account is the Easiest to Open?

Creating a savings account in the UK is easier with big banks like Barclays, Lloyds, HSBC, or NatWest. They’ve been around for a while, so they’re safe and know how to help foreigners.

If you’re from the E.U., opening an account might be easier. Before trying, talk to the bank’s customer support to learn more and ask questions. There are other options besides a bank account, like Wise.

It lets you manage money internationally in different currencies, including GBP. You can also have a Wise card to spend like a local in the U.K.

How to Send Money to a UK Bank Account?

Once you’ve got a new bank account in the UK, you’ll want to move your money there. But it can be expensive if your money isn’t in pounds. Here’s how to do it:

If you’re sending a few hundred or thousand pounds:

Using your bank directly is not a great idea because it’s pricey and slow. Banks use a network called SWIFT, which makes things slow and costly.
Using an online money transfer specialist is better. Services like Wise are good. They’re usually cheaper and faster, and you can compare different services in just a few clicks.

If you’re sending a lot of money (more than £30,000):

Money transfer specialists like Wise might be the cheapest: They’re good for both small and large amounts.
Foreign currency exchange brokers: These guys are good for big transfers. They can get you better rates. They’re best for moving lots of money, like savings or investments.

That’s how you can send money to a UK bank account easily.

What are the Top Four Banks in the UK?

Barclays

Barclays is one of the oldest banks in the U.K., with over 1400 branches across the country. Opening an account with Barclays is super easy if you’re new to the government.

You can even start the process online before you arrive. The Basic Account is FREE and comes with a Visa debit card. However, you can’t start using it right away.

After you’re in the U.K., you’ll need to go to a branch with your reference number, passport, and provide proof of address to activate the account.

For students, Barclays offers a special account that’s also FREE. It includes a contactless debit card and allows for a FREE overdraft of up to £1,500 during your studies.

Plus, Barclays provides various business mobile banking account options based on your yearly turnover rate.

Lloyds

Lloyds is a big bank in the UK with more than 500 branches nationwide. It offers a FREE classic account with a Visa debit card.

To open it, you usually need just your passport or identity (if you’re from the EU) and your UK address. If you’re a student, Lloyds has a special account for you called the Lloyds student current account.

For the first three years, it offers a FREE overdraft of up to £1,500. And if you’re starting a business, you can also open a business account with Lloyds.

HSBC

If you’re from a country where HSBC operates, they can help you set up a U.K. account before your arrival. HSBC has plenty of branches across the U.K., but their numbers are declining due to the increasing popularity of online banking.

HSBC offers students a student account. In the first year, you’re eligible for a FREE overdraft of £1,000, and by the third year, you can request an increase of £3,000.

Plus, HSBC provides helpful guides to assist students in managing their finances effectively.

Opening an account with HSBC is easy. Their basic bank account is designed for everyday banking needs when you’re new to the U.K. It comes without any monthly fees and includes a contactless Visa debit card, though it doesn’t provide an arranged overdraft.

Moreover, HSBC offers a range of options for business accounts. Most of these accounts waive the monthly fee for the initial 12 months.

NatWest Group

Like many banks, NatWest is closing branches as more people use digital banking. Although the bank has many branches in the U.K., It offers different kinds of accounts.

One is called Select, which is a basic everyday account with no fees. It comes with a Mastercard (debit card) that you can use without touching, and you might be able to borrow some money if you’re eligible.

They also have an account for students. It lets you borrow up to £2,000 without any fees from your first year. You won’t be charged every month for having this account. You’ll get a contactless debit card, and there’s an app called ‘Housemate’ for splitting bills between roommates.

NatWest also offers business accounts. Some of these offer up to two years of FREE banking for your everyday business needs.

Costs and ATM Fees

As I discussed above, opening a bank account in the UK is important if you’re moving or traveling there. Most high street banks offer a basic current account at no monthly cost. This account should cover your everyday banking needs.

If you’re new to the UK, you might not qualify for premium accounts, which offer extra benefits like cashback, interest, and insurance. These accounts often have monthly fees and eligibility requirements.

Be CAUTIOUS about going into overdraft. Without a planned overdraft, your bank may charge hefty fees for withdrawing more than what’s in your account. ALWAYS read your bank’s terms and conditions to avoid unpleasant surprises.

When using ATMs, remember that there are free cash withdrawals from your bank’s ATMs. However, some ATMs, especially independently operated ones, may charge between £3 and £5 per transaction.

Using ATMs outside the UK almost always incurs fees. Your UK bank may charge a non-sterling transfer fee, as high as 2.99% per transaction, along with a cash withdrawal fee.

If a foreigner ATM asks which currency to charge you in, choose the local currency. Otherwise, you’ll get a bad exchange rate plus fees from your UK bank.

Before arriving in the UK, compare different banks’ fees, features, and coverage to find the best match for your needs. And remember, there are better ways to manage your money, like Wise.

What Happens if Your Request to Open a Bank Account is Declined?

illustration image of a person requesting to open a bank account

GUESS WHAT? In the UK, nine major UK banks are obligated to offer international bank accounts to legal residents and citizens.

These banks include Barclays UK, the Co-operative Bank, HSBC UK, Lloyds Banking Group (including Halifax and Bank of Scotland brands), Nationwide Building Society, NatWest Group (including Royal Bank of Scotland and Ulster Bank brands), Santander U.K., TSB, and Virgin Money.

As already discussed, to open a bank account in the UK, you’ll need to provide certain documents like identification and proof of UK address.

This is because of laws known as ‘Know Your Customer (KYC)’ regulations, which require banks to gather identity information to help prevent money laundering and terrorist financing.

Despite these requirements, banks in the UK still have the right to refuse to open an account for you. However, they are not obligated to give you a reason for their decision. If you believe you’ve been treated unfairly, you can ALWAYS file a complaint with the Financial Ombudsman Service.

Eligible cash deposits are secured by the Financial Services Compensation Scheme (FSCS).

The process of addressing complaints through the Ombudsman typically takes between 8 to 12 weeks. If you’re unsatisfied with the outcome, you have the OPTION to pursue legal action.

However, it’s important to note that in such cases, you’ll generally be responsible for covering your legal expenses.

Relevant guides:

Conclusion

Now that you know how to open a bank account in the UK, it’s time to take action.

Choose the bank and account that’s right for you, and start managing your money with confidence. If you have any questions or need help, ask the bank for support. Taking this first step will help you feel more secure about your finances.

So, go ahead, open your UK bank account today, and take control of your money!

FAQs

To open a bank account without a UK ID, consider two options: using a foreign account from your local bank or a Wise multi-currency account, which offers UK banking details.

To open a UK bank account as a non-resident, you’ll need proof of a UK address, which can be challenging. Alternatively, open a foreign currency account locally or use Wise to obtain UK banking details.

Yes, you can open a UK bank account online with most banks, though some may still require an in-person appointment.

Yes, you can open a UK bank account without proof of address using Monzo or Monese. Wise is also a good option for non-residents.

To open a bank account in the UK, you’ll need proof of identity (like a passport or driver’s license) and proof of address (such as a utility bill or rental agreement). Some banks may also require a reference or credit check.