Opening a UK Bank Account

[Lehaut]

A friend sent me this, has anyonelse seen/tried it? Knowing the impossible proof Barclays are asking for eldest to open a student bank account in London for a years study, I am a little sceptic

PEOPLE living in France are now free to open a new bank account with a bank in the UK even if they have no address there, thanks to a new banking regulation that came into force this week.

The EU Payment Accounts Directive was passed two years ago, including a ‘right of access’ to a payment account and a non-discrimination clause. It has now been made operational in the UK with the coming into force of the Payment Account Regulations 2015.

Not only can you not be refused a payment account on the basis of residency but the new legislation also means that you do not even need a fixed address.

A bank has 10 working days to open or refuse an account but a refusal must be explained and the grounds for doing so are narrowly confined to areas such as money laundering and links to other criminal acts. Any refusal should also come with explanations as to the customer’s next steps, including their right to appeal to the Financial Ombudsman Service.

However it remains to be seen if all the UK banks will comply , out of the largest British banking groups only RBS Group (which includes The Royal Bank of Scotland, NatWest and Ulster Bank) and Barclays were able to confirm in advance that they would follow the new rules.

Both of these groups said basic accounts would be available to people in other EU countries, including the possibility to apply to open them over the internet

[NickP]

I'm intrigued why people resident in another country would want to have a UK bank account. Knowing the hoops that a UK resident has to jump through because of the money laundering regulations it begs the question.[8-)]

[NormanH]

Mine was closed by Santander (it had been with Abbey National) because they said it wasn't being used enough.

It is true that I hardly ever need a UK account, but on a couple of occasions I have had sterling cheques  (from the IR once) and it would have been much easier to put them into the UK one I had before.

As it was I had to send it back and ask for another one made out to my son, and then send that to him to be cashed.

Living in France doesn't mean that all links with the UK are severed. I still pay UK  Income tax for example.

[mint]

Quite right, Norman.  In any case, it's useful to have bank accounts in 2 currencies.  My accounts enable me to buy goods in whichever currency is more favourable at the time of purchase.

Plus, as Norman says, you sometimes receive cheques in sterling and at other times you want to send someone a sum of money in pounds as gifts at Christmas and other celebratory occasions.

[cajal]

I was knocked back by Tesco last Monday  even though I have a Regular Saver with them.

I chose them, for my initial application on-line, as their current account pays 3%. When I have time I will apply to Nationwide, TSB and Bank of Scotland as their current accounts are all interest paying accounts up to a fixed ammount.

Whether foreign residents will be offered these interest bearing accounts reamains to be seen.

regards

cajal

[Chancer]

[quote user="NickP"]I'm intrigued why people resident in another country would want to have a UK bank account. Knowing the hoops that a UK resident has to jump through because of the money laundering regulations it begs the question.[8-)]
[/quote]

 

I would not be able to launder money without retaining UK accounts [I]

[minnie]

The answer is in the term "basic". If you look at the various websites the basic bank account is a non cheque book account, though you can have a debit card. I think that, also, you'll find no favoured rates of interest availlable on these accounts. At least one provider states that you can only have a basic account on condition that you have no other current accounts with UK banks. These accounts have ben set up out of necessity.

[idun]

I am affoler with a letter we had from our french banque, the questions, the tone, GRRRRRRRRRRR!

And as they can simply close/bloque de account at will these days, we had to fill it in and send it back.

We were asked last year to prove who we were, as if we  had changed since we opened the bloody account! And now, in spite of them knowing exactly our source of income and where it goes, they have had us jumping through more hoops.

As I said, we sent it back without the s ie g he il I felt like putting on it, or perhaps sweetly asking if they were cultured enough to have read 1984 and understood it and therefore the consequences of their actions.

I am so angry with the 'system'. Instead of going after us little people, why don't they go after those that can afford these super yachts that cost millions and millions and see exactly where that money comes from.

