It's hard to get by in the UK without a bank account. If you're employed, a lot of employers only pay their staff electronically directly to a bank account. If you get paid by cheque you'll have to take it to a cheque cashing shop and pay a fee. Very few employers will pay in cash, and even if they do there is the risk of losing everything if you are burgled. Even if you're not working, if you want to receive benefits you will have to have a bank account or a Post Office account so that they can be paid electronically.

First Things First

Why do you want a bank account? Make sure you have a reason, because the person opening the account will want to know. Given that most bank accounts are free, they don't want to waste money opening an account for someone who will just leave it dormant. Being paid is a good reason, because the bank will know that you'll have a regular income and (hopefully) a positive balance.

Proving Your Identity

By law, every bank must ask for proof of who you are and where you live. There is no exception to this - they would be in big trouble if they didn't. They have to ask for this proof because of the Money Laundering Regulations (2007)¹. However, what exactly is proof can differ from bank to bank. This means that what one bank may take another may turn down. Banks are not obliged to take anything from you and can refuse to give you an account even if you fulfil their criteria.

Banks have to have two seperate documents from different sources, so you couldn't use a driving licence as both proof of identity and address, for example.

Commonly Accepted Identification

Certain items are accepted as standard across all banks:

1. Passport (with visas if appropriate) or an EU Identity Card
2. Full UK Driving Licence
3. Benefits book or an original letter from a benefits Agency

Other Identification

Each bank will have its own list of acceptable identification documents. This list is just a guide and no bank is obliged to take any of it. If you still don't have any, be prepared to go to every local bank in your area to ask what they will accept. Sometimes they will accept two 'lesser' proofs instead of one 'standard' one - again, it's different for every bank.

1. Old style paper driving licence, or a provisional licence.
2. Armed forced ID card
3. Police warrant card
4. Firearm or shotgun certificate
5. Student ID (for student accounts only)
6. Construction industry documentation (CIS4 or CIS6)
7. National Identity Card
8. Disabled parking document
9. Birth certificate (under 18 only)
10. Travel documents issued by the Home Office in the UK

Commonly Accepted Address Proof

If you have a place to live then proving your address is usually the easier part. Just remember that you can't use your identification document as your address proof. Make sure that the documents are addressed to you. Joint accounts are acceptable as long as your name is clearly displayed in the address.

1. Utility bill dated within the last six months. Frequently this does not include a mobile telephone bill or satellite/cable bills.
2. Current Council Tax notification.
3. A bank, building society or credit union statement dated in the last six months.
4. A Notice of Tax Coding (which can be ordered from your local tax office).
5. Benefits book or an original letter from a benefits Agency.
6. A Council rent card or tenancy agreement.

Other Address Proof

Some other proofs of address could be:

1. Home or Motor Insurance certificate issued within the last 12 months.
2. Mortgage certificate issued in the last 12 months.
3. A Home Office letter to your home proving your right to remain, exceptional leave or refugee status.
4. Credit card bill issued in the last 6 months.
5. Sky, Cable or internet bills issued in the last 6 months
6. A Tenancy agreement from a recognised landlord.

What do you get?

Bank accounts, by and large, all offer the same sorts of things. If you have a good credit rating and a proveable address history, you are likely to be granted a full Current Account. If you find it harder to prove your identity or address and have a low or poor credit rating, you are likely to be offered a Basic Bank Account, and offered only the most basic features listed below.

• The ability to receive money from external sources, such as your employer.
• The ability to pay money out electronically to other people, via a standing order or one-off transfer.
• The ability to allow other people to take money directly from your account, via a Direct Debit.
• A debit card to withdraw your money from cash points. Most will allow you to use the Maestro², Solo or Visa system to pay fror items in shops and over the internet too.
• The opportunity to open a savings account to earn interest on any credit balance you wish to keep.

If you have a full Current Account, you can expect some or all of the following:

• A cheque book.
• An arranged overdraft, usually a small amount to start with but which can be increased once you've proven that you are a good customer.
• Access to other services, such as a Credit Cards and loans.
• Interest on your credit balance, although usually at a very low rate.

Post Office Accounts

A Post Office account is not a bank account, and is available to those who have no bank account but need to receive benefit. When you sign on to a benefit, you will be given a document that will allow you to open a Post Office account. Be aware that if you manage to find a job your new employer will not be able to pay money into a Post Office account.

What If I'm Not In The UK?

If you're not based in the UK but want a Sterling account, there are two options. First, speak to your local bank about opening a Sterling account. There will usually be a fee to pay for maintaining such an account. UK banks will also open Sterling accounts for non-UK customers, but will again charge a fee.

If you are coming over to spend time in the UK then a UK bank will open an account if you can fulfil the ID and UK address proof requirements as if you were a UK resident. You may have to prove that you have some funds to run the account, so they may ask for bank statements from your current bank.

Your best bet is to shop around - banks often have introductory offers that might suit you, and different banks have different benefits.