Opening an Account
The easiest and most common way to open an account in the UK is to go to a branch of a bank or building society in person. There are no huge differences between banks and building societies, but you may receive a more customer-focused service from a building society because they are run 'mutually', for the benefit of employees and customers, as opposed to for the benefit of shareholders. Both banks and building societies will allow you to open a basic banking account. This type of account is usually referred to as a current account; you can access, deposit and withdraw money at any time, depending on your current cash flow.
When choosing a financial institution, try to gather information on different accounts from several different banks and building societies. Most high street branches will have leaflets available with details of the current accounts they offer. These leaflets summarise the basic features of the account, and detail any special offers that are available for new customers.
Compare the features of at least four different accounts; by doing so you should be able to select an account which offers features that suit your needs. You can also ask friends, family and colleagues for recommendations. If you are a student, the students' union at your university should be able to advise you on good account deals to suit your circumstances.
If you are confident that you will not have financial difficulties when you are in the UK, it might be best to select an account that offers a good interest rate* and a good deal for new customers. Some banks and building societies will offer free credit cards, or a free rail card, to new account holders.
If you are worried that you will find it difficult to manage your money, perhaps because you are coming to the UK to study and will not have much cash available, it may be better to look for an account that does not charge any account fees, and offers a free overdraft. An overdraft is essentially a small loan from your bank, who agree to loan you money when you have spent all your own and cannot cover your expenses. Banks typically charge high fees if you need an overdraft, but some offer a free overdraft service for new customers.
You can open an account online with an internet bank or building society. Internet banks tend to offer higher interest rates because they do not need to operate high street branches. However, if you are new to the banking system, or are uncomfortable operating your account online in English, you may find it easier to open an account with a financial institution that has high street branches. When you visit a branch, advisers are available to answer your questions and help you manage your funds.
If your first language is not English, some branches have multilingual staff who will be able to talk you through your application, and the management of your account, in your mother tongue. It is a good idea to request a multilingual advisor, or take a friend who can translate, when you first visit the bank. Opening hours tend to be between 9am and 5pm, Monday to Friday and sometimes on Saturday mornings. If you do not have an appointment, try to avoid visiting at lunchtime: this tends to be the busiest time.
Once your account has been opened, you can manage your account any of your bank's branches; you are not restricted to the branch where you opened your account. If you do not have a branch near you, you may wish to investigate which banks offer internet and telephone banking facilities.
* the money paid to you by the banking institution, equal to a percentage of your account balance.
