If you’ve recently moved to the UK or you’re setting up a business here, you might be looking to open a bank account to manage your expenses and/or receive your wages in GBP.
If so, there are various options to explore, as this guide explains.
How to open a consumer bank account where you can deposit GBP
If you’ve recently arrived, or are soon to arrive in the UK, it can be worth opening a GBP bank account as soon as possible. Doing so means you can provide your employer with your bank account details straight away, so there are no delays receiving your salary. Opening a GBP account also means you’ll pay lower fees when withdrawing cash in the UK, and when making payments to local accounts.
Depending on the provider, you may be able to open a bank account online before or after you come over to the UK, or on the phone or in branch once you’ve arrived.
If you open an account in branch, you’ll need to bring with you a valid form of ID, such as a passport or national ID card. Many high street banks will also ask for proof of your address in the UK, such as a utility bill or tenancy agreement.
If you’ll struggle to provide proof of address, some of the high street banks, such as Lloyds, HSBC and Barclays, have international arms which means you can open selected accounts as a non-UK resident. You can often start your application online in your home country and then complete your application in branch once you arrive in the UK.
The downside is many of these accounts have strict qualifying criteria. This can include having several thousand pounds saved or invested with the bank or meeting a minimum income requirement.
Another option is to open your account online with a digital provider. You can usually do this via their app and you will need to provide a few personal details, as well as take a photo of your ID and upload this along with a selfie video.
Not all digital providers require proof of address – though you may still be asked for a UK address so that you can receive your bank card. In some cases, you may need to provide your visa details or proof of employment in the UK, or a letter from the university you’re attending if you’re a student.
Setting up your account with a digital provider is usually quick and easy and your account could be up and running the same day.
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).
To open an account with Revolut, download the app from the App Store or Google Play Store and then enter your phone number and create a 6-digit passcode. You'll be sent a text with a pin to enter into the app when prompted, and you'll then need to provide some personal details to set up your account. There are 5 different plans to choose from, including a free plan. Each plan offers different benefits, but all allow you to send money overseas in different currencies. This can be helpful if you want to send money back home. The free plan limits this to £1,000 a month, on weekdays, otherwise a fee applies.
Pros
Low overseas fees
Quick sign-up
Earn cashback on spending
Set budgets for financial goals
Virtual cards for online purchases
Easy to transfer money internationally
Linked Revolut <18 account available for one child
Cons
1% currency conversion charge on weekend spending abroad
Free cash withdrawals in the UK and abroad both limited to £200 per month
Cannot deposit cash or cheques into the account
Charged a fee to receive your bank card
Minimum opening balance
£0
Account fees
£0
Overseas card transactions
0% Mon-Fri (max. £1,000 per month)
Overseas cash withdrawals
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
How to open a business bank account where you can deposit GBP
If you’re setting up a business in the UK or your business deals with UK customers, opening a business bank account that accepts GBP makes it much easier for UK-based clients to pay you. Plus, you’re likely to save on transaction fees when making payments to local suppliers.
Although most banks will only accept applications from company directors living in the UK, if you’re a non-UK resident, some digital-only providers will still allow you to open an account. You can find out more about this in our dedicated guide to business bank accounts for non-UK residents.
If you are already living in the UK, you can choose from both traditional high street banks and digital providers. Again, it’s often quicker to open your GBP bank account online as high street banks tend to have longer application processes.
Typically you will need to provide:
Your business name and address
Companies House registration number if you’re a limited company
Sign up today and unlock 1 month of a paid plan without subscription fees.
You can easily set up a Revolut business account via the app or online. Your business needs to be registered and have a physical presence in the UK, the EEA, or the USA. Revolut caters for freelancers and sole traders with its Revolut Pro account, but there are also 4 different plans to choose from if you're a limited company. They all charge a monthly fee. Each account supports more than 25 currencies, including GBP. You'll get a set amount of fee-free local transfers, depending on your plan, but you'll need to opt for a paid-for plan to benefit from no-fee international transfers. All accounts sync with accounting software, while the paid-for plans include Revolut BillPay.
Pros
Flexible account options
Mobile app with lots of good features
Ability to issue cards to all employees
Easy to apply
Freeze card if lost or stolen
Safe and secure
Free purchases
Cons
Basic account does not include many free transactions
Earn 10% cashback on your first $1,000 of international transactions with Airwallex (T&Cs apply).
You can open an Airwallex business account in minutes via the app on both Android and iOS. Your business doesn't have to be registered in the UK and you can hold and convert multiple currencies in your account, including GBP. This makes it ideal if you're trading in the UK and overseas. There are 4 plans to choose from, depending on what account features you need. However, all plans offer employee expense cards and free local transfers to more than 120 countries and domestic transfers. If you pay a fee for your plan, you can also benefit from integration with accounting software Xero, a dedicated account manager, and automated receipt and bill data extraction.
Pros
Send to 120+ countries
Competitive FX rates
No monthly account fees
Collect, hold & send money in several currencies
No transaction fees for card payments
Cons
Not covered by the Financial Services Compensation Scheme
Transfers can only be made to your Airwallex wallet or to a business bank account
MultiPass offers a multi-currency account which can be ideal for handling UK transactions, as well as those in other currencies. You can have a local account in GBP, EU and USD under your company's name, plus you can receive, hold, convert and pay in more than 70 currencies. Once set up, you'll receive virtual and physical corporate expense cards which can be used for daily expenses and online purchases, and you'll also benefit from a dedicated account manager and 24/7 customer support. It's easy to open an account online by providing your company and personal details, but note that there's currently no corresponding MultiPass app.
Whether you’re coming to live in the UK or carrying out business here, it’s possible to open a GBP bank account to manage your finances. Digital providers often offer the quickest way to open an account, as you can manage the process online or via the provider’s app. They often have more lenient qualifying criteria too.
However, it’s important to shop around and compare accounts carefully to ensure you choose one that works for you, looking at both account fees and the features that come with it.
FAQs
Some digital providers don't have a UK banking licence. Instead, they are an electronic money institution which means your money won't be protected under the Financial Services Compensation Scheme – this covers deposits of up to £85,000 per person, per financial institution. However, e-money institutions must still be regulated by the Financial Conduct Authority (FCA) and must separate customer funds from its operational capital.
Different bank accounts offer different features, so you'll need to consider what's most important to you. Usually it's a case of finding a balance between the perks on offer and the fees you'll have to pay.
As an individual, for example, you might be happy with a straightforward bank account that charges no monthly fees. Or perhaps you're willing to pay for your account to take advantage of benefits such as cashback on purchases.
As a business, you'll want to consider features such as accounting software integration, international transfers and employee expense cards.
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Rachel Wait is a freelance journalist and has been writing about personal finance for more than a decade, covering everything from insurance to mortgages. She has written for a range of personal finance websites and national newspapers, including The Observer, The Mail on Sunday, The Sun and the Evening Standard. Rachel is a keen baker in her spare time. See full bio
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