When you arrive in England, whether for work or study, opening a bank account is essential for managing your finances. A bank account will help you receive your salary, pay local bills and save money. The procedures for opening a bank account in England are straightforward when you have the required documents.
Savings and current accounts in England
The country's most common bank account types are Current and Savings accounts. Both accounts allow you to pay other accounts, deposit money and withdraw money. They also provide access to secure banking apps and online banking. However, a Current account has fewer limitations regarding daily transactions, making it more suitable for entrepreneurs and self-employed people who need frequent account access. Savings accounts are ideal for employees with regular monthly income.
A significant difference between the two accounts is the overdraft facility, which is available for Current accounts. You can withdraw up to a certain amount from your Current account that exceeds your actual balance (overdraft). The minimum balance required to maintain a Savings account is typically lower than that needed for a Current account.
Good to know:
Within the two main account types (Savings and Current), there are subcategories depending on the bank (eg, Current Student account, Children's Savings account, Currency account, etc.).
Important
When using your debit card, be aware of potential fees like foreign transaction fees and cash withdrawal fees at certain ATMs.
How to open a bank account in England
You generally need four types of documents to open a bank account in England:
- Proof of identity (passport, driver's license, identity card, UK biometric residence permit for students).
- Proof of address (utility bill, Council Tax bill, rent agreement, mobile bill - typically required to be less than three months old).
- Letter from university or employer, especially important for non-British citizens.
- Proof of income (pay slips, bank statements, P60 UK tax form).
Good to know:
Many banks check new customers' credit history through Credit Reference Agencies (CRAs) before opening a Current account. You can check your credit history in advance by contacting one or all of the three CRAs: Experian, Equifax, and TransUnion.
For newcomers in England
If you are new to the country, obtaining proof of address can be difficult in the first few months. Banks may accept alternative documents like:
- A letter from a UK university admission office.
- A letter from Jobcentre Plus confirming your National Insurance number.
- A letter from your employer that is less than three months old.
- Some banks may accept a letter from a homestay or temporary accommodation provider.
Once your documents are ready, you can book an appointment to open a bank account online, via the phone, or directly at a branch. After the bank opens your account, it should be operational within three to five working days. Depending on your bank, you may wait up to 10 to 15 working days to receive your debit card via post.
Good to know:
If your chosen bank has a correspondent relationship with any branch in your home country, you may be able to start the account opening process before arriving in England.
Banks in England
The banking sector in England and the UK overall is highly competitive, offering attractive deals and different rates. Research thoroughly before choosing based on interest rates and features that meet your needs.
The most popular high street banks in England include:
- HSBC - one of the largest global banks with extensive international services.
- NatWest - a strong digital platform with comprehensive UK coverage.
- Barclays Bank - a major international bank with innovative mobile banking features.
- Lloyds Bank - well-established with a good customer service reputation.
- Halifax - part of Lloyds Banking Group, known for mortgages and savings.
- Royal Bank of Scotland - strong presence in Scotland with UK-wide services.
- Yorkshire Bank - Spanish-owned bank with competitive savings rates.
Building societies
An alternative to traditional banks is building societies, which are member-owned institutions providing various financial services, including current and savings accounts and mortgages. Building societies often offer more competitive rates than banks because they don't have shareholders and reinvest profits into member benefits.
Good to know:
As a building society member, you can vote in director elections, attend annual meetings and even nominate yourself to become a director.
Leading building societies in England include:
- Yorkshire Building Society - strong regional presence with competitive rates.
- Nationwide Building Society - the largest building society in the UK.
- Coventry Building Society - known for innovative savings products.
Useful link:
Bank of England - Full list of banks and building societies in the UK
Digital-only banks
Online banking has become increasingly popular in England and the UK overall. Digital-only banks operate without physical branches but offer more modern mobile banking experiences.
Recent statistics show that approximately 15% of UK adults now use digital-only banks as their primary account.
Popular digital banks in England include:
- Revolut - multi-currency accounts with cryptocurrency features.
- Monzo - user-friendly app with excellent spending analytics.
- Starling Bank - award-winning customer service and business banking options.
Good to know:
Most ATMs in England accept Visa, Mastercard, American Express and Maestro cards for cash withdrawals and bank statements.
Credit cards in England
Getting a debit or credit card in England depends on your financial history and needs. Many people choose to have both debit and credit cards. However, credit cards are more challenging to obtain due to stricter requirements and credit checks.
To qualify for a credit card, banks will perform a credit check to determine your credit limit and interest rate. As a first-time applicant with a UK credit history, you're considered high risk as an expat, which typically results in lower initial credit limits.
Building UK credit history
Here are some tips for expats on how to build a credit history while living in England:
- Maintain a regular income for several months.
- Ensure your employer is well-recognised and legitimate.
- Consider registering on the electoral roll.
- Keep existing accounts in good standing.
Important:
Always use credit cards responsibly to build your credit rating. A strong credit record makes it easier to obtain mortgages, loans and better credit card terms.
Credit builder cards
First-time borrowers or those looking to improve their credit rating can start with credit builder cards. These typically offer:
- Low credit limits (usually between £200 and £500);
- Higher interest rates;
- Opportunities to demonstrate responsible borrowing behaviour;
- Potential for credit limit increases over time.
Choosing a credit card
Every credit card has an interest rate (APR - Annual Percentage Rate). Each customer receives different rates based on their credit rating. Look for the representative APR, which shows the rate offered to at least 51% of customers.
Some cards offer 0% introductory rates for purchases or balance transfers, but ensure you understand when standard rates apply.
Good to know:
After several months of responsible use, you can request a credit limit increase from your lender.
Mobile payments in England
Mobile payments have become integral to UK commerce, with contactless transactions accounting for approximately 40% of all payments as of 2025. The major mobile payment services are:
- Apply Pay - for iPhone users via the Wallet app.
- Google Pay - for Android devices.
- Samsung Pay - for Samsung Galaxy devices.
These services are widely supported by all major UK banks and retailers.
Currently, contactless limits are £100 per transaction with physical contactless cards and for mobile payments (using any of the three methods above), there's no upper limit due to biometric authentication.
Plus, contactless fraud rates remain low at approximately 1.3p per £100 spent, making this payment method both convenient and secure.
That said, the Financial Conduct Authority (FCA) are reviewing contactless payment limits, with proposals to remove or significantly increase the current £100 limit for contactless card payments.
International banking services in England
Many UK banks offer specialised services for expatriates and international customers - including multi-currency accounts, international money transfers, offshore banking options and expatriate mortgage services.
These services can be particularly valuable if you maintain financial ties to your home country or frequently transfer money internationally.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
