If you’re making the break overseas you may be wondering whether you can keep your UK bank account. The answer is usually yes, but it’s not always straightforward. Post-Brexit, some banks now restrict accounts for non-residents. Here’s how British expats can keep their UK bank account when moving overseas, and keep their finances running smoothly.
When you move overseas it can be hard to cut ties completely, and many of us are attached to our old bank accounts. That’s not just for sentimental reasons – once you’ve got everything set up and running smoothly, why risk messing things up?
So, for many Britons planning a move abroad, whether they can keep their UK bank account is an understandable worry. That’s especially so if they still have financial ties to the UK, such as a pension, property or income.
The good news is that you usually can keep a UK bank account when moving overseas, but not without a few caveats. Here’s what you need to know, and how to make sure your regular international payments keep flowing smoothly after you relocate.
Why is it helpful to keep a UK bank account?
Even if you’re setting up a new life abroad, a UK bank account can still be useful. You might need one to receive an income or pay bills in sterling. Common scenarios include:
- Owning a property in the UK and paying bills on it.
- Owning a rental property and receiving rent from tenants.
- Sending money to family members.
All of this can often be done via international bank accounts, but if you still receive income in sterling, changing that income money from sterling into euros and dollars and then back into sterling to pay a bill adds a layer of complexity and cost that many of us can do without.
Paying those bills directly from sterling also removes the fluctuations of exchange rates.
Do UK banks make it easy to keep an account?
There is no law against holding a UK bank account as a non-resident. It is more a question of bank procedures and policies. Here are the main potential issues:
Address rules and residency requirements
Most UK banks require a UK residential address for standard current or savings accounts. If you change your address to one overseas, your bank may decide you’re no longer eligible and ask you to close the account.
Post-Brexit complications
Since the UK left the European Union (EU) some banks have withdrawn services for customers living in certain European countries. Barclays, Lloyds and others have written to expats in Spain, France and Portugal telling them their accounts would be closed.
Practical difficulties
Even if your account stays open, your bank may not be able to post new cards or security codes to an overseas address, and you could face extra fees for cashpoint withdrawals or card transactions abroad.
The result is that many British expats have found themselves unexpectedly cut off from their UK accounts, sometimes with only a few weeks’ notice.
How to avoid UK bank account problems
Fortunately, there are several practical ways to stay on top of things.
Check your bank’s policy before you move
Ask your bank whether you can keep your account as a non-resident, and for how long. Some banks will allow it; others may insist you switch to an “international” or “expat” version of their account, often with higher fees or minimum balances. It may depend on your own circumstances. Barclays Bank, for example, allow Crown employees and their spouses to keep UK accounts open when overseas. Santander Bank says it has no plans to close accounts. Lloyds Bank has an international account.
Update your contact details properly
It’s important to tell your bank that you’re moving. Failing to do so can cause problems later, especially if they need to contact you about suspicious activity or send you replacement cards.
Consider keeping a UK correspondence address
Some expats keep a trusted family member’s UK address on file, though this must comply with the bank’s terms and your tax status. Always check with your provider first.
Use a UK account for UK income only
Some income streams may be paid directly into an overseas account with no problem, such as a UK state pension. For other it may make sense to keep that money in pounds.
How Smart Currency Exchange can help
If you’re planning a move abroad, keeping track of your money across currencies is crucial. Exchange rate movements can make a big difference to your savings or property budget and a simple overseas transfer through your bank could cost much more than necessary.
Smart Currency Exchange helps expats and property buyers move their money safely and efficiently. We can:
- Lock in exchange rates in advance, protecting you from sudden drops.
- Help you transfer your UK income abroad with minimal fees.
- Offer dedicated account management from currency experts.
Whether you’re still using your UK bank account or opening new ones abroad, Smart can help you stay in control of your pounds, wherever you live.
Key takeaways
- You can usually keep your UK bank account after moving abroad, but some banks restrict this for non-residents.
- Rules differ between providers, and some expats in the EU have had their accounts closed post-Brexit.
- Always check your bank’s policy before you move. Plan an alternative if needed.
- Use Smart Currency Exchange to manage your transfers and protect yourself from exchange rate swings.
