Best Banks in the UK for New Expats
Coming up: birds and Barclays, currencies and cashback, digital nomads and down payments, and the 9 best UK banks for new residents.
You’re planning on moving to the UK…
… and like literally everyone else on the planet, you need somewhere to store your money.
But which bank should you use? Which has the best reputation? Can I find any exciting perks? Are there any high-interest offers? And what are my online-only options?
In this guide, your relocation-lovin’ friends at Homelike have covered it all, with the 9 best UK banks for new residents. Bring some cash and come join the party!
Quick disclaimer, before we get started: banks can change their terms and offers at any time. So while the below is all 100% true at the time of writing, make sure you explore the current details before you open any account!
Monzo
Best for: speedy signups, and choosing a trusted online name
Despite having no actual physical branches, Monzo is undoubtedly one of the best UK banks for new residents. They’re the UK’s most popular online-only bank, with over 9 million customers, and various personal and business accounts.
Signing up is super fast and easy:
- You download the app
- You gather your phone number, your ID, and proof of your UK address
- … and you spend 5 minutes entering your details
Other helpful time-saving features on Monzo include budget-trackers, spending notifications, the ability to split bills and costs with other Monzo users, and separate pots for separate funds (say, for example, if you wanted to make an ‘I’m saving for Christmas’ pot, or a vacation pot).
They also have higher interest rates than you might expect: their ‘Instant Saver’ offers 3.2% per year!
Important note: although it’s online-only, Monzo IS still a real regulated bank protected by the UK’s Financial Services Compensation Scheme.
Chase
Best for: exciting and unusual interest, cashback on purchases, and avoiding physical branches (again!)
Owned by JP Morgan, this is another online-only option.
In many ways, Chase is very similar to Monzo (although they don’t offer overdrafts).
Plus points of banking with Chase include:
- No overseas fees
- 1% cashback on all purchases for the first year
- The easy-to-access savings account has 4.1% interest
- 5% interest on your ‘spare change’ (everything you spend on your card is rounded up to the nearest £1—and whatever amount it was rounded up by is plopped into this pot)
Again, despite being an online-only bank, Chase is a real bank protected by the UK’s Financial Services Compensation Scheme.
Overall, for some great little short-term perks, Chase is one of the best UK banks for new residents.
Starling
Best for: separating your money into different pots and budgets, and using your card abroad
Another online-only option, and another of the best UK banks for new residents.
Many Starling users reckon the Starling app is the UK’s best banking app. And it’s hard to argue—it’s clean, modern, intuitive, and nice to look at.
Other perks of banking with Starling include:
- No limit on fee-less abroad withdrawals
- Up to 3.25% interest on current accounts
- A ‘pockets’ feature, which is basically a way of separating your cash into different budgets and funds. You can set direct debits to come from these pockets.
- On the app, all payments can be separated into categories. This can help you to budget for further spending (and see how you might be overspending in ways you didn’t know!)
Again, just like both Chase and Monzo, Starling is an actual real-life bank protected by the UK’s Financial Services Compensation Scheme.
Santander
Best for: using your card abroad, joining a well-known international name, and getting a quick ‘basic’ account
Okay—onto not-just-online banks for the first time!
The biggest bank on our list, Santander has more than 164 million customers worldwide.
Although it’s not from the UK, it’s still one of the best UK banks for new residents—they have more than 450 branches across the region.
Advantages of opening an account with Santander include:
- They currently offer an ‘Edge Up’ current account, which gives you 3.5% interest, 1% cashback on selected household bills, and access to your money at any time
- Money-back perks on some supermarket spends and travel costs
- ‘Basic’ current accounts for people who’ve just moved to the UK
- … and no charges on using Santander ATMs abroad
Barclays
Best for: banking with a big popular name, excellent customer service, and opening a UK account before you come to the UK
Barclays is super popular in the UK.
They have almost 1,500 branches, and the customer service is excellent—both in-person and over the phone, you’ll rarely need to wait in line.
Other perks of banking with Barclays include:
- Foreign currency accounts with 12 different currencies
- International banking options, so you can open a UK account before you arrive in the UK
- A popular ‘Rainy-Day Saver Account,’ which offers 5% interest on up to £5,000—and unlike other similar accounts, you can withdraw this money at any time
- Their premier accounts offer big perks, such as reductions on British Airways flights, free AppleTV+, boosted savings rates, and exclusive mortgage deals
Overall, if you want an easy-to-access trusted name, Barclays is absolutely one of the best UK banks for new residents. And you’ll find a close-by branch, no matter where you’re living.
Lloyds Bank
Best for: free cinema tickets, free international money transfers, and big discounts from big retailers
Of all the UK’s most well-known banks, these guys deliver the best package of unique perks.
Including:
- Lifestyle benefits on some accounts, including free cinema tickets, discounts in cafes and restaurants, free Disney+ subscriptions, and free magazine subscriptions
- Up to 15% cashback from some retailers (including Sainsbury’s and Costa Coffee)
- Fast customer service, both over the phone and in-branch
- Free international money transfers
HSBC
Best for: free travel insurance, access to 50 currencies, and international perks from a UK name
HSBC is a popular British bank…
… but because they have branches in over 80 different countries, they’re also popular with non-natives.
