Best Bank Accounts In The UK For Overseas Students In 2024

This article will assist you in selecting the ideal bank account, regardless of whether you’re an international student studying in the UK for your whole degree or just a year abroad.
Positive updates! For an international student, banking in the UK is typically rather simple as compared to many other nations. Additionally, there’s a good amount of options. Having said that, choosing the right bank account for you will depend on your unique situation, including how long you want to be an international student in the UK.

We’ll start by outlining the most crucial factors to take into consideration, then we’ll rank the top bank accounts for overseas students and offer some possible substitutes.

                                 Why open a bank account in the United Kingdom?

Establishing a bank account sometimes seems like just another tedious administrative chore. However, the time investment is worthwhile because you might save a good deal of money and inconvenience.

Managing your finances from your home country account might be problematic and costly for a number of reasons:

1. You could be charged currency exchange fees every time you use your debit card or withdraw cash abroad.
2. Currency exchange rates fluctuate, making it difficult to stick to a budget.
3. Employers who plan to hire you on a part-time basis will prefer to deposit your pay into a UK bank account.
4. It is probable that your place of residence provider will favor payments made from a UK bank account.
5. It will be difficult or impossible to set up standing orders and direct debits for regular payments. These are required to cover monthly rent, gym subscriptions, and cell phone contracts.
6. In many countries, banks demand handwritten letters to be sent in order to initiate Direct Debits to accounts abroad. Moreover, there will be a transfer cost!

A few things to think about before opening a bank account abroad

• Is there a UK branch of your existing bank?

International firms run a large number of banks. When both accounts are registered with the same bank, some banks will waive fees associated with international money transfers if both banks are registered with them.
It can potentially be far simpler to open an account overseas. Therefore, you may wish to continue using the same bank if you have an account with one that has branches in the UK.

• What is the cost of international transfer charges?

It’s extremely important that you understand this. Be sure to ascertain the precise cost of money transfers across nations if you intend to send or receive money from home.
When converting to the currency of your choice, banks frequently charge a commission cost of up to 3%. Additionally, you may be charged a fee for transferring the money.

• Is an overdraft necessary?

A tiny overdraft (less than£100, for example) might be included in your account. However, it is typically not possible for overseas students to apply for a large overdraft.
International students’ bank accounts typically do not have an overdraft because the banks do not regard you as a long-term customer.

How do you establish a UK bank account?

In most cases, opening a bank account requires going to a local branch, unless your bank specifically says otherwise or is only accessible online.

What is required to open a bank account as an international student?

To open a bank account as an international student, you will often require any or all of the below documents:

– A valid passport
– A legitimate visa
– A three-month-old bank statement from your home bank
– Evidence of residency in the UK or outside (verify with your bank)
– Student ID or a letter of acceptance from your college.

Evaluations of accounts used by international students

1. NatWest Select Account

Formerly, NatWest had an account designed exclusively for overseas students studying in the UK. This account included incentives for signing up, just like the NatWest Student Current Account.

Unfortunately, the account is no longer accessible. luckily, it is still possible to apply for a NatWest Select Account, which is an excellent option in and of itself.

In contrast to the foreign student account that NatWest used to offer, the Select Account does not require a monthly maintenance charge and can be opened and used for free.

However, we are aware that you will wish to send and receive money from overseas as cheaply as possible as an international student. The international transfer costs for sending money overseas are extremely minimal with NatWest’s Select Account; you only have to pay if you really need the money sent there right away.

OUR REVIEW
If you are an overseas student intending to study in the UK, the Select Account is a suitable option. It’s not just an inexpensive way to send and receive money internationally, but you can also apply online for an account. Thus, you have the option to apply even before departing from your place of origin.

2. RBS Select Account

The banking organization that includes NatWest and RBS (Royal Bank of Scotland) is the same. You may therefore quickly realize that in addition to having a Select Account, the conditions and fees are almost the same.

Branch locations of RBS are not limited to Scotland, despite the name. It could be a good idea to find out which bank has a branch near your university if you like the terms of the Select Account but aren’t sure whether to go with RBS or NatWest.

Similar to NatWest’s Select Account, this RBS product has an overdraft option. However, as previously said, the amount of any overdraft you receive will depend on your unique situation, and interest will be applied on the loan amount.

OUR REVIEW

The RBS Select Account’s overdraft carries interest, unlike student bank accounts—that is, if you are approved for one in the first place. Considering that opening an account for the sole purpose of having an overdraft would probably not be worthwhile.

3. HSBC Bank Account for International Students

A dedicated bank account for international students is offered by HSBC. Remember that you cannot access any credit facilities through this account, including loans or overdrafts.
You can even open this account before you travel to the UK if you currently have an HSBC account. In the UK, you can open an account if you’re a new customer.

