A new expat’s guide to banking in the UK
So you’re thinking of moving to the UK? Excited about seeing Big Ben, eating a pasty and riding the Tube? There’s a lot to be excited about! But don’t let that stop you from keeping an eye on your personal finances.
Even if you’re moving for a year for work or short term for your studies, you’ll need to think through a few things (that, admittedly, are slightly less fun than having your first pint of British lager) related to your finances.
Staying in touch with your bank in your home country:
Inevitably, you will need to make sure that your bank has the ability to contact you abroad. Sounds easy? Actually, there are a few things you need to think about!
Banking Mailing Address
Will you keep an address in your home country? If your move is short term, using a parent’s (or close friend or family member’s) address is common. If you go this route, you may have to ask this person to open your postal mail from your bank - keep that in mind!
If you’re planning to move to the UK long term, it’s best to have a bank account in your home country that allows for an address in the UK.
If you’re in America and moving to the UK, most banks DO NOT allow addresses outside of the US! Ally Bank is a good one that does allow for this.
Telephone Number
Will your bank allow for a UK telephone number? If so, great! Switch it as soon as you have one. If not, you will need to find out how you can keep a telephone number in your home country.
There’s a couple ways you can do this:
A VOIP / internet calling plan (like via Google)
Keep a US SIM with a low payment plan an make sure you keep the SIM active by paying your bill!
Something to watch out for: Not all banks allow for VOIP or telephone over the internet (like Google). Make sure you check this with your bank if using one of these services is in your plans!
Banking Apps
One of the trickiest things when moving abroad is switching your Google / Apple app store. If you are planning to switch your Google / Apple store location, you may loose the ability to update your banking app!
For example, I’m a Wells Fargo customer in the US and when moving to the UK and switching to the UK Apple store, I won’t find Wells Fargo’s apps in the UK store. That’s because Wells Fargo doesn’t have a presence in the UK.
Also, I’m an American Express customer in the US. When moving to the UK, when I find the American Express app in the UK app store, it’s the UK version, not the American version. My username and password won’t work in the UK app because that’s for a different country’s bank!
So what do you do? If you will be switching your app stores from your home country’s to the UK’s, first, make sure you have the latest version of your banking apps before you leave. Second, make sure you have everything you need to be able to log in to the online (web - not app) bank. Third, make sure you have telephone banking set up in case you need to phone in.
Keep your banking identifying details handy! If you get locked out of your app and online banking and have to phone in, your bank will need to confirm your identity. This usually means checking your name, date of birth, national identity number (such as an SSN) but also what mailing address or telephone number is associated with the account and sometimes your PIN number for your debit card. If you plan on being abroad for a few years, make sure you have all this information handy because otherwise, it will be very difficult for you to get back into your account!
Which bank is the best? What accounts should I have?
This is the most asked personal finance question for expats!
Bank Accounts for Transferring Money
If you expect to be transferring money back and forth from your home country to the UK and vice versa, you’ll want to have one of these accounts:
A bank that will let you have an account in your home country and in the UK and will let you transfer money from and to these accounts at bank rate (try HSBC for this!) or
Consider an online bank designed for transfers like Wise, N26 or Revolut. This is a HUGE help when first moving. It usually takes a bit of time to get set up with a UK bank account since you need to do that after you’ve arrived and have a proof of address. These accounts will allow you to pay with a card without foreign transaction fees as soon as you arrive!
Here’s my experience on these fronts:
I’m an HSBC customer and I have an app that allows me to see my US and UK bank accounts. It’s really handy to see both. I established by HSBC account before moving to the UK and qualified for an elevated account with some nice benefits. When I moved to the UK, I shared that I had this type of elevated account and along with my employment contract in the UK, I was given the same kind of elevated status in the UK.
I’ve also been a Wise customer for a couple years and I honestly love it. I travel a lot and to a bunch of different countries and this is where Wise really shines. The app allows me to transfer money into the app using Apple Pay and it takes seconds. I can transfer that money to a bunch of different currencies so that I can just use my card and pay like a local whether I’m in London, Paris, Berlin, Singapore or New York! If you’re planning on doing a lot of travelling, this is a great option.
Credit Cards
First, make sure you have a credit card account that serves your needs. If you’ll be travelling a lot, you might want to make sure you get sky miles with your preferred airline. It’s also critical that you make sure that you have a credit card that doesn’t charge you foreign transaction fees. Extra expenses happen and having your home country’s credit card might help but you definitely don’t want to be paying those foreign transaction fees!
Note for Americans: US credit cards have significantly higher limits than UK credit cards!!! Make sure you keep up with your US credit cards to have access to that higher limit in case of emergencies.
If you have great credit in your home country, you’ll want to transfer all that good work to the UK. The problem is, most banks don’t take any credit from the home country into account when setting up the local accounts! If your bank doesn’t allow for your home country’s credit to be taken into account, make sure you have proof of income for your UK bank so that they can provide you with a line of credit.
If you’re in the US, there’s an awesome exception to this rule! American Express will take your US credit history into consideration when you apply for a UK American Express card! Go to https://www.americanexpress.com/us/customer-service/global-card-relationship/ to find out more! Keep in mind that if you have a US and UK American Express, that’s two separate accounts: they won’t be combined.
Setting up a UK Bank Account
If you’re planning to be in the UK for a while and have a residence in the UK, you will probably want to set up a UK bank account.
Most UK banks require a face to face visit to set up an account. I recommend making an appointment with your local bank online, otherwise you should expect a long wait! When you go to your appointment, you’ll need to take a few things with you:
Identification (passport)
Proof of address (a tenancy contract is acceptable)
If you want to open a student account, bring proof of enrolment in university (university ID is acceptable)
If you are employed, bring proof of your employment (such as an employment contract which states your salary)
If you have an account with the bank in another country, bring proof of that account and the account number
If you plan on having a joint account, both account holders will need to come to the appointment
Alternatively, Starling bank does allow non-UK citizens with a UK residential address to set up an account online but you will need to download their app to do so. Keep in mind, this means switching your Google / Apple store location!
