The Best UK Bank For International Students | UniHomes

The best UK bank accounts for International students

When moving to the UK to study you may be thinking about opening up a UK bank account. This will make it easier, and cheaper in some cases, to make payments while you’re in the UK. It may seem like a difficult and boring admin task to complete, but in the long run you’ll feel the benefits. However, if you’re still a little unsure of whether a UK bank account is the best choice for you, we’ve put together a nice guide which will help you make your decision. 

Why should you open an international student bank account in the UK?

Before you make your choice, you may be thinking what’s in it for me? But there are quite a lot of benefits that you probably haven’t thought of. First and foremost is that for every purchase you make on your normal card, or for any money withdrawn from your account, you’ll be charged a conversion fee. With a UK account, this step is completely skipped and you’ll only be charged for the exact amount - no conversion costs. 

Secondly, if you’re thinking about getting a job whilst you are studying, your employers will want to pay your wages into a UK bank account. This is also the same for most accommodation providers - they’ll prefer you to pay them via a UK account rather than an international one. 

When it comes to setting up direct debits and standing orders for recurring payments such as subscriptions and phone contracts, even your monthly rent payments, doing this from an International bank account will be difficult, if not impossible. On top of this, some countries will require a handwritten letter to set up a direct debit to accounts outside of their country. You’ll also be charged a transfer rate on top of the amount you’re already paying. This’ll be harder to track when the currency exchange rates fluctuate as often as they do.

If for any reason you accidentally lock yourself out of your account, being able to walk into the branch and talk to someone is a lot easier than having to call an international number and fix the issue over the phone. 

Things to consider when opening your UK account

Does your current bank have a branch in the UK? 

The first thing to consider when looking into opening a UK bank account and banking in the UK, is to see if your current bank account has a branch in the UK. Some banks are operated by global corporations so may have a branch in your home country and the UK. This’ll make it easier for you to open up your UK account and will mean you will be with the same bank which is always a plus.

Where is your closest branch? 

After the above, you should then look to see where your closest branch is, whether you’re able to stick with the same bank or choosing a new one. You’ll want a branch that’s close to either where you’ll be living, or your uni. This’ll make it easier when you need to visit the branch in person. 

Transfer fees 

Next, you should have a look into the international transfer fees if you’re planning on sending and receiving money from home. Most banks will take a commission fee of around 4%-6% just to convert your chosen amount. This is on top of the fee you’ll already be paying to send your money. The lower the percentage the bank offers, the better, otherwise, it could be more financially beneficial for you to use an online currency converter to send your money.

Overdraft fees

Most UK bank accounts for international students only offer a small overdraft of below £100 and usually you can’t apply for a larger one. This is because banks view you as a short-term customer as once your studies are over you’ll more than likely leave the UK. However, if you do choose to stay after uni, you should look into bigger overdrafts (if you need one) that are available with other accounts.

How to open a UK bank account

On some occasions you can open up a UK account completely online. However, this is rare, and typically it is better to go into the branch and speak to the staff as they will guide you through the process. You will need a few documents to prove who you are before they can set up your account including:

An in-date passport

This one may sound obvious as you’ll need your passport to enter the UK anyway, so it’ll more than likely be in date. However, make sure you take this with you to the bank when you’re opening up your UK account. This is simply to prove who you are.

A valid visa

Another document you should be sure to take with you is a valid visa. This is to prove that you’re here legally and with a permit to study. Without this the bank won’t be able to open up your account.

Proof of address

You’ll need to show proof of address. Check with your bank beforehand if they need your current student address, or your address back home. A valid proof of address will be any official document with the address on, such as a bill, or your rental contract. This has to have been sent to you within the last 6 months. 

Proof of studies

Your proof of studies can either be your student ID or the acceptance letter from your university. This is so the bank knows you’re in the UK studying and can open your account.

A recent bank statement

You’ll also need a recent bank statement from the past three months. This’ll need to be from your home bank and needs to show at least one transaction.

Which bank is the best for International students in the UK?

There are many UK banks for International students to choose from. Although each bank account and the benefits can change from year to year, there are a few which are regularly recommended. The following list is from Unicreds and is relevant for the year 2022 (this may stay the same in 2023, but it could also change). These are the best UK banks for International students:

HSBC

The first on the list is HSBC basic account. This account is not specific for International students but an account can be opened up by anyone with an EU address. This is great news for any European students as you can open this account from your home before you arrive! The benefits of this account is that account holders can send and receive money to and from other HSBC accounts free of charge. Money can also be sent free of charge to non HSBC accounts if it’s in euros. However there is no overdraft available with this account, so be sure to budget your finances.

Barclays

Barclays “student additions account (international)” is great for sending and receiving money to and from abroad. You’ll have to be over 18 and studying either a two year undergraduate course or a one year postgrad in the UK. The fees are low for sending and receiving however, if it’s going or coming from outside of Europe or the amount is over £100, there’s a £6 charge per transaction. 

Natwest

For those of you looking for an exclusively online account, then the Natwest International Student Account could be the one for you! This is offered to International students only, and allows you to send money internationally free of charge. To be eligible you need to be 17 years old or more and have lived in the UK for less than 3 years. They also currently offer 3 different perks you can choose from to use throughout your uni years.

Santander

Santander has a basic current account which is available to any UK and EU residents. This is another account you can open before you get here if you live in Europe. You can send and receive any amount of money in euros for free, however there is a £25 charge for any other type of currency (other than the pound of course). All you need to do to be eligible is be 16 year or more and live in the UK.

TSB

The TSB cash account is great for any international students looking for ways to help save their money also! It does this by rounding up your purchases to the nearest pound and putting the rest into your savings. On top of this, sending and receiving money is absolutely free as long as it’s in euros. Any other currencies after this are charged at a £2 charge for under £100, and £7 if it’s over £100. 

Lloyds

A great bank account for students in the UK - International students included - with an overdraft is the Lloyds Classic Account. The overdraft is free to set up, but if you do fall into it there is a charge for every day you remain in our overdraft. Like many of the others on this list, sending and receiving money in euros is free. 

Summary

There are many banks for International students to choose from if you are studying in the UK. You just need to have a look at which is the right one for you. Doing your banking in the UK shouldn’t be a factor that puts you off from studying here as once it’s set up, you’re good to go! Finding out which is the best bank in the UK for International students all comes down to personal preference.

Now that you have put your mind at ease regarding banking in the UK, you can start to find your perfect home from home. Here at UniHomes we offer the best properties around the UK. The best part about it? All our properties are fully inclusive of all bills, meaning you'll have one less charge to worry about!