Starting from scratch: Banking for someone relocating to the UK

Shivaism

Hello everyone,

I've just relocated to the UK from the US, and need to set up my bank account(s). I used to play a lot of the games I see on the forums here (interest chasing, bonus collecting, etc.), but I imagine there are several differences as well (I'd never heard of an "overdraft," and it seems as if, unlike in the US, I can't take customer service for granted).

So I'd love to get some advice on the best way to go about opening and maintaining a set of bank accounts here to maximize my bonuses and interest rates, given that I'm starting from scratch. Here's a strategy that I came up with from the "Best Bank Accounts" article:

1. Open a Halifax Rewards account and pay my salary into it. Collect the montly $5 bonus. (sorry, no GBP symbol on my keyboard yet)
2. Soon after, switch to Santander's 5% account and collect the $100 switching bonus. Move my salary deposit from Halifax to Santander, and then transfer $1000/month to Halifax to keep the $5 bonus going.
3. Open a Lloyds Vantage account, transfer another $1000/month from Santander (and back out again), and put $7k in it for the interest.
4. Soon after, switch Lloyd's to First Direct (but keep the account open and maintain the balance for the interest) for the bonus.
5. After 6 months, switch from First Direct to somewhere else.

Does that make sense? Am I missing or misunderstanding something?

My salary will be adequate to support the monthly deposit requirements for 4-5 accounts but I figured I'd be able to get away with transfers between accounts instead.

For the switching service, will the accounts I'm switching from have any special requirements? Like, will I need to be paying at least one monthly bill from them?

Thanks in advance for helping me navigate this pretty confusing new banking landscape And stay tuned for similar threads on savings and credit cards

chexum

Shivaism wrote: »

Does that make sense? Am I missing or misunderstanding something?

It's a perfectly fine plan - one problem though is that banks will want to credit check you and as part of account creation, and the US history means squat over here. If you don't have at least 3 years of UK addresses with proof, you'll have a hard time even opening a non-basic account.

Technically, as soon as you enter the country for the purposes of settling, you're resident, but the banks usually don't care and want to prove it. You'll need to depend on the bank manager's confidence in you that you haven't been in the country before doing a runner and/or laying low after a banktruptcy or something similarly shady.

With the first bank, you can usually play the cards with a letter from employer that you're new to the country, but even if the first bank will get you a full account (likely without, or with a nominal overdraft), the next ones will probably only talk to you if you have around ~18 months of good account conduct reported in your credit files.

You're better off though if you're prepared to bring over tens of thousands of savings and/or have a salary that allows you build savings one quickly.

knightfox

I would be surprised if First Direct give you an account without 36 months history.

Shivaism

Ah, I didn't think about that. Well, there goes my plan

I guess I'll just try for one of those accounts, then. I gathered from the above that it's probably best to show up in person at a branch with a letter from my employer with my salary info.

Thanks for the help!

powerone

Shivaism wrote: »

Ah, I didn't think about that. Well, there goes my plan

I guess I'll just try for one of those accounts, then. I gathered from the above that it's probably best to show up in person at a branch with a letter from my employer with my salary info.

Thanks for the help!

You need to go to the branch and talk to them, they would be in a better position to help. otherwise try Cater Allen they might be more aware of people in positions of different circumstances.

Baldur

HSBC provide an account @ £8 per month for people in your position, if all else fails - http://www.hsbc.co.uk/1/2/personal/current-accounts/passport;jsessionid=0000WZXK06LSJFQ7lYPAE8-onpL:14etg662g

knightfox

Baldur wrote: »

HSBC provide an account @ £8 per month for people in your position, if all else fails - http://www.hsbc.co.uk/1/2/personal/current-accounts/passport;jsessionid=0000WZXK06LSJFQ7lYPAE8-onpL:14etg662g

that sounds like an interresting account. Shame i cant get one!

knightfox

the op doesnt say who the bank with in the Us. But if it is / was HSBC then they would be able to help open an account.

Shivaism

I bank with Citibank in the US. Would I have a better shot with them?

I should add that I don't need an overdraft.

chexum

Shivaism wrote: »

I bank with Citibank in the US. Would I have a better shot with them?

I should add that I don't need an overdraft.

There are two kinds of accounts - the basic ones generally don't need as tough proofs of addresses, they are always free and don't offer any overdraft or cheques and sometimes offer only UK only cashcards. All the rest are full accounts (can be free too), even if "at the moment" there are no official overdraft facilities attached to the account - the banks are still prepared to allow (and charge heavily for) an unspecified amount of unauthorised/unarranged overdraft. This is what makes opening a bank account a trust issue. The ID requirements are the same.

The US credit history is not transferable at all, due to data protection rules, as far as I can tell - the only exception being if you have an US issued Amex card, talk to them, they can arrange an UK one to be issued to you. How exactly, I'm not sure, feel free to explain This could kickstart building your credit history. The advantages won't be visible though for 6-12 months, but that's the time when you can have a credit card which you otherwise wouldn't :cool:

knightfox

Shivaism wrote: »

I bank with Citibank in the US. Would I have a better shot with them?

I should add that I don't need an overdraft.

Yes try to talk to citibank. They might be able to help you.