OUR REVIEW
If you plan to send and receive large amounts of money while in the UK, you might want to consider alternative accounts because the costs associated with this account are a bit higher than those associated with some of the other accounts we’ve discussed thus far.
The good news is that opening an account with HSBC in the UK is significantly simpler and may be completed before you travel if you already have an account with them in another nation.

4. Barclays Bank Account

Similar to NatWest, Barclays formerly provided a special account for overseas students studying in the UK. International students can still apply for their regular bank account even though this account is no longer available.
To open a Barclays bank account as an international student, you must have a valid UK biometric residency permit.
An overdraft is also included with the account. You should be aware, though, that each person will have a different maximum amount of overdraft available to them, and you might not get any at all.
This account has remarkably reduced international transfer fees as well.

OUR REVIEW
Quite good! Recipient costs are reasonably cheap and outbound money transfers are free with this account. It also has the potential for an overdraft and no monthly account maintenance fees.
Online application for a Barclays bank account is still available if you haven’t yet obtained a UK mobile number. It is necessary to have a UK biometric resident permit, though, and these are typically granted to visitors who stay in the country for six months or more.

5. Lloyds Classic Account

Lloyds is another bank that you can open as an overseas student. For students who haven’t lived in the UK for at least three years, their classic account might be a good fit. You can open this account as long as you are currently a UK resident.
You may receive up to 15% cashback at select merchants when you use your Lloyds debit card if you sign up for Everyday Offers.

OUR REVIEW
This one cannot be opened until you are physically residing in the UK. The possible payback is a perk, though.
This is a fairly straightforward account with some positive features, but it’s important to consider how much money you’ll be getting from overseas while residing in the UK. If so, a less expensive receiving account could be preferable.

6. Santander Basic Current Account

Those who just relocated to the UK for employment or study may find the Santander Basic Current Account suitable.
This account offers you the chance to establish your UK credit history even if there isn’t an overdraft option. This is among the greatest methods to raise your likelihood of obtaining an overdraft later on.
Additionally, if you sign up for Boosts, you may be able to receive cashback when you use your Santander debit card at one of several large UK retailers.

OUR REVIEW
When sending money outside of Europe, Santander has some of the highest transfer fees.
However, if the money is transferred electronically rather than via check deposit (which has a £10 fee), it is free to receive money in any foreign currency. This account may be ideal for you if you anticipate having a large amount of money coming in from overseas but not sending much out of Europe.

7. TSB Spend & Save Account
You must wait to open the TSB Spend & Save Account until after you have relocated to the UK as it is only available to UK citizens who are 18 years of age or older.
One significant benefit of the account is that if you use your debit card to make 20 or more payments every month, you will receive £5 cashback for the first six months.
It has wonderful features like Savings Pots, which allow you to set money away for savings. Additionally, every time you use your debit card, you can automatically save money by selecting the Save the Pennies option. This function deposits the additional pennies into a TSB savings account or a Savings Pot after rounding payments to the closest pound.
You can also establish a minimum balance on your account using the Auto Balancer tool. Money will automatically be transferred from a Savings Pot to help you avoid falling into your overdraft (if you have one) if your balance ever drops below your minimal level.

OUR REVIEW
This account’s primary advantage is that it offers a number of money-saving options that could significantly aid in your ability to save costs while studying in the UK.
However, keep in mind that there are a few alternative accounts on this list with reduced fees if you intend to transfer or receive money in foreign currencies other than euros.
Remember that in order to open the account, you will also need to have relocated to the UK.

8. Al Rayan Personal Current Account

If you’re searching for a current account that complies with Sharia law, you’ve come to the correct spot.
However, there is a financial investment required for this account.
You will normally be required to pay £20 a month to keep the account active if you do not possess a UK passport and your primary place of residence is not in the UK (which is probably the case for the majority of international students).
Additionally, there is a £5 fee (maximum of £5 per day) for transactions completed at the Knightsbridge location.

OUR REVIEW
This current account might be ideal for you if you’re searching for one that complies with Sharia law. If you want to remain in the UK for an extended period of time, Al Rayan also offers Sharia-compliant savings accounts.
Just keep in mind that there are significant fees associated with moving money overseas and that creating an account at Al Rayan does need some financial commitment.

Other options for opening a bank account in the UK

There is much more option now than there was previously, thanks to the recent explosion of digital app-based banks opening in the UK.
Not all of these bank accounts are appropriate for students studying abroad, and their regulations are not as stringent as those of traditional banks.
But there are a lot of advantages, particularly in terms of quick account registration and inexpensive foreign payments.