Moving to a new country comes with many challenges, and setting up your finances is one of the most crucial steps. For new immigrants arriving in the UK, opening a bank account is one of the first hoops to jump through. Completing this step can significantly help you settle in more quickly and easily.
Understanding the UK banking system and picking the right account for you is vital for managing your money effectively, whether you’re coming for work, study, or to start a new life. And once you’ve opened your UK account, Remitly can help you send money back home quickly and securely.
Reasons why opening a UK bank account is important
Opening a UK bank account is fundamental when starting your new life in Britain. Without one, you could encounter challenges in receiving your salary, paying your rent and regular bills, and getting accepted for a house or flat.
Other advantages of opening a local account:
- Build credit history to access loans and mortgages
- Manage day-to-day expenses
- Set up a mobile phone contract
- Save on international transaction fees compared to using your account back home
- Access other local banking services, such as loans or credit cards
Understanding UK banking for newcomers
Types of accounts available
These are the different account types available in the UK banking system:
- Basic current account: This type of bank account is for individuals with limited credit history. It offers essential services like debit card access, direct debits, and online banking, but does not typically include an overdraft.
- Standard current account: All the features of a basic current account, but with overdraft options (fees apply) and potential rewards programmes. Examples include fee-free sending abroad, discounts on dining and shopping, and cashback.
- International student account: Specially tailored for the needs of international students, these accounts often have benefits such as:
- Lower minimum balance requirements
- Zero or reduced fees for international payments
- Optional arranged overdrafts
- Special student railcards or discounts
- Digital bank accounts: Online banks like Monzo, Revolut, and Starling Bank offer app-based accounts with more flexible requirements for non-residents. These typically offer quick online applications, lower fees, and useful budgeting tools.
An overview of the UK banking system
If you’re new to the UK, it’s useful to get familiar with some of the common banking terminology:
| Term | What it means |
| Sort code | A six-digit number that identifies your bank and local branch. |
| Account number | A unique eight-digit code that identifies your personal bank account. |
| IBAN | Used for international transfers to and from the UK. Made up of 22 characters, it starts with GB. |
| Direct debit | Automated regular payments to a company—an easy way to manage regular payments like rent and bills. |
| Standing order | Regular automated payments you set up yourself (e.g., sending money home, saving). The difference with direct debit is that you control the amount and date rather than the receiving company. |
| Chip and PIN | A standard way to pay in person with your debit or credit card by inserting your card into a reader and entering your PIN code. |
| Contactless | A quick and widely accepted way to pay in person by simply tapping your card or phone on a reader. |
Top UK banks to consider
Choosing the right bank can make managing your money easier, depending on your situation. Here’s a breakdown of some of the best options.
Traditional high street banks
These banks have physical branches and offer a range of services for newcomers.
Barclays: One of the most immigrant-friendly banks
- Services designed for new residents
- No monthly fees for basic accounts
- Wide branch network & 24/7 phone banking
- Secure live chat in the app
- Link with Apple Pay & Google Pay
HSBC: Great for international banking
- Multi-currency accounts & competitive exchange rates
- Accounts available to open before arrival
- Dedicated products for non-residents
- Dedicated teams for international students
Lloyds Bank: An economical choice
- Free basic current accounts & easy sign-up
- Cashback on debit card purchases
- Mobile banking & automatic saving tools
- International payment options
NatWest: Ideal for newcomers
- Simple account options & good mobile banking
- Emergency cash withdrawal service
- Reasonable international transfer fees
Santander: Great for everyday banking
- Competitive current accounts & student options
- Regular saver accounts and mortgages
- Cashback on household bills
Digital banks
While digital banks don’t have physical branches, they are very easy to sign up for and offer excellent service via mobile apps.
Monzo
- Free UK bank accounts
- No foreign transaction fees
- Bill-splitting and savings pots
- In-app saving & investment options
Starling Bank
- Fee-free spending overseas
- Multi-currency accounts
- Award-winning mobile app with spending insights
- Connected cards for family members
Revolut
- Easy sign-up & competitive exchange rates
- Virtual cards & multiple currency accounts
- Premium card options with bonus features
How to open a UK bank account
Here’s everything you’ll typically require to open a UK bank account and how to get it done—without the headache.
