current account

[baskey]

Hi all,

Can anybody managed to open a current account in the UK on arrival or after short period. My account is health and salary going in but still bank is not opening7 upgrading into current account.

Can anybody have some tips or please share ur experiences.

regrads

[try-one]

Hi,
please check the http://www.immigrationboards.com/viewtopic.php?t=2239 and you will find the reference to the service to open the account.
if you can give some feed back about the service after you used it.

[MWazir]

Do you have a letter of employment? Take that with you to the bank and that may be enough for you along with your passport to open to current account.

Let them know that you will use this account for your salaries and your monthly rentals.

If you are already renting a place or staying with them, then get a letter from them. That will make it very easy for you to get a current account.

[hk_007]

Barclays bank provides a current account for those who have recently arrived in the UK. I opened this without any hassel but took about a month to have it setup. Just send them the documents required and meet the salary criteria. Have a look at this link:
http://www.wealth.barclays.com/BRC1/jsp ... f&site=int

The major drawback being, 0.1% interest when other banks provide 3%+. But there are other ways to increase your returns.

I think NatWest also provides a similar service. Their website should be able to help you.

[hk_007]

Some more info....

Banks in general will insist on 3 year residency to open a current a/c, in which case you have no option but to wait for 3 years. Some others would be more willing to open an account and will make a credit search. Therefore, ensure that your name is in the electoral register.

Nationwide BS and Abbey were willing to open a current account upon opening an ISA with them. If you have been in the UK for about a year, your name is registered with the credit rating agencies (through the electoral register), and are inclined to open an ISA (an attractive tax saving alternative!!) then check out these options as well.

[MWazir]

I was told by HSBC that ISA can be taken up only by residents. It would be nice if other banks dont follow that criteria.

[hk_007]

I have used the argument that I am a 'resident' for tax purposes which has been accepted and ISA opened. At least Nationwide, Abbey and Halifax (all of which incidently are among the top in ISA list) have no problem. Mind you though, Halifax insists on 3 year residency for current a/c.

[MWazir]

Thanks for the info. Didnt know you could put forth the 'resident for tax purposes' argument with banks. Will speak to the bank guys again.

[f2k]

Some more info....

Banks in general will insist on 3 year residency to open a current a/c, in which case you have no option but to wait for 3 years. Some others would be more willing to open an account and will make a credit search. Therefore, ensure that your name is in the electoral register.

Nationwide BS and Abbey were willing to open a current account upon opening an ISA with them. If you have been in the UK for about a year, your name is registered with the credit rating agencies (through the electoral register), and are inclined to open an ISA (an attractive tax saving alternative!!) then check out these options as well.

i dont know about this 3 year wait, even for a mortgage they dont wait that long. i know several people who opened accounts within the month that they arrived, in fairness though some of them were helped by the employers to do so.

[hk_007]

i dont know about this 3 year wait, even for a mortgage they dont wait that long.

Mortgage is no problem. If you default, your house will be repossessed. The company/bank have a win-win situation. Current a/c provides for an overdraft which is unsecured lending as well as a switch card which can be used for payments independent of your a/c status at least temporarily. The bank therefore is taking a risk.

i know several people who opened accounts within the month that they arrived,

Yes, a basic a/c will be opened, which will not have overdraft facilities and switch card. Instead, a cash withdrawal card or solo debit card (which can used for payment upto to limit of the money in your a/c) and a cheque book may or may not be given. No risk for the bank as you can see. But, some banks did open proper current a/c for people who came to the UK about 2 years ago.

in fairness though some of them were helped by the employers to do so.

Some banks do have arrangements with some companies or if the individual is introduced to the bank by the employer then things are much easier.

[MWazir]

Yes, a basic a/c will be opened, which will not have overdraft facilities and switch card. Instead, a cash withdrawal card or solo debit card (which can used for payment upto to limit of the money in your a/c) and a cheque book may or may not be given. No risk for the bank as you can see. But, some banks did open proper current a/c for people who came to the UK about 2 years ago.

Cheque gaurentee and max ATM withdrawls will also be lower than normal.

[f2k]

are you sure that the 'basic' account you are talking about is not a 'current' account. Cause I think a current does not have to have overdraft facities, it is up to the bank manager to assess your credit ratings and that will determine what level of finance he will provide to you. I think even for british citizens the treatment there will be the same. And in fairness to the banks, I wouldn’t give a £2,000 pound overdraft facility to a foreigner who arrived in the UK yesterday, has not got a job yet and has no permanent place of abord.

[MWazir]

The basic account hk_007 is talking about is a current account without the regular features. You dont get a switch card but you will be started with a Solo card and thats quite limiting because you cannot use your Solo every where like you would do with a Switch Card.

After you spend a year on Solo, you can approach the bank to give you Switch and they will also give you OD if you ask for it at the time.

[hk_007]

are you sure that the 'basic' account you are talking about is not a 'current' account.

Since the govt plans to use electronic money transfer to pay out pensions, benefits etc. (rather than by cheque), it has put pressure on banks to provide for a "basic" a/c with characteristics that I have mentioned earlier. Here credit worthiness is irrelevant.

Cause I think a current does not have to have overdraft facities, it is up to the bank manager to assess your credit ratings and that will determine what level of finance he will provide to you. I think even for british citizens the treatment there will be the same.

For current a/c everyone is subject to a credit evaluation and an overdraft limit set depending on the credit score. In this respect both locals and foreigners will be treated the same. However, credit score takes into account many factors like, name in electoral register, house ownership, length of tennacy, repayment history etc. etc. most of which the newly arrived foreginer will not have or there will only be very limited data available for the foreigner, while a local will probably score higher and hence a greater chance of getting a current a/c. 3 years in general is considered an average period to get reliable data.

And in fairness to the banks, I wouldn’t give a £2,000 pound overdraft facility to a foreigner who arrived in the UK yesterday, has not got a job yet and has no permanent place of abord.

Thats true..nobody would!! Hence, the "basic" a/c which has no scope of being overdrawn either using the overdraft or debit card facility.