How to open a bank account in London
London, the very vibrant capital of England, is one place where many people desire to live. This is no surprise since London has numerous career opportunities, world class education, global connections, and so on.
As someone living in London, you need an actual bank account to manage your finances. Daily transactions and purchases are easier with a London bank account.
Other long-term things like loans and mortgages are also made possible and easier when you have this account.
You may also need it for your business. If you have business in London, it is important to open a business bank account. This helps you separate your business finances from your personal finances, keeping both organized.
These above listed reasons inform the reason to open a bank account in London. So if you need guidance on how you can open a bank account in London, your day has been made. Grab a pack of popcorn and read this article to the end.
Major bank account types in London
Different bank account types exist in London. But how do you know which ones are your cup of tea? This section outlines the major Bank account types in London and their features.
They include Current Account, Savings Account, Basic Account, Joint Account, Business Account, and Student Account. There are other account types, but we shall be focusing on these
- Current account:
This is also known as a checking account, and is used for everyday transactions.
It's your day-to-day banking account which you can use to receive payments like your salary, pay bills, and make purchases. You get a debit card for this account. Some of them also come with an overdraft facility.
- Savings Account:
As a person living in London, you may also decide to open a savings account.
Just like the name implies, it's the account that you use for saving. As you save money in this account, you earn interest.
This account can be used for savings towards your goals, for emergencies, projects, or any other reason you want to save for.
- Basic Account:
You open a basic bank account in London if you're not eligible for the standard current account.
While you won't get an overdraft facility and some of the other perks that come with a standard account, this account is still helpful.
You can use it for your day-to-day banking needs like receiving payments and paying bills. You also get a debit card for withdrawing money and making purchases.
- Joint Account:
This type of account doesn't have one ownership. It is owned by two or more people. Each owner of the account has equal access to the account. So each person can manage the activities of the account both online and offline.
This means that you must trust whomever you want to open a joint account with.
- Business Account:
From the name, you can tell that this is an account meant for business. If you have a business in the UK, it is highly important that you open a business account for it.
This will help you separate your personal finances from your business’ finances. This way, accountability is easier.
A business account in the UK will require you to submit a proof of your identity and address. You'll also submit your business documentation.
Check in with your bank to know the exact documents you're required to submit.
- Student Account:
If you're a student, it's recommended that you open a student account. High street banks like HSBC and Barclays offer students accounts.
They mostly come with no monthly fees, making it easier to manage your account and even save!
Asides your proof of identity or address, you may also need to submit a document from your school. This document will prove that you've been accepted to do a qualifying course.
The document will depend on the bank's requirement. It could be a letter of admission or your school ID card. Make sure to check in with your bank to be sure.
Documents required to open a bank account in London
When opening a bank account, certain documents will be required of you to submit. They are: Proof of Identity, Proof of Address, Letter from Your School, and Other Documents (as required).
- Proof of Identity:
You can use your passport for this. If you have a national ID card or a driving license, you can also use them.
All that is needed here is that you prove your identity with a document so that they're sure you're who you say you are.
- Proof of Address:
The place you claim to stay also has to be proven. For this, you can use a tenancy agreement for your house, a utility bill within the last 3 months, a gas bill, and any other documents accepted by your choice bank.
This is why you need to check in with your bank to be sure what documents they accept.
- Letter from Your School:
If you're a student, you may be required to provide a letter from your school's admission office.
It could also be your student ID card that is requested. All this is to confirm your studentship. You can reach out to your school if this is required.
- Other Documents:
Every bank is different. So, depending on the account type you want to open, you may be required to provide other documents.
For instance, if you're opening a business account, additional documents like your business registration documents will be required. Ask questions from your bank if you ever need answers to anything.
Steps to open a bank account in London
- Do your research:
The first step to opening a bank account in London is researching. London is a big city, so there are many banks in it.
When you research, you can understand your options and compare features of different banks. These options include their interest rates, overdraft facilities, online banking, etc.
You also want to know the bank's reputation, how many branches/ATM stands they have across the city, and if you fit the eligibility criteria.
You can do your research on the banks’ websites, social media pages, and review sites like TrustPilot. If you have some time, you can also visit the banks physically to ask relevant questions.
Researching will help you make an informed decision.
- Reach out to the bank:
When you've made your choice and have a particular bank in mind, reach out to them.
You can reach out online to ask questions about the bank, seek recommendations for the bank account you should open, or even confirm required documents.
This will help make your account opening process easier since you've heard from the horse's mouth.
- Gather your documents:
Gather the documents needed to open your account.
In case you do not have a required document, you can go to the issuing body to apply for it. Once you have gathered all required documents, reach out to the bank.
Also, make sure that whatever document you are submitting is up-to-date.
- Visit A Branch:
For face-to-face interaction, you should visit the bank branch to complete your account opening. You also enjoy personalized service and immediate assistance where required. So, take the required documents and visit a branch of your bank to open your account.
It's also good to know where your choice bank is physically located. Some things may require you to be there in-person later on.
- Wait:
After filling the necessary forms and submitting the required documents, your account will be opened.
Many times, the account is immediately active and you even get your card and account details that same day.
However, you may be required to wait some hours or a few days to use the account.
What are London's 5 biggest banks?
- HSBC Holdings PLC
- Barclays PLC
- Lloyds Banking Group PLC
- NatWest Group PLC
- Standard Chartered PLC
We have explored the reasons to open a bank account in London, the major Bank account types, documents required, and the steps involved in opening an account.
Now that you understand the steps involved in opening a bank account in London, go ahead and open one.
While it is important to have an actual bank account in London, you can also add FinTech solutions. They make your online payments very seamless and fast.
For someone living in London, OhentPay is your best bet for this. Simply download the OhentPay app to begin your seamless local and international transactions!
