Banking for Postgrad student from the EU (Italy)

flossy_splodge

Does anyone know what is or is not allowed for EU students studying full time at a British Uni? I have a friend who has been told she cannot have a normal student account as she is not a British citizen. Is this right? And what about the incentives our banks offer to our own students? Are they not available either? Foreign students pay a fortune to study over here, why are they treaed as second class citizens? All help welcome.

newfoundglory

I don't think the issue is not being able to have a current account. The problem is the credit facilities which are offered on a "normal" student account (overdraft, cheque guarantee card)... its usually the case you have to be a permanent UK resident for at least three years to get any form of credit (makes sense, banks don't want people borrowing then running off and not paying it back!).

Overseas/foreign students usually have not been here for three years, and so don't qualify for the usual student accounts - and they also have to pass identication requirements set down by the FSA just like everyone else.

Most banks offer a special student account or other account which is suitable for overseas students, which comes with solo/electron debit card, no overdraft etc. Some may also provide chequebook.... dont expect any form of borrowing though!

misskool

If you choose to bank with a major bank that has links with your own 'home' bank, you can get certain exemptions for your very standard very basic account. If you are from Europe, your Maestro/Cirrus card should work here anyways so if you are only here for a one-year course, it shouldn't really be a big deal.

If you are staying for longer, try to link both accounts and you should be able to get some leeway with borrowing. For example, I bank with HSBC both here and in my home country and I managed to get a credit card and a small overdraft (for emergencies).

Talk to the bank nicely, especially if you have been with them for a long time. It's normally a nightmare for foreign students studying in the UK to open bank accounts especially since the new identification rules for money laundering kicked in.

flossy_splodge

Went into a branch of Natwest today and was told if an EU student could prove they had been in the country 6 months they would be willing to open an account for them but no overdraft! Apparently this is Natwest's own requirement as they had a lot of overseas students using the free student overdraft facility and then hot footing it back home! You would have thought in these days there was adequate 'reach' of the law to address this. If not, what is supposed to be the benefit of the Eu? I can't seem to quite figure that one! However, the bank would happily accept them depositing their savings over here..... Another case of wanting to cream off the 'profitable' business but not give back a service?

gizmoleeds

flossy_splodge wrote:

However, the bank would happily accept them depositing their savings over here..... Another case of wanting to cream off the 'profitable' business but not give back a service?

You must remember though - the banks provide free overdrafts (at an initial loss to themselves) to students in the hope of attracting customers who will stick with the bank and become future high earners. Overseas students are much less likely to stay in the UK (many may not even be allowed to) and so the banks have no incentive to provide them free overdrafts like they do to UK students.