Just keep my money under the mattress
Whew, chile. Let me tell you, opening a bank account in the UK was not as easy as I thought it would be.
Well, let me rephrase that. It could have been easier - if I knew what I actually needed to do earlier on. When I started the process of opening a bank account, I had intentions to write about the whole process in detail. However, that process took over a month and to be honest, I’m not really interested in rehashing all the pieces of my struggle anymore. Nonetheless, I do think it’s important to share the key things in this for the slight chance that I could help someone else in the same boat avoid these same struggles. So let’s keep this as straightforward as possible.
Here’s what I mean by “same boat" and what I needed from a bank account:
I didn’t previously lived in the UK anytime before hand.
I was arriving as an international student from the United States..
who also was getting at least 3 large sums of funds from my student loan and
had at least two jobs that needed to send my pay directly to a UK bank account.
I needed to make transfers between US and UK bank accounts (aka didn’t want a hefty fee if I had to wire it)
I needed to make large payments when I paid my rent.
I was living in a student accommodation where my utilities were included so I didn’t have a separate utility bill nor a regular lease.
I needed a bank that was FSCS-protected and had physical branches I could go to if needed.
Originally, I wanted a bank that was both in the US and the UK in hopes of being able to do easy transfers or easily switch my account. That hope was quickly shut down after one customer service call with the bank I got in the US solely in hope of being able to do this.
Here were the main challenges:
No/Little Accounts Specific to International Students: Most UK banks (if not all) do not have a straightforward process or option for international students to open a bank account — compared to what it seemed to have been in past years. Often a “student account” means that you are a student and have lived in the UK for at least 3 years so think native UK resident that’s been in high school and is now opening an account for university. This means you most likely have to open a regular basic account.
Limited banking options for *my* situation: So there are a bunch of online banks that are easy to set up and some that are even FSCS-protected (aka like “FDIC insured”), but because I knew my source of funds would be a mix of my loan and payrolls, I wanted to ensure that I could get a bank that was protected, had physical branches, and was long-/well-established in the UK. I know other international students who set up with online services such as Revolut and Monzo.
Proof of address: This can either be super easy or super hard depending on your living situation. My general understanding is that if you pay for utilities for your living space or perhaps have bank statements with your UK address, you can easily use a bill as proof. If you don’t, well, that’s where it gets more complicated. I don’t pay for my utilities separately and I hadn’t lived in the UK before so I couldn’t provide those proofs. The banks I went to did not accept my “licence particulars” which listed the info they needed but wasn’t official enough. For a while, I didn’t know my school could generate a stamped + signed letter with my address on it so the only option recommended to me which was to get a National Insurance Number. This would be a process of signing up online, mailing in documents, and waiting for those documents to come back which could easily have been a few more months’ process I could *literally* not afford to wait for. Hence, if you are a student and you’ve secured your living space, let one of the first things you do be getting a letter from your school that is addressed to the bank, signed and stamped by the school, and has all your correct information (name, address, etc.). Most banks will accept this as proof of address. My school has a portal where we can select the bank and then download the statement to use. I know someone else who had to request it from a school office and wait about a week to get the letter. So figure out the process and what you need ASAP.
My name: Many know that I have a long name and in August 2020, I added a third middle name to honor my mother’s maiden/family name. I know that on a lot of forms and such, I can’t ever fit my whole name on it and usually just have to use the first initial “C”. I figured as long as my first and last name were correct, I wouldn’t come across problems. I’ll spare the story to say that just make sure that whatever name is on your documents (especially your proof of address), make sure that matches the name you are opening the account with. For quick context, my middle names were not on my school’s proof of address letter, but I had applied with my full name which is on my identity documents so thankfully the bank had amended the name I applied with to match the letter.
Lessons learned:
Do the research and do it again. I actually looked up a lot about opening a bank account and even took steps before I arrived to hopefully make the process easier. But looking back, I realized a lot of what I consulted either didn’t apply anymore or was too general for my situation. Look at specific banks and read everything. Even call them and go over the specifics of what you would need to open an account. If you have questions (e.g. what is my daily limit purchase?), ask them. Also, reach out to your school especially if you need a proof of address letter from them and find out what you’ll need to do to get that.
Make it a priority. If you have to go the route of using a traditional bank, it’s likely you won’t be able to open it until you arrive (and maybe until you’ve gotten your Biometric Residence Permit card and secured housing). However, there may be some steps you can take to prepare such as starting an online application - which you usually have from 2 weeks to a month to then open the account in person - or booking an appointment at the bank if you need to do your application in person - which can sometimes be filled up for two weeks. Banks are receiving an influx of students at the start of the school year and you never know what little thing can delay the process so start as soon as you can to get things underway.
Secure the documents you need. Whatever you need to show, get it and bring it. And then bring even more supporting documents. You truly never know what is or isn’t going to be accepted so to be safe, bring whatever identity or address proof you can and keep it safe.
Don’t lose hope. I hit so many roadblocks and there were so many times I felt so frustrated and upset at how rough this process was going that I would tell myself “I’m just going to keep my money under the mattress!” (as if I could do that with loan money). I always had to reset myself and remind me that this is something I needed to do so I just have to get through it. For example, once I got to the near-end of the process where I just needed to go into a branch and get my documents checked (roughly a 15-minute process), I went to the bank about 3 times because the previous times, either the person who would do it wasn’t there or I missed their open window. On that third time, I had just missed their open window and nearly begged if there was any other time that day I could do it because this was my third time coming. The person at the front told me to come back in an hour and maybe the person who does the checking can try to squeeze me in. I did that and because the person who does the checking (sorry, I don’t know their official title) had other appointments, they had to tend to those first, but I waited and waited - patiently (I’m not about to throw a fuss with the people handling my money). Thankfully, I had the time and I was determined to get this opened that day so nearly another hour later (and potential scare of another roadblock), I finally walked out of the bank with an open bank account! It reminded me of those jokes in movies and tv shows I’ve seen where someone goes to some big shot office and the receptionist says they need an appointment so the person just waits all day and keeps showing up until the big shot makes time to see them. Maybe don’t do that, but persistence is key. Plus, my multiple visits allowed me to explore that neighborhood some more and come across some new fave spots!
Lastly, don’t forget: you are your own best advocate for everything in life.
My mom and I always say and joke, “you live and you learn”, and it’s always so true. This wasn’t my ideal process nor one I ever predicted, but I learned a lot in the process. I believe the best use of learning is sharing so take what you will and what you need from this. I hope your process is 10x smoother than mine!
Renée ♥️
Please note that I do not want to swear by any bank you should use nor is this a sponsored post or anything (although that might be nice), but I will say despite the general challenges of opening a bank account, Lloyds definitely made it the most bearable and every staff member I encountered was so nice and accommodating. You could tell that they were following the process by the book, but they also genuinely wanted to help me figure out how to open an account. Shouts to Lloyds!
