Opening a Bank Account in the UK

[Wendy Buckingham]

We are going to the Uk for six months as a base for Europe and want to open a UK bank account. I have come across a organisation called Fastrack that markets can do this from Australia. Has anyone had any experience of them? Or any advice on the simplest way to open a UK bank account. Thanks

 

[Dave Noble]

It is fairly painless to open an account in the UK however with no credit history you are unlikely to be given access to items such as visa or mastercard debit cards. May get a Visa Electron since that doesn't require a credit score check

After 3 months or so of account usage, you may then be able to get the Via/MC debit cards and cheque guarantee cards

Dave

 

[MEL_Traveller]

Maybe it depends on which bank you are trying to open an account through.

Many banks will require something like a letter of introduction from an employer and other items of identification to open an account.

Many backpackers and new arrivals (working holiday or people coming in on ancestry visas etc) used to have some difficulty in opening bank accounts. Not sure if this has changed markedly in the last coulple of years?

The very reason why these companies exist to facilitate the opening of accounts is that it never used to be that easy... my fist UK bank account was only opened after my recruitment agency provided a letter confirming my employement and bona fides.

 

[Mal]

Banking is pretty good in the UK. Most accounts are fee free, some with cashback for keeping it open and depositing money, some accounts are charged for - but include things like mobile phone/accident/travel insurance or other benefits. Withdrawals and Balance checks from most ATMS is also free (although some private ATMs will charge for withdrawals - it is clearly marked on the screen before you start the transaction).

If you open an account from Australia via one of the many companies that exist, it will be expensive, and often you are up for bank account keeping fees for 12 months in the UK - but sometimes you can get a credit card created. This would certainly be handy.

Different banks in the U.K have different requirements. For example, Lloyds will only let you open a very basic UK account (with limited access through a Solo card [which is similar to a standard account card in Australia]) if you do not have a UK employer.

I found Natwest relatively pleasant to deal with and have a couple of accounts there (although as a whole I'm not overly impressed with them due to them stuffing me around a bit for various things).

The process I followed:
- Change address on an Australian bank account to a UK address. (It helps that I have family in the UK so I was able to arrange this before I moved).
- Get statement posted from that account.
- Call Natwest and book an account opening appointment (required - you can't just walk in and open accounts normally).
- Present statement and Australian passport with Work Visa and account was opened.

Note only certain passports are allowed to open accounts in the way above.

As I still had an Australian employer at that time, I'm not sure if that assisted with getting the account opened - however employment was not mentioned as a requirement of the account. It gave me a Servicecard 250 (A Maestro debit card with 250 pounds daily withdrawal limit and a cheque cashing guarantee of 250 pounds for merchants). As Natwest have several card types (eg Solo card / ServiceCard 100 / ServiceCard 250 etc), it could be luck of the draw which one they allow you to have. Apparently most people start off with a ServiceCard 100 - so they must have thought I was reasonably credit worthy at the time.

If wanting to apply for a credit card, it is very important to get your names on the Electoral roll (which can take up to 2 months to be processed). Your local council handles this. Without an electoral roll entry getting a credit card will be very difficult. Often a home phone is also required. Driver's Licenses / Bank Statements (except credit cards) / mobile phone statements and a raft of other documentation cannot be used to prove your address for getting a credit card - they normally want a council tax bill / rental lease / gas/electricity bill etc.

Finally, American Express do have a fast track transfer system available if you are an Australian Amex holder and wish to open a UK Amex. More info is on their website.

Any other questions let me know.

 

[newformula]

I have banked with HSBC and their subsidiary, First Direct, in the UK for around 10 years. Have never had a problem with either. HSBC in the UK make a point of targeting overseas travellers for new accounts - look at Personal banking: product, service, online, internet: HSBC Bank UK for more. All fee free.

I have also transferred my UK BA Amex to a Qantas Amex. This was painless- a little time consuming, but a great way to get a credit card sorted quickly if you already have an Amex. AFAIK the international account transfer scheme is only possible for Amex owned accounts, i.e. a Westpac account such as Earth with an Amex attached wouldn't count. The best bit is they match your product with a similar product in the destination country - including your annual fee and card level.

 

[Mal]

I have banked with HSBC and their subsidiary, First Direct, in the UK for around 10 years. Have never had a problem with either. HSBC in the UK make a point of targeting overseas travellers for new accounts

If you arrange this through HSBC in Australia (and possibly some of the assistance providers), they tend to want you to open a HSBC Passport account:

HSBC Passport bank account: Moving to the UK | HSBC Bank UK - which costs
£8 / month for 12 months.