What you’ll need:
Proof of ID
- Passport
- National identity card
- UK Biometric Residence Permit
- Residence permit issued by UK Visas & Immigration
- National insurance number
Proof of address
- A utility bill dated within three months
- Tenancy agreement for the current year
- Council tax bill
- University letter (for international students)
- Bank or building society letter
Other documents (if needed)
- Visa paperwork or proof of immigration status
- Student status confirmation
- Employment contract (if working)
- Previous bank statements or letter from your current bank
Step-by-step: getting your account open
- Pick a bank — Compare options to find the best fit for you.
- Get your documents together — Make sure they’re valid and up to date.
- Apply online or book an appointment — Some banks let you apply fully online, but for others you need to visit a branch in person.
- Submit your documents — Either upload them or take them in person (bring the originals and photocopies).
- Wait for approval — This might be instant, or it could take a few days.
- Get your debit card — It should arrive by post at the address provided within a week.
- Set up direct debits & standing orders — These are handy for paying rent and bills, saving, or sending money back to your home country.
- Download the mobile banking app — It makes everyday banking and online purchases a whole lot easier.
Top Tip: Certain banks, especially online ones like Monzo and Starling, let you open an account with just your ID and a UK address. If you’re struggling to provide proof of address, ask your bank if they accept alternative documents.
Top tips for hassle-free banking in the UK
- Start early — Don’t wait until you get there; research banks before you arrive.
- Compare your options — High street banks or online banks? Both have their perks.
- Watch out for fees — Some accounts sneak in charges, especially with international transfers.
- Think about accessibility — Do you need to speak to someone in person at a local branch, or are you happy with app-only banking? Having a branch can make things easier if you’re less familiar with the system or the language.
- Sort your documents — Having the correct paperwork will make your life a lot easier.
- Understand terms — Read all account conditions carefully and make sure you understand the terms and fees involved.
- Plan for the future — Will you need savings, a mortgage or a loan later on? Bear this in mind when choosing your bank account.
Managing your money like a pro
Once your UK bank account is set up, keeping your finances in check is the next step. Set up direct debits for bills so you never miss a payment. If you want to grow your savings, consider opening a savings account and using budgeting tools to track your spending.
Keeping your money safe
Security is always key, so use strong passwords that are difficult to guess and enable biometric authentication on your banking apps. Check your bank statement regularly for any unusual activity and never share your account details. Avoid using public Wi-Fi for your banking needs and keep your contact information up to date. If something seems off, report it straight away.
Useful info:
- The Financial Services Compensation Scheme (FSCS) will protect up to £85,000 per person, per bank, in case your bank goes bust.
- There is no legal requirement to actually open a UK bank account when you move. Some expats stick with their home country’s bank, but a UK account makes life much easier for things like receiving your wages and paying rent.
- The UK is mostly cashless nowadays, so contactless payments and bank transfers are the norm. Some small businesses prefer cash, but having a contactless card or Apple Pay/Google Pay will go a long way.
FAQs
What is the best bank for immigrants in the UK?
It depends on what you’re after. Digital banks like Monzo and Starling offer simpler application processes, whereas high street banks like HSBC and Barclays are known for being more accommodating.
Can an immigrant open a bank account in the UK?
Yes, immigrants can open a bank account in the UK. The process varies from one bank to the next, but most have at least one suitable option for non-residents.
Which bank is best for international workers in the UK?
HSBC and Barclays are well suited for international workers, offering extra benefits like multi-currency accounts and competitive international transfer fees.
What happens if I can’t provide proof of address?
Some banks have alternative options, such as statements from your home country’s bank or a letter from your employer. Online banks often have more flexible requirements.
Additional resources
For more useful information about settling in the UK, check out these articles:
