Dr Mohammad Shafiq
International students who are staying in the UK for several months must choose a student-friendly bank account to pay their tuition fees, living costs, and other regular expenses. Plus, you will become good at money management.
It is important to consider some crucial factors while shortlisting the best banks in UK for international students. You can't overlook significant points, like location, overdraft limit, transfer costs, debit/credit card facilities, hidden charges, transaction limit, convenience, banks' reputation, etc.
If you have an international bank account in the UK, carrying out transactions in different currencies between countries won't be a problem. You will get a debit card to conduct everyday financial transactions. Students staying for more than 12 months can apply for credit cards, too. You can use it at most shops and restaurants to purchase the things they need in the UK.
Many UK banks offer special International student bank accounts. You can transfer money and deposit overseas checks without any cost. However, the financial institution will charge a fee monthly. Getting funds from your home country to pay your tuition fees and living costs will be convenient.
A bank account records all your financial transactions and shows your credit history. This enables access to loans, credit cards, and favourable interest rates, supporting various financial endeavours and goals. Most importantly, it shows you have a good relationship with the financial institution.
A UK student bank account can help you get various perks, like discounts on travel and shopping, extra cash, interest-free overdrafts, higher overdraft limits, etc. Plus, you may get other offers such as free discount cards, railcards, subscriptions, freebies, cashback, etc.
It is 100% safe to keep money in a UK bank account. UK banks adhere to strict regulations to offer secure systems and protections for deposited funds, ensuring financial safety.
There are mainly two types of bank accounts for international students who came to the UK for higher education: basic bank accounts and Student & graduate bank accounts. It works like a current bank account. Students can use the account to receive money, make payments through checks or debit cards, transfer money to another account, etc. The average monthly fees of a student bank account range from £5-£20.
UK-based student bank accounts charge anywhere between 0.5% to 3% depending on the transaction type. The financial institution charges this commission to convert your home currency to your desired currency. Compare different UK banks and their features to save money as much as possible.
A good number of UK banks come with online and mobile banking services. This allows you to check your bank balance, pay loan payments, choose better interest rates, check bank statements, etc. Carefully go through all the top-rated banks and what type of online services they offer. It will help you determine the best bank for international students in UK during your studies.
When choosing the best bank in UK for international students, you can't overlook ATM and branch availability. The bank branches and ATMs should be near your residence or university to conveniently access funds and in-person services.
It is a good rule of thumb to consider the reputation, financial stability, customer reviews, and rating of a specific bank before opening a bank account. International students should not choose any bank that is not helpful, responsive, and available to assist students when they need it. Choose a financial institution that has several customer service channels.
When it comes to opening the best bank account in UK for international students, you must know the procedure to open a bank account.
The eligibility requirements may slightly or significantly vary among banks. The following are the common requirements to open a student bank account in the UK.
When it comes to opening a UK bank account for international students, they must submit the following important documents.
Select a particular bank near your residence or university campus. Compare all the benefits and features among them to choose the best bank account in UK for international students. Decide whether you prefer a basic or student & graduate bank account. The latter one is better if you want a credit card in the future.
If you want to pay lower fees and enjoy better interest rates, it is best to fill out the online bank form and open a bank account. But when you prefer to know all terms, rules, and regulations by discussing them with the bank staff, visit the nearest physical branch.
It takes around 15-20 minutes to complete the application process online to open a bank account. Read the application form thoroughly and submit all the necessary documents mentioned in the paper. If you have visited a physical branch, get help from a bank staff if anything appears confusing.
The bank you have applied to open a bank account will ask you to prove your identity and address. They will ask to submit different documents, like your current living location, personal identity, etc. You can submit various documents, such as your valid, full UK photocard driving license, current valid passport, etc.
Once you pass the identity verification, the bank will send you the account details to your mentioned mail address within three working days. When you receive the bank account details, you can start financial transactions in your bank account.
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The following are the criteria and benefits for choosing each particular UK student bank account.
The HSBC International Student Account offers features tailored for students studying abroad, such as the ability to manage money efficiently while focusing on studies. It facilitates opening an account before arrival in a new country, ensuring a smooth financial transition. The account includes options for money transfers between countries using HSBC Global View and Global Transfers, allowing for free, instant transfers to other eligible HSBC accounts worldwide.
