Advantages & Disadvantages of Accounts

When you arrive in the UK you may find it hard to assess the advantages and disadvantages of opening a bank account. Although you may face charges for the account, it is generally sensible to open an account if you know that you will be staying in the UK for several months. Remember that withdrawals from your home account will typically incur charges. The basic advantages and disadvantages of accounts are listed below:


Advantages:

• A bank account is a requirement when applying for many UK jobs, and often for paying university fees and household bills.
• Increased security as opposed to bringing large amounts of foreign currency from home.
• Convenience: any problems can be sorted out in-branch instead of having to make expensive phone calls home. You also have easy access to your money.
• Withdrawals from UK ATMs and branches are almost always free for UK account holders. 'Foreign' cards will incur charges if used to withdraw cash.
• UK accounts are generally easy to set up and close, with no long-term obligations. Internet and telephone banking services are available for most types of account.
• A UK bank account could help you with future applications to extend a visa.
• You will not usually be required to give the bank any notice if you are planning to deposit or withdraw money. Minimum deposits may be as little as one pound.

Disadvantages:

• The range of accounts on offer can be confusing.
• It can be difficult to provide the correct documentation; many banks initially require utility bills as proof of address, but you may not be able to set up an account with utility companies until you have an account! However, some banks will accept other documents until you can provide this kind of proof of address.
• People who have been bankrupt in the past may be restricted to basic bank accounts without overdrafts or credit cards.
• If you are a citizen of a non-EU country, it can take up to a month to set up your account, owing to the more complex identity checks.
• The minimum age for non-UK citizens to open a bank account is usually either sixteen or eighteen, depending on the individual bank.
• You might not be able to gain credit, such as credit cards or overdrafts, until you have had your bank account for several months.