How to Open a Bank Account

A bank account provides a relatively straight forward way to save your money. Most bank accounts can be accessed online or by telephone as well as through banks on the high street, providing 24-hour access to your funds.

Instructions

Difficulty: Moderately Easy

How to Choose a Bank

1. Financial comparison websites may prove helpful when deciding where to open an account. Details of sites like this are below.
2. Larger banks usually offer lower interest rates to potential investors. Investigate internet only banks and subsidiaries of major banks who may offer much higher interest rates on current accounts.
3. Find out if a bank has a branch close to your home and close to your school or workplace.
4. If you want to use high street banks in various places, find out if you will have access to your account at all sites or only at your local branch. It is also a good idea to check if you will have internet and telephone access to your account.
5. Find out if you will be able to use any cash machine to withdraw money, or only cash machines operated by your bank.
6. It’s sensible to investigate whether your bank offers an extendable overdraft, what overdraft rates would be and if there are any penalty charges on overdrafts.

How to Choose the Best Bank Account

7. Current account: Bank staff will often encourage you to open a current account which charge a monthly fee and provide extra services. Only open an account like this if you really need these services. Cheaper current accounts are almost always available. Before opening a current account, check the fees which may affect you, for example if there are any charges for withdrawing money from a cash machine.
8. Branch-based deposit account: Branch-based deposit accounts offer higher interest rates than current accounts because you have fewer services and less access to your money. Consider this type of account if you do not need easy access to your cash.
9. Postal or telephone account: Postal or telephone accounts offer higher interest rates than branch-based deposit accounts because you cannot use the services in the bank's branch. Again, only consider this type of account if you do not need easy access to cash.
10. Internet account: Internet accounts usually offer the highest interest rates. It may also be easier to keep track of this account when you are not in the UK. Some of these accounts allow you to withdraw money using a cash machine, while others will only allow money to be transferred to a bank's current account).

How to Open an Account

11. Go into the branch you have chosen and tell the information desk that you would like to open an account.
12. You may then be asked to complete a basic registration form before attending a short interview.
13. You will be interviewed by an account manager, who will decide if you are suitable for an account with the bank.
14. You will be asked for personal details such as your date of birth, your home address, your address in your home country, whether you are married or have children, how long you have lived in the UK, your course or work, your income and your expenditure.
15. You will be asked to provide a sample signature; if you sometimes use an English and a non-English signature, you may be asked to provide a sample of each.
16. You will be asked to sign a form so that the bank can check your credit history and keep your personal details on their computers. If you do not want to receive mail from the bank advertising their services, make sure you tick the appropriate box!
17. You should make it clear which address you want your chequebook and cards to be sent to. To prevent fraud, some banks ask you to collect these from the bank branch.

Tips & Warnings

• There are several banks in the UK that offer accounts to new investors. Sometimes new investors will be offered free cash, rewards or vouchers for opening a new account. This particularly applies to Student and Graduate accounts. Keep an eye out for special offers!
• If you are an international student you may find the process of opening a bank account more difficult than you expect. This is because there are strict laws in the UK which are designed to prevent money laundering (hiding money obtained from drugs or other illegal activities) or terrorist activity. In particular, you need to prove both who you are and where you are living.
• For security reasons, it is unlikely that you will be allowed to open an account in the UK before you arrive.