Bank Accounts
How to open a bank account?
You need ID documents (with picture) to prove who you are and where you live. To prove your living address you will need to provide the UK driving licence, gas/electricity/telephone bills. A letter from your employer confirming your employment details would be very helpful.
You can open bank account with bank, building society or at the post office.
The list of the UK Banks:
Most useful terms:
- Balance - the amount in your account
- Withdrawal - you take money out of your account
- Overdrawn - if you have withdrawn more money than you have in your bank account
Why you need a bank account?
- To pay bills. Paying bills by direct debit might be cheaper option. Many landlords prefer to collect rent directly from a bank account. If you are working it is cheaper, quicker and safer to pay directly to the bank account.
- Use cash. You can take cash from cash machines or from a bank, or pay directly from your account using a debit card.
- Earning interest. You will get agreed percentage if you keep money for one year on a deposit account.
What you have to consider before opening a bank account?
- When is the bank open? Many branches are open from 9am to 4:30pm from Monday to Friday; some branches open on Saturday mornings
- Does the bank have a branch close to your home and close to your workplace?
- Can you use the cash machines of other banks?
Transferring money from/to abroad
Electronic transfer of funds to your UK bank account ("sending money by wire") - Quick, but expensive
Cheques - A slow method; cheques may take several weeks to clear
Credit card - Withdrawing money from your credit card can be expensive because of high interest charges
Traveller’s cheques - Keep a record of the numbers of traveller’s cheques and credit cards in case of loss or theft
Other international money transfer services - MoneyGram or Western Union. Compared to a bank transfer this can be a more expensive and less secure way to move money, but it is useful if the sender or receiver doesn't have a local bank account.
The sender is given a reference number and must tell this to the person who will receive the money. The receiver goes to the agreed location, shows identification and quotes the reference number, and can then receive the money. This is very quick way of transferring money- receiver might get them in 20 min. This method is good when person is in trouble and requires cash.
Other ways to obtain cash
Usually in the supermarkets you can get "cashback" when you use your card to pay for your shopping. This means - the cashier gives you the amount of money you request, and this amount is taken from your account in addition to the cost of your shopping.
Documents
Keep your bank statements, water/gas/electricity/telephone bills, rental agreements, as well as any correspondence as a proof of your addresses, duration of your stay in the UK, these documents may help you to open a bank account or to apply for an extension to stay as a student in the UK.
Safety
- Only carry small amounts of cash with you; use cards or cheques to pay for larger bills.
- Keep your personal number private. Do not write it down, and do not tell anyone. When you enter your personal/PIN number, stand in front of the machine and make sure that nobody can see the numbers you are typing.
- Do not let a stranger help you to use the machine, even if the card is kept.
- Do not forget your card in machine. Keep concentrated.
- Check the daily withdrawal limit for your card. If it is high, make sure that your bank or insurance company will pay back any money stolen if you lose your card
- Be careful to make sure that you are not followed after taking money from a cash machine.
