HOW TO OPEN A BANK ACCOUNT

Opening a local bank account is an important step in your new life in the UK. There are many benefits in having your own local bank account: 

1. you can pay for your bills and rent using bank transfer or direct debit;

2. you can shop with a debit card, which will usually be issued when you open an account;

3. your employer can pay you easily when you get a job;

4. benefit payments (if you are eligible) will usually be paid directly into your bank account;

5. You can withdraw cash from your bank account via your bank on the high street, the Post Office or an ATM.

There are different ways to open a bank account in the UK. You can do this through 

1. bank branches

2. online banking

3. mobile (app-only) banking

DOCUMENTS

To open a bank account, you must be over 16 years old (and 18 in some cases). And you will need to prepare: 

1. proof of identity

2. proof of address

3. other documents that the bank might ask for

If you’re not sure what you can use to prove your identity and address, you can ask the bank ahead of your appointment, and you can bring all the documents you have. The bank or building society can decide what they will accept.  

ACCOUNT TYPES

When you open a bank account, the bank representative will ask you about what type of account you want. In the UK, there are many types of bank accounts. Different banks may call them by different names. You can pick the account that gives you the features you need. 

Basic banking needs: 

• depositing money for free (only for local currency)

• withdrawing money over the counter or from a cash machine

• transferring money (only for local currency)

• receiving transfer of money (only for local currency)

• buy things online or in shops with debit card

• paying regular bills by Direct Debit or standing order

• check account balances over the counter, at a cash machine, online or on mobile 

* Basic bank accounts do not have the option to arrange an overdraft facility.

** Current bank accounts may allow for overdraft arrangements, but it depends on your credit record and bank approvals. 

Fees: 

• You can open a basic bank account with no fees

• Some current accounts may offer extra features, services, or benefits for a monthly fee. Make sure that you understand what account type, services, and possible fee you may be agreeing to when you pick an account type. 

ACCOUNT NUMBERS AND CODES

To receive a transfer of money (like your salary) into your bank account, you will need to provide the sender both your account number and sort-code. 

1. Account number

A UK bank will issue you an account number when you open a bank account. It usually contains 8 digits. (Some banks may offer shorter account numbers.)

2. Sort-code

UK banks use a 6 digit sort-code to identify different banks and their branches. They are usually in this format: AA-AA-AA (in which "A" is a number). 

You can find your account number and sort-code on bank statements or your debit card. You will also need the other party’s account number and sort-code to transfer money out of your bank account, like paying rent. 

3. International transfers

If someone wants to send you money from abroad, you will need your bank's BIC code, SWIFT code (or SWIFT/BIC), or IBAN, apart from your account number and sort-code. If you want to send money to another country, you will also need to provide additional bank details according to the transfer destination. You can ask your bank for help if you do not know how to find the necessary codes. 

* As basic and current bank accounts usually do not include overseas transfer services for free, you might want to ask your bank for suggestions on how to conduct an international transfer. 

IF YOU HAVE FINANCIAL DIFFICULTIES

For new refugees

Once you have been recently granted refugee status, you will stop receiving the asylum allowance and you will have to move out of your asylum accommodation 28 days after the decision. As this is a very short period of time, you may have difficulties finding a place to stay or work to support yourself. You can contact the local council about housing support, and your local Citizens Advice / Advice NI advisers about what benefits, including Universal Credit, you may be eligible for. 

Similarly, if you have been granted Humanitarian Protection status in the UK, you are also eligible for Universal Credit and other forms of public fund support. 

For migrants

Different conditions (like a “No Recourse to Public Funds”, or NRPF) in your migration conditions may mean that you are not eligible for public fund benefits in the UK. If you do not have NRPF condition or you are not sure about what support you may be eligible for, ask your local council or the local Citizens Advice / Advice NI. 

For migrants with No Recourse to Public Funds (NRPF)

If you have NRPF conditions imposed on your immigration conditions, you are not eligible for public fund benefits like Universal Credit or homelessness assistance. But there are other forms of assistance available. You can go to NRPF Network’s website for a list of government and council services those with NRPF can access. 

You can contact your local council or your local Citizens Advice / Advice NI advisers about your difficulties. There can be some local support schemes or charity services that you may be eligible for. And they can refer you to these support services if necessary.

HOW TO CONTACT

Your local council: Find your local council

• Your local Citizens Advice: England / Wales / Scotland / Advice NI: Northern Ireland 

UNIVERSAL CREDIT

In the UK, you can receive support if you are on a low income, unemployed, or if you cannot work. It usually starts as Universal Credit, which is a government payment helping you to meet living costs which is paid to you monthly. 

1. For Universal Credit in England, Scotland, and Wales

   • Check if you can claim it: Universal Credit: Eligibility 

   • How to apply online: Universal Credit: How to claim 

   • Help lines: 

     • Telephone: 0800 328 5644

     • Textphone: 0800 328 1344

     • Or speak to a Help to Claim adviser: 

       • in England or Wales 

       • in Scotland 

2. For claiming Universal Credit in Northern Ireland: NIDirect: Universal Credit

   • Check if you can claim it: Who can claim Universal Credit

   • How to apply online: How you make a claim for Universal Credit 

   • Help lines: 

     • Telephone:  0800 012 1331

     • Textphone:  0800 012 1441

   Other benefits

   There are also other government support and benefits you may also be entitled to, but the first step in the UK social support system is usually the Universal Credit, through which you can find support for different needs, like housing or living costs. If you are in need of further support, you can contact your local council or your local Citizens Advice (England / Wales / Scotland) or Advice NI (Northern Ireland) advisers about your difficulties. They can suggest different local, national, or charitable support to you. 

OTHER HELP

There are many different reasons for someone to find themselves in financial difficulties. Sometimes it can be because of sudden change in circumstances, like an unexpected bill, unemployment or illness. Or it can be due to a lack of money management knowledge or personal habits.  No matter how you find yourself in this situation, sometimes good advice on budgeting, or tips on how to save money, or other money-related advice and support can also help you to sort out the complex issue of personal finances. 

You can find free guidance and advice about money from different services or organisations. Here are some of the notable examples: 

• Money Helper (for all money-related issues)

• Christians Against Poverty (debt advice, money management courses, job clubs)

• The Money Charity (financial wellbeing webinars and workshops)

• Money Saving Expert (advice, tips, and forum on how to cut cost)

• Debt Advice Foundation (debt advice and solutions)

• National Debtline (debt advice and debt repayment budgeting tool)

• Step Change (debt advice and debt management planning)

There may be other services more suitable for your needs. Ask a local friend to see if they can suggest any local charity, or contact your local Citizens Advice to see if their advisers can suggest some support to you.