topics
tools
Expatica countries
editor's choice

Crime and the legal system in the UK

Tips for understanding the Brits

Banking in the UK

Culture and social etiquette in United Kingdom

Museums in London

Index Last Var.(%)
BEL 20 2076.17 -0.24
DAX 6293.35 -0.25
IBEX 30 6564.2 0.40
CAC 40 3002.47 -0.32
FTSE 100 5280.23 -1.09
AEX 289.05 -0.41
DJIA 12442.49 -1.24
Nasdaq 2813.69 -2.10
FTSE MIB 13109.04 0.15
TSX Composite 11330.68 0.04
ASX 4098.8 -2.61
Hang seng 18951.85 -1.30
Straits Times 2779.1 -1.54
ISEQ 20 484.76 -0.93
You are here: Home Finance & Business Business Banking in the UK

Business

archive
Enlarge font Decrease font Text size


03/08/2011Banking in the UK

Banking in the UK Just moved to the UK? You'll need a bank account to effectively manage your money while you're here. Cliff Govender explains the UK banking system, including facilities that may come in handy down the line.

If you’re thinking of coming to the UK or have already moved here, welcome! There will be lots of things for you to arrange before and after you arrive whether it’s related to your work, where you’re going to live, or even how you will communicate with friends and family back at home once you have settled.

Close to all of those things will be your need for a bank current account to effectively manage your money whilst in the UK and this article aims to help you understand some things about the UK banking system that will hopefully make your move easier.  I also hope to help you think about the other facilities you might require from your bank to make your new life in the UK run more smoothly.

In order to manage many aspects of your life such as receive payment from an employer, budget your finances or pay regular bills, it will help if you have a suitable bank account.  You may find that banking in the UK is quite different from the way you bank in your home country. It’s helpful to understand some of the key differences so you can manage your money most efficiently. In particular:

  • Tracking payments
  • Paying regular bills
You can usually make payments to other UK accounts free of charge through your bank’s branch, telephone banking or internet facilities, or pay for goods or services in most stores using a debit card.  When you make a payment do keep in mind that it may not immediately appear on your account statement or be deducted from your balance, and to be safe you should allow four working days for your payment to arrive.  Keep this potential delay in mind when tracking your expenses to balance your budget.

Direct Debit logo

Paying regular bills is done most easily by setting up a Direct Debit, which is an instruction to your bank to allow a company to collect money from your account on a regular basis.  If the bill varies in size each month then the company will amend their collection to take the correct amount.  It’s often useful to set up these payments on dates shortly after your account is credited, such as from being paid by your employer, so that you can be confident that you will have sufficient money available to cover the Direct Debit.

Other important services that many new arrivals to the UK tend to want to make use of are the ability to save or invest their money and the ability to transfer money to or from their home country.  Depending on your circumstances these may be important factors, especially if you still have family or responsibilities at home or intend to return home at some point in the future.  For many customers it is important that they can access these facilities from their chosen bank, so that the process is dealt with 'in-house’ without the need to involve different organisations in the process.

If you need to send money to a family member back home, make payments for your home or just transfer money to an overseas bank account, you will need to use an international payment facility.  You should be aware that international money transfers can be subject to a number of different charges including a charge from your UK bank for making the payment, a foreign exchange charge and a charge by the receiving bank for accepting the payment.  If you intend to make regular use of international payment facilities, it may be worth considering an international account which can operate in different currencies.  In that way you can avoid or reduce some of these charges.

You’ll probably have a lot of expenses following your move to the UK, but at some point you’re likely to want to save money for all sorts of reasons.  Typically our customers go through a number of stages in their need to save, from creating a cushion against unforeseen expenses, to saving for a specific purpose such as buying a car, to investing over the longer term for their future.  If anything, these needs are felt even more acutely by those arriving in the UK for whom the normal support mechanisms of friends and family are far away.

If you’re building up your savings from scratch you’ll want instant access in case of emergencies – but there are many accounts in the UK which will give instant access and a good rate of return to the regular saver who is prepared to save a fixed amount each month.  

Wherever in the UK you’re planning to settle, I’m sure you’ll have a wonderful and rewarding experience here.  Arranging your banking facilities is not the most exciting task, but if you make the right choice to provide yourself with security, flexibility and convenience it will help make more time for other, more enjoyable things you can take advantage of while you’re here.

 

Lloyds TSB / Expatica

For more information contact:
Cliff Govender, National Manager, Lloyds TSB International, London, UK
Quoting reference: GM 317674
Email: cliff.govender@lloydstsb.co.uk
Web: www.lloydstsb-offshore.com/international


0 reactions to this article

Be the first person to add a comment

General rating: Not rated yet

Rate article:    Add my rating



0 reactions to this article

Be the first person to add a comment
Finance essentials
Finance expert Q&A
ask your question
Discussion Forums

Community Noticeboard United Kingdom

$100 MasterCard for Member with most new members

Community Noticeboard United Kingdom

Website for special needs and disabilities

Community Noticeboard United Kingdom

Military tour to Ukraine for football fans of Euro 2012

UK News

what do you think about the news of the world scandal

Community Noticeboard United Kingdom

SAP Business Objects Online Training in Netherlands by SAP BOSS

participate in the forums

Inside Expatica
Visas for coming to the UK

Visas for coming to the UK

Visa paperwork Whether you're relocating to the UK or just visiting, it's important that you find out in advance whether you need a visa.

An online guide for expats finding & purchasing a UK Property

An online guide for expats finding & purchasing a UK Property

Expat mortgages and everything to do with buying a UK property might sound complicated, but there’s plenty of help out there for you.

UK healthcare: Finding the right NHS service

UK healthcare: Finding the right NHS service

You can access the UK's National Health Service (NHS) in a range of ways. Here is an overview of the main services available to help you get the treatment you need.

Banking in the UK

Banking in the UK

Just moved to the UK? You'll need a bank account to effectively manage your money while you're here. Cliff Govender explains the UK banking system, including facilities that may come in handy down the line.