Having a UK Bank Account When Living Abroad
We’ve talked about how to open a UK bank account for non-residents, expats, and even foreign business owners in the past. But, we haven’t discussed the importance of having a UK bank account when living abroad. Nor, have we discussed how to properly manage UK bank accounts from overseas.
So, we thought it would be helpful to outline the important elements you should consider when having a UK bank account when living abroad. That way, you can learn how to maintain your account without having to pay unnecessary fees or having your account frozen.
Having a UK Bank Account When Living Abroad
Having a UK bank account when living abroad is possible for both foreigners and UK expats. Likewise, both foreign and non-resident UK companies can have a UK bank account. However, the available options and difficulty in opening accounts will vary greatly depending on your account requirements and client profile.
Bottom line: Yes, it’s possible to have a UK bank account when living abroad.
In fact, we help foreign non-residents, expats, and foreign business owners open bank accounts in the UK while living abroad all the time.
In this article, we’ll share how to properly manage your UK bank account while living abroad.
But, before diving in, if this is your first time visiting GlobalBanks, don’t forget to download your FREE Non-Resident Banking Starter Guide. It’s designed to help non-residents open accounts in top banking hubs around the world.
Who Can Have a UK Bank Account When Living Abroad?
When it comes to whether you can have a UK bank account when living abroad, many factors need to be considered, such as:
- Where are you currently living?
- What is your UK bank account being used for? (e.g. personal or business)
- How often do you use your UK bank account?
- What fees are being charged for your UK bank account?
- Do you earn income in the UK?
- Do you own assets in the UK?
- Are you sure you absolutely need a UK bank account?
- And more…
These questions may seem unimportant. But, depending on your answers, it can determine whether or not it makes sense for you to have a UK bank account when living abroad.
Generally speaking, four client groups are typically interested in having a UK bank account when living abroad, including…
- UK Expats Living Abroad
- Foreign Non-Residents Living Abroad
- Non-Resident Owners of Non-Resident UK Companies
Let’s take a further look into why these client groups are interested in having a UK bank account when living abroad.
1. UK Expats Having a UK Bank Account When Living Abroad
As an expat, having a UK bank account when living abroad can make sense for a few reasons, including…
- Receiving income from a UK company but are working abroad
- You have personal expenses in the UK
- Investing in the UK through UK brokerages or GBP-denominated accounts
- You require access to specific banking or transfer services
- Require diversification away from local currencies where you work
- And more…
Expats can unlock many benefits when holding a UK bank account while living abroad. We cover these benefits and more below.
Let’s first uncover the reasons why foreign non-residents are interested in having a UK bank account when living abroad.
2. Foreign Non-Residents Having a UK Bank Account When Living Abroad
For foreign residents, having a UK bank account may make sense if you work for a UK company.
But that’s not all.
Here are a few additional reasons…
- Receive payments from a UK employer
- You have a UK pension plan
- Own property in the UK
- You have UK investments
- And more…
As you can see, there are many reasons why foreign non-residents have a UK bank account when living abroad.
Now, if you’re a non-resident business owner, your reasons are going to be slightly different. More on this below.
3. Non-Resident Business of Non-Resident UK Companies
As the owner of a non-resident UK company, having a UK bank account when living abroad can be useful for many reasons. But, in most cases, only if…
- You have employees working remotely in the UK
- Sell to UK customers
- You have contractors or suppliers based in the UK
- You’re looking to expand to the UK in the near future
- Or, you need a UK bank account to pay local expenses
Having a UK bank account when living abroad can help avoid transaction fees when sending payments to employees from another country. Not to mention, make it easier to pay local contractors and suppliers.
Of course, whether having a UK bank account when living abroad makes sense, will highly depend on your banking requirements.
For instance, if you have personal expenses, work for a UK company, or own a UK company, then having a UK bank account when living abroad makes sense.
That said, it’s important to revert back to the questions outlined above in this section to help determine if having a UK bank account is right for you.
And, if it’s not, there are other banking options to consider instead.
In fact, GlobalBanks can help – more specifically, GlobalBanks IQ.
GlobalBanks IQ helps foreign and non-resident individuals (and their businesses) open international bank accounts around the world.
In fact, when you join GlobalBanks IQ, you’re not only getting access to our GlobalBanks Database of over 250+ international banks, but also full access to our premium members-only reports.
These reports outline everything you need to know when opening international bank accounts. Including, account opening strategies, country-specific banking options, and lists of banks for specific client types.
Click here to learn how to become a GlobalBanks member today.
