Accessing your money in the UK
If you are moving to the UK, you may need to consider how you will support yourself financially until you have set up your account and have a regular income. There are many ways to transfer money between your home country and the UK; the most effective choice for you will depend on the relative cost of each of the transfer methods, and how quickly you need to access your money. If you are planning a move to the UK it is inadvisable to bring a large amount of cash with you in case it is lost or stolen. Instead, bring enough cash to cover your expenses until your first paycheck arrives, or arrange for an electronic transfer from your 'home' bank. The different methods of transferring money to the UK from abroad include:
Bringing cash from your home country
This method is fairly straightforward, but you should be careful if you are planning to carry a large amount of cash on your journey, in case it is lost or stolen along the way. This method of money transfer is risky and can leave you exposed to theft and loss of funds, but it is a cheap method of money transferral because you need only pay the cost of exchanging your money into pounds (£).
Withdrawing cash at an ATM from your 'home' bank account
Most ATMs (also known as cash machines) in the UK will allow you to withdraw cash using a bank card belonging to almost any large bank in the world. This means that you can gain instant access to the funds in your home account, and, when you have opened a UK account, make a withdrawal and then deposit the cash into your UK account. This is more secure than travelling to the UK with large amounts of cash; there is a lower chance of the money being mislaid or stolen if you go directly to your bank to pay in the money you have withdrawn, although this does not mean that you should be any less vigilant. This is a fast and straightforward way of accessing your cash, but you are likely to be charged an exchange rate which is much higher than the market rate, as well as a set charge from your bank in your home country for making a 'foreign' withdrawal. There may also be limits to the amount that you can withdraw at one time, and so it may be necessary to make several withdrawals. The transaction charges could amount to around 5% of the balance you withdraw each time.
Online money transfer service
Recent years have seen an increase in 'secure' ways to transfer money over the internet. A number of companies now enable you to pay an agreed amount into bank accounts of any currency throughout the world, after making a payment to them over the internet - usually using a credit or debit card. The service will then transfer funds from your bank account in your home country to your UK bank account, which is more secure than taking out cash and carrying it around until you can pay it in. Online transfers are also very fast, often paid within a few hours of purchasing the service, or even instantaneously. However, they can be fairly expensive: few people are aware that many companies offer expensive exchange rates for international transfers (in comparison to bank transfers, for example). In addition, you may have to go directly to a branch of the transfer provider and provide identification in order to complete the money transfer in the UK.
International electronic or 'wire' transfers
Electronic transfers can be made by your bank: they are regarded as one of the fastest and most secure ways of transferring funds internationally. Whilst exchange rates offered by banks for these services are usually competitive, you could still incur extra administration charges of up to forty pounds per transaction. Transferring funds to the UK cannot always be done over the internet due to fraud protection restrictions; it may have to be organised in-branch or over the telephone. This is impractical if you have just moved to the UK; it is a good idea to give a close friend or family member the legal authority to agree to transactions from your account on your behalf. Electronic transfers are very fast and may even be completed within one working day. Your bank might offer you a range of transfer options; the fastest ones will inevitably be more expensive, so the most suitable choice will usually depend on your willingness to pay these charges, and how urgently you need access to your money. Wire transfers are convenient: you simply instruct your bank to make the transfer.
Money orders
These can be issued as cheques in the target currency (in this case pounds sterling) by post offices around the world. They function in a similar way to regular cheques and can be paid into an international bank account or cashed in at another post office. Money orders are not as common in the UK as they are in some other countries however, so these cheques may not be accepted everywhere. In addition, the maximum amount of that you can order per cheque is often only one hundred pounds. This is unlikely to be enough to support you for a significant amount of time in the UK. It is possible to order several cheques if you wish, but this can become expensive as each one will incur a charge of around £2 - £4 , although the exact fee varies between countries. Unlike other cheques, money orders can usually be cashed instantly wherever they are accepted; there is rarely a set 'clearing' time.
Travellers cheques
These are popular all over the world, and are essentially cheques made out for a certain amount of money, which can be used like banknotes to make purchases. They are a good alternative to travelling with large amounts of cash however, because they can be refunded if lost or stolen, often within 24 hours and at no cost to the customer. A travellers cheque can be traced or cancelled if necessary using its unique serial number: when you collect your cheques, be sure to note down each serial number for future reference. Travellers cheques can be cashed at many outlets throughout the world, although their general usage and acceptance has been declining a little since the increased popularity of debit and credit cards. Travellers cheques are fairly inexpensive, but there will typically be fees to cover commission and currency exchange both when buying and cashing them, and they are not recommended for long term use in the UK because they are not widely accepted outside of tourist areas. Travellers cheques are issued by several financial institutions, but American Express remains their major supplier.
