Finances

Choosing a UK bank

Why is it important to have a UK bank account

• Avoid high international transaction and ATM withdrawal fees
• Pay for rent, bills, and groceries easily and safely
• Receive your salary if you’re working part-time or any financial aid
• Start building a UK credit history – useful for future rental agreements, loans, and more

Online banks vs traditional banks
You can open multiple bank accounts, with students commonly having both a traditional bank account and an online bank account.

Online banks – good for:

• Quick to open
• Faster, easier application processes
• Ideal for day-to-day spending, online shopping, and international transfers
• Typically have built-in budgeting features

Not good for:

Some institutions or landlords may not accept them as a primary bank account.

Traditional banks

• You must usually be in the UK to complete your application.
• Proof of address is required.

How to open a bank account

1. Choosing the right bank
   • Firstly, it’s worth seeing if the bank you already hold an account with in your home country operates in the UK.
   • Use UK-based consumer websites like Money Supermarket or Go Compare to get comparisons of different bank accounts.
   • Check how much interest-free overdraft the bank is offering.
   • Take into account any international transfer fees.
   • Remember that many banks offer incentives to joining, including vouchers and travel discounts.
2. Book an appointment or apply online
   • Traditional banks may ask you to schedule an in-branch appointment, especially in busy periods such as September.
3. Ensure you have the correct documents
   • Gather your documents, such as a passport or driving licence, before attending any in-person appointment or applying online.
4. Wait for approval from the bank
   • The wait time varies depending on each bank.
5. Activate your account once approved

SIM cards

You’ll need to buy a UK sim card when you arrive. Here’s what you need to know:

• UK mobile networks actively target international students, so you can compare and choose good-value SIM deals.
• SIM-only deals: Free SIM with a monthly fee (e.g. £6 for 5GB). Higher cost = more data; contracts may be 12 months or rolling monthly, so check the terms. This means you don’t need to buy a new phone – you can just put the new sim into your existing phone. 
• Many SIM-only plans include unlimited texts and calls, though most people mainly use apps like WhatsApp.
• Pay-as-you-go SIMs: Best if you use your phone very little; top up credit as needed. But most people in the UK use contract SIMs rather than pay-as-you-go.