MENU
Is Opening UK Bank account necessary?
Whether you are coming to the UK to study full-time or part-time, opening a bank account is worth considering for various reasons:
1. Direct Payments: You are likely to be required to make certain payments by direct debit or standing order especially if these payments are made in installments. This could be your tuition or your rent. For this, you would need a UK bank account.
2. Converting Currency: It used to be the case that coming from overseas would mean travelling with cash or travellers’ cheques which would then have to be converted into cash once in the UK before deposited into a UK bank account. Whilst some still do this, we recommend against it especially if the sums are significant (£1,000 or more). Depositing such large amounts may require evidence of source of fundswhich could be a lengthy process.To save yourself the hassle, we recommend loading your funds digitally into a UK bank account and then converting them within your account from where they can be spent on arrival in the UK. Several banks now offer this function. Here is how it works:
(i) Open a bank account from anywhere in the world;
(ii) Load money into that account;
(iii) Convert funds from your local currency to GBP (Great British Pound);
(iv) Funds are ready to be spent or withdrawn (in GBP) from any local ATM. You can find a list of banks that offer this service here. In the event that you are unable to setup a UK account, a forex card may be worth considering.
3. Proof of Address: For various reasons, you may need to establish proof of address once in the UK. A bank statement is one of the surest documents that can assist with this.
4. Getting Paid: If you plan on getting a job (part-time or full-time) you would almost certainly be paid via bank transfer hence the need for a local bank account.
How do I Choose a bank account?
We have compiled a list of accounts for your consideration prioritising banks that allow you to open accounts whilst living outside the UK:
For some students (US Federal Student Loan receivers) you may be required to open accounts only with traditional UK banks with physical branches. Here is a list of such banks:
Forex Cards
What is a Forex Card?
‘Forex’ is short for Foreign Exchange which is simply the exchange from one currency to another. A forex card supports and carries foreign currency and can be loaded with any tradeable currency at any time, anywhere in the world. It effectively works asa pre-paid card loaded with different currencies such as USD, GBP, EUR, INR, AUD, JPY, CNY, etc. It is usually backed by one of the major multinational card services (such as VISA or MasterCard) which means it can be used at most establishments that accept card payment.
How many types of Forex Cards exist?
Generally, two main types: multicurrency and single currency cards. The multicurrency card holds several currencies at the same time whilst single currency cards hold only one currency at a time. Depending on your provider, there may be sub-categories of cards that appeal most to your needs (such as student cards).
What is the difference between having a Forex Card vs a UK-issued Debit Card?
A Forex Card will not be tied to a UK bank account in the same way that a UK bank-issued debit card is. As explained above it is recommended that you open a student bank account for various reasons. Having a UK-issued card gives you a bank account as well as a card for usage. It is also unlikely to cost you more to use your UK-issued debit card whilst in the UK compared to a Forex card which may come with fees. Withdrawing cash from an ATM, for example, is always free (unless from an independently-run ATM) with a UK bank-issued debit card. The same cannot be said of a Forex card.
How can I shop for Forex Cards:
We have compiled a list of the most reputable and best-reviewed Forex Card providers that work anywhere in the world but especially in the UK.