Banking and money

Opening a bank account in the UK is by far the safest and most effective
way of managing your money. However, although UK banks offer services to
international students, as you are a temporary resident in the country you
may not have the same access to banking services as you do at home.

Why Open a UK Bank Account?

Some students never open a UK account while they are here, but continue to use their overseas account. However, it is recommended that you open a UK account, particularly if you are going to be studying at Sussex for more than six months, because:

if you are using a non-UK bank card you will be charged every time you withdraw money from cash (ATM) machines
if you get a part-time job in the UK your employer will want to pay your money directly into a UK account
you cannot set up direct debits (eg for accommodation or for a telephone contract) from an overseas account
if you have a student visa you will be required to send bank statements to the Home Office if you apply to extend your leave. The Home Office specifies that funds should be in pounds sterling, so it is better to have a UK bank account so that you can meet this requirement
if you are being sponsored, it will not be possible to cash a banker’s draft or cheque in the UK unless you have a UK bank account
for reasons of safety and security, it is not a good idea to carry lots of cash with you. It is best to safely deposit this in a bank account

What sort of account?

You should be allowed to open what is called a ‘basic bank account’. This allows you to pay money in and take money out and you are normally provided with an ATM card to withdraw your money from cash machines. Basic bank accounts do not normally offer students any form of credit, so you will not be given any overdraft facility, cheque book or credit card; although you may be issued with a debit card, depending on which account you choose.

If you are going to be studying in the UK for at least an academic year you will find that some banks will be prepared to offer an international student bank account that offers more flexibility than a basic bank account. These accounts may offer some limited credit facilities such as a cheque book. However, be aware that there is often a charge or a minimum balance requirement for these accounts. If you want an account based on Sharia principles, check banks’ websites and publicity materials. Some mainstream banks offer accounts and services that meet the principles and there also a few specialist banks that operate in accordance with them.

Things to consider before you come to the UK

To make the process of opening a bank account easier and less time consuming, we suggest that you:

start looking at bank accounts in the UK before you come to Sussex so that you can decide which bank account you would like to open as soon as you arrive
look into the possibility of applying for a UK bank account online before you come to the UK
ask if your own bank has a special relationship with a bank in the UK and whether they can help you with setting up an account
try to open an account with a multinational bank in your home country for example Barclays or HSBC
make sure that you bring with you to the UK all the necessary documents that you will need in order to open an account (for example, your original offer letter from Sussex

How to open a bank account?

To open a bank account in the UK, you will normally be required to provide documentary evidence of both your identity and your address here. Proving your identity can help to fight financial crime such as money laundering. This is why the law says financial services firms must check the identity of their
new customers. It also protects you from identity fraud.

The following is a list of documents that you are normally required to provide in order to open an account. Please note that these documents do vary from bank to bank and from branch to branch:

Proof of identity - current passport or EU identity card
Evidence of your student status and address. This could be the original offer letter from Sussex sent to your permanent overseas address. If you do not have your original offer letter or if it was sent to any other address (ie an agency, a PO box number of a correspondence address) you will need a ‘letter of introduction to banking facilities’ from the University. If you require a ‘letter of introduction’ issued by the University this can be requested from the relevant office on arrival at Sussex (new undergraduate and postgraduate students – Admissions Office, Sussex House. Visiting and exchange students – International and Study Abroad Office, Friston Building.) The letter confirms that you are a current student at Sussex and includes your UK contact address and your home address held by the University. When requesting a letter, you will need to give the name of the bank that you would like to open the account at, as some banks may not accept a letter for opening an account if it is not addressed to them. Please note that during the busy induction period it will take several days before the letter is available for collection.
copy of your housing tenancy agreement

Some banks require a minimum deposit to open certain accounts and may also require you to maintain a minimum balance in your account.

Where should I bank?

There are two banks on campus – HSBC (Bramber House) and Barclays (Sussex House). Most of the other well-known British banks have branches in the Brighton and Hove area and as many now offer online and telephone banking for which there is no charge, you may not feel it necessary to have an account with one of the campus banks. Representatives from Lloyds TSB and Santander are intending to come onto campus during welcome week to provide an account opening service for international students. Further details will be available in our pre-arrival letter.

There are some differences in the type of services and the opening requirements for different accounts so you need to research the different options and make your own decision, based on your own needs and what is available to you. The University is unable to recommend one bank over another.

