Best UK Banks for US Expats
Published on August 18, 2022
Updated on February 25, 2025
Reviewed by
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 banking options for Americans in the UK?
There are general and specific banking options that cater to US expats living in the UK and it ultimately depends on their banking needs. Americans can open a traditional UK high street or digital bank with low transfer fees.
Here are some of the best banking options that fit US expats in the UK:
- UK high street banks that accept US citizens.
- International banks with US-UK account integration.
- Online and challenger banks for flexible banking and easy transfers.
- Banks with tax and compliance considerations under FATCA and IRS regulations.
What banking services are available to US expats?
Here are the most common banking services available to US expats:
Traditional UK banks
- Current (checking) and savings accounts
- Debit cards and ATM withdrawals
- Mortgage and loan options
- UK direct debits and standing orders
- Some international transfer services
International banks
- Multi-currency accounts (GBP, USD, EUR)
- Easy transfers between UK and US accounts
- Investment and wealth management services
- Access to both UK and US banking networks
Digital banks
- Fully online
- Free UK current accounts with debit cards
- Low-cost international transfers
- Easy setup without extensive paperwork
US-based banks with UK accessibility
- Maintains current US credit and banking history
- USD accounts with international ATM access
- Investment options in the US
Business banking
- Business current accounts
- Multi-currency payment solutions
- Tax and invoicing tools
- Integration with accounting software
Various bank accounts are associated with these services, such as the HSBC Expat Premier Account, the Lloyds International Current Account, and others.
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What UK bank accounts can I open?
As a US expat in the UK, you have several banking options tailored to your unique needs. Here’s an overview of some notable accounts and services available:
- HSBC Expat bank account (International bank): This is a multi-currency account that caters to GBP, EUR, and USD, allowing you to manage your finances across different currencies. It is also compatible with UK banking, enabling you to set up Direct Debits and Standing Orders for UK commitments.
- Lloyds international current account (Traditional UK Bank): This account is specifically catered for expats needing access to multiple currencies so it can be held in GBP, EUR, or USD. You can go to their physical branches to open one. But internet and phone banking services are also available to facilitate easy account management from abroad.
- Barclays international bank account (Traditional UK Bank): This account is also from a high street bank that offers international banking services. It is a multi-currency account with international payments in over 90 countries and over 40 currencies. It has competitive FX rates to manage currency fluctuations.
- Starling bank account (Digital bank): This is a UK digital bank account that has no monthly maintenance fees for accounts. It offers free international spending on card and ATM withdrawals and allows international payments in multiple currencies.
- Monzo full UK current account (Digital bank): This is a fully licensed UK current account that enables you to receive salaries, set up Direct Debits, and manage daily expenses. However, it is not a multi-currency account, so for international transactions, you might consider alternatives like Wise or Revolut, which provide multi-currency functionalities.
- Charles Schwab bank account (US-based banks with UK accessibility): They provide access to US markets and investment opportunities. They also provide transparent online reporting and a 1099 form to assist with IRS filing requirements.
Am I eligible to open an account?
Your eligibility to open a bank account primarily depends on the bank and type of account you’re opening. However, here are some basic requirements that you should follow as a US citizen:
- Residency requirement: Most banks require proof of address, such as a utility bill, tenancy agreement, or UK driving license. Your options are more limited if you don’t have a UK address.
- Essential documentation: You typically need documentation for proof of identity such as a passport, proof of UK address such as a utility bill, and Visa or immigration status.
- FATCA & US tax compliance: Banks may ask for your US Social Security Number (SSN) or Taxpayer Identification Number (TIN) and may need you to report an FBAR and/or FATCA Form 8938.
Are there available investment options for me?
Yes, there are savings and investment options in UK banks available to expats, including expat savings accounts and investment opportunities. Here are some of the accounts:
- HSBC UK Wealth Management: Offers stocks, bonds, ISAs (UK tax-free savings), and pension funds.
- Barclays Wealth & Investment Management: Provides managed portfolios, UK mutual funds, and stock trading.
- Lloyds Private Banking & Investments: This typically requires high net worth client which offers investment funds, discretionary portfolio management, and retirement solutions.
It is important to note that FATCA compliance and the IRS regulations can limit your choices, and US expats may face restrictions due to compliance risks.
How can I maintain my UK bank account as a US expat?
Maintaining a UK bank account requires you to stay compliant with both UK banking regulations and US tax laws. So, first things first, you need to ensure your UK bank allows US expats so there is no restriction on FATCA compliance.
Second, ensure that you keep your basic information up to date, especially your UK address. If you’re planning to move back, you need to inform your bank about your status to avoid account issues. Lastly, keep your account active by using it regularly and set automatic payments.
Do I need to report my UK bank account to the IRS?
If the total balance of all your UK accounts exceeds USD$10,000 at any time during the year, you need to report it to the IRS and file an FBAR (FinCEN Form 114). This applies to checking, savings, investment, and even joint accounts.
Additionally, if your total foreign financial assets (including UK bank accounts, investments, pensions, etc.) exceed USD$200,000 (single) at year-end or USD$300,000 (single) at any point during the year, then you must file FATCA Form 8938 with your tax return (Form 1040).
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