UK Bank Account
If you’re an expatriate and wondering how to keep your UK bank account active while living abroad, you’re not alone. Many British expats face this challenge, whether it’s for managing finances, receiving pensions, or maintaining easy access to UK funds.
In this article, we’ll explore the essential steps to keep your UK bank account, including tips for Expat UK bank account holders and avoiding potential pitfalls.
Keeping a UK bank account active while living overseas is a common concern among British expatriates.
There are several reasons for wanting to do so, including receiving UK pension payments, paying for properties or financial commitments back home, or simply for ease of access to funds when back visiting friends and family.
Understand Your Bank’s Policy With Regards to Expats
The first step in maintaining your account is to understand your bank’s specific policies regarding non-resident account holders.
Banks in the UK have varying regulations and requirements for expats, and knowing where you stand is key.
Barclays, for example, no longer offers personal current or saving accounts to customers who have an address registered with them outside of the UK.
However, other high street banks, such as Lloyds Group and Santander (at the time of writing) do allow expats to maintain their UK accounts.
Before your move, ideally, or after if you have not done so, contact your bank to discuss your status change and inquire about any documentation or procedural updates required to keep your account operational from abroad.
This is vital as sudden foreign transactions could flag your account for fraud, leading to it being frozen.
Be sure to get any confirmation in writing, as you will likely will not be able to open another UK bank account once you are no longer UK resident.
This may lead to your pension scheme not willing to pay (many schemes only pay to a UK account), which would result in you having to change your pension scheme to one which does facilitate payments to international accounts.
Update Your Contact Information
Ensuring that your bank has your current contact information, including your overseas address, is crucial.
This not only helps in keeping your account secure but also ensures that you receive important communications regarding your account without delay.
Most banks may have online portals where you can update your details easily; however, it’s always a good idea to confirm these changes directly with your bank.
Be Aware of Tax Implications
As an expat, it’s important to understand the tax implications of holding a UK bank account while residing abroad.
Depending on your country of residence and its tax treaty with the UK, you may be subject to taxation on the interest earned in your UK account.
Consulting with a tax professional who understands the intricacies of expat tax affairs can provide clarity and help you navigate these complexities.
Regular Activity
Keep your account active by making regular transactions.
This can be as simple as transferring a small amount between accounts or setting up a direct debit.
Regular activity helps prevent your account from being flagged as dormant, which could complicate access to your funds.
Why Would I Want to Keep a UK Bank Account if I Live Overseas?
1️⃣ To Receive UK Income
If you have any UK-based income, such as:
A UK pension (many pension schemes will only pay to a UK bank account)
Rental income from UK property
Dividends from UK shares
It is much easier to have that income paid into a UK bank account.
2️⃣ To Pay UK Bills
Still have:
A UK mortgage?
Insurance policies?
Utility bills (while selling or renting a UK property)?
A UK bank account can make payments smoother and help you avoid international transfer delays or fees.
3️⃣ To Keep a UK Financial Footprint
Maintaining a UK bank account helps you:
Keep your UK credit history active
Apply for financial products in the UK if you ever need to return
4️⃣ For Travel Back to the UK
When you visit family or friends, it’s convenient to:
Pay by card in GBP
Withdraw cash from UK ATMs
Avoid foreign card charges
The Bottom Line
In conclusion, keeping a UK bank account active as an expat requires a proactive approach.
By understanding your bank’s policies, updating your contact information, leveraging online banking, considering mail forwarding, understanding tax implications, and maintaining regular account activity, you can ensure seamless financial management from any corner of the globe.
Further Reading
Five big tax mistakes made by British expats and how to avoid them
10 Key Financial Questions to Ask HR Before Taking an Expat Role Overseas
Coming Home: 10 Financial Steps for Expats Returning to the UK
Maintaining Your UK Bank Account While Living Abroad
FAQs
Yes, many UK banks allow customers to maintain their accounts while residing abroad.
However, policies vary between banks, so it’s essential to check with your specific institution.
For example, Barclays requires all account holders to reside in the UK and have a UK address.
Yes, it’s advisable to notify your bank about your change in residency.
This helps prevent your account from being flagged for unusual activity and ensures you receive important communications.
Some banks may close accounts for non-residents, while others allow you to keep them open.
For instance, Santander permits certain accounts to remain open for customers moving abroad but restricts new applications to UK residents only.
Most banks offer online banking platforms where you can update your contact details.
Alternatively, you can contact their customer service via phone or email to inform them of your new address.
Yes, interest earned on your UK bank account may be subject to taxation in your country of residence, depending on local tax laws and any tax treaties with the UK.
Consulting a professional familiar with expat taxation is recommended.
Regularly using your account helps prevent it from being marked dormant.
Setting up direct debits, standing orders, or making periodic transactions can maintain its active status.
Opening a new UK bank account as a non-resident is nigh on impossible.
Most banks require UK residency for new account applications.
However, some international banks or digital banks may offer accounts to non-residents.
Using your UK debit card abroad may incur foreign transaction fees and ATM withdrawal charges.
It’s advisable to check with your bank about their fee structure for international usage.
Yes, most UK banks provide online banking services accessible worldwide, allowing you to manage your finances remotely.
Ensure you have the necessary login credentials and security measures in place before moving.
If your bank requires UK residency, consider exploring international banking services or digital banks that cater to expatriates.
Additionally, some banks offer international accounts designed for customers living abroad.
