Opening a bank account in the UK

Hi,

Mr Husband has been offered a job in the UK, for which he needs to have an account at a UK bank for them to deposit his paycheck in, they say. An English friend, who cannot be reached at the moment, once mentioned something about UK banks charging enormous fees, but we didn't get the details, as it wasn't something that directly affected us at the time.

So, what's the skinny on British banks? Is there one that's significantly better than the others? Any advice would be greatly appreciated.

They're all shit, but Lloyds and Barclays especially so so avoid those bastards. Fees are only a problem if you go overdrawn or borrow cash. For a current account there are usually no fees at all (unless, as I said, you make a mistake) - I'm toying with moving from Lloyds to HSBC, though I've also heard good things about Natwest.

I was always with the Halifax and they were great with me.

Where charges also may come in is transferring money abroad. Most UK banks charge even for inter-EU transfers, a very grey area.
Nationwide seems to be comparitively generous in this area, and it's notable that they are a mutual.

I reccommend Natwest. Not their standard account but their Private Banking Direct account (use to be called Primeline account). Its totally set up so you can do everything over the phone and internet. Great service, when I joined there were added benefits for British Airways miles (think they have stopped that now) but there are other incentives now.

New EU directive now bans this so long as one transfers the money using IBAN numbers. I will find & post the link that supports this in a mo.

Edit:
A small correction. No charge rule is only applicaple euro to euro account transfers.
The link

I would recommend Nationwide. They tend to have very low charges and you get interest on your account.

Always been with the RBS and they were good for me.

cannot remeember any charges as long as you have cash in the bank, or you go for the sillly accounts offering free travel insurance and 1% lees on loans. avoid the gimics, go for a normal account.

They are all crap in one way or another, I use Barclays for my Business account (Very good, and my friendly bank manager refunds any charged when I see her!).

Same on my Student Account, this is by far the best account to get if studying.

I have been with Natwest since I was born and have all the pigs! however I think they are a waste of space as a bank on the whole, however again as I know one of the cashiers fairly well I tend to get away with a bit more than I would in any other branch (she also took the date off my student card <it is valid for 3 years even though the course was 1 year!>without cross referencing it so I still get free banking for a further 2 years!)

My mother uses Natwest for her business and they are shocking! (She is looking to change over to Barclays).

Barclaycard once sent my card to 2 other people by mistake, how do I know this??? They sent me 2 other people’s cards instead! I think there was a problem with the machine that stuck them to the letter! And this was before chip and pin, so could have easily used them.

I suppose I should use the Halifax since I live down the road from it and near the HQ, but I never have.

However as most people have said depends what you are after, and what you intend to do with the cash when it is in there i.e. transfer it, spend it in the UK, etc.

I don’t know a single person who would say they have no had a problem with there bank at some time in there life. Think it is all pot luck!

Precisely, DIRECTIVE 97/5/EC applies, and that's why it's a grey area.

I've banked with Barclays for a good decade now and never had a single problem with them! Barclaycard has also been fine. But maybe I've just been lucky!

Depends on your bank manager. Ideally avoid ever speaking to anyone if possible. Online banking is the way ahead.

Following what has been said above...go for a building society before any of the 'banks' they, in theory are owned by the account holders themselves and look after your needs better...less likely to try and shaft you too AND better for borrowing, rates, everything really...

He'll have to transfer quite a lot of money to Germany because the kids and I are staying here, so that is a concern. Thanks on the building society, sounds a lot like a credit union in the States... erm... how does one tell a 'building society' from a 'bank'? I know, I know, Google is my friend, and I'm going to check that next, but specific recommendations are also welcome.

Thanks a lot for the quick responses, very helpful.

I would recomend HSBC. their customers service is second to non. When I moved from England to Germany they were very helpful and helped me set up my German account.

I would strongly disrecommend HSBC as a bank, having had immediate family members work there for prolonged periods and paying testimony to the banks intrinsical culture of laziness and automation - they don't do good bank. If you do decide to go with them, seriously, check your statements regularly for unwarranted levies and discrepancies. Their system is anything if perfect, which is what one should expect from a bank in 2007.

I've always banked with the Nationwide and have always found them to be correct and helpful in their dealings with me, but...


They (and I suspect the smaller building societies also) are (relatively) expensive when it comes to transferring money back into euros as, currently, they only support swift transfers.

