Banking in the UK Forum

Due to an increasing amount of posts from people trying to navigate the UK banking world, we've started up a sub-forum dealing with banking specifically!

The LloydsTSB International has agreed to consult with CanuckAbroad.com members via telephone and email.

Please contact either Michael Gallagher or Matthew O'Carroll at:

LloydsTSB Offshore Representative Office
Suite 2500, 25th Floor
1 Dundas Street West
Toronto
M5G 1Z3

Tel 416 642 5613

Send a message to Matthew O'Carroll
OR
Send a message to Michael Gallagher

So there we go... Now hopefully setting up an account in the UK won't be so difficult!

Enjoy!

If Lloyds are reading this, just wanted to say THANK YOU for making my banking process so easy. Nat West and Barclays gave me such a hard time, I should have gone to you in the first place!

My advice to Canadians setting up an account in England... go to Lloyds!!

when i tried to open a basic account with lloyds they asked me alot of annoying questions like what i do for a living, how much money i make, how long ive been in the country, how i;ll be making deposits, where my money is coming from, what im using the account for, etc. seemed they asked me less countries entering the country. i hate being asked questions, and am not used to it at all. basically, i believe all i should do is give my address and birthday. thats it. i really hate this whole proof of address thing they do in this country, and what is more annoying is that they require multiple proofs of address if youre using a bank statement. lloyds turned me down because i only had 1 statement. they said they required 3. sometimes i wonder if they want proof of address, or proof of my life story. or are they just looking for excuses to turn people away. ive lived in a few countries, and none have more difficult banking regulations. with that said, i have learned in my experience that there are a few banks who will open your account through the mail, which i prefer because, no questions. you just fill out the form, with copies of your proof of address and id. those banks are halifax, and barclays.

People.

You should really be banking offshore.

I personally recommend the offshore branch of Natwest. They will set up your account by mail even before you arrive in the UK. Just call them first and get all the details on which accounts you should get. No fees to open or manage the account btw. You get a debit card that works for free in the UK clearing system, and the account behaves just as a UK bank account would except that you are not taxed on your savings. You get a relationship manager who will personally pick up the phone when you call, and will update you on queries via messages to your personal email if this is more convenient for you.

As a Canadian you qualify for non-dom tax rules (google it) and are not required to pay tax on any income earned outside the UK; that means no tax on income you earn from employment ouside the UK (even a 2 day business trip is fully tax deductible) or interest and capital gains earned offshore. The catch is that you cannot repatriate the income to the UK, because if you do it instantly becomes taxable.

Therefore nobody on this board should be using an onshore UK bank account. You should instead be looking at the offshore branches of major British and European banks. Natwest Offshore in Jersey, Bradford and Bingley International (BBI) in the Isle of Man, along with a range of others (HSBC, Lloyds, Santander, etc) all offer different accounts, the suitability of which will depend on how much capital you have. Natwest has no fees and no minimum balance, so you can get started with them for 0 dollars with no obligation to pay them anything ever. BBI pays 2.5% interest as long as you keep a minimum balance of 1000 pounds. Do some research to see if there's something that would be even better for your specific circumstances.

All these accounts operate the same way as an onshore account and are indistinguishable. Same sort code format, same account number length, they operate within the UK clearing system so bank transfers can be done within the system and don't have to go through international wire system, and you will get a debit card that looks just like everyone else's debit card and works for free anywhere in the UK. One of the big benefits of an offshore account is that you do not need a UK address to open the account. You can use a Canadian address or an Australian address or a Timbuktu address, they will not discriminate against you for being internationally mobile.

If you take anything away from this post let it be the following: tax planning PAYS. Decide IN ADVANCE to which jurisdictions you will allocate

a) your income; and
b) your savings

even if you are a small timer just getting started as an expat with a relatively meagre salary. Learn the UK non-domiciled tax rule inside and out, you'll be glad you did.

For some people apparently the hardest part is to get past prejudices and misconceptions about offshore bank accounts, mostly gained from watching too much TV or Hollywood movies. Seriously folks they are not just for Jason Bourne. In Europe millions of ordinary middle class people have offshore accounts simply because it is necessary due to the setup of many European tax codes. Under British tax law you are entitled to substantial yearly tax rebates so long as you are a non-dom and comply with rules about not bringing international income into the UK.

-an experienced Canadian expat

Thanks nauru for your insightful post. Could you please give me a summary of the differences between offshore accounts and the regular local accounts and also the benefits of one over the other?

