Are you a Nigerian thinking of moving to the UK or you are already there as an immigrant, at some point, you will need to open a UK bank account?
In this blog, we will consider everything needed to open a UK bank account.
Why You Need a UK Bank Account
As a Nigerian immigrant who wants to stay long term in the UK, you will need to open a local bank account. While you can survive on international banking services for short while, a local bank account offers several advantages:
- Avoid huge foreign transaction fees: If you continue using your Nigerian bank account, you are likely to incur high charges for currency conversion and international withdrawals.
- Receive payments: Whether you are a student or working, most UK employers or universities require a local bank account to pay salaries or stipends.
- Easily manage expenses: Having a local account will allow you to set up direct debits for rents, utilities and other regular expenses.
Also Read: 5 English-Speaking Countries Where You Can Do Your Master’s Degree Abroad
Types of UK Bank Account
In the UK, there are a few different types of bank accounts available, and it is useful to know which one suits you best as an immigrant
1. Basic Bank Accounts
These accounts are simple to open and often require fewer documents. They offer the ability to deposit and withdraw money, pay bills, and receive wages. However, they may have limited features like no overdraft or cheque services. If you have bad credit score, you may only be able to open a basic account. When your credit score improves, you can convert your basic account into a current account.
2. Current Accounts
The is the most common type of account used by both locals and internationals in the UK. According to Statista,49.1 million UK adults as of 2017 had a current account. It offers more services, including overdraft facilities, cheque books, and the ability to set up direct debits. This is the best option for day-to-day banking.
3. Savings Accounts
If you are looking to save money, many banks offer savings accounts where you can earn interest on your deposits. However, you will likely need a current account first before you can open one. Savings account often requires minimum deposit requirement.
4. Student Accounts
This is a current account specifically designed for a student. They enjoy benefits such as low or no fees. They also have access to interest free loans and overdrafts.
Documents Required to Open a UK Bank Account
One of the most critical parts of the process is having the right documentation. While each bank has slightly different requirements, most UK banks will ask for:
Proof of Identity
This is typically your Nigerian passport, BRP (Biometric Residence Permit), or a valid visa. These documents confirm who you are and your right to live and work in the UK.
Proof of Address
You will also need to show that you have a UK address. This can be tricky if you have just moved to the country. Acceptable documents include a utility bill, tenancy agreement, council tax bill, or even a letter from your employer or university. Some banks might accept online statements or digital bills but you will have to check in advance.
If you are struggling to provide proof of address because you have just arrived, some banks are more flexible, especially for international students. In such cases, a letter from your university or a student accommodation provider may suffice.
Also Read: The Best Season of the Year to Relocate to the UK from Nigeria
Choosing the Right Bank as a Nigerian Immigrant
There are many banks to choose from in the UK, and not all of them have the same requirements or services for new immigrants. Here are a few of the major ones:
- HSBC: A global bank with experience catering to international customers. According to their website, they serves over 14.7 million active customers across the UK. HSBC offers special accounts for new immigrants and students, with easy international money transfers.
- Natwest: This is another popular bank in the UK with over 900 branches. It is very on with immigrants. They offer cash management accounts to help with international transfers but at a fee.
- Lloyds: Another major bank with services tailored for immigrants, including accounts that are easy to manage through their online and mobile banking platforms.
Digital banks like Monzo, Revolut, and Chase Bank are also great options for immigrants. These banks are known for their easy application processes, often requiring fewer documents and allowing you to apply directly online.
They don’t have physical branches, so everything is managed online, making it more convenient if you’re always on the move.
How to Open a UK Bank Account
After you have gathered your document and selected your preferred bank, it is time to open your account. Here are the steps to follow to open a UK bank account:
Visit the Bank or Apply Online
Most traditional banks will require you to visit a branch to open an account, especially if you are opening a current account for the first time. Before you go, it’s a good idea to call ahead and book an appointment.
Ensure you bring all the necessary documents, as mentioned earlier. The bank staff will help you through the process, explain the types of accounts they offer, and assist you in filling out the application forms.
Bank Processes
Once your application is submitted, the bank will process your details. For traditional banks, this might take a few days to a week. You will usually receive your debit card and PIN separately by post, so keep an eye out for those.
For digital banks, the process is often much faster. Some online banks may give you immediate access to a virtual card that you can start using for online purchases while you wait for your physical card to arrive.
Also Read: Step-by-Step Guide to Applying for a UK Student Visa
Conclusion
Opening a UK bank account as a Nigerian immigrant doesn’t have to be complicated. By preparing your documents in advance and choosing the right bank for your needs, you can quickly set up an account and start managing your finances.
Whether you opt for a traditional bank or a digital bank, having a UK bank account will make your life in the UK much easier. From paying bills to receiving payments, you will find that a local account opens up many new opportunities for you to settle in and thrive.