That said, if you’re set on having a UK bank account when living abroad, it’s important to be aware of the challenges you’ll face. But first, let’s look at the benefits you can tap into.
Benefits of Having a UK Bank Account When Living Abroad
In addition to the reasons mentioned above, expats, residents, and non-resident business owners are interested in having a UK bank account because of the benefits it can offer.
Of course, the specific benefits that one client group may unlock may be completely different from the next client group.
So, depending on your client profile, banking needs, and where you’re living abroad, the benefits available to you will vary.
Benefits of Having a UK Bank Account When Living Abroad:
- Access to GBP currency
- Diversification away from local-country currencies and economies
- Access to specific banking and transfer services
- Able to manage any financial obligations in the UK
- A way to reduce transaction fees when paying UK bills
- Access to payment processing for UK companies
So, whether you’re an expat looking for diversification, a business owner looking to reach UK customers, or a foreign non-resident looking to access UK banking benefits, having a UK bank account when living abroad can be attractive.
That said, as mentioned, the benefits will depend on your specific client profile and banking requirements. But, it’s also important to determine whether having a UK bank account is worth it for you. To help you decide, you need to know if you can overcome the challenges you’ll likely face when having a UK bank account.
Challenges of Having a UK Bank Account When Living Abroad
When it comes to having a UK bank account, you’re going to face challenges as a non-resident. No matter what client group you fit into.
For instance, if you’re a UK expat living abroad and you’ve decided to keep your UK bank account so you’ll have one upon your return, you must keep the account active.
In fact, if you fail to continue using the account when living abroad, whether it’s to make payments, send transactions, or receive funds, you’re increasing the chances of having your account frozen.
Likewise, if you’re unable to meet bank account requirements such as holding the required minimum balance, you’re going to end up paying monthly account fees. And, these fees can rack up quickly. Especially, if you’re not actively using your account or ensuring you have sufficient funds in it.
But, if you’re interested in learning how to manage your UK bank account when living abroad, you’re in luck. More on this below.
For now, let’s look at additional challenges you’ll likely face when having a UK bank account.
Challenges of Having a UK Bank Account:
- Chance of having your account frozen if the account isn’t active
- In-person meetings may be necessary to re-active accounts
- Account fees can become expensive (maintenance, monthly, etc.)
- Foreign transaction fees will likely apply (if applicable)
- And more
Again, it’s important to be aware of the possible challenges you’ll face as it could jeopardize your chances of keeping your account open.
That said, let’s look at how residents, expats, and non-resident business owners can manage their UK bank accounts.
How to Keep Your Account Opened
As we mentioned above, having a UK bank account can be a challenge if not managed properly.
So, to avoid facing these challenges, there are a few important questions you need to consider.
First, should you inform your bank that you have moved abroad?
This is an important question. And, the answer depends on how long you plan to live abroad, whether you maintain your current address, and how you plan on using your account.
If you do not plan on telling your bank that you have moved abroad, you may not be able to access your online banking without the use of a UK IP address via a VPN.
Of course, if your bank has policies against using a VPN or servicing accounts of individuals living abroad, you could have your account closed.
Likewise, if the bank notices that you are logging in to online banking from abroad, they may freeze transactions for security purposes. This can often require you to show up to the bank in person, in order to unlock the account.
Now, if you’re interested in having a UK bank account when living abroad but you haven’t yet opened an account, you’re in luck. We detail everything you need to know in the following articles…
Free UK Bank Account Opening Articles
UK Bank Account for Expats [Free Guide]
UK Bank Account Without Proof of Address [Free Guide]
What Do You Need to Open a Bank Account in the UK? [Free Guide]
However, if you’re a non-resident UK business owner and you need to open an account, we have something just for you.
We detail everything you need to know, including the entire account opening process for opening a bank account for non-resident UK companies in our premium members-only report, UK Banking for Non-Resident UK LLPs & UK LTDs.
You can access this report immediately when you join GlobalBanks IQ.
Ready to Open and Manage UK Accounts?
Whether you’re ready to open a bank account in the UK today or you’re just starting to explore your options, we can help.
GlobalBanks IQ gives you everything you need to start finding and opening accounts.
When you join GlobalBanks IQ, you immediately unlock the entire GlobalBanks Database of international banks. It’s home to 250+ banks in 50+ countries.
And, you get access to our library of premium (members-only) reports. These include proven account opening strategies, country-specific banking options, and lists of banks for specific client types.
Plus, you unlock our account opening checklists, dedicated account opening alerts, and much more.
To get started, click here to see if GlobalBanks IQ is the right choice for you.