Opening a UK bank account as a visa holder: Frequently asked questions
🏦 Opening a UK bank account raises a bunch of questions, this article covers those FAQs.
If you've moved to the UK from another country on a visa then there are some important things to know about opening a UK bank account. It's not a straightforward process to open a UK bank account as a visa holder, there's hoops to jump through and required details (like a permanent UK address) that you might not have yet. In this guide, we'll address some of the most frequently asked questions regarding opening a bank account in the UK as a visa holder.
Banking in the UK FAQs
If you're new to the UK there are plenty of questions about how the banking system works. It's very similar to most banking systems but does have some unique quirks and terminology.
Am I eligible to open a UK bank account as a visa holder?
Most visa holders, including students, workers, and visitors, are eligible to open a UK bank account. However, specific eligibility criteria may vary depending on the type of visa and the bank's policies.
What are the UK banks?
There are two main options for UK bank accounts, online (also known as 'banking apps') and traditional (also known as ‘high street’) banks.
Online banks
Online banks are rapidly growing in popularity, offering great perks like no additional fees when spending money in Europe, and more.
- Monzo: Very easy to use, good travel exchange rates and a bright coral card
- Revolut: Lots of features including currency exchange and share trading
- Starling: Great for self-employed, offers both a personal and business account
Traditional banks
Traditional banks have branches all across the city where you can go in to set up an account and speak with staff.
- HSBC: Large international bank with many branches
- Barclays: Large UK bank with many branches
- Co-Op: Ethical bank, withholds investments from certain companies they deemed unethical
What do the different UK banking terms mean?
Here are some of the most common UK banking terms that need an explanation.
- Current Account: A standard bank account used for everyday transactions. It allows deposits, withdrawals, and payments
- Contactless Payment: A payment method where you tap a contactless-enabled card on device on a reader
- Sort Code: A six-digit number that identifies a specific bank and branch, used for routing money within the UK
- Savings Account: An account designed for saving money. It usually offers interest on the balance, encouraging users to save
- Overdraft: An arrangement that allows an account holder to withdraw more money than is currently in the account, up to a specified limit
- Direct Debit: A payment method that allows a third party to withdraw money from an account on agreed-upon dates, common for bills and subscriptions
- ISA (Individual Savings Account): A tax-efficient savings or investment account where income and gains generated within an ISA are tax-free
- IBAN (International Bank Account Number): A standardised international numbering system for identifying bank accounts across countries
- Standing Order: An automated, fixed-amount payment from an account to a specified recipient set up by the account holder
- Credit Score: A numerical representation of an individual's creditworthiness, based on credit history
What fees do UK banks charge?
The vast majority of UK banks offer basic current accounts with no monthly account fees. However, there's typically an opportunity to upgrade to an account with additional features and perks which does require a monthly fee.
What is the best way to transfer money into a UK bank account?
Wise is the industry leader in currency exchange helping you to save money on foreign exchange fees. Once you have your UK bank account, use Wise to transfer nearly any currency into GBP.
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Opening a bank account FAQs
There's a bunch of questions new Londoners have about opening a bank account. Here are the most common ones answered.
How long does the account opening process usually take?
The account opening process can vary depending on the bank and your application but in general it's a quick process. In some cases, it can be completed within a few hours, while others may take a few days.
What documents do I need to open a UK bank account?
The required documents may vary from bank to bank, but common ones include:
- Passport
- Proof of address in the UK
- Your visa or evidence of your right to live and work in the UK
- Utility bill
- National Insurance Number (NIN)
You may not be able to provide all of these when you first arrive in the UK which may influence your decision about which bank you open an account with.
Do I need a UK address to open a bank account?
Yes, you need a UK address to be able to open a UK bank account.
One of the primary prerequisites in this process of opening a UK bank account is that you have a UK address. This address serves as a crucial piece of information for the bank and is generally considered a mandatory requirement so that the bank can comply with UK regulations.
