Comparing UK banks for US-based applicants

US-based applicants seeking to establish banking relationships in the United Kingdom confront a multifaceted environment of legacy institutions, challenger banks, and specialist international providers. Recent data indicate that over 30% of Americans holding expatriate status in Europe maintain at least one foreign bank account for currency diversification and cross-border convenience¹. As such, a clear, data-driven guide for Americans to UK banking can streamline decision-making, minimize friction, and illuminate comparative strengths of available options.

UK Banking Landscape

The UK banking sector divides broadly into two categories:

1. High-street banks Long-standing institutions with extensive branch networks (e.g. Barclays, HSBC, Lloyds, NatWest). They typically require proof of UK residency for most retail products but also offer international banking for Americans through dedicated expat or international account lines.

2. Digital challengers and fintechs Mobile-first banks such as Monzo and Starling, alongside global payment platforms like Wise and Revolut. These entities often advertise streamlined onboarding and remote UK account opening guide capabilities, though eligibility may hinge on UK residency or specific corporate structures.

A 2025 Financial Times analysis notes that “UK fintechs face significant regulatory complexities and a highly competitive US market of over 3,000 institutions,” highlighting the importance of robust American expat bank account in UK strategies to overcome local barriers².

Eligibility and Regulatory Requirements

Prospective applicants must satisfy UK “Know Your Customer” (KYC) and anti-money laundering (AML) checks. Common prerequisites include:

• Proof of identity: valid passport or EU/UK driving licence (wise.com)

• Proof of address: UK utility bill, council tax bill, or bank statement (typically issued within three months) (wise.com)

• Tax identifiers: US Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) for credit checks or tax reporting.

Non-resident accounts remove the requirement for UK address proof but often impose minimum balance thresholds in the five- to six-figure range, restricting accessibility for many US applicants.

Traditional Banks: Features and Requirements

Barclays

• Account types: Standard current account; International Bank Account for non-residents.

• Onboarding: Applicants must be at least 18 years old, possess a UK mobile number, and present proof of identity (passport or driving licence) (barclays.co.uk).

• Fees: No monthly maintenance fee on basic current accounts; international transfers through SWIFT may incur £3–£10 per transfer.

• Timeline: Online applications typically approved within 5–7 business days, with debit cards mailed to UK address.

Barclays positions its US resident UK bank account application process as “straightforward for legally resident newcomers,” though full digital onboarding from the US is limited to high-net-worth clients.

HSBC

• International Expat Saver: Variable AER/Gross of up to 4.20% on USD balances and 4.10% on GBP balances, valid until 31 July 2025 (expat.hsbc.com).

• Standard Savings: Easy Access Savings account at 1.30% AER as of 21 July 2025 (hsbc.co.uk).

• Eligibility: Non-residents can apply online for an Expat account, requiring a minimum opening deposit of USD 5,000 or equivalent.

• KYC: Passport, proof of residence in country of current residence, and evidence of income/source of funds.

HSBC’s dedicated non-resident UK banking process appeals to US citizens seeking yield-bearing savings, though it imposes deposit thresholds that may exceed the budgets of entry-level expats.

Lloyds and NatWest

• Both offer “international” accounts targeting expatriates, with similar proof-of-ID requirements.

• Minimum balance requirements often start at £5,000.

• No monthly fees on core current accounts for qualifying balances; overdraft facilities subject to credit assessment.

Digital Banks: Accessibility and Innovation

Monzo

• Personal Current Account: 10-minute app-based application, requiring UK full-time residence status and UK address for card delivery (monzo.com).

• US Operations: Monzo launched US-specific products in 2022, but these serve as domestic US accounts rather than UK-based accounts (ft.com).

• Fees: No monthly fees; cash deposits limited; foreign ATM withdrawals free up to £200/month, then 3%.

Monzo’s model lacks a remote UK account opening guide for US-only residents, restricting eligibility to those with imminent UK relocation.

Starling Bank

• Account Features: No monthly fees, real-time notifications, fee-free spending abroad.

• Requirements: UK residency and right to reside; application in minutes via app (starlingbank.com).

• Interest: 0.50% on balances up to £85,000 (as of mid-2025).

• Card: Mastercard debit card immediately added to digital wallet upon approval.

Starling’s abroad banking options for Americans necessitate UK residence; no dedicated non-resident line.

Wise (formerly TransferWise)

• Borderless Account: Multi-currency balances in GBP, EUR, USD; local sort-codes for GBP received.

• Onboarding: Complete digital identity verification with passport and US proof of address; no UK address required (nomadgate.com).

• Fees: Low-cost international transfers at mid-market FX rates plus transparent fee (e.g. 0.35% on USD?GBP).

• Card: Debit Mastercard accepted worldwide.

Wise exemplifies the remote UK account opening guide ideal for US residents unwilling or unable to meet UK address requirements. Its US to UK account transfer instructions involve sending USD to the Wise USD balance, converting to GBP, and then either holding funds or transferring to a UK sort-code.

