Moving to a new country as an Indian, either permanently or for a job, is exciting but also entails a whole range of formalities that are vital for settling down. Besides finding a place to stay, obtaining permits for residence, work, study, and such, one also needs a bank account. The UK, in particular, is known for its well-established banking system, and there are plenty of options for a newly arrived Indian expat to choose from. In this article we go over some of the best banks in the UK, including online banks and Indian banks in the UK, and give tips on opening an account there.
Traditional banking
With London being one of the global financial capitals and the UK having one of the finest banking systems in the world, there are banks for all needs. If meeting some common requirements, an adult UK resident can become a client of one of the top banks in the UK such as HSBC, Lloyds Bank, NatWest, or Barclays, among others.
To open a bank account, you are required to prove your identity and address and agree to a background credit check – this is a standard procedure used in the best banks in the UK. In addition, you might be asked to provide documents relevant to your:
- Sources of income
- Employment
- Banking with other institutions
- Academic affiliations
- Tax credentials, and so on.
There are situations, however, when proving your address might be an issue, say, if you have arrived in the country only recently. In this case, you might visit a bank branch to learn about available alternative options. For instance, if you are enrolled with a British educational institution and looking for the best banks for students in the UK, HSBC will accept a letter from a UK Border Agency-accredited college or university confirming your acceptance onto a qualifying course, as proof of address.
More well-off Indians, who might be looking for the best banks for trust accounts in the UK, for example, can also benefit from a so-called international or expat bank account which can be opened by a non-resident. Offered by most major banks including top investment banks in the UK, it usually involves a rather large minimal deposit amount and would not allow the use of UK branches:
| Banking institution/type of account | Monthly fee, £ | Minimum deposit, £ |
|---|---|---|
| NatWest Intl Premier Select Account | 8 | 100,000 |
| HSBC Global Money Account | 0 (subject to conditions) | 50,000 |
| Barclays Intl Bank Account | 0 | 100,000 |
| Lloyds Premier Intl Account | 0 | 100,000 |
Applying for an account with the best UK banks might provide a certain level of confidence and reliability, but today there are other, more modern options which can be just as suitable for Indian expats’ needs.
Best online banks in UK
Together with its prominent traditional banking system, the UK is also home to a growing number of fully digital banks, known as challenger banks or neobanks. Among the best digital banks in the UK are institutions such as Revolut, Monzo, Starling, and others.
Compared to the best UK banks, it is much easier to open an account with a digital bank. As a rule, everything is done online, and you are required to complete a set of standard steps, including confirming your phone number and providing basic personal details. You will also need to prove your identity. It usually involves taking a selfie (Revolut) or recording a short video of yourself (Monzo, Starling) and providing a picture of a valid identification document such as a passport, a driving licence, or a biometric residence permit.
Most top online banks in the UK offer a tiered account system. Holding a basic account is usually free and includes a limited set of services like payments, savings, withdrawals, etc. Other types of accounts are available for a monthly fee and give access to extra services and benefits. For example, a Monzo Plus account at £5 per month enables the use of virtual cards for online shopping and allows ATM withdrawals abroad of up to £400 a month at no fee. At the same time, at other banks, like Starling, holding a current account is generally fee-free but extra services are available as paid ‘subscriptions’.
While opening an account with one of the top online banks in the UK definitely has its pros, keep in mind that in some cases banking documents issued by such institutions might not be accepted as proof of your banking activities (for example, when dealing with local authorities).
Indian banks in UK
Another banking option for Indian expats in the UK is to maintain an account with an Indian bank linked to an international card. The list of Indian banks in the UK includes:
- State Bank of India (SBI)
- HDFC
- ICICI
- Bank of India
- Bank of Baroda
- Punjab National Bank
- Axis Bank, and others.
These establishments offer savings accounts for Non-Resident Indians (NRIs) or Overseas Citizens of India (OCIs). Such accounts allow for the repatriation of income earned in the UK or management of income generated in India, which might interest those looking for a top investment bank in the UK. A respective debit card also enables the holder to use a standard set of services, such as withdrawing cash at ATMs or paying for goods and services.
At first glance, choosing an institution from the list of Indian banks in the UK looks like an opportunity to save much time and effort as an Indian expat in the UK. However, it also comes with certain conditions that one might want to review carefully. For example, SBI charges 3 to 3.5% of the transaction amount plus applicable taxes for international operations, and ICICI applies a fee of INR125 per financial transaction at an overseas ATM. Another requirement is to maintain a certain minimum monthly balance. Say, for ICICI, it is between INR 10,000 and 25,000, depending on the type of account. Otherwise, charges of 2-6% of the shortfall are applied.
In addition to the above, choosing to have an account with one of the Indian banks in the UK might deprive you of some truly useful services available to those with a UK bank card. One great example is access to online international remittance services such as Profee.
Online money transfers from the UK to India
Living and working in the UK, you might still have to financially support your loved ones back in India, which means you need to find a suitable way to send money there. If you hold an account with one of the top banks in the UK, you can do it via bank transfer. However, international bank transfers usually imply:
- various, often hidden charges on both sending and receiving sides
- unfavourable GBP/INR exchange rate
- additional supporting documents and information, such as your recipient’s IBAN, their bank’s address, and so on
- long delivery time.
The best online banks in the UK also offer their clients money transfer services, but the conditions vary. For instance, Revolut users can send money to India, but there are various types of fees applied based on several criteria. Thus, sending £1,000 to a card in India is subject to an astonishing £23 in fees (as of 22 November 2023). In turn, Monzo does not have its own money transfer service but has partnered with Wise. The result is that you can indeed send money internationally in the Monzo app but at a higher fee, which includes a 0.3% ‘Partner fee’ on top of Wise’s usual fixed and variable transfer fees. Starling, reportedly one of the best digital banks in the UK, informs its clients of potential ‘additional (external) fees for your payee to receive the payment’ in addition to its own charges.
In comparison, sending money internationally with a dedicated online provider is faster, easier, and cheaper than even with the best banks in the UK. For example, to use Profee, which is an EU-licensed and fully regulated EMI (Electronic Money Institution), you only need a smartphone and a bank card issued by any UK or European bank. Either on the website (www.profee.com) or in the iOS/Android app, sending your first transfer takes only a couple of taps and the money is delivered almost instantly.
At the same time, the GBP/INR exchange rate offered by Profee is the most competitive thanks to a state-of-the-art market monitoring system, and a special promo rate is applied to the first money transfer from the UK to India. Moreover, contrary to sending money via a bank transfer or with one of the online banks, Profee charges no commission on transfers to India. This beats even the best banks in the UK. In any case, the final amount is always known to the sender in advance because Profee charges no hidden fees.
Another major benefit offered by Profee is its referral programme: if you invite a friend to try the service and they send £100 or more, you are rewarded with £10 cashback.
To sum up, opening a bank account with one of the best banks in the UK is not as difficult as it might look and is definitely worth it. Not only will you be able to avoid unnecessary charges but also gain access to the most modern solutions like Profee, which, in turn, save you much time and money.
