UK bank accounts for expats: If you’re looking for a bank account as an expat, you’ve probably come across the United Kingdom as a popular option. And, for good reason. Several banks here are commonly used by expats when looking for “third country” bank accounts.
Of course, in order to access these bank accounts, you need to know where to open a bank account and how to find the best European bank for expats that matches your needs and client profile. Likewise, you need to know which banks allow remote bank account opening and won’t require you to show up in person.
KEY TAKEAWAYS
- There are two main types of expat bank accounts in the UK
- Individuals from high-risk third countries will likely not be able to obtain a bank account in the UK
- An expat needs to meet specific bank account opening requirements
- Account opening requirements and deposit levels can vary between banks
- Banking services, investment products, and bank account types vary between banks
So, in this article, we’ll walk through the process of choosing bank accounts for expat individuals. This includes special considerations, account opening quirks, lesser-known pitfalls, and challenges you’ll likely face.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It helps non-residents and expats open international accounts in top banking hubs around the world.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- What Are UK Bank Accounts for Expats?
- Who Can’t Open a UK Bank Account?
- Who Can Open a UK Bank Account as an Expat?
- Challenges of Opening a Bank Account as an Expat in the UK?
- Do You Want Help Opening Bank Accounts?
What Are UK Bank Accounts for Expats?
UK bank accounts for expats include current accounts, savings accounts, seafarer accounts, premier accounts, and wealth management accounts. They typically offer multi-currency accounts, with GBP, EUR, and USD-denominated deposits being most popular. And, in most cases, accounts can be opened remotely.
There are two main types of international expat bank accounts:
- UK bank accounts for foreign expats living in the UK
- UK bank accounts for foreign and UK expats living abroad
However, in this article, we’ll only be discussing the second group: UK bank accounts for foreign and UK expats living abroad. We’ll look into the first group in a future article.
As mentioned, expat accounts in the UK range from basic current accounts to full-fledged wealth management services and investment accounts. But, they can also include specialty accounts such as seafarer accounts, corporate accounts, and even term deposits. In other words, expat accounts here are pretty diverse.
Of course, the services and expat bank account that’s best suited to you will ultimately depend entirely on your client profile, banking needs, and the services you’re after. For instance, a few reasons expat individuals are interested in banking here include:
- Diversification away from home-country currencies or economies
- Payment of personal expenses in the UK or abroad
- Invest in the UK, through UK brokerages, or GBP-denominated investments
- Access financing for property purchases in the UK or in Crown Dependencies
- Receive payments from UK employers or UK pension plans
- Access specific payment processors and transfer services
- And more…
In fact, there are countless reasons why an expat may want a bank account in the UK. And since each bank has different expat banking requirements, it’s important to how to open a bank account as an expat and which banks will realistically accept clients like you.
To get started, let’s take a look at what client types cannot open bank accounts in the UK as an expat. You might be surprised by a few of these.
Who Can’t Open a UK Bank Account?
Many people are surprised to learn that expat accounts here are sometimes not accessible to residents of the UK. In fact, while expat accounts in the UK are available to people living in most other countries, UK tax residents often need to jump through a few hoops to access them.
But, again, in this article, we’re going to be focusing on banking as an expat in the UK. More specifically, opening bank accounts for foreign and UK expat individuals living abroad.
First of all, there are the usual suspects that have difficulty accessing banking services pretty much anywhere. This includes individuals from blacklisted, sanctioned, or high-risk countries — also known as the Unlucky Passport Club.
If you’re wondering whether or not you fall into this category from a United Kingdom perspective, you should check out the UK’s list of “High-Risk Third Countries”.
Last updated in 2021, the UK’s list of High-Risk Third Countries currently includes:
Albania, Barbados, Botswana, Burkina Faso, Cambodia, Cayman Islands, Ghana, Iran, Jamaica, Mauritius, Morocco, Myanmar, Nicaragua, North Korea, Pakistan, Panama, Senegal, Syria, Uganda, Yemen, and Zimbabwe.
Unfortunately, if you’re from one of these countries the process of opening a bank account in the United Kingdom as an expat and unlocking the banking services you’re after is going to be tough. Some banks here won’t even accept your application, others might put you through more intensive due diligence, charge additional fees, or require sky-high deposit requirements just to get your foot in the door.
Alternatively, of course, you could obtain citizenship or residency elsewhere, which may make banking easier.
Who Can Open a UK Bank Account as an Expat?
Okay, we’ve talked about who can’t apply for a bank account in the United Kingdom. Now, it’s time to explore who can.
Generally speaking, four important criteria must be met when opening an expat account here, including:
1. You (Usually) Need to Be an Expat
While banks in many countries require you to be a resident in order to apply for a bank account, bank accounts for expat individuals in the UK are different. Instead, in most cases, applicants must reside outside of their country of citizenship.
This typically means you’re a professional, investor, entrepreneur, or retiree who is living and working abroad. And, as mentioned above, many expat banks here won’t accept individuals living or working in the United Kingdom or in any high-risk countries.