Revolut

• Account Types: Standard (free), Premium (£7.99/month), Metal (£13.99/month).

• Eligibility: Residents of supported countries; US-issued Revolut cards available, but UK-based Revolut accounts generally require UK residency.

• Features: Interbank FX rates up to £1,000/month on Standard, with 0.5% mark-up beyond; crypto and stock trading options.

Revolut’s global footprint provides a guide for Americans to UK banking through its US-specific entity, though GBP-domiciled accounts are geo-restricted.

Interest Rates and Savings

Provider	Account Type	Rate (AER/Gross)	Notes
HSBC Expat	USD Saver	4.20%	Limited-time Savings Booster until 31 July 2025 (expat.hsbc.com)
HSBC Expat	GBP Saver	4.10%	Limited-time Booster (expat.hsbc.com)
HSBC UK	Easy Access Savings	1.30%	Effective 21 July 2025 (hsbc.co.uk)
Starling Bank	Current Account	0.50%	Variable, on balances up to £85k
Barclays (eSaver)	Digital Savings	0.75%	Subject to promotional offers

These differential rates illustrate that specialist expat accounts often yield significantly higher returns than standard UK savings products. US applicants prioritizing yield should compare fees and charges for UK accounts opened overseas against the effective AER.

Fees and Charges

Typical fee categories include:

• Monthly maintenance: Usually £0 for basic accounts; premium tiers incur £4–£15.

• ATM withdrawals: Many high-street banks charge 2–3% after free monthly allowance; digital banks often waive charges up to a threshold.

• Foreign currency spending:

  • Barclays & HSBC: 2.75% mark-up on FX transactions.
  • Monzo & Starling: 0% mark-up up to set amount, then 3%.
  • Wise: Uses mid-market rate plus transparent fee (~0.35%).

• International transfers (SWIFT): £3–£10 + correspondent bank fees at traditional banks; digital banks typically charge fixed ~£0–£3 or percentage-based.

A 2025 review by Which? found that “average FX mark-ups at UK high-street banks exceed 3%, while neobanks cap fees below 0.5%”³, underscoring potential cost savings for US residents via challengers.

Account Opening Process and Timeline

Below is a consolidated step-by-step UK account setup from America:

1. Pre-application research: Compare US citizen UK banking requirements, rates, and fees.

2. Select provider: Traditional bank vs digital challenger vs specialist expat account.

3. Gather documents:

   • Passport (photo page).
   • Proof of US address (utility bill, bank statement).
   • SSN or ITIN for credit checks.

4. Online application:

   • Digital ID verification (selfie, video call).
   • Upload documents.

5. Verification and KYC: 1–5 business days for digital banks; 5–10 days for traditional banks.

6. Card dispatch: Mailed to UK or US address (if supported).

7. Account activation: Immediate for cards added to digital wallets; physical card activation upon receipt.

Total timeline: 5–14 business days, depending on provider. The timeline for opening a UK bank account from the US may extend if additional proofs (e.g. proof-of-funds) are requested.

Transferring Funds

Once established, US-based account holders can execute US to UK account transfer instructions:

• SWIFT transfer: Use IBAN and BIC of UK account; expect 1–3 business days and fees of £5–£25 total.

• Digital transfer via Wise/Revolut: Deposit USD locally, convert within app, and route GBP to UK sort-code within 1 business day; fees ~0.3–0.5% plus small fixed charge.

• ACH to US broker: If holding Multi-currency GBP via specialist broker, convert and transfer GBP back to UK account.

Best practice: consolidate transfers to minimize fixed fees and leverage favorable FX windows.

Tips for US-Based Applicants

• Maintain clear address records: Even temporary US addresses suffice for digital banks; but traditional banks require UK proof-of-address, so consider using a mail-forwarding service in the UK.

• Prepare SSN/ITIN: Absence may delay credit checks; consult bank if SSN not available.

• Compare FX margins: For frequent cross-border spending, digital banks like Wise can reduce costs significantly.

• Anticipate deposit thresholds: Expat accounts may require £5,000+; plan opening deposits accordingly.

• Monitor rate changes: Fixed-term offers (e.g. HSBC Expat’s 4.20% AER) expire; time deposits to maximize promotional rates.

• Consider multi-currency needs: If retaining USD and GBP balances, platforms like Wise or HSBC Expat offer dual-currency functionality.

US-based applicants evaluating process to open UK bank account from abroad should weigh institutional robustness against onboarding convenience. Traditional banks deliver brand security and in-country support, while fintech challengers and specialist expat accounts prioritize streamlined remote UK account opening guide protocols, competitive yields, and reduced FX friction. By aligning individual priorities—whether savings rates, fee structures, or speed of access—Americans can optimize cross-border banking arrangements in the UK.