Ibrahim Gardner
As an international student in the UK, you may want to open a UK bank account to pay your tuition fees and receive income to support your studies. However, finding the right bank account depends on your personal circumstances, including how long you plan to stay in the UK. Some banks may not accept applications from people who haven't lived in the UK for at least three years prior to starting their studies. Additionally, as a new arrival in the UK, you won't have a credit score, and you can't transfer your credit history from abroad, which may lead to banks rejecting your application. Therefore, it's important to consider factors such as how easy the account is to open, whether you can do it online, and what perks and benefits the account offers.
| Characteristics | Values |
|---|---|
| Easy to open an account | Online application, instant approval, no credit history required |
| International payment services | Low fees, mid-market exchange rates, free euro payments |
| Account management | Mobile banking, online banking, in-branch |
| Account types | Current account, savings account |
| Perks | Overdrafts, discounts, cashback, offers on fashion, food and drink, accommodation partners |
| Alternatives | Wise, Monzo, Revolut, Starling |
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What You'll Learn
International transfer fees
International money transfer fees can be expensive, and it is important to be aware of the costs involved. Banks usually charge a flat fee for processing international transfers, which can range from £5 to £251, depending on the bank and the destination country. There may also be an exchange rate markup, which can be between 3% to 5%. Additionally, intermediary banks may deduct a fee, and the recipient's bank may also charge a processing fee.
Some banks offer accounts with low international transfer fees. For example, the NatWest Select Account is free to open and use, with no monthly fee. International transfer fees are low, and there is no charge for sending money abroad using mobile or online banking. The HSBC International Student Bank Account is another option, with no monthly account fee. However, there is a monthly cap on unarranged overdraft charges of £20, and some account features may not be available to those who remain resident outside the UK.
Other banks with relatively low international transfer fees include:
- RBS Reward Account: No charge for sending money internationally using mobile or digital banking.
- Halifax Current Account: £9.50 fee for all global transfers except for payments in euros, which are free.
- Lloyds Bank Classic Account: £9.50 fee for international payments except for payments in euros, which are free. A fee of between £2 and £7 is charged for receiving overseas payments, depending on the amount and currency.
- Starling Bank: Flat rate delivery fee of £5.50 for all overseas transfers made via SWIFT, plus an additional 0.4% transfer fee.
It is worth noting that some providers that promise 'zero transfer fees' may have extra costs hidden elsewhere, such as adding a margin or markup to the exchange rate. Specialist providers typically offer lower fees, better exchange rates, and faster transfer times than traditional banks.
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Online banking
International students in the UK have several banking options, each with its own set of features and requirements. Here is some information on online banking for international students in the UK:
Many banks in the UK offer online banking services, which can be convenient for international students. These services typically include mobile apps, online payments, and the ability to view account balances and transfer funds. It is important to note that some banks may require proof of address or have other specific requirements for opening an account. Here are some of the options available:
HSBC
HSBC is a popular choice for international students due to its tailored benefits. They offer two types of accounts: the HSBC Premier International Student Account and the HSBC International Student Account. These accounts have no monthly maintenance fees, free ATM withdrawals worldwide, interest-free overdrafts, competitive exchange rates, and online banking via mobile apps and websites. International students can apply for an HSBC account online or in a UK branch, and they have the option to apply from abroad before arriving in the UK.
Barclays
Barclays offers the Barclays Student Additions Account exclusively for international students. This account provides an overdraft of up to £1,500 with no interest, free ATM withdrawals in the UK, competitive exchange rates, travel insurance, and 24/7 client assistance. Online banking is available through websites and mobile apps. To open this account, students must be 18 years old, have lived in the UK for at least three years, and have a UK mailing address.
Santander
Santander's 1|2|3 Student Current Account is designed for students studying abroad, offering an overdraft of up to £1,500 with no interest, free ATM withdrawals worldwide, mobile banking apps, and internet banking services. This account provides 24/7 customer support, a complimentary 16-25 railcard, vouchers, cashback, and customised offers. To open this account, students must be at least 18 years old and fund the account with a minimum of £500 every four months.
Lloyds Bank
Lloyds Bank offers the Lloyds Classic Account for international students, which provides free everyday banking but may charge fees for international payments. The account includes mobile banking via the Lloyds Bank app, and students can earn up to 15% cashback on everyday spending with selected retailers using their Visa debit card. To apply, students must be 18 years or older and provide proof of ID and UK residency.
NatWest
NatWest is also an option for international students, offering the NatWest Select Account. This account has low international transfer fees, and students can apply for an overdraft (although it charges interest). The account can be applied for online, and it is a good choice for sending and receiving money across borders.
Digital Banks
In addition to traditional banks, international students may consider digital banks, which often provide budgeting features and convenient money transfer options. These banks usually operate through mobile apps and may offer competitive rates for spending and transferring money abroad. However, it is important to research the protections and regulations provided by these digital banks to ensure the safety of your money.
In summary, international students in the UK have a range of online banking options to choose from, each with its own set of features, requirements, and fees. It is important to carefully consider your needs and research the different options before selecting a bank account.