Note also that without any history in the UK, some banks will either not let you open an account, or, will only open one with restrictions (e.g. without giving you anything useful in the way of cards or facilities). Allowing for a little poetic licence, it can be easier for a snotty 17-year-old school-leaver with only a couple of quid jangling in his pocket (and nary a useful thought in his hoodie-covered head) to get an account than for, say, an American investment banker on a six-figure salary that's fresh off the corporate jet.

As a small footnote, you can note also that the days of "free" banking may be numbered: a number of cases have recently come up before the courts challenging the "fairness" of punitive bank charges (e.g. for unauthorised overdrafts). This has led commentators to suggest that banks may start charging up-front fees for running a current account.

Just my 2d.

HSBC: World's Local Bank Raises Money For Global Forest Destruction

They tend to have it in their name, however this in not as simple as it seems as they tend to be marketed with shorter names (on the high street and websites) than when I was a lad! i.e. National Westminster Bank = Natwest. The Bradford and Bingley Building Society = Bradford & Bingley

Also some of them have merged and become banks, etc etc. Such as The Halifax Building Society turning to Halifax Bank, I am sure there will be a website out there that will list them, or the people who use them will be able to shed light. moneysupermarket.com may have a list somewhere.


My mate always recommended them as his dad works for them, and one day he logged in to the online function to find an account that was seriously in debt in his name! It was not his, but someone had opened it fraudulently, so he called them up and told them about it and they basically told him that it was in his name and as far as they are concerned he owes the money, and to call the police if he thinks that something unlawful had taken place. And they wanted him to make a payment over the phone! He told them to jump, called his dad who is a Financial Advisor for them in London who then sorted it all out for him, 20 mins later there was a call with an apology, and the account disappeared off his online banking.

Ok for him, however I would have been worried if it had been me! Because I have no daddy to call!

But as I said before everyone (Ok most people) has a bank account, so there are bound to be problems and I don’t think you can generalise on one person’s hate of a provider or misfortune. I think you have to look at the best deal on fees etc and then pick one that suits your needs, and moneysupermarket.com is the place to do that from Munich!

RBS or Yorkshire Bank for better service imho

I'd go with the Natwest. Have been back and forth between Germany and the UK and have always found getting money out no problem and reasonable exchange rates etc. Plus any charges I've had e.g. for being overdrawn, I've had a moan about and they've refunded it...

Nationwide let you withdraw money for free out here, so if he makes a joint account & gets two cards you could have one here & take out money as and when.
Thats what my folks did for me, although the card is in their name so I can't use it other than to withdraw money.
I'm with HSBC too and use their online banking which is good for when I am stuck for cash in my German account!

v. helpful, thanks all!

they aer all robbers bank have been found guilty by the courts of over charging and have been told to repay the money back to their customers.The customer has to apply for it himself or herself.Charges can be paid back for up to 5 years in England and 3 years in Scotland,Even though they have found guilty of this the banks still over charge and continue to ignore the law.Several cases have already been won in england and scotland in every case the banks have appeled and lost dont trust them they are all robbing gits open a post office account a little longer but better service.

Or keep your cash under the mattress, stand guard over it with a gun and hope those nasty bankers don't come and steal it. Oh, and stick your head in the sand as well.

I have always had a good experience with First Direct, the telephone and on-line bank of HSBC. Been with them 13 years and have never been overcharged once. Maybe that's because I didn't go overdrawn without first telling them. Also at the better end of the scale for deposit rates.

Quite the reverse. The issue of bank charges went to court for the first time just this week and Lloyds won the case. See Bank's overdraft charges upheld. Since British banks, in contrast to most of the rest of the world, don't charge monthly fees for providing banking or credit card services, they instead raise funds by charging customers who break the terms of their agreement. I have to say I find this situation highly satisfactory.

Your claim that the banks have lost several court cases and the subsequent appeals and are therefore breaking the law is absolutely not true. Moreover, your advice on opening a Post Office account is at least ten years out of date; Girobank got swallowed up by Alliance & Leicester (a BANK, don't you know!) a long, long time ago.

The best banks are currently considered to be Alliance & Leicester (Premier Account) and Nationwide. Avoid the Big Four (Barclay's, Lloyds, NatWest, HSBC) at all costs - they offer very poor value.

Had dealings with the Yorkshire bank.Very understanding and friendly.

I think First Direct have introduced charges for having an account though havent they?

I've never had any probs with HSBC to be honest

I think that they charge for an account which has a small balance and is rarely unused. In other words, if salary etc goes through the main account, there are no charges.