Immigrating to the UK for life or studying in the UK makes opening a bank account essential. This article aims to introduce common banks in the UK and their basic information. We hope this helps friends who have just arrived in the UK to live, reducing unnecessary trouble encountered during the process of opening a bank account.
Introduction to the UK Banking System
The UK banking system is mainly divided into two categories. One system consists primarily of Barclays Bank, Bank of Scotland, Royal Bank of Scotland, Lloyds, and various Building Societies. The other system includes National Westminster (NatWest), TSB Bank, Clydesdale Bank, Ulster Bank, Isle of Man Bank, Coutts, Bank Northern, National Irish Bank, Bank of Ireland, Abbey National, Halifax, and various Building Societies.
Banking hours are generally from Monday to Friday, 9:00 AM to 5:00 PM. It is worth noting that the UK Post Office does not provide deposit or loan services; deposits are generally handled at banks or building societies.
Bank accounts can generally be divided into two types: current accounts and savings accounts. Current accounts have low interest rates but allow for writing checks or withdrawing cash at any time. Savings accounts usually have specific terms and minimum balance requirements; some offer the same transfer and checkbook features as current accounts. If you wish to withdraw money, you must provide 30 or 90 days' notice (though some offer instant access), otherwise, a penalty may apply, but these accounts offer higher interest rates.
A student account is a type of current account, and generally, only full-time students are eligible to apply. Major UK banks such as NatWest, Barclays, Lloyds, Midland, Bank of Scotland, Royal Bank of Scotland, and Halifax all offer student accounts. Some banks, such as Bank of Scotland and Royal Bank of Scotland, offer special preferential interest rates to full-time students to attract them, which is worth considering. We suggest that readers deposit daily living expenses into a current account for easy access and deposit larger sums into a savings account to earn higher interest.
There are several types of Automated Teller Machines (ATMs) in the UK with extensive functions. In addition to withdrawing cash (with the option to request a receipt), you can check your balance, change your Personal Identification Number (PIN), deposit cash, clear checks, pay various bills (such as phone bills and credit cards), and transfer money between different accounts. This makes essential services available to the public 24 hours a day, which is very convenient, although not all branches of every bank provide these services. In addition, most banks provide 24-hour telephone hotline services for customers to check balances, apply for new checkbooks, and make transfers.
Major Banks in the UK
1. HSBC
You can open an account in your home country before going to the UK, and HSBC has a wide distribution in the UK. Every HSBC branch is well-laid out, making every customer feel very comfortable. Furthermore, compared to other UK banks, HSBC has fewer people conducting business, so customers can almost always get service or handle business immediately without waiting in line. However, this bank charges a regular monthly fee, approximately 6-7 pounds per month. Perhaps due to the expensive monthly fee, many students choose not to use this bank.
2. Barclays Bank
You can open an account in your home country before going to the UK. Upon arriving in the UK, you can take your personal identification and the documents provided by Standard Chartered Bank directly to a Barclays Bank in the UK to apply for a bank card. Barclays has many branches in the UK. In Manchester, for example, Barclays is distributed in campus dormitory areas and the city center, making it convenient for students to deposit and withdraw money. The layout inside the bank is also comfortable, and there are more people handling business compared to HSBC. Most of the clerks at the bank counters are older (mostly 30+ and many who look 50+), and generally, their service attitude is very nice. Barclays also requires a monthly fee, but it is relatively lower than HSBC.
If you think the monthly fee is not worth it, then the following banks will be good choices for you.
3. TSB Bank
TSB Bank is the choice of many UK and overseas students. TSB has many branches and does not require students to pay a monthly fee. The bank regularly sends statements to students, allowing them to clearly see their spending during that period. In addition, it is very convenient for students who want to travel abroad to provide statements from TSB Bank. However, because many students choose this bank, you will almost always encounter long queues of people waiting to handle business every time you go to the bank. If you do not want to waste time waiting, you can go to the bank early to avoid peak hours.
4. NatWest Bank
Similar to TSB Bank, NatWest also does not require students to pay a monthly fee, but it also faces the problem of many people handling business and long waiting times. Students can choose the bank that suits them according to their own situation.
5. Bank of China
There are also branches of the Bank of China in major UK cities, and the clerks in the Bank of China are also Chinese. However, these people do not understand Mandarin at all; they mainly serve Hong Kong people in the UK, so they only speak Cantonese and English. If you want to live conveniently in the UK, students can apply for a Bank of China credit card before going abroad. You can set your own overdraft limit. Most of my classmates have an overdraft limit of 400 pounds on their cards. This money can control your desire to shop and can also solve urgent needs when money from family has not yet arrived. It should be noted that the Bank of China credit card cannot be put into an ATM!!! Otherwise, you will have to apply for a new card in China and have it mailed back to the UK. Of course, you can also apply for a debit card from the Bank of China in the UK, but you have to wait a long time to receive the card. So I suggest that students only apply for their credit card in China. Family members do not need to pay handling fees when transferring money to the credit card, which serves two purposes at once!
TIPS:
Because there are many banks in the UK and competition is fierce, every year between July and November, various banks will offer promotional discounts to attract students to open accounts. Promotional methods include annual fee waivers for credit cards, purchase fee waivers, and even gifts of cash, radios, discount coupons, and rail discount cards for new students. It is recommended that students shop around. However, in recent years, banks have gradually raised the requirements for opening accounts for international students in the UK. Opening an account in the London area is particularly difficult. In addition to requiring a passport and proof of enrollment, banks sometimes also require proof of student status, a bank account and address proof in the home country, and proof of assets.
In addition, students should also pay attention to the new regulations of some banks. Taking HSBC as an example, if a student cannot prove that their course of study is for two years or more, or if the student has already opened an account at another bank, they usually cannot open an account at that bank.
Generally speaking, after students open an account, they can receive a three-in-one card within one to two weeks, which is a withdrawal card, a transfer card, and a check guarantee card, plus a checkbook and a passbook, as well as the personal PIN required to withdraw money from an ATM. Recently, there have been unfortunate incidents where students' withdrawal cards and private PIN information were intercepted by others after their first account opening, leading to their deposits being stolen. It is best for students to choose to go to the bank in person to collect their withdrawal card. The UK passbook is only for depositing money. If you want to check the balance in your account, you can take your withdrawal card to an ATM to check it. The bank will also regularly mail the deposit and withdrawal records of the previous month.
There are mainly two transfer institutions in the UK: Switch and Delta. Basically, Switch is used by more merchants. But generally, there is not much difference in shopping. A transfer card is used for payment like a credit card, and the transfer is made directly from the account. The advantage is that, unlike a cash withdrawal card, there is no daily withdrawal limit, as long as there are deposits in the account or it is within the overdraft limit.
