One of the most common questions we receive is “What do you need to open a bank account in the UK”? This is because opening an account without residency documentation or a UK bank account without proof of address can be extremely difficult for non-residents.
The UK is one of the biggest and most stable economies in the world and London is the biggest European financial center. So it only makes sense that anyone interested in international banking might want to open here.
KEY TAKEAWAYS
- Opening bank accounts in the UK can be very challenging for foreign non-residents
- How much money you will need to deposit will vary between UK banks
- It’s important to confirm what is required to open bank accounts with UK banks before applying for an account
- Not all UK banks will accept expat individuals and foreign non-residents
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- How to Open a Bank Account in the United Kingdom
- What Do You Need to Open a Bank Account in the UK?
- Acceptable Address Documents to Open a UK Bank Account
- What if You Can’t Meet the Bank Account Requirements?
- Alternative Options to Opening a Bank Account in the UK
- Do You Want Help Opening Bank Accounts?
How to Open a Bank Account in the United Kingdom
To open a bank account in the UK, you need government-issued proof of identification, a UK address, and proof of that UK address. Identification documents typically include a passport or identity card. However, proof of address requirements vary from bank to bank and are problematic for many non-UK resident applicants.
Before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open an international bank account in top banking hubs around the world.
What Do You Need to Open a Bank Account in the UK?
First of all, let’s start with the standard bank account opening process with banks in the UK.
Most importantly, banks in the UK use a credit scoring system very similar to banks in the United States. But, in the UK, banks actually run a credit check when opening bank accounts.
In other words, if you don’t have a UK credit history (or have bad credit), it will be very difficult to open anything more than a “basic” bank account with a UK bank. Unless, of course, you’re looking to open a private bank account in the UK.
But, depending on the documents you can submit, a “basic” account might meet your needs. Such bank accounts will still allow you to receive and send money transfers and grant you a debit card. But that’s about it.
This is something that might surprise non-UK readers: you may not be able to apply for a current account until you establish a credit history in the UK. This is because a current account has overdraft facilities, which is considered a form of lending. So, if you don’t have any UK credit history, a basic bank account might be your only option.
In addition to the documents we list below, banks also request proof of transactions and banks typically ask for sources of funds in the UK. It’s important to keep this in mind when you do successfully open a bank account in the UK.
Documents You Need to Open a UK Bank Account
- Government-issued identity document (e.g. passport, national identity card, driver’s license, etc.)
- Proof of UK address (which requires you to have a UK address)
Of course, while this is a shortlist, many conditions hide behind these documents.
For example, it’s extremely difficult for non-UK residents to obtain valid proof of a UK address if they don’t legally reside in the UK. And, many non-residents are unsure about how to even acquire a proof of address that will be accepted by UK banks.
This is an important point because failure to provide valid proof of address is one of the top reasons applicants are rejected for personal bank accounts in the UK.
That said, some UK banks will have additional conditions and may (or may not) accept “alternative” documents depending on your client profile. So, choosing the right UK bank is extremely important, especially if you have limited documents available.
Acceptable Address Documents to Open a UK Bank Account
Not surprisingly, all banks in the UK have slightly different conditions when it comes to what documents are deemed “acceptable” as proof of address. And, this is a major stumbling block for those new to the UK, expats, and non-residents.
Typically, acceptable proof of address documents usually includes a utility bill (assuming it’s less than three months old), a council tax bill, an HMRC tax notification, or a bank or credit card statement tied to a UK address. A UK driver’s license will also work, but that’s a difficult document to get if you’re a foreigner.
In select cases, a letter from a UK employer may also suffice as proof of address. Likewise, for students, a letter from the university will do the trick. And if you’re lucky, the bank may also accept a tenancy agreement, though this is becoming increasingly rare.
Regional Differences
Lastly, while banking rules are very similar across the UK, Scotland does not accept mobile phone or cable TV bills as proof of address. And there are several English banks that don’t allow mobile or cable TV bills as acceptable address proofs either when opening bank accounts.
It’s also important to remember that some UK banks will require one to two documents to verify your address. So, if you’re struggling to get more than one proof of address, you may want to avoid banks that require two proofs of address, as this would trigger a rejection.
If you don’t already have what you need to open a bank account in the United Kingdom, there are a number of creative workarounds and alternatives available. The workaround that best suits you will depend on who you are, and the type of account you want to open. We share valuable insights and account opening hacks like this with our premium members inside GlobalBanks IQ. But, more on that below.
Minimum Deposit for a Non-Resident Bank Account in the UK
Minimum deposit amounts vary wildly for these bank accounts. From £25,000 for US residents to £250,000 for Russian residents through £100,000 for Hong Kong SAR residents. If you can afford the minimum in the latter two cases, it may be worthwhile to look at private banking options.
We talk about this in greater detail in our free guide to International Private Banking.
That said, other UK banks do offer banking options to non-residents, but with different eligibility conditions. Likewise, some banks in the UK are happy to waive the deposit if the account owner(s) can justify a certain salary. In most cases this salary budget is around 50,000£ to 75,000£.
What if You Can’t Meet the UK Bank Account Requirements?