[Harnser]

"why don't they go after those that can afford these super yachts that cost millions and millions"

Possibly because the billionaire superyacht owners also own banks?

[andyh4]

Why does a French resident have a UK bank account?

Well I have UK (GBP) commitments and I have UK income from a number of sources.

I could have it all paid into a French account and suffer the exchange charges on being paid in and I could pay out fro the French account and again pay for the privilege - but why should I?

So Nick, simple economics and stopping the banks taking even more of my hard earned.

[idun]

We always kept a uk bank account and I am glad we did. Due to our financial circumstances with regards to France we will always have a french bank account even if we never move back to France.

For all we would prefer not to, it could happen what with brexit.

I am always loathe to close bank accounts.

[Gardian]

Well, many of us have retained a UK bank a/c and that's a matter for us. No problem.

As for opening another one or opening one when you had inadvertently closed the previous, then this is good news.

The excuses that the banks gave (potential Money Laundering) were such a load of rowlocks when it pertained to a long-standing customer whose a/c activity was likely to be in the hundreds or low thousands per month.

[NickP]

No problems about having bank accounts in both countries, just buy a holiday home in one and be resident in t'other, easypeasy [:D]

[chessie]

Be careful when any bank sends you a letter asking about ID or tax residency.

They are 'only obeying orders' - see the EU banking & saving directive.

Every financial institution and bank HAS to confirm to the powers that be that every customer has been checked, their ID checked, their place of residence, their tax residency.....

An eu Directive - not the banks' fault - the eu.

We, the little people, are all regarded as the usual suspects of being terrorists, money-launderers etc etc - yet go and look at those who set up these Diktats - Juncker - former PM of the country with the largest number of tax evasion corporations ever; and the whole rest of the eu cabal - the likes of Prodi, Barrossa (Goldman Sachs recruit) - just look at them all.

We the little ones just get our faces stamped into the ground......and we have no option but to complete all the forms (like the bank a/c forms every year for the french tax so-and-so's) - because if we do not - then the big bullies will freeze our accounts, close our accounts - take our money......we have no option.

The point about having bank accounts in both France and UK is a serious one;  look at what is happening with Deutsche Bank at the moment - and there is talk that a French bank could be in a similar situation.   Look at Cyprus and what happened there - ordinary people found they had days when they couldn't access their money.

Keep bank accounts in both countries;  keep several accounts with both banks - then spread your money - don't give 'them' any opportunity to make life more difficult for us.

And it certainly helps when writing cheques at Christmas for people living in the UK - so they can be given UK cheques;  can't see them being so happy with French cheque in euros - they want their Christmas spending money - in proper money !!!

Chessie

[EuroTrash]

I don't get why people find this issue so confrontational. There are regulations, banks have an obligation to keep certain information so you have to co-operate, it's not a big deal. If you declare online in France you don't have to write the same details out every year, it is all there pre-filled in and if there is no change it takes one click to confirm the data, couldn't be easier. Just last week my UK bank asked me to confirm online that the details they had on record were still correct, ie tax resident in France, address details etc; nothing had changed so again it took one click to confirm. I can't say it has ever felt like I am having my face stamped into the ground. I don't have anything to hide and I don't mind providing the information they ask for.

[mint]

I agree totally with your post, ET.

I'd gladly comply with any of these procedures if it would make it harder for any scammer/hacker out there to use my account in an unauthorised way.

I saw a tv programme yesterday about the ingenious methods in which crooks are accessing our bank accounts.

My UK bank often stops my internet payments if they are made to a company with whom I have no dealings before or made to a country I do not normally buy from.  They ring up and apologise but I always tell them I'd rather they checked.

I don't mind a bit of delay and inconvenience but I will be mighty annoyed if they slipped up and are careless with my funds. 

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[mint]

Oh well, you can take care of all my loans, if you want, AS LONG AS you don't expect me to pay you back![:P]