Opening an account

Opening your account as early as possible will avoid you a lot of hassle.One of the most important things you must do upon your arrival in Oxford is to open a bank account. There are a number of banks in Oxford, and most of them offer services to international students. HSBC, Barclays, NatWest and Lloyds TSB are popular choices. Others include Halifax, The Royal Bank of Scotland and Abbey.

• HSBC

  Cornmarket Street and Banbury Road (Summertown).

• NatWest

  High Street, Cowley Road, Banbury Road (Summertown) and London Road.

• Barclays

  Cornmarket Street, Little Clarendon Street and Banbury Road.

• Lloyds TSB

  Corner of Cornmarket Street and High Street.

• Halifax

  Westgate Shopping Centre

• Royal Bank of Scotland

  St. Giles

• Abbey

  Corner of Cornmarket Street and Hight Street.

Which bank you choose will depend on a number of factors. Things to consider include:

• Convenience: good branch and ATM accessibility matters. Generally speaking, Barclays, NatWest and HSBC score well in this regard, both in Oxford and throughout the UK. Also, check the arrangements your bank of choice has for international money transfers.
• Interest Rates: the best interest rates are offered by building societies. HSBC, NatWest, Barclays and Lloyds often offer lower interest rates, but you may want to make the best of a bad deal by opening both a current account and a savings account, and then transfer money between them.
• Quality of Service: queues tend to be long and service average at the larger banks, so be prepared for delays. Find out if the bank you are considering offers online or telephone banking services.
• Additional Perks: some banks offer interest-free overdrafts up to a certain amount. Also, you should check to see if your bank imposes a penalty charge for balances falling below a certain minimum account. Some banks offer book or music vouchers, railcards and other incentives to woo students as well.

Banks vary in the services they offer to international students. If one bank does not offer you a particular service or facility, a different bank might. Always ask, and shop around. You may also want to ask other students about their own experiences with different banks to cut through all the jargon you may encounter in the bank brochures.

Opening a new bank account can prove to be a frustrating process, but be patient, keep your sense of humour and a ready-to-use supply of cash at hand for your first few weeks in Oxford.

Types of accounts

When making your decision about which bank account to open, you should always ask the bank about the full range of services that will be available with your account. If you are dissatisfied with what's on offer at any one bank, go to another —it's your money after all!

In general, a variety of accounts are available at all banks. Especially, if you intend to study here for a few years, you may want to talk to your bank about how best to plan any savings you might make.

Current account

A current account is ideal for meeting daily and monthly expenses. While there are some differences from one bank to another, typically current accounts offer at least one or more of the following benefits: chequebook, cheque guarantee card, cash card, debit card, overdraft facility, and/or direct debit and standing order facilities. Some current accounts also pay interest on your deposit, but this usually tends to be at a rate lower than that offered on savings accounts.

Basic bank account

Some banks do not allow international students to open a current account and you may only be allowed to open what is called a ‘basic bank account’. With this type of account, you can withdraw and deposit money, and you will also normally be offered an ATM or cash card to enable you to withdraw money from cash machines. What a basic bank account will not offer is any form of credit, which means you won't be given any overdraft facility, chequebook or credit card. Once you have been in the UK for a certain period of time, it may be possible to change your account to a current account.

Student account

Student accounts are special current accounts offered only to students. A number of useful services (such as a limited free overdraft facility) and additional perks are often offered with such an account. A chequebook might also be provided, making it a more flexible option than a basic bank account. However, not all banks offer these student accounts to international students.

Savings account

A savings account is ideal for keeping money that you will not use on a regular basis. Savings accounts typically offer higher interest payments than current accounts. Moreover, you may be eligible for tax-free interest earnings on your accounts. Ask your bank for more information about this.

While it is usually fairly easy to transfer money between your accounts within the same bank (or even between different banks), there can be restrictions on how much money you can deposit or take out of savings accounts, and how often. Hence, it is important that you check the terms and conditions associated with a savings account very carefully, before deciding to open one. For similar reasons, a savings account should be an additional account rather than your main bank account.

Additional sources of useful information about banking services in the UK is The British Bankers' Association. You may also want to look at MoneyBasics, fool.co.uk (don't be fooled by the name!).

Application process

Opening a bank account is not as quick a process as you may imagine. Typically, it takes two to three weeks to open an account. Early October is a particularly busy time for banks, as this is when new students arriving in Oxford all open their accounts. This means it can sometimes take even longer for your bank account to be opened. Prepare early and go to the bank as soon as possible, and you will save yourself a lot of trouble.

To open a new bank account, documents you will require include: your passport and student visa, a letter from your college confirming your acceptance, proof of your address in the UK (usually in the form of one of your college's letters to you), and proof of your permanent address in your home country (e.g., driver's license, passport). The bank may also ask for evidence of your finances or for a letter from your bank (or your parents' bank) in your home country. Always check with the bank for their specific requirements.

Useful Tip: consider obtaining a letter of reference from your bank in your home country (or, if you don't have a bank account, a bank statement from your parents' bank) before departure. If it is required, you can save yourself some time.

While you will typically have to visit the local bank branch in person in order to open a new account, HSBC is a notable exception. In some cases, it is possible to complete the application form for a new HSBC bank account in the UK online —even before you leave home for Oxford.