Opening a Bank Account
Opening up a bank account in the UK for an American citizen can be a pain, but it is doable. First, here are some things you will need:
Once you have these you are ready to open your checking account. Please note that checking accounts are called current accounts in the UK.
Types of Current Accounts
Regular account. If you are not a UK citizen and have less than £2000 ($4000US) in your account at all times your bank will charge you a £5 ($10) monthly fee for a normal current account. If you go this route, you will be given a debit ATM card with a Visa or MasterCard logo that can be used wherever credit cards can be used. You also use this card to withdraw cash at ATMs, or as they are commonly referred to in the UK, cash machines. A regular current account will also give you access to online banking.
Cash Card account. Those who won’t have £2000 in their account monthly or don’t want to pay a monthly £5 fee can apply for a cash card. This is simply an ATM card so you can make deposits and withdrawals at ATMs. You cannot use this as a debit card and you have no online account access. It’s strictly to get cash from ATMs.
A Word on Cash Machines (ATMs)
Unlike in the States, if you use your cash or debit card at a bank other than your own, you will NOT be charged a fee by your bank or the bank whose ATM you are using. You are only charged ATM fees when you use your cash or debit card at Link ATM machines – like those found outside Cost Cutters. Avoid Link if you can.
The Major Banks
These are the big players. I’ll leave it to you who to decide to go with:
HSBC www.hsbc.co.uk
Lloyds www.lloydstsb.com
Halifax www.halifax.co.uk
Barclays www.barclays.co.uk
The Royal Bank of Scotland www.bankofscotland.co.uk
Opening up a bank account in the UK for an American citizen can be a pain, but it is doable. First, here are some things you will need:
- Your passport.
- Proof of your UK address – a credit card statement with your UK address will NOT suffice! Proof of address means a utility bill or a certified letter from your employer or school saying you do indeed live in the UK.
Once you have these you are ready to open your checking account. Please note that checking accounts are called current accounts in the UK.
Types of Current Accounts
Regular account. If you are not a UK citizen and have less than £2000 ($4000US) in your account at all times your bank will charge you a £5 ($10) monthly fee for a normal current account. If you go this route, you will be given a debit ATM card with a Visa or MasterCard logo that can be used wherever credit cards can be used. You also use this card to withdraw cash at ATMs, or as they are commonly referred to in the UK, cash machines. A regular current account will also give you access to online banking.
Cash Card account. Those who won’t have £2000 in their account monthly or don’t want to pay a monthly £5 fee can apply for a cash card. This is simply an ATM card so you can make deposits and withdrawals at ATMs. You cannot use this as a debit card and you have no online account access. It’s strictly to get cash from ATMs.
A Word on Cash Machines (ATMs)
Unlike in the States, if you use your cash or debit card at a bank other than your own, you will NOT be charged a fee by your bank or the bank whose ATM you are using. You are only charged ATM fees when you use your cash or debit card at Link ATM machines – like those found outside Cost Cutters. Avoid Link if you can.
The Major Banks
These are the big players. I’ll leave it to you who to decide to go with:
HSBC www.hsbc.co.uk
Lloyds www.lloydstsb.com
Halifax www.halifax.co.uk
Barclays www.barclays.co.uk
The Royal Bank of Scotland www.bankofscotland.co.uk
