Opening a bank account

Most ‘high street’ banks will offer customers the option to open a ‘basic bank account’. A ‘basic bank account’ is different to a standard ‘current account’. It offers limited facilities, is usually fee-free, and allows you to receive money and pay bills but does not allow you to have an ‘overdraft’ facility. 

A large number of banks will also offer an account specifically designed for international students. This will often be, or will be similar to, a basic bank account. However, it may also offer limited overdraft facilities. 

Some banks offer accounts and services that meet Sharia principles, also known as Sharia-compliant accounts. There are also a few specialist banks that operate in accordance with Sharia principles. See information from moneyhelper.org.uk on Sharia-compliant savings. 

Any person wishing to open a bank or building society account must provide proof of identity. Banks and building societies must make a status check on all new applicants for a current account. They must not open a current account for a person who requires immigration permission to be in the UK but who does not have it (that means, someone who is in the UK as an overstayer). The UK Home Office publishes guidance on this requirement, and refers to such applicants as 'disqualified person(s)'; see page 4 of Guidance for banks and building societies on carrying out immigration status checks on current account holders and applicants. 

Banks and building societies must also check the immigration status of existing current account holders. They are required to inform the Home Office if they believe that one of their current holders does not have permission to be in the UK. The Home Office will then decide whether to investigate further - it may consider whether to order the bank or building society to close an account, or whether to apply to court for an order to ‘freeze’ the funds in an account. See information on gov.uk about 'freezing orders'. 

Money Helper has comprehensive information on the identity requirements needed for basic bank accounts. 

Banks also have to comply with complex legislation about preventing money laundering. The Joint Money Laundering Steering Group (JMLSG) publishes guidance for bank staff who are responsible for their bank’s compliance with anti-money laundering legislation. This means any bank you apply to may wish to seek assurances about you so that it can be confident you are not involved with money laundering. They may need your institution to confirm details about you and your student status. Your institution may be able to give you a letter of introduction to your bank. JMLSG provides a template for such an introduction letter in its guidance.