If you are planning to settle on the shores of Foggy Albion or are starting your own business in this hospitable country, you will need a British bank account.
Benefits Of A UK Bank Account
With the help of a UK euro account, you can save and increase your savings, freely pay with foreign clients and suppliers, work with financial institutions that are inaccessible in some countries, and even bypass currency control measures established in your home country.
The Banking System Of England
The history of the UK banking system goes back over 300 years. Since the end of the 17th century, English financial institutions have been distinguished by their high reliability, confidentiality, and high level of service. To the already listed advantages, add the prestige of the bank, a wide range of services provided, modern financial instruments, and a huge number of branches around the world. This is why wealthy foreigners are so keen to place their funds in British bank accounts.
However, not only foreign businessmen need their account in an English bank. Almost all payments, for example, with utility services, in the UK are usually carried out in non-cash form. Therefore, both a first-year student and a specialist arriving on a long-term work visa need to conclude a service agreement with a local bank.
Banks existing in the country are divided into the following types:
● Retail – large financial structures offering a variety of banking services, equally convenient for both private and corporate clients. The vast majority of the UK's oldest banks, such as Royal Bank of Scotland, Barclays, or Lloyds, are retail. It will be extremely difficult for a foreigner to independently start cooperation with this kind of institution.
● Private – banks whose target audience is mainly individuals. Therefore, they are not so demanding of their future clients and are convenient for making daily payments. This does not mean that you cannot open a company account in a private bank, but with a high degree of probability, this will be an additional paid service.
The cost of servicing in British banks is low, and in some cases even non-existent for a certain period. Private clients are provided with a checkbook and a plastic card free of charge along with their accounts. The latter can be sent by mail to your residential address. You can control your expenses using SMS alerts, online banking on the website, or in a special application for your smartphone.
How To Avoid Being Rejected By A British Bank?
Unfortunately, it is not so easy for an immigrant to open a personal or corporate account at the Bank of England, especially if he has just recently arrived. There are no government directives in the country prohibiting banks from working with foreigners, however, if you apply on your own, with a probability of up to 98% you will be refused at the stage of drawing up the contract. Moreover, even from those who have passed strict due diligence checks, the bank may request information about the origin of large funds received into the account. All these strict rules are associated with the authorities’ policy to combat financial fraud and the laundering of illegal proceeds.
Procedure For Opening A UK Bank Account
For a British bank to start working with you, you need to:
● Come to a personal meeting with one of the bank managers;
● Know English at a level sufficient to communicate with bank employees;
● Document the legal origin of your money;
● Provide evidence of your residential address in the United Kingdom.
What documents are required to open an account for a private person? To open a regular bank debit account in the UK and receive a bank card (the simplest type of account is usually a cash account), you must provide proof of identity and a document confirming the applicant's address in the UK.
The financial institution may also request your resume, proof of address in the country you are from, and proof of income. The exact list of documents that will need to be provided to open a personal account depends on the requirements of a particular bank.
Conclusion
Private banks in the United Kingdom offer very convenient and loyal conditions for their clients – remote account opening, convenient online applications, as well as multi-currency payment cards that allow you to operate in dollars, euros, and sterling events. So it will be easier for a foreigner to open an account in a private bank in the UK.
