Studying in the UK as an international student is an opportunity to receive a world-class education and improve your prospects. However, you could be easily distracted from your academic goals if you constantly have to worry about managing your finances. Tuition, accommodation, transportation, and daily expenses all require financial resources. It is essential to have a bank account that supports your needs in British pounds (GBP) or US dollars (USD).

Owning a USD or GBP account as an international student in the UK significantly improves your quality of life. You can easily receive money and make payments without worrying about transaction charges and conversion rates. This article provides a guide on how to open a USD or GBP account as an international student in the UK.

Also read: International student money hacks: Budgeting in multiple currencies

Why do you need a USD or GBP account as an international student?

There are reasons why a USD or GBP account will be relevant to you as an international student in the UK.

• Daily expenses in the UK: Most of your spending will be in pounds, from rent to groceries. So, you need a GBP account.
• Receiving international payments: If your family or sponsor sends money in US dollars, holding a USD account can help you avoid unnecessary exchange rate losses.
• Avoiding double conversions: Having a USD or GBP account helps you avoid frequent conversions and saves money on fees.
• Proof of funds: A lot is tied to you owning a bank account in the UK. A UK bank account is often required when you’re paying rent, mobile phone contracts, or part-time job payments.
• Financial flexibility: Holding funds in multiple currencies helps protect you from exchange rate fluctuations, especially if your local currency has less value.
• Building a credit history: Regular use of a UK bank account can help establish a financial footprint, potentially aiding future loan or mortgage applications.

Also read: Affordable UK universities with the lowest tuition fees for international students

How to open a USD or GBP account as an international student in the UK

International students are generally eligible to open bank accounts in the UK, but requirements vary by bank and currency. Here are the general steps and requirements:

1. Choose a bank

You can choose between a traditional bank and fintech solutions. Consider the transaction costs, requirements, and banking restrictions before choosing an option.

• Traditional banks: Many major banks, including HSBC, Barclays, Lloyds, NatWest, and Santander, offer accounts specifically for international students. Having a traditional bank account gives you access to credit facilities, which is great for official purposes, such as providing proof of address. However, transactions may be more expensive, and the exchange rates are usually less favourable.
• Digital banks: Consider options like Grey, which allows you to open accounts in GBP and USD from anywhere. Fintech solutions require less paperwork, transactions are swifter and cheaper. However, you might not have access to credit facilities.

2. Gather your documents

The documents you require vary from bank to bank. Review the requirements on their website or speak with their support staff. Generally, the documents required are:

• A valid passport.
• Valid student visa or biometric residence permit.
• Proof of address in the UK (e.g., tenancy agreement, letter from university).
• Proof of enrollment from your university (e.g., acceptance letter, student ID, or a letter of introduction for UK banking facilities).
• Proof of address from your home country (in some cases).
• A UK mobile phone number
• Initial deposit money (may be required).
• A bank statement from your bank account in your home country (required by some banks).

Digital banks would mostly require a valid means of identification, a photograph, and proof of address.

3. Application process

Many traditional banks allow you to start the application online. But you may need to visit a branch to complete the process and verify your identity. Fill out the application form with your personal details, UK address, home country address, course details, and expected graduation date. Opening an account may take a few days to a week.

Opening an account on digital payment solutions is usually fully online. It requires verifying your identity by uploading certain documents and your photo. Your banking details should be ready within hours.

Also read: Living abroad on a student visa: managing rent and bills in foreign currency

Multi-currency accounts with Grey

International students in the UK require a GBP account for everyday spending, and a USD account can be very useful if your funding comes in dollars. Traditional banks can provide these services, but often with strict conditions. For greater flexibility, Grey offers multicurrency accounts that enable you to open USD, EUR, and GBP accounts more easily, allowing you to receive, hold, and convert money at better rates. Transaction fees are low and transparent. You can also obtain a virtual USD debit card for managing your online purchases and subscriptions.

Also read: How Grey differs from a UK bank

Follow these simple steps to create an account:

1. Sign up online

• Go to Grey’s website or download the Grey app.
• Register with your email and create a secure password.

1. Verify your identity (KYC)

• Upload a valid government ID (passport recommended for international students) and a proof of address (utility bill, statement of account)
• Provide a selfie for verification.
• Input your personal details (name, date of birth, nationality).

1. Create your accounts

• Once verified, you can generate USD and GBP accounts.
• You will receive your banking details to share with your family or sponsors for direct transfers.

1. Manage your money

• Receive USD or GBP directly into your account.
• Convert between currencies at competitive rates.
• Use your GBP balance to pay rent, bills, and other local expenses.

Get started with Grey today to simplify your finances.

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