Of course, there are exceptions to this, including special parameters for non-doms living here, certain bank account types that are more flexible, and some lending options.
2. You Need to Meet Specific Criteria
Every bank and every account will have different acceptance criteria and requirements. So, it should not come as a surprise that in order to open one of the available bank accounts as an expat in the United Kingdom, you’ll need to meet the criteria for the bank account type you choose.
For example, certain international accounts might require a certain income level, deposit amount, or total relationship balance. On the other hand, some accounts require that you work in a specific industry. In any case, knowing which bank and account types match your profile and specific banking needs is key.
3. You Need to Deposit the Required Amount
Yes, as is the case with most international bank accounts, opening a bank account here for an expat will come with a minimum deposit requirement. On the plus side, the deposit requirements for such accounts are often much lower than those in other countries.
In some instances, international bank accounts in the UK can be opened with less than 5,000 GBP. That said, there are premier and private accounts that require deposits of up to 75,000 GBP or more.
Again, the key to selecting the right bank (and account type) is knowing what each bank’s specific requirements are, what their fees are (and how to avoid them), what banking services are offered, and then identifying which banks will realistically accept you.
4. You Must Not Be Living in the United Kingdom or a High-Risk Country
Expat accounts here typically cater to individuals living outside of the United Kingdom. For instance, many large banks here have special international accounts catering to non-UK residents.
Expat individuals living in the UK can obtain regular (non-expat) accounts at UK banks. Of course, that doesn’t mean expats living here must bank here. United Kingdom-based expat individuals can access accounts around the world in other banking jurisdictions. If that’s you, feel free to message us to get started.
5. You Need Meet Other UK Account Opening Requirements
Naturally, when it comes to international banking anywhere, you are going to have to pass each bank’s onboarding process. This can include submitting an application, providing supporting documents, having a phone interview, and answering follow-up questions. But, in most cases, with banks in the United Kingdom, the onboarding process is more streamlined than it is elsewhere in the world.
That said, opening a bank account here does come with challenges. Especially, as an expat. So, below we’ve outlined a few hurdles and stumbling blocks that ruin many expat applications.
Challenges of Opening an Account as an Expat in the UK
While some banks here sometimes have more streamlined onboarding processes in place than other countries abroad, it’s by no means a walk in the park. Like elsewhere, opening a bank account here as an expat requires preparation, careful selection, and some humility.
Below, we’ll take a look at the most common challenges that expat individuals face when trying to open a bank account in the United Kingdom. But, it’s important to remember, these challenges can be overcome. In fact, if you know what you’re doing, have the right information, and know which banks to contact, nearly all of these items are fixable or entirely avoidable.
1. Not Preparing the Correct Documents
Many people believe that opening a bank account abroad is a God-given right. Unfortunately, that’s not the case.
Instead, whether or not you can open an international account is entirely dependent on the bank accepting you.
In other words, you need to pass the bank’s due diligence process, which includes verifying your identity, your address, your source of income, your source of wealth, and other important factors.
To verify your particulars, you’ll need to submit supporting documentation. But, the problem is that many applicants get tripped up at this stage of the process. In other words, they’re not aware of the best documents to provide, the alternatives they can submit if they lack certain paperwork, or how to approach a bank that appears to have complex or abnormally difficult requirements. In such cases, applicants are either rejected, ghosted, or politely told to not bother submitting an application.
2. Being a Resident of Nowhere
One of the most common mistakes that people make when applying for an expat account with UK Banks is claiming that they do not have tax residency anywhere.
Unfortunately, applying for an international account abroad without having tax residency somewhere is no longer an option.
The bank is required to collect information under Common Reporting Standards (CRS) and Automatic Exchange of Information (AEOI), which are initiatives to help stop tax evasion. Essentially, CRS and AEOI require banks to share your financial information with your country of tax residency each year.
Not surprisingly, in order for international banks to share this information and be compliant with these new banking regulations, they need to know where each applicant is a tax resident.
Some people still think that by saying they’re a resident of “nowhere”, giving a fake tax ID number, or pretending that they are a resident of a country they aren’t — is smart. But, this is not smart. Most international banks will either a) reject you, b) cross-reference your tax ID number to determine validity or c) simply send your account information to all the countries that might claim you as a tax resident.
3. Choosing the Wrong Bank
Most importantly, the number one mistake that people make when applying for an expat bank account in the United Kingdom is choosing the wrong bank. This typically happens because an expat may want to only apply with certain international banks based on the bank’s perceived brand or image.
Unfortunately, this is a horrible way to approach international bank selection…
You’re essentially going in blind. Without first analyzing account opening requirements, documents needed, hidden fees, special exceptions, account limits & restrictions, banker accessibility, and peer reviews — it’s hard to know if an international bank will realistically accept you and if it’s a good fit. Will they hammer you with hidden fees? Require documents you don’t have? Will you get stuck with an unvetted, unresponsive banker?
Instead, our team suggests finding banks based on your specific international banking requirements, desired services and fee structure, and a host of other critical factors. In other words, select a strong bank with good financials that offers the services you need and actually wants you as a customer.
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