Trusteesavingsbank.com has become available
The Trustee Savings Bank, or TSB as it was commonly known, was a British financial institution which specialised in accepting savings deposits from the poor. They did not trade their shares on the stock market and, unlike mutually held building societies, depositors had no voting rights nor the ability to direct the financial and managerial goals of the organisation. Directors were appointed as trustees (hence the name) on a voluntary basis. Between 1970 and 1985, the various trustee savings banks in the United Kingdom were amalgamated into a single institution known as the TSB Group Plc, which was floated on the London Stock Exchange. In 1995, the TSB merged with Lloyds Bank to form Lloyds TSB, at that point the largest bank in the UK by market share and the second-largest (to Midland Bank) by market capitalisation. In 2009, following the acquisition of HBOS, Lloyds TSB Group was renamed Lloyds Banking Group,[1] although the TSB initials survive in the name of its retail subsidiaries, Lloyds TSB Bank and Lloyds TSB Scotland.

The first trustee savings bank was established by Reverend Henry Duncan of Ruthwell in Dumfriesshire for his poorest parishoners in 1810.[2] There were other forms of savings bank in the United Kingdom, including the National Savings Bank, originally known as the Post Office Savings Bank, which is 100% backed by HM Treasury.The domain is available @ Sedo

Source Wikipedia

Hi,

Before you decide to open a savings account, do a little research on the type of savings accounts that are available to you in the UK. Some offer higher interest and bonuses if you are able to give notice before you need to make a withdrawal from your account. If you need fast access to your money you may want a fast access savings account. You can always withdraw from your savings account anytime but you will be penalized for withdrawals that do not follow the rules of the savings account that you choose.

Normal savings accounts

Normal or regular savings accounts offer some of the highest interest rates in the UK but they have strict conditions about payments to the account and withdrawals. If these conditions are not followed you will lose a significant amount of interest. Since withdrawals from these accounts are usually limited to a few each year this doesn’t make this a good savings account for your emergency money. One good point about regular savings accounts is that they can get you in the habit of regular savings. A normal savings account can be started with a little as £5 per month but the amount will need to be paid to the account each month.

CD accounts

Savings certificates of deposit are a good choice if you can put the money away for awhile. Savings certificates offer tax free returns on investments however the certificates must be held for the full term or you will be penalized by a lower interest rate. Savings certificates with a fixed rate, have a guaranteed rate of return after terms of two or five years after which you can take the return on the deposit tax free.

Money market

Money Market deposits are another type of savings account available for residents of the UK who want to invest in a flexible manner. Fixed term deposits with a fixed rate can be arranged for periods of time ranging from one day up to five years. These are a favorite of people who have a large amount of money to invest.

National Savings Accounts

National Savings Accounts are guaranteed but pay a lower interest rate than many other types of UK savings accounts. These are very popular savings accounts in the UK since there is a guaranteed return on the investment. This account is for those who are willing to trade high interest for the security of a guaranteed account.

The type savings account that you choose is dependent on the amount of money you are able to deposit and the length of time that you can leave it alone. If you are unable to meet the conditions of your savings account, the penalties you pay will be a loss of interest on the account. You should choose your savings account carefully so that you can make the most of your money.

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Hi..

I'm here living in Edinburgh and had an excellent experience opening my bank account with RBS (Royal Bank of Scotland)..an excellent branch on Castle St./Georges St. down town..extremely helpful staff, making the whole process a breeze. Yes there were security and fraud and credit checks..all handled with efficiency and kindness. I had to provide an address here, with proof, I emailed my Bank of Montreal in BC and the money was wired quickly as soon as a letter from BMO arrived with my financial statement..to my residence.. With the time change working in my favour all went smoothly, the letter arrived from BMO in less than a week and my account was opened immediately..really impessed...so nice to have an account with a debit card accepted all over. My BMO debit card worked in all cash machines and stores except the Gap..strange..Maestro..is the debit card system here and is on the back of Cdn debit cards.. Debit card cash withdrawls are a max of 250 pounds per day..not always a good system if you need more cash..having a local bank account is a real plus..

Good Luck all...

I was wondering if it is possible to make a wire transfer from the UK to transfer my money from my TD account to an account that my fiends mother is helping me to get with Halifax (she works there) Would I have to get some sort of preapproval from my bank to be able transfer FROM the UK? I don't wish to switch to an HSBC account as I will be returning and I have a good setup at TD. Unless I can transfer what I want to take to an HSBC account first. Also is it advised to bring a further confirmation of my funds with me when I land? For the application itself I am using 3 months of statements and a letter stating I have what I say I do. Any replies would be welcome.

How would I go about setting up a personal chequing account before I leave for England? Basically I just want to have a normal bank account, so I can pay my landlord, use debit, etc.

Can I do this before I leave or not?