Overview

You should start considering which bank in the UK you wish to use before you leave your home country. With most major UK banks, you should be eligible for a 'basic bank account'. A basic bank account, which will give you a cash machine card and facilities to transfer money in to and out of your account. If you need other services such as a cheque book, debit card or access to credit (such as an overdraft or credit card), you will need a current account or an account specifically designed for international students.

Opening an Account

To open a UK bank account you will require the following documentation:

• Your passport and a valid UK visa (EU citizens can use their National Identity Card instead of a passport) 
• Your acceptance letter from your UK University if you are student and the offer letter must be an unconditional offer of a place on your course 
• Proof of your address in the UK and also in your home country as well. Proof of your UK address will probably be your rental agreement with your landlord or a bill with your address on it, however you should check with the bank before you go there to open your new account

The process of opening a bank account in the UK should take around two weeks if you have all the required documents available. Most of the Universities and employers expect you to have a bank account before you start your course or your new job.

UK Banks

Some of the major banks are listed below:

NatWest - http://www.natwest.com
Royal Bank of Scotland – http://www.royalbankscot.co.uk
HSBC – http://www.hsbc.co.uk
Barclays – http://www.barclays.com
Lloyds TSB - http://www.lloydstsbgroup.co.uk
Halifax – http://www.halifax.co.uk
Bank of Scotland - http://www.bankofscotland.co.uk
Abbey National – http://www.abbey.com

Before you decide which bank to choose do some research or phone each bank and find out the best offers on interest rates. Always remember that if you are not happy with your bank, you can always move easily to another bank. In recent years, banking regulatations in the UK has forced all the banks to make it easier for customers to switch to one another. If you walk into any other branch of a bank where your account is held and tell them you wish to switch providers, they should complete all the paper work and take care of everything for you.

British Banking Terms

Direct Debit(s) - is an automatic payment which transfers funds from your account to settle your bills as instructed by you to the bank. The company you are paying has full control over the amount but must give you notice of any changes. 

Standing Order(s) - enable you to make regular fixed payments from your account. You have more control over these as you set them up and can adjust the amount and date paid to suit your needs. 

Overdraft(s) - this is a facility offered by the bank but is not a loan. It allows you to go overdrawn on your account within an agreed limit. In some instances banks may charge for the facility. A person can be said to have gone "overdrawn".

Bankers Draft(s) - this is a cheque which guarantees to pay the recipient the sum stated. They are used as a means paying for large items such as cars. Once a banker's draft has been issued and handed over for goods it cannot be cancelled making it effectively the same as paying cash. You will need to provide the name of the person or the company you are paying the money to, which will be stated on the Bankers Draft. 

Secured Loans - This allows the lender to protect the loan by obtaining a legal charge or hold on an asset (usually your property – a house or flat owned by you). If you fail to pay the loan the asset may be sold off to repay the debt.