It also takes about 8 weeks to set up. Moving Overseas - Contact | HSBC Australia is how you get more details. I think HSBC might also charge about $200 for the service - but not sure.

May be worth it to avoid hassle. Then again, it may be just as simple to open up a fee-free HSBC account when arriving (I didn't try).

 

[davidj-bell]

We are going to the Uk for six months as a base for Europe and want to open a UK bank account. I have come across a organisation called Fastrack that markets can do this from Australia. Has anyone had any experience of them? Or any advice on the simplest way to open a UK bank account. Thanks

HSBC and thomas cook offer a service, but you need to deposit £2000 I believe.

I'd suggest you get it before you leave the UK. To get a UK bank account, you need to show proof of an address and/or employment, and you'll be back in australia before you wade through the bureaucracy if you have neither of these. An alternative is there are some services where you pay £25 and they write you a letter that can be used to open a bank account, that's what my partner had to do a few years ago. Grab a copy of TNT, they should have some companies in there.

 

[Dave Noble]

Looking at one of the banks (Lloyds) for example, an AU passport with valid UK visa seems to meet the criteria for ID ( Lloyds TSB - Proof of identification ) and from their site for those new to the UK Lloyds TSB - New to the UK it states

When you’re ready to open your Lloyds TSB account, just bring your passport or EU/EEA ID card into your nearest branch*. That is usually all we will need, but occasionally we may need to ask you for a second piece of identification. One of our staff will be happy to answer any questions you may have and explain our different accounts.

Would look to me that opening a Lloyds account shouldn't be that painful a task

 

[Mal]

Would look to me that opening a Lloyds account shouldn't be that painful a task

If not employed in the UK, then the account isn't that advantageous. I think they open up a "Cash Account" Lloyds TSB - Cash account - which is severely restricted in it's usage, and can't be upgraded.

Or at least that's the basis of what I was told when I chatted to them when I first arrived. I might have the account name wrong, but they definitely weren't going to offer a standard account.

-- edit.
Going back to my account (The Natwest w/ ServiceCard 250), after reading through various online collateral it appears that I probably shouldn't have been given that card, but instead a ServiceCard 100 or even a Solo card. Even getting a cheque book in less than a month from opening is also pretty rare.

So not sure why I got 'special treatment'. Certainly the OP could have a similar situation with Natwest as they would with Lloyds - ie a limited account, or even Lloyds could give special treatment and give out their visa debit card etc etc.

Here's the link to the type of account I have: http://www.natwest.com/personal/current-accounts/g1/regular-current-account.ashx

 

[Dave Noble]

Getting a solo/electron card is common with no credit history rather than facilities such as visa/MC and cheque guarantee. It is still quite useable as an account and after 3 months of useage then getting the full facilities is normal ( subject to having employment etc )

UK banking is different to AU banking in that AU banks seem to trust giving out visa/MC debit to anyone without any checks

Opening an account which can be used for paying salaries in, performing transfers, direct debits et al is not hard as long as not expecting to get credit facilities

Dave

 

[Mal]

Getting a solo/electron card is common with no credit history rather than facilities such as visa/MC and cheque guarantee. It is still quite useable as an account and after 3 months of useage then getting the full facilities is normal ( subject to having employment etc )

If Lloyds only grant a very basic account, it can't be upgraded to later allow cheques / debit cards etc, without cancelling the account and getting a new one.

That's why I didn't end up going with Lloyds. I believe the most basic Natwest account (for example) can have those types of features bolted on without having to change account number.

But yeah, there are a lot more checks and balances with banking over here (between the "know your customer" type legislation, transient people, proximity to high fraud countries etc etc).

 

[Dave Noble]

If Lloyds only grant a very basic account, it can't be upgraded to later allow cheques / debit cards etc, without cancelling the account and getting a new one.

Changing an account from one type to another is v straightforward and doesn't even require changing the account numnber

But yeah, there are a lot more checks and balances with banking over here (between the "know your customer" type legislation, transient people, proximity to high fraud countries etc etc).

Indeed. There is logic to the UK banking laws and giving out cards which can enable overdrafts to occur without proper checks does seem sensible to me. I was surprised that some banks here give out visa debit cards to anyone at account opening time.

Dave

 

[Wendy Buckingham]

Thank you all so much for all this information. I will read and digest. Greatly appreciated.