Best UK Banks for U.S. Expats
Published on August 18, 2022
Updated on October 24, 2024
by Rose-ann De Villa
Rose-ann De Villa, an IRS Enrolled Agent and CPA with 14 years of expat tax experience, specializes in US tax preparation, tax planning, and tax advice for US citizens and Green Card holders living and working in the UK.
Rose-ann has been mentioned in the Daily Express UK news wherein she talked about Stimulus payments and Child Tax Credit refunds for US expats in the UK.
Table of Contents
What are the best UK banks for US expats?
When choosing for the best bank, you can consider these requirements that best fits your need:
- Current accounts in sterling, US dollars and Euros.
- Reduced rates for international currency transfers.
- A full range of banking products and services.
A bank account is essential for every individual when it comes to managing their finances. This can be especially challenging when moving abroad.
What are the benefits of opening a bank account?
Here are the benefits you can receive in opening a bank account:
- Protection over your money
- For easy access of your funds through ATMs and online banking.
- Gives opportunity to track your spendings and finances more effectively.
- Interest earnings on certain accounts.
Choosing the right bank in the UK requires knowledge and added effort, but with proper guidance, you can open an account that fits your needs and lifestyle.
What are the requirements for opening a bank account in the UK?
For a basic account, most banks usually require:
- Recent credit card or bank statement
- Passport or legitimate photo ID
- Employment document
- Current utility or council tax bill (less than three months old)
A basic account can be opened online or in a nearby branch and the process usually takes 1 to 2 days due to several stringent security requirements.
If you’re not starting a basic account, the bank may verify your credit once you submit the account opening form. Before the account is approved, you’ll also need to provide documentation of your identity and residence.
Why use the IRS Streamlined Tax Amnesty Program?
It’s for American citizens that didn’t know they had to file US tax returns each year, and have therefore fallen behind. Some more than 30 years! With the IRS Streamlined Procedure, say goodbye to overdue tax returns, late fees, and penalties.
Connect with over 10,000+ expats today!
Embarking on an international journey shouldn’t mean navigating the complex world of US taxation alone. If you’re living and working abroad, our friendly, supportive Expat Tax Online Help Facebook group is here to assist. We’ve designed a community that serves as a comprehensive guide and resource platform tailored for US expats.
What if I don’t have a UK address yet?
If you just settled in, you can already open an account without a UK address if you bank with a US or foreign institution that offers services in the UK.
What if I don’t have a UK address yet?
- Basic account: Only comes with debit cards with direct debit payment alternatives.
- Current account: This comes with a credit card, a debit card, and an overdraft. Generally used for salary receipts, bill payments, and shopping. Regular current accounts are either free or have minor fees.
- International account: These are usually made for non-residents who lack the necessary paperwork to demonstrate their UK address. An international account can be opened online and managed from a different country.
- Savings account: For accounts with higher interest rates but call for a smaller initial investment. There may be restrictions on how long money must stay in an account, depending on the bank.
- Offshore account: Comes in US dollars, pounds sterling, and euros that allows you to receive payments in several countries. It requires a greater deposit amount to open an offshore account.
Will my bank help me with my tax obligations in the US?
Most UK banks that offer accounts for expats or non-residents can provide assistance in managing your tax obligations such as the Foreign Account Tax Compliance Act (FATCA) and Foreign Bank Account Report (FBAR).
Seeking professional tax advice from an expat tax specialist is also recommended to navigate these complex rules and optimize your financial situation while living abroad.
Are there fees for converting US dollars to British pounds in my bank account?
Generally, banks impose a percentage fee for converting USD to GBP or vice versa but the fees can vary depending on the bank and the services you use.
Here are common fees you can encounter:
- Exchange rate markup: Markup on exchange rate for typically 2-4% on top of the mid-market rate.
- Flat transaction fees: Flat fee for currency conversion usually applied to international transfers. This can be added on top of the exchange rate markup.
- Foreign transaction fees: For foreign currency transactions on debit or credit cards at around 2-3%.
- ATM withdrawal fees: For withdrawing foreign currency from an ATM.
- International money transfer fees: For sending money from a UK bank account to a foreign account.
Some of these fees can add up and result in high overall fees. Choosing a bank that offers better rates or multi-currency accounts can help reduce fees.
What are other popular UK Banks?
- HSBC – Expat premier account:
- Minimum deposit balance of £50,000 (or USD equivalent) on their account.
- Offers multi-currency account.
- Offers free or reduced-fee international money transfers between your HSBC accounts.
- Provided with worldwide travel insurance (including cover for medical emergencies, lost luggage, and trip cancellations).
- Provides FATCA (Foreign Account Tax Compliance Act) and CRS (Common Reporting Standard) support.
- Starling Bank: A digital-only bank or a mobile app-based system.
- No monthly maintenance fees for accounts.
- Offers free international spending on card and ATM withdrawals.
- Allows international payments in multiple currencies.
- Requires UK residency or UK address for opening an account.
- Barclays:
- Provide a variety of current and offshore accounts, including graduate and student accounts.
- Offers international bank account for expats who want to manage their finances globally.
- Complies with FATCA for easier tax reporting obligations.
- Citibank – Citigold expat:
- Offers multi-currency banking and offshore wealth management through Jersey (financial hub).
- Offers personalized wealth management services, such as access to investment portfolios, global market insights, and financial planning tools.
- Fee-free global transfers between Citibank accounts in different countries.
- Offers support for your tax obligations including FATCA.
- Standard bank – Optimum account:
- Allows you to hold and transact in multiple currencies including US Dollars (USD).
- Offers international payments and transfers.
- Includes a Visa debit card that allows you to make purchases and withdraw cash from ATMs globally.
- They have competitive currency conversion rates.
- Lloyds International – Current account:
- You can manage accounts in multiple currencies, including US Dollars (USD), and Euros (EUR).
- Offers offshore banking through its international current account.
- Offers wealth management services and tax planning support
What is a travel money card?
A travel money card, also known as a currency card, is a type of card that allows you to keep and spend multiple currencies while traveling around the world with no hidden fees.
Wise.com is a popular money services account that lets expats spend foreign currency. It is not a bank account so not all features of a bank account are available through Wise. But is a simpler and safer way to carry your money.
Additionally, you can store up to 50+ currencies in your travel money card and convert them at the mid-market rate. It is usually less expensive than converting money when you arrive or using traveler’s cheques.
Spread the word. Please share… 👉
