All about UK bank accounts

Hi there! Welcome to the UK! Getting your finances sorted is definitely one of the first big steps when you arrive, and it can feel a bit daunting. But don't worry, I'm here to help you understand your options without any confusing jargon.

Note: I am not a banking expert, and I am not qualified to give you any financial or banking-related advice. This guide is based on my personal experience and the information available in public.

First off, congratulations on making the move! It's a fantastic country, and I remember all too well the process of settling in. I'll share what I know to make your banking journey as smooth as possible.

Types of Bank Accounts Available to the General Public

In the UK, the most common type of account you'll be looking for is a Current Account. This is your everyday account where your salary will be paid, and you'll manage your bills, spending, and direct debits.

Within current accounts, there are a few variations:

• Standard Current Account: The most common type, usually with no monthly fee.

• Basic Bank Account: Designed for people who might have a poor credit history or find it difficult to open a standard account. These usually don't offer an overdraft facility. Many mainstream banks offer these, and they can be a good starting point for new arrivals if other options prove difficult.

• Packaged Current Accounts: These come with a monthly fee but offer extra perks like travel insurance, mobile phone insurance, or breakdown cover. Only consider these if you'll genuinely use the benefits.

• Joint Accounts: For two people to manage money together.

• Student Accounts: Special accounts with benefits like interest-free overdrafts for university students.

• Savings Accounts: Separate accounts designed for saving money, usually earning a bit of interest. You typically move money from your current account to your savings account.

Bank Account Options for New Arrivals

The good news is that banks in the UK are becoming much better at welcoming new arrivals. You generally have two main routes:

1. Digital or App-Based Banks (often called "Challenger Banks")

These banks are super modern and manage almost everything through their mobile apps. They are often a fantastic choice for new arrivals because their application processes tend to be quicker and less demanding regarding proof of address, which can be tricky when you've just landed. Examples: Starling Bank, Monzo, Revolut, Wise (formerly TransferWise).

• Pros:

  • Quick to open: You can often open an account in minutes from your phone.

  • User-friendly apps: Great for managing your money on the go, with instant notifications for spending.

  • Less strict on proof of address: Some are very understanding if you don't have a utility bill in your name yet and might accept a letter from your employer or university.

  • Good for international transfers: Many offer competitive rates for sending money abroad.

• Cons:

  • Limited physical branches: If you like face-to-face banking or need to deposit cash frequently, this might be a drawback (though many offer ways to deposit cash at Post Offices or PayPoint locations).

  • Can be fully reliant on your phone: If your phone dies or you lose it, it can be a bit of a hassle.

2. Mainstream High Street Banks

These are the traditional banks with physical branches you'll see all over the UK. They offer a full range of services, but opening an account as a new arrival can sometimes be a bit more challenging due to stricter proof of address requirements. Examples: Lloyds Bank, Barclays, HSBC, NatWest, Santander, TSB, Nationwide.

• Pros:

  • Physical branches: You can go in and speak to someone face-to-face if you have an issue.

  • Wider range of services: They often offer more complex products like mortgages, loans, and investment accounts once you're settled.

  • Established reputation: Many people feel more secure with a well-known name.

• Cons:

  • Stricter documentation: Getting proof of address when you're brand new to the country can be a hurdle.

  • Potentially slower opening process: Applications can take longer, especially if you need an in-branch appointment.

  • May require an appointment: You often can't just walk in and open an account; you'll need to book ahead.

Typical Documents Required for Opening a Bank Account

This is often the trickiest part for new arrivals! Banks need to verify your identity and your address.

1. Proof of Identity (Photo ID):

You'll generally need one of these:

• Valid Passport (this is usually the easiest for new arrivals)

• UK Driving Licence (if you have one)

• EU National Identity Card

• Biometric Residence Permit (BRP) - particularly important for non-EU immigrants on certain visas.

2. Proof of UK Address:

This is where it can get tricky. Banks need to see an official document with your name and UK address. This can be challenging if you've just moved in and don't have bills in your name yet. Here's what's commonly accepted (and what new arrivals often struggle with initially):

• Utility Bill: (Gas, electricity, water – usually dated within the last 3 months). Mobile phone bills are generally not accepted.

• Council Tax Bill: (For the current financial year).

• Bank Statement from another UK bank: (If you manage to open another account first).

• Mortgage Statement or Tenancy Agreement: (Proof of where you live).

• HMRC (Tax) Letter: (Official correspondence from the tax authority).

• Letter from your Employer: Some banks, especially those more geared towards new arrivals, might accept an official letter from your employer on company letterhead confirming your address. This is what I used when I opened my first bank account.

• Letter from your University/College: Similarly, for students, an official letter from your educational institution confirming your enrollment and address.