The most challenging part of opening bank accounts in the UK is acquiring an acceptable UK address and being able to prove that address with acceptable documentation. Unfortunately, this is a challenge that most people cannot overcome, at least not without expert guidance.
So, what can you do if you are unable to obtain an accepted address and the necessary documentation? We’ll share several options for you to consider below.
Open a UK Non-Resident Bank Account
Several large UK banks offer international bank accounts to non-residents. So, if you’re struggling to open bank accounts domestically in the UK or can’t acquire the right proof of address documents, this might be a better option.
Additionally, international banks with branches in the UK could be another alternative.
Likewise, opting for private bank accounts or having pre-existing relationships with the private banking arm of one of these major international banks can make account opening easier.
However, if you’re dead-set on opening a bank account in the UK as a foreigner, there are several other options available too. We discuss these strategies and opportunities in more detail in GlobalBanks IQ.
Choosing UK Non-Resident Friendly Banks
As mentioned, several major UK banks offer international banking for non-UK residents. These bank accounts are designed for non-residents, the option to open a multi-currency account (GBP, USD, EUR), global payment platforms, and debit cards. They also don’t require a UK address and accept international proofs of address.
Unfortunately, residents of certain countries are not always eligible for these bank accounts. The reasons for this vary since each bank has slightly different lists of banned countries and compliance rules.
In addition, anyone who is a resident of a country listed in the Money Laundering and Terrorist Financing Act may be subject to increased scrutiny, higher deposit amounts, and may not be eligible for non-resident banking. Further, due to Brexit, some banks will not allow EU residents to open bank accounts.
Countries currently listed on the Money Laundering and Terrorist Financing Act (updated 2021):
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.
Alternative Options to Opening a Bank Account in the UK
If you don’t have the right documents to open a “brick and mortar” account in the UK, what are the alternatives?
Here are a few quick options to consider:
- Fintech, EMIs, Payment Institutions in the UK or abroad
- UK banks located outside the UK
- UK banks with international banking options
- International banks outside of the UK
Fintech Options
Disclaimer: Many fintech solutions are not a direct replacement for traditional banks. For instance, in some cases, financial institutions may refuse to remit bank transfers to fintech accounts. Plus, many fintech accounts come with account limitations and restrictions, limited customer support, and are more prone to account freezes and sudden termination.
In addition, the industry is still relatively young, and many of these companies do not have banking licenses. Instead, they have “electronic money institution” or “payment institution” licenses, or simply sublease a license from a company that already has one. We’ve discussed in past articles why this puts your money at risk.
That said, the UK is still a major fintech hub and hundreds of fintech operate here. So, if you’re struggling to open a bank account here, you might find a fintech banking platform more accessible. Some have more lenient proof of address options and allow for international addresses.
We break down the latest UK and European fintech banking options in detail in GlobalBanks IQ, where you’ll get access to all our premium reports, as well as special reports focused on European EMIs for non-residents and international businesses.
That said, if you cannot (or don’t want to) use a fintech or EMI solution, there are still ways to open a bank account in the United Kingdom that you still might be able to access.
UK Banks Outside of the UK
If you don’t have the right documents for opening a bank account in the UK, look outside of the UK. In other words, if you desperately want (or need) a UK bank or GBP-denominated account, look abroad.
Likewise, UK banks with international banking options are useful if you can meet the deposit amounts and afford the account fees.
Below we’ve highlighted a few British banking hubs outside of the UK. If you don’t have what you need to open a bank account in the United Kingdom, banks here might be an option.
Isle of Man Bank Account Options
The Isle of Man allows remote opening of bank accounts and has low minimum deposits required.
Most importantly, the Isle of Man is home to some of the largest UK banks and is both politically and economically stable.
Additionally, the Depositors Compensation Scheme will protect depositors up to 50,000 GBP per account if the bank has to go through insolvency.
We’ve published several articles about opening bank accounts in the Isle of Man before. You can access our latest Isle of Man banking article for more information.
Jersey Bank Account Options
Jersey is another independent jurisdiction offering offshore banking solutions. Just like its “brothers”, Guernsey and the Isle of Man, Jersey offers access to UK and SEPA banking.
A wide array of clients will find what they’re looking for in Jersey such as UK residents and citizens looking to move abroad, non-residents, clients interested in private banking, and many more.
Access our latest Jersey bank account opening articles for more information.
Guernsey Bank Account Options
Guernsey offers many of the perks that Jersey and the Isle of Man offer. However, it caters to a slightly different clientele.
Most companies establish themselves on the island of Guernsey before debuting on the London Stock Exchange. As such, the island’s financial sector tries to attract institutional investors, asset managers, and high-net-worth individuals.
In some cases, persons looking for retail banking may find what they’re looking for in Guernsey. That said, if you are wondering what you need to open a bank account, you may not meet the conditions of Guernsey banks. Unless, of course, you are looking for banks that offer private banking.
Access our latest Guernsey banking articles for more information.
As you can see, the three islands offer a great solution for anybody looking to deal with quasi-UK bank accounts. In most cases, these bank accounts will also allow you to apply for a mortgage for a UK-based property.
If all of the above options are non-starters keep on reading for our final suggestions.
Do You Want Help Opening Bank Accounts?
If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.
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