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Opening a UK bank account as a non-resident
Posted: Tue Apr 17, 2018 1:47 am
by prn
Hi All,
This is for UK expats wanting to open a new UK bank account while resident in Japan.
I found myself in this situation after my old accounts at Barclays and HSBC were closed.
It seems that most UK bank accounts have very strict rules on residency these days, e.g.
https://www.telegraph.co.uk/finance/per ... ounts.html
However, with a new wave of "challenger banks" (
https://www.bankingtech.com/2018/04/uk- ... heir-tech/) there are now a few more options available.
I recently opened a bank account with Monzo, and was able to transfer some money using Transferwise very cheaply and quickly (£500 for about ¥500, cleared in about 2 working days)
Anyone else have any experience with opening UK bank accounts while resident in Japan?
There are some "international accounts" available, but most of them have very high minimum deposit amounts, e.g. Barclays has one which requires £25,000 to be deposited at all times..
Cheers!
Re: Opening a UK bank account as a non-resident
Posted: Tue Apr 17, 2018 4:30 am
by RetireJapan
I have couple of legacy accounts (that I have had for almost 30 years!) that I made sure have money in and regular transactions (my voluntary pension payment direct debits and a couple of monthly charitable contributions).
So far so good.
Re: Opening a UK bank account as a non-resident
Posted: Wed May 16, 2018 10:33 pm
by ricardo
My old accounts are also fine, and I make sure they are actively used (occasional foreign debit card transactions, using internet banking, transferring money, UK debit card purchases etc).
They have my TIN (= My Number in Japan) and, so far, they seem content to keep them operating with this information. I guess they tell the NTA about my interest earned and any other large transactions that appear.
I am aware, though, that they are entitled to close them at any time without notice or reason. So have a ‘plan B’ ready.....
I’m surprised the OP had his accounts closed because he was resident in Japan. Other countries have caused this, but Japan has never been on any list I’ve seen in any articles etc. Any more info on this, OP?
Re: Opening a UK bank account as a non-resident
Posted: Wed May 16, 2018 11:20 pm
by RetireJapan
ricardo wrote: ↑Wed May 16, 2018 10:33 pm
My old accounts are also fine, and I make sure they are actively used (occasional foreign debit card transactions, using internet banking, transferring money, UK debit card purchases etc).
They have my TIN (= My Number in Japan) and, so far, they seem content to keep them operating with this information. I guess they tell the NTA about my interest earned and any other large transactions that appear.
I am aware, though, that they are entitled to close them at any time without notice or reason. So have a ‘plan B’ ready.....
I’m surprised the OP had his accounts closed because he was resident in Japan. Other countries have caused this, but Japan has never been on any list I’ve seen in any articles etc. Any more info on this, OP?
I had my UK investment accounts closed because I was in Japan, but not my main bank so far.
I also have a bank account that I haven't used for a long time (has a bit of cash in) with HSBC that hasn't been closed yet (although they stopped paying interest a few years ago).
Anyone else?
Re: Opening a UK bank account as a non-resident
Posted: Wed May 16, 2018 11:56 pm
by ricardo
My ISA was frozen for further deposits, but still open and receiving interest on existing balance.
(They actually refused to accept a deposit based on my residency. I transferred it online and they moved it back to the current account it came from and sent me a letter explaining that I couldnt make further deposits. Barclays. This is a condition of an ISA.
(Note: further deposits only a problem for the tax-exempt in the UK ISA. Deposits to normal savings accounts are fine)
Re: Opening a UK bank account as a non-resident
Posted: Fri Aug 17, 2018 4:53 am
by KyushuWoozy
RetireJapan wrote: ↑Wed May 16, 2018 11:20 pm
I also have a bank account that I haven't used for a long time (has a bit of cash in) with HSBC that hasn't been closed yet (although they stopped paying interest a few years ago).
Anyone else?
Yes, same here but different UK bank. The legacy accounts tend to pay almost-zero interest, which I guess is why they let us keep them open. They won't let us open new accounts in their bank which pay higher interest. At least that's my experience.
One of the many many reasons banks are so rich ..