The Barclays Student Additions Account offers a £500 interest-free overdraft for the first term, increasing to £1,000 in the first year and £1,500 from the second year onwards. It's designed for undergraduate and postgraduate students, providing financial flexibility and the ability to track spending through the Barclays app.
The Lloyds Student Account offers an interest-free arranged overdraft of up to £1,500 in years 1-3 and up to £2,000 in years 4-6. It provides online banking, mobile app support, and integration with Apple Pay and Google Pay for contactless payments. Additionally, students receive mobile alerts for low balances and can enjoy the convenience of managing their finances from anywhere.
The Santander Student Current Account, known as the Santander Edge Student current account, offers several key features for students in the UK, including a free 4-year 16-25 Railcard for savings on rail travel and no fees for international withdrawals at Santander ATMs in selected countries. It provides overdraft alerts and the opportunity for interest-free arranged overdrafts, with limits that can increase with your year of study. However, it requires a minimum funding of £500 per academic term and is available only to students meeting specific criteria, such as being over 18 and having a confirmed offer for an undergraduate course or apprenticeship.
The NatWest Student Account offers features tailored for university students, including an easy-to-manage account with an interest-free overdraft option. Students can apply for an overdraft of up to £2,000 starting from their first year, with an increase to up to £3,250 available from the third year onwards. Additionally, the account might offer cashback deals and come with a user-friendly banking app.
The RBS Student Bank Account is designed to facilitate life in higher education, offering perks like a free 4-year tastecard (valued at £29.99/year). It features an interest-free overdraft option, allowing for up to £2,000 from the first year, though limited to £500 in the first term of the first year.
The Nationwide Building Society's FlexStudent Account offers interest-free, fee-free overdrafts up to £3,000, aimed at students. To qualify, applicants must be 18 or over, a UK resident for 3+ years, accepted onto a full-time UCAS course of at least 2 years, and cannot have a student or current account with an overdraft elsewhere. The account also features £100 cashback for new openings.
The TSB Student Bank Account provides financial flexibility with an interest-free overdraft of up to £1,500, starting at £500. Overdraft limits can be increased at 6, 7, and 10 months, subject to application and approval. It's designed to support students' financial management during higher education, offering a generous overdraft without many fees and broad accessibility through numerous branches.
Metro Bank offers a variety of banking services suitable for students, though specific details about a "Metro Bank Student Account" weren't directly found in the search results. Metro Bank provides the convenience of opening accounts online with requirements such as an email address, mobile number, photo ID, a device with a camera (at least 4 megapixels), and 3 years of address history. Applicants must be UK, EU, or Swiss nationals.
The Halifax Student Current Account offers an interest-free arranged overdraft of up to £1,500 for the duration of your course plus three years post-graduation. It includes free everyday banking with no monthly fee and the opportunity to earn up to 15% cashback at select retailers through Cashback Extras.
International students can use international money transfer services, such as Currencies Direct, TorFX, OFX, Clear Currency, WorldFirst, SEND, etc., to pay accommodation, tuition fees, living costs, and other day-to-day expenses.
International students can use various prepared debit cards, like Mastercard, Visa card, American Express, etc., opened in their countries. They work almost in any standard European bank.
International students can utilize various Digital Payment Platforms, such as PayPal, Stripe, GoCardless, WorldPay, Apple Pay, Google Pay, Samsung Pay, etc., to pay their accommodation, tuition fees, living costs, and other day-to-day expenses.
Many international banks are operated in Western and Asian countries, such as Standard Chartered, HSBC, Bank of America, CitiGroup, JPMorgan Chase, etc. You can use it from your home country as well as abroad.
Owning a student bank account in the UK as an international student can help you pay for books, tuition, food, rent, and other day-to-day essentials. While shortlisting the best banks in UK for international students, you may have some personal needs and preferences, such as overdraft options, low fees, branch accessibility, online features, student perks, etc. Choose a bank with accessible ATMs and online services to manage finances conveniently while studying in the UK.
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