If there is any possibility that you might need to make an immigration application while in the UK you should consider choosing an account or bank that issues monthly paper bank statements. Online statements or quarterly statements may not be suitable to support an immigration application, and the
bank may not be able to provide any further proof of your balance. It is also important that you keep and file your bank statements. Obtaining reprints can take time and be expensive and often banks will not print them in the format required by UKBA.

British banks with branches in Brighton & Hove:

Barclays Bank (also has a branch on the University campus)
Co-operative Bank
Halifax
HSBC (also has a branch on the University campus)
Lloyds TSB
NatWest
Santander
Royal Bank of Scotland

How along does it take to open an account?

Some accounts can be opened quickly (less than 48 hours), but others may take longer particularly during the busiest periods, such as September. As it can sometimes take several weeks before your account is fully functional, make sure that you will have access to the money you need for this period by making financial arrangements similar to those you might make when you are a tourist (ie consider using traveller’s cheques or a credit or cash card which you bring from home).

Further information

Further information about choosing and opening a bank account, including a link to the British Bankers Association guide to opening a UK bank account for international students can be found on the UK Council for International Student Affairs (UKCISA) website

Transferring money to the UK

It is not advisable to carry large amounts of cash when you are travelling. Bring just enough cash to meet your immediate needs and send the rest of your money by another method, such as:

International money order. This is bought before leaving your home country, and on arrival you can either pay it directly into your UK bank account or take it to a post office to obtain cash. To exchange it for cash, the money order must be in sterling (British currency), and you will need to show your passport as identification.
Bank draft/demand draft. This is similar to an international money order, except that you can only pay it into a bank account; you cannot exchange it for cash. Ask to have it made out to you in sterling and drawn from a British bank. That way you will not have to pay a commission fee when you pay it into your account, and the money will take less time to clear (ie move through the system and into your bank account).
Electronic transfer. Using this method, your bank in your home country transfers funds from your home account directly to your UK account. This is often the easiest way to transfer money, but you cannot arrange it until you have opened a bank account in the UK.
Telegraphic transfer. This is one of the fastest ways to send money from one country to another, but it is also one of the most expensive. As with an electronic transfer, you can only arrange a telegraphic transfer after you have opened your UK bank account. We recommend that you contact your local bank for further information about how to transfer funds to the UK.
Traveller’s cheques. This is a safe method of bringing funds. Traveller’s cheques can be exchanged at banks, shops, hotels and bureaux de change. A commission charge is sometimes made for the service of changing traveller’s cheques to sterling. Please note that some UK banks will not cash American Express traveller’s cheques.
Telex. This is generally the quickest but one of the most expensive ways of transferring funds. Where possible, use the SWIFT system. Money sent in this way can be collected in cash or paid direct into an account.
Personal cheques. Bank accounts will purchase these from you at the current rate of exchange; a commission charge is made for this service. There may, however, be a delay while the cheque is returned to your home bank for payment. This method is not recommended because of the possible delays to you in receiving the money. If you are in any doubt, check with your bank. Note: There may be a charge for money transferred in another currency.
Cash. We recommend that only a small sum of cash is brought (about £100 should be sufficient in addition to traveller’s cheques and your home credit/cash card) as you will not receive very good rates of exchange compared to other methods of transfer, and there is always the possibility of losing the money.

Important: export of currency

In some countries the transfer of funds to another country is illegal without government permission. In these cases, banks in the UK will not accept the funds and the cheques would be returned unpaid at considerable expense to yourself. You should make certain that you are allowed to transfer funds before you come to Britain. If there are restrictions, a copy of the document giving permission for the transfer of funds must be sent to the University. The original should be retained to show immigration officers on entry to the UK.

UK currency and credit agreements

The UK currency is the pound sterling. The sign for the pound is £. GBP = Great British Pound (£) Although a few of the big stores will accept the Euro, it is rarely used in the UK. The pound is divided into 100 pence. The symbol for pence is ‘p’, hence an amount such as 50p is often pronounced as such rather than as ‘fifty pence’. Both coins and banknotes are used:

Current coins are: 1p, 2p, 5p, 10p, 20p, 50p, £1 and £2
Current bank notes are: £5, £10, £20 and £50

Credit agreements

While most students are not eligible for credit facilities while studying in the UK, some high street stores may offer you the chance to buy goods on a fixed-term agreement, by which you pay them back an amount each month. While this can appear attractive, you should check the small print carefully as many of these agreements are at a high rate of interest, and sometimes you have to pay back up to a third of the price of the goods in interest. We would advise against entering into these types of arrangements.