The acceptable forms of proof of address may include;
- A rental agreement
- Recent utility bill in your name
- GP practice certificate
- A letter from your educational institution or employer verifying your residence
Some banks may let you open a UK bank account without a document, but will then send your new bank card to the address you specified meaning that you will need to be there to collect and verify it.
Can I open a UK bank account with a temporary UK address?
Even if you've arrived in the UK and you're in the process of finding your new home, you will likely be caught in a scenario where you can't open a UK bank account yet because you don't have a permanent address. Some banks may allow you to open an account with a temporary address which can then be switched to a permanent address. It's best to check with any bank about their specific requirements and whether or not they will let you open an account with a temporary address.
Can I open a UK bank account before I've arrived in the UK?
It's generally advised not to try and open a UK bank account before you've arrived in the UK. Some banks will blacklist applicants who try and open a UK bank account from abroad even if the application is genuine.
Do I need to pay to open a UK bank account if I'm a UK visa holder?
In general you do not need to pay to open a UK bank account if you're a UK visa holder. Some banks may charge you for the privilege of opening an account but keep in mind this isn't the norm and you will be able to find a bank that doesn't charge you to open an account.
Banking in the UK as a visa holder FAQs
It's not uncommon for UK visa holders to have specific questions about banking in the UK, here are the answers.
Why do I need to open a UK bank account if I'm only living in the UK for a limited time as a visa holder?
If you've come to live, work and/or study in the UK for a period of time it's highly likely that you will need to open a UK bank account. Here are some reasons why you will need a UK bank account:
- Expensive foreign exchange and transaction fees: Foreign banking exchange and transaction fees are expensive and opening a UK bank account means you will be able to convert your money into GBP (£) and avoid the ongoing fees
- To have your salary paid: If you're working in the UK, your UK employer will need to pay your salary into a UK account
- Paying bills: A UK bank account will allow you to set up direct-debits to pay things like; rent, phone bills, and any other recurring charges
Can I switch banks after opening an account as a visa holder?
Yes, you have the right to switch banks at any time. The new bank will assist you in the process of transferring your funds and direct debits.
Are there any restrictions on the type of accounts I can open?
Depending on your visa type, you may have restrictions on certain account features, such as overdrafts or credit cards. It's important to discuss your options with the bank.
What if my visa status changes after opening the account?
So long as you have a valid UK visa and you're a resident in the UK there is no need to update your bank status of any changes. However, if you leave the UK and you no longer have a visa you need to let your bank know.
Can I use the bank account I already have in another country to get my salary paid into?
UK employers will only pay your salary into a UK bank account. There are two main reasons a UK employer won't pay your salary into an overseas account:
- Legal reasons: For taxation purposes, employers must pay into an account that is operated by a bank with a UK banking license
- Foreign exchange rates: It would cost your employer more money in foreign exchange fees to pay into a non-UK bank account
Is it possible to open a joint account with a UK resident?
Yes, it is possible to open a joint account with a UK resident. So long as you have a valid UK visa and a UK address, you will be able to open a join account. Both parties will need to provide the necessary documentation and meet the bank's eligibility criteria.
Can I open a business account as a visa holder?
Yes, banks offer business accounts to visa holders who are running a business in the UK. Additional documentation related to your business like your company ID will be required to open an account.
Do I need a UK bank account before starting my job search?
You don't need to have a UK bank account before starting your UK job search or applications, but you will need to make sure you have a UK bank account open by the time you start work as your employer will pay your salary into it.
Can I open a bank account with a temporary or short-term visa?
Yes, many banks allow individuals with temporary visas to open accounts. However, the availability of certain features, like overdrafts or credit cards, may be limited based on the type and duration of your visa.
What is the best bank for visa holders?
Most of the UK banks are quite similar in that they will hold your money, let you spend your money and support your finances in the UK.
The key things to consider when deciding between UK banks are:
- How easy or difficult it is to open an account
- User experience of the app
- Fees and charges for holding the account
- Fees and charges for spending and withdrawing money in Europe
The vast majority of UK visa holders choose to use Monzo as the application process is easy and many of their peers use it.
