How to Open a Bank Account in the UK?

Step 1: Collect the required documents to open an account

You will require two types of documents to open a UK bank account:

1. Identification proof

You can prove your identity by providing documents like:

2. Address proof

The essential documents considered as acceptable proof of address are:

Step 2: Select from the different types of bank accounts in the UK

There are various bank accounts available in the UK, and you can choose the one that best meets your needs. The most common ones are:

1. Savings Account

The majority of banks offer a variety of savings and investment choices under the savings accounts category.

Depending on the account type, these accounts may have minimum deposit requirements and holding periods. But they offer greater interest rates overall.

2. Current Account

These are the most traditional and widely used in the UK to fulfil daily necessities like paying bills, shopping, and getting paychecks.

Current accounts come with a debit card and are usually free or inexpensive (premium accounts will cost more). Furthermore, it typically provides choices like credit cards and overdraft capabilities.

Most banks provide unique variations of these accounts to the younger demographic.

3. Basic Account

Many UK banks provide free basic bank accounts to individuals with a low credit score or who struggle to get a current account.

You would not be able to use credit cards, borrow money, or overdraw your account with these. Still, they provide essential services and products like Visa Electron debit cards and direct debit payment choices.

When you start a basic account, you can typically upgrade to a current account if your circumstances change and you satisfy the credit check requirements.

4. Business bank account

You can set up a business banking account with any of the major banks in the UK if you're planning to open 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 must also give their Company Registration Number, all directors' information, and an annual revenue estimate.

5. Offshore Accounts

Opening a foreign offshore bank account may be the most effective option for expats residing in the UK to manage their funds.

While working or residing abroad, opening an international offshore account in the UK is feasible.

Offshore accounts accept GBP, EUR, and USD deposits and typically have a higher minimum balance requirement than traditional bank accounts. They provide benefits to domestic banks, like favourable tax policies.

Step 3: Choose from the different banks in the UK

The choice of your bank determines the kind of facilities you will enjoy as an account holder.

You can compare offers from different banks in The UK to choose your ideal institution. If you are an expat wishing to open a bank account in the UK, you further need to see which financial institution has a substantial online presence. This is because, as a foreigner, you are most likely to open an account before arriving in the UK.

Here are some established banks you will find in Britain:

1. Lloyds

Lloyds Bank is one of the biggest retail banks in the UK and offers about eight current standard accounts. Among these, the account, namely basic, classic, student, and under-19, are gratuitous.

Moreover, the financial institution offers platinum accounts with insurance benefits and credit interest choices for approximately £19 per month. Two additional international account options are available for non-residents and those who require access to foreign markets.

These allow for free foreign money transfers. However, opening an account requires a minimum annual income of £25,000.

2. Metro

Metro Bank is a comparatively smaller and recent UK bank with about 67 locations across the nation. Its branches are open seven days a week, and you don't need an appointment to speak with an advisor. The bank's main selling point is its accessibility.

UK citizens can open a standard current account for free, which comes with privileges including free cash withdrawals abroad. There are also accessible simple cash accounts. However, the account options are more constrained for foreigners.

3. Royal

The Royal Bank of Scotland plc is a significant retail and commercial bank in Scotland. Along with NatWest (in England and Wales) and Ulster Bank, it belongs to the NatWest Group's retail banking subsidiary.

The Royal Bank of Scotland has about 700 locations, most of which are in Scotland, although there are also locations throughout England, Wales, and many larger towns and cities.

It also offers multiple other options that you can compare with the help of the internet. Once you find the bank of your choice, all that is left is to apply there for an account with all the required documents discussed above.

Apart from the above mentions things, you can also check other aspects of opening an account to further benefit yourself.

Things to consider before opening a bank account in the UK

The following things can make you unnecessarily lose money on baseless demands made by certain banks. Some of these are:

1. Associated Fees

There may be additional costs for certain services or add-ons, even though many UK accounts are free of monthly fees. For example, most banks might charge you pay a certain amount to transfer money internationally.

Do not give in to their demands just because it seems convenient. Instead, look for other alternatives available in the market. Sticking to the example mentioned before. You can make international payments at competitive rates from The Currency Club.

We maintain complete transparency and only charge a nominal margin over the interbank exchange rates.

2. Incentives

Many banks may use incentives like cash deposits or interest-free periods to entice consumers, so browse to see what is available.

Moreover, a non-sterling transaction fee, which can be as high as 2.99% per transaction, is frequently imposed by banks. Some banks may add a cash withdrawal fee to the non- sterling transaction fee.

It can take quite a while (up to four or five weeks) to open an account because of the stringent security requirements associated with the banks. Having adequate cash on hand to pay for your expenses during this time is crucial.

Use this blog as your guide to open an account in the United Kingdom and ease your stay there. Always remember that every facility and bank account type is designed to aid a certain group of individuals. Hence, never select one randomly and always conduct a thorough check.

Summary