Banking

Opening a Bank Account in the UK

If you are going to be in the UK for more than a few months, opening a bank account is a good idea. You can use it to pay bills, make purchases, write cheques and withdraw cash. Above all, it keeps your money safe. You should apply for an account as soon as you arrive because it can take three weeks or more to set up.

When you open your account, you will need to show the bank your passport or national photo ID card, as well as your acceptance letter or introduction from your college or university. You may also need to provide bank statements from your home country account. There may be other requirements, so contact the bank before you arrive in Britain to ensure that you don't leave home without essential information. For more information, you can also contact the British Bankers Association.

Banks in the UK

There are many different banks in Britain. The main ones are HSBC, Barclays Bank, Lloyds Banking Group, NatWest and the Royal Bank of Scotland. Barclays Bank and HSBC both do special international student packages; visit their websites for more information.

You may be able to prevent tax being deducted from your interest. When you open your account, ask your bank for form R105. Remember to let your bank know if you leave the country for a trip; they may think you have left forever and close your account. Also, let the bank know in writing if you change your address.

An alternative and possibly less well-known type of bank account, is a basic bank account. The basic bank account from thinkbanking is a good example of how a bank account could be beneficial for students. The account has a built-in money management system, meaning the money for your monthly bills is set aside automatically, leaving you with access to your disposable money only. Hopefully, this will encourage you to stick to a budget. Also, like most basic bank accounts, there is no overdraft facility available so there's less temptation to get further into debt.

If a bank refuses to let you open an account, you can contact the National Union of Students (NUS), which may be able to help you challenge the decision.

Prepaid Bank Cards

If you're only in the UK for a short time and do not want to go through the hassle of opening a bank account, then a prepaid card may be the best option for you. You simply ‘top up' the card with money and can then spend it without the need for a bank account.

For students new to the UK, the Blue Sky Prepaid MasterCard is particularly good, as you don't need to provide any ID details (just a UK postal address for delivery), and you don't need a bank account, credit history or proof of address. You are able to track your balance and transactions in real time, 24/7, online, via telephone and via SMS.

Loading it is also easy; at any UK high street bank branch, any Post Office, anywhere the PayPoint sign is displayed, or via your online or telephone banking service. You can also have your wages or loans paid directly onto the card, and then spend it anywhere in the world where MasterCard is accepted.

For more information, or to get a prepaid card, click here.

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