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Proof of UK address
As an international student, you will need to provide proof of your UK address when opening a UK bank account. This is for security verification reasons and to enable the bank to send your debit card to your address.
The documentation you will need to provide varies depending on the bank you select. However, as a general rule, you will need to ensure you have the following: a valid passport, a visa (including BRP) if you are an overseas student, or a National ID card if you are from the EU, proof of student status, and proof of address in the UK and in your home country.
In most cases, to obtain proof of address, you will require a Statement of Student Status from your university. However, some banks will not accept this as proof of address, in which case you may need to provide additional documentation such as a tenancy agreement or a utility bill. If you are staying in university accommodation, you can request a letter from your hall reception confirming your address after you check in.
It is important to note that most banks will not accept a hotel, hostel, or university address as your permanent address in the UK. Therefore, you will usually need to find a permanent place to stay before you can open an account.
Some UK banks, such as HSBC, allow international students who have lived in the UK for less than three years to open an account. You can apply for an HSBC International Student Bank Account online or in a UK branch, and it offers features such as mobile and online banking, as well as international payment services.
Other banks that are commonly recommended for international students include Barclays, Lloyds, and NatWest, which are accustomed to working with overseas customers and may have faster procedures for opening accounts.
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Student accounts
As an international student in the UK, you'll likely want access to international payment services, which can be very expensive when using a bank. International students are often seen as high risk by banks because they don't have a credit score in the UK, and some banks require you to have lived in the UK for three years prior to starting your studies.
If you're staying in the UK permanently, you may be eligible for a UK student account. Most major banks offer a specific student bank account that will come with perks to help you budget and manage your money. Some banks that offer online-only student accounts include Monzo, Revolut, and Starling, which are good for tracking spending and setting budgets.
If you're looking for a high-street bank, HSBC is a good option for international students. They offer a simple current account with no monthly account fee, and you can apply online or in a UK branch. You can manage your account with their app, on a computer, by phone, or in-branch. HSBC also offers the International Home&Away programme, which gives you access to offers on fashion, food, and drink.
Barclays offers a dedicated student account, but you must have lived in the UK for at least three years to be eligible. Without that, you can open a standard Barclays Bank Account, which offers a debit card and mobile banking with spending notifications and money management tools.
Lloyds Bank also offers an international student account with a mobile banking app and a Visa debit card.
If you're juggling multiple currencies and travelling a lot, you might want to consider an alternative to a traditional bank account, such as Wise (formerly TransferWise). With a Wise account, you can send, hold, and convert money, and spend it using your own Wise card. Everything is done online or through their app.
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Alternatives to bank accounts
If you're an international student in the UK, you might want to open a UK bank account to make it easier to pay your tuition fees, receive income, and manage your finances. However, there are some alternatives to opening a bank account. Here are some options to consider:
Wise Account
The Wise account is a multi-currency account that allows you to send, hold, and convert money in multiple currencies and spend using your Wise card. You can open an account online, and it offers low fees and mid-market exchange rates. Wise only charges a small, transparent fee for its services.
Digital App-based Banks
With the rise of digital app-based banks in the UK, you may consider using one of these platforms as an alternative to a traditional bank account. These app-based banks often offer benefits such as cheap international transfers and a quick account setup. However, they may not be suitable for international students and are not regulated as strictly as mainstream banks.
Home Country Bank Account
You could continue using your bank account from your home country while studying in the UK. However, this option may be impractical and expensive due to currency conversion fees and fluctuating exchange rates. Additionally, if you plan to work part-time, your employer will likely prefer to pay your wages into a UK bank account.
Prepaid Cards
Another alternative to a bank account is a prepaid card, which can be loaded with funds and used for purchases and withdrawals. These cards can be convenient and help you manage your spending, but they may have limited features compared to a traditional bank account.
International Student Accounts
Some banks in the UK offer specific accounts for international students, which can be a good alternative if you don't meet the requirements for a standard bank account. These accounts often provide benefits such as free international money transfers and access to student discounts. However, they may have certain limitations, such as no access to credit facilities.
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Frequently asked questions
It is beneficial for international students to open a UK bank account as it makes it easier to provide the required financial evidence when applying for a UK student visa and can significantly reduce the visa processing time. It is also useful for receiving income to support your studies and paying tuition fees.
There are two types of bank accounts in the UK: a current account and a savings account. A current account allows you to deposit and withdraw money as often as you like, and you usually receive a debit card. A savings account is for collecting money over a longer term.
HSBC offers a bank account for international students who have lived in the UK for less than three years. It offers free money transfers to international HSBC accounts and non-HSBC accounts in EEA countries in euros. Barclays offers a Student Additions Account designed for international students arriving in the UK, which comes with an interest-free overdraft. Monzo, Revolut, and Starling are online-only banks that are good for tracking spending and setting budgets.
Some factors to consider are the international transfer fees, whether the bank has local branches near your campus, and the perks offered by the bank. It is also important to check the eligibility criteria, as some banks require students to have lived in the UK for at least three years.
International students can consider using alternative services such as Wise or their bank account in their home country. However, using a non-UK bank account may result in additional currency conversion fees and charges.