Re: Opening a UK bank account as a non-resident
Posted: Tue Nov 20, 2018 9:47 am
by KyushuWoozy
KyushuWoozy wrote: ↑Fri Aug 17, 2018 4:53 am
The legacy accounts tend to pay almost-zero interest, which I guess is why they let us keep them open. They won't let us open new accounts in their bank which pay higher interest. At least that's my experience.
One of the many many reasons banks are so rich ..
If you can jump through the hoops (I managed it) non-residents are allowed to open an NS&I "Income Bond". Here's my summary:
* 1.15% variable paid gross
* Min £500, max £1,000,000
* Access: No notice, no penalty
* You can apply for, and manage, an Income Bonds account online, by phone or by post
* You can take out money online, by phone or by post with no notice or penalty.
* Can pay in by bank transfer (except for initial deposit)
* Initial deposit (£500 or more) must be by UK debit card
Hope this helps.
BTW, I have tried repeatedly with other banks to open "an expat bank account" but for some reason they just won't do it if you are resident in Japan.
Re: Opening a UK bank account as a non-resident
Posted: Tue Nov 20, 2018 1:31 pm
by RetireJapan
BTW, I have tried repeatedly with other banks to open "an expat bank account" but for some reason they just won't do it if you are resident in Japan.
I suspect this is because Japan wants Banks doing business with Japan residents to register with the FSA, and most banks don't want to. I had a broker account closed due to that.
Re: Opening a UK bank account as a non-resident
Posted: Thu May 23, 2019 3:35 am
by Bushiman
From another thread...
Bushiman wrote: ↑Thu May 23, 2019 12:49 am
I have recently been through this nightmare with HSBC...
7~8yrs ago HSBC got in touch with me due to the fact my current account (that I'd had since I was a teenager) was about to be made 'dormant' due to inactivity. I called them up, told them all about Japan, and I was advised to just open an Online BNS Saver account... I could access my money from Japan or transfer funds to it if needed. No fees. Great. I had a few thousand pounds in there and the higher interest rate was cool... I was assured my money would be fine there.
Since January of this year, having squared away and finished the voluntary UK pension application process I needed to give HMRC account details for them to set up a Direct Debit for repayments... I naively handed over the Online BNS Saver details only to find no payments taken when the due dates came and went. Uh-oh...
Calling HSBC, I was made aware that unfortunately my account had been made dormant... OK... To unfreeze it I had to send proof of my Japanese address, in English. So that meant sending copies of Student Loans, HMRC communications etc. as they were the only things I had with my address not written in kanji. Anyway, after 3~4weeks I called to find the lock on the account had been lifted -"Yes!" Only to find that an Online BNS Saver account couldn't be used to make payments like Direct Debits or Standing Orders... Great. What do I do now? I was on the phone to an agent for the good part of an hour going through all the available account options, only to have him read the fine print and tell me I was ineligible... Then finally he checked some of the other 'saver' accounts and BINGO! I could actually open a Flex Saver account -no fees, make repayments, transfer money in and out, just no debit card and no overdraft/loan options.. Perfect!
So I opened one immediately, transferred in some money from the Online BNS Saver and sent it straight away to HMRC for the 12yrs backpayments before there was a chance anyone realised a mistake had been made... It has been 10days now and the money hasn't been refunded/taken back so fingers crossed!
What a faff...
The Nationwide Building Society on the other hand -my old ISA making Japanese levels of interest could be transferred to a new current account and debit cards sent out just because they still had my parents UK address on record for me, even though I'd told them I lived in Japan now!
Re: Opening a UK bank account as a non-resident
Posted: Thu Aug 01, 2019 2:19 pm
by Beaglehound
The UK banks all seem to make you tick a box saying that you are UK resident in order to open a new account. I already had accounts with Nationwide, Clydesdale and the Post Office before moving here and have left the latter two at my sister’s address in the UK simply as I wanted to keep them open and wasn’t sure how they would react to my being here. The Nationwide actually had info on their website encouraging overseas customers to change their address to that and seem very happy to retain such customers. So if I were looking to open a new account as a non-resident I would talk to them.