Big big points of banking with HSBC include:
- A free foreign currency account offering 14 different currencies
- Some travel perks—their premier account, for example, offers free worldwide family travel insurance with no monthly fee
- Some of their most popular accounts include a 4.60% fixed-rate cash ISA, a premier account with 50 different currencies, and their popular HSBC Advance account (featuring 5% interest, and an easy-to-arrange overdraft)
Just like with Barclays, you can open an HSBC account in some overseas countries—so you might be able to get a UK HSBC account before you reach the UK. Useful!
So: if you use lots of currencies or do lots of traveling, HSBC is of course one of the best UK banks for new residents.
First Direct
Best for: great customer service, and an appealing 7% interest
First Direct have 1.7 million UK customers, a crisply-designed app, easy-to-open accounts, 24/7/365 UK-based call centers, and excellent online customer service.
They don’t offer a huge range of accounts—but, famously, they have a very popular ‘Regular Saver Account,’ which offers 7% interest, on a maximum of £3,600 per year.
If you want basic but very effective, this is one of the best UK banks for new residents.
Note: First Direct have no physical branches. But because they’re a division of HSBC, you can get some in-branch First Direct support at HSBC branches.
Wise
Best for: sending, holding and receiving different currencies, and digital nomads getting paid in various ways.
Formally known as ‘TransferWise,’ Wise isn’t reeaallly a bank*…
… so it’s not actually one of the best UK banks for new residents.
(*instead, it’s a “trusted Money Services transmitter”… but let’s not get caught up in all the details).
Anyway, if you’re a digital nomad working with different currencies, Wise is SUPER useful. You can hold many separate pots, and send (and receive) more than 40 currencies between 160 nations.
You definitely shouldn’t use Wise as your only bank account. But for transferring multi-currency work payments into your ‘real’ bank account, it’s ideal. And in many ways (you get IBANs, recognised accounts, and immediate transfers), it functions just like a real bank anyway.
The best UK banks for new residents: pro-tips and pointers
- In the UK, frequently switching between banks is VERY common—and many UK banks offer cash rewards and other perks for switching to their bank from another bank. As you can see here, for example, FirstDirect are currently offering £200 to anyone who switches to them—and Barclays are offering £175 to anyone who switches to them.
- To choose the best account for you and your circumstances, you should use Money Saving Expert. Loads of UK residents regularly use this website to find bank accounts, low-cost utility providers, insurance offers, and other money-saving hacks and help.
- All UK banks offer immediate transfers. Unlike in some countries (like the US), you won’t need to rely on cashapps.
You might have heard of Metro Bank. While it’s still a decent option for people living in some parts of southern England, its biggest draw was once that it was open 7 days a week. But since March 2024, that’s no longer the case.
The best UK banks for new residents: which documents do I need to open a bank account in the UK?
To open a UK bank account, you typically need:
- Your passport (or some other valid photo ID)
- Proof of your visa (to prove you’re living in the UK legally)
- A recent utility bill of any description (with your permanent address on it)
…and you might also need proof of employment (again, to prove you’re living in the UK legally)
So: to open your bank account, you’ll usually need a permanent UK address.
This can make things tricky—it means you typically need a long-term home before you can get a bank account.
You can get around this by opening an international account (with a UK bank) in your home country, before you move to the UK. As we’ve covered, Barclays and HSBC both allow you to open an international account before you arrive in the UK.
Wise offers the same option—but as we’ve covered, Wise isn’t really an actual bank.
It’s also worth noting that some of the online banks have very liberal attitudes to opening accounts. Though the exact specifics regularly change, you might be able to open an account with Wise, Starling or Chase before you have a permanent UK address.
The 9 best UK banks for new residents: final thoughts
And that’s us done! They’re the 9 best UK banks for new residents.
In summary, here’s what we’d do if we were you:
Get a basic Monzo account, AND get a Barclays or HSBC account in your home country before you arrive in the UK. With that tactic, you’ve got all bases covered, you’ve got a mixture of convenience and reliability, and you don’t have to arrive in the UK without a bank account. Sorted!
And, again, if you deal with many different currencies, we also massively recommend getting an account with Wise (even though it’s not strictly an actual bank).
For more top tips on moving to to the UK, we’ve already covered:
- Important things to know before moving to London
- The most useful apps for living in London
- The best neighborhoods in London
Oh, and if you’re looking for a short-term place to live while organizing your new-to-the-UK bureaucracy, we have many furnished apartments throughout various parts of the UK. They’re all comfy and cozy, all costs are covered in one fee, they’re ready to move into today, and they’re all fully-equipped!
Thanks for reading, thanks for choosing Homelike, and good luck with all that bureaucratic banking. Ciao for now!
Are you moving to London?
Moving to London comes with many exciting opportunities, but finding the right accommodation is key. If you’re looking for short-term rentals in London, Homelike offers a straightforward way to find apartments that fit various budgets and preferences. This flexibility allows you to get settled quickly and explore different neighborhoods before deciding on a long-term rental. When it’s time to consider a longer stay, our website also lists long-term rentals in London, which can again be a helpful resource with detailed listings that make finding the right home easier.
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