Tip for New Arrivals: If you don't have standard proof of address, ask your employer or university if they can provide a letter specifically for bank account opening. Digital banks are often more flexible in accepting these.

Typical Process for Opening Bank Accounts

1. Digital/App-Based Banks (e.g., Starling, Monzo)

• Download the App: Search for the bank's app on your smartphone's app store.

• Start Application: Follow the on-screen prompts to begin.

• Provide Personal Details: You'll enter your name, date of birth, current UK address, and sometimes your previous addresses.

• Proof of Identity: You'll usually be asked to take a photo of your passport or Biometric Residence Permit using your phone's camera. Some might also ask for a short video of yourself speaking a few words to verify you're a real person.

• Proof of Address (if needed): For new arrivals, they might be more flexible. They could try to verify your address electronically, or if not, ask for a photo of an official letter (like an employment contract, university letter, or tenancy agreement).

• Set up Security: Create a PIN, set up fingerprint/face ID if your phone supports it.

• Review and Submit: Double-check all your details and submit.

• Waiting Time: Approval can be almost instant, or take a few hours/a day for manual review. Your virtual card is usually available immediately, and the physical card is posted within days.

2. Mainstream High Street Banks (e.g., Lloyds, Barclays, HSBC)

• Online/App Application (if available for new arrivals):

  • Many high street banks now allow online applications. The process is similar to digital banks, but they might have stricter requirements for electronic identity and address verification. If you don't have a strong UK credit footprint or easily verifiable address, you might be redirected to an in-branch application.

• In-Branch Application (most common for new arrivals with high street banks):

  • Book an Appointment: This is usually essential. Call their customer service or check their website to book a "new account" or "new to UK" appointment.

  • Gather Documents: Bring your passport/BRP (and visa if applicable), and as many forms of UK address proof as you can (tenancy agreement, employer letter, council tax bill if you have one, etc.). The more official documents you have, the better.

  • Attend Appointment: A bank advisor will go through the application form with you, scan your documents, and ask about your financial situation (income, expenses).

  • Verification and Approval: The bank will conduct checks. This can take a few days. You might receive an email or letter confirming approval.

  • Card Arrival: Your debit card will be posted to your registered address, usually within 3-5 working days after approval. Your PIN might arrive in a separate letter a day or two later.

How long does it take?

• Digital/App-Based Banks: Often, minutes to a few hours to open the account digitally. You'll get a virtual card immediately, and a physical debit card usually arrives within 3-7 working days by post.

• Mainstream High Street Banks:

  • Online/App Applications: If you meet all the criteria and have easy-to-verify documents (like a UK passport or driving licence), it can take a few minutes to a few days.

  • In-Branch Applications: This often involves booking an appointment, which could be a few days to a week away. The account itself might be opened during the appointment, but it could take another 3-5 working days for your debit card to arrive. If further checks are needed, it could take longer.

For both types, once the account is technically "open," you'll usually be able to receive money into it almost immediately, even before your physical card arrives.

Banks to Avoid (and FSCS Protection)

This is a crucial point! In the UK, your eligible deposits in banks, building societies, and credit unions are protected by the Financial Services Compensation Scheme (FSCS). This means that if a bank fails, the FSCS will compensate you for your deposits up to £85,000 per person, per authorised institution. For joint accounts, this protection is £170,000.

Key takeaway: Always make sure the bank you choose is covered by the FSCS. You can usually find the "FSCS Protected" badge on their website, in their branches, and on their mobile apps. The FSCS also has a useful "check your money is protected" tool on their website.

Regarding banks with a "bad reputation": While there aren't specific mainstream UK banks that are entirely "unprotected" by FSCS (they legally have to be if they're a legitimate bank), some might have had past issues with customer service, app glitches, or slower processes. It's always a good idea to check recent customer reviews on independent sites like Trustpilot or forums before committing.

Things to be wary of:

• Unregulated "e-money" or payment service providers: Some online services might not be full banks and therefore might not offer FSCS protection. Always check their regulatory status and confirm FSCS coverage. If it's not clear, avoid it for your main funds.

• "Get rich quick" schemes or unregulated investment platforms: These are completely different from standard bank accounts and almost certainly won't have FSCS protection for your capital.

Stick to well-known high street banks or popular digital banks like Starling, Monzo, Revolut, or Chase (all of which are FSCS protected).

A helpful tip: If you're struggling to get proof of address, sometimes opening a basic account first with a high street bank can be easier, as their requirements can be slightly less stringent. Once you have a bank statement from that account, you can use it as proof of address to open a "better" account if you wish.

Remember to breathe and be patient! Getting your banking set up is a big achievement. Good luck with your new life in the UK!

You will find all the information you need to open your first UK bank account