Opening a Bank Account as an International Student

Opening a Bank Account as an International Student

As a new resident of the United Kingdom, it is important for you to open a bank account. Having a bank account will allow you to receive money from abroad and pay your British bills without incurring any transaction or exchange fees. However, you may be unfamiliar with the British banking system, or it may be your first time managing your finances. Several years ago, I was a new international student and I remember being confused about which bank to choose and what documentation was required.

Opening a bank account as an international student is slightly more complicated than it is for British nationals, but don’t fret. It is completely feasible, and every international student gets one.

Types of bank accounts

The type of bank best suited to you and your needs is a personal choice and may differ from student to student. Additionally, many aspects of accounts will vary from bank to bank. Some things you should think about, and possibly discuss with your parents are:

• The type of overdraft, fees, charges and additional perks you want
• The type of documentation required for an account
• The length of time expected to set the bank account up
• The minimum expected length of stay in the UK

There are two main types of bank accounts in the UK, namely a current account and a savings account. Most students are looking to open a current account which will cover everyday spending and larger bills. A savings account may be useful if you are planning on saving money.

Some great sources to learn more include Save the Student and Money Saving Expert.

Breakdown of banks

There are countless banks suitable for international students, but here are some of the main student bank accounts (information correct as of September 2021):

• HSBC Student Bank Account: £4 to transfer money abroad, (free if in Euros) fee of 2.75% on any transactions abroad
• Barclays Student Additions: £2.99 withdrawal fee if using card abroad
• Lloyds Student Account: £9.50 to transfer money abroad (free for EU students), a transaction fee of £2.99 when withdrawing money abroad
• Santander 123 Student Account: £25 to transfer money abroad (free for EU students). Free to receive money
• TSB Student Account: Transaction fee of £2.99 when using abroad

I registered with Bank of Scotland, which is a very well-known Scottish bank, when I was a student. I chose this bank because it does not charge a fee for international transfers or for receiving money.

It may be more affordable for you to use external money transfer companies when sending money. Many international students save money by using TransferWise. Another important point to note is that bank accounts will usually not give international students the option to go in overdraft, so make sure you always have sufficient funds.

How to open a bank account

The traditional and most common way of opening a bank account involves going to an office and sitting down with a clerk. However, due to COVID-19 some banks (HSBC and TSB) are offering international students the opportunity to open a bank account virtually.

Here is a list of the documentation required by most banks:

• Passport or other form of identification
• Visa or settlement status, if applicable
• Bank introduction letter from your university

Make sure to find out what exactly your bank of preference requires and don’t forget to bring enough money with you for your first few weeks in the UK.