Opening a UK bank account  Choosing a bank

What are digital banks?

Digital banks offer traditional banking services but are completely app-based. 

Unlike traditional banks, digital banks don’t have a physical location in the city. ​All functions, from money transfers, to exchanging currency, to contacting the customer service team or even cancelling or freezing your card can be done from your phone.

Digital banking can be a temporary solution to access your finances and manage your expenses. They’re usually quick to set up, can be open in addition to a traditional bank account and can often be used in combination with it. For example, many people use their traditional bank account to receive their salaries but then transfer their monthly spending money into an app-based bank to manage their everyday expenses.

Once you’ve set up an account, you’ll be able to use a digital card for contactless payments but you can also request to receive a physical bank card. 

Digital banking vs high street banking: a comparison

• Some digital banks will allow you to open a bank account before you arrive in the UK provided you submit documentation that meets their needs. Most traditional banks require students to be in the UK for at least six months to open an account with them. Digital banks are a good solution if you’re studying in Leeds on a short course of six months or less.
• It can take about two weeks for you to set up a traditional bank account with a high street bank. Digital banks allow you to access money and make payments while you wait for your UK bank account to be set up.
• While digital banks do offer similar services to traditional banks and they’re faster to set up, they don’t have a physical presence in the city. So, if you ever need to speak to someone about your account, you’ll only be able to interact with their custumer service team either by phone or via the chat function available through their app.  ​  ​
• Not all digital banks have an overdraft function. An overdraft lets you borrow extra money if you have no more money in your account.   ​
• Most digital banks set limits on money you can transfer or withdraw overseas for free. They also have a limit on how much money you can withdraw from a cash point for free before they charge you a fee.​ 
• ​Some of these banks also allow you to exchange money in a different currency and transfer money easily to anyone who has the same app, all through your phone.​

Digital banking providers

The University can’t recommend any digital banks to students but they normally open accounts for international students if the appropriate documentation is provided and meets their requirements.​

Digital banking providers include Monese, Monzo, Revolut, Starling, Chase, Atom Bank, and Wise.

Read this Monito article to find out more about online banks in the UK. 

Before you open a digital bank account

Whichever bank you choose to open an account with, check:

• whether it is regulated and authorised by the Financial Conduct Authority (FCA) to ensure that its conduct is monitored and controlled, and whether it is protected by the Financial Services Compensation Scheme (FSCS) – which could entitle you to a compensation of up to £85,000 if the digital bank goes out of business. 
• whether there’s a limit on the amount of cash you can withdraw and what fees you’ll be charged if you withdraw more than allowed.
• whether you can deposit cash into your account.
• if the bank of your choice will allow to set up an overdraft (if you need one).

The term ‘high street bank’ refers to a large retail bank that has many branch locations. Unlike digital banks, high street banks are major, widespread institutions found in the city.

These banks will normally offer you a basic current account as a start, offering more specialised services after you have banked with them for a while. With a basic current account you can withdraw cash for free from most ATMs, set up recurrent payments (for example to pay your bills), and use online banking. 

In order to open a bank account, many banks require you: 

• to be in the UK for at least six months  
• to be over 18.  

However, there are some accounts you can open if you are here for fewer than six months or if you are under 18. If you’re in the UK for less than six months, consider opening an account with a digital bank.

Always check the account requirements before applying to open an account with a specific bank. 

High street banking providers

The University of Leeds cannot recommend any particular banks to students but here are some examples of accounts that you may choose to use:  

• HSBC Bank Account for International Students
• Lloyds Classic Account
• Santander Essentials Current Account (age 18+)
• Santander Current Account (age 16+)
• Bank of China Student Prime Account
• NatWest Select Account
• ​​​​​​Barclays Bank Account

It is possible to open bank accounts in the UK which are Sharia-compliant. You can find more information on Sharia-compliant banks under the ‘types of accounts’ section on the UKCISA website.