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    • Fan Of 2018
    • By Fan Of 2018 11th Apr 19, 7:19 PM
    • 27Posts
    • 7Thanks
    Fan Of 2018
    Bank account studying abroad
    • #1
    • 11th Apr 19, 7:19 PM
    Bank account studying abroad 11th Apr 19 at 7:19 PM
    Hello to all!

    I am currently studying abroad most of the year, and I come back for about 2 months a year. I was thinking about opening a new bank account here, but wasn't sure if I qualify. One of the rules for every bank is that you need to be a resident to open a regular account. I checked the official government tax rules, but they are ridiculously complicated.

    If I am studying abroad, but my parents still live here, I still consider myself as living in their house, and all I have abroad is a dorm room. Am I still considered a UK resident? And are the rules for bank accounts the same as for the tax authorities? It cant be exactly the same, because tax is according to the previous year, but the bank cares about where you live now I assume.

    I found this source for US state laws, but obviously it could be different for residency in the UK.
    Last edited by Fan Of 2018; 11-04-2019 at 7:46 PM.
Page 1
    • PRAISETHESUN
    • By PRAISETHESUN 12th Apr 19, 8:10 AM
    • 837 Posts
    • 426 Thanks
    PRAISETHESUN
    • #2
    • 12th Apr 19, 8:10 AM
    • #2
    • 12th Apr 19, 8:10 AM
    I imagine yours is a very similar situation to domestic students who live away from home but return over the holidays. Most banks are different but pretty much all of them state you need to be at least an EU resident to open a basic account, however most current accounts are reserved for UK residents only.

    Ignore the rules related to tax residency - they are only applicable if you are earning money overseas. What matters most is if the banks will consider you a UK resident at the time you are opening an account. If you have documentation that shows identity and proof of a UK address (eg. bank statements, utility bills, tax bills, etc) then you will technically be able to open an account (providing you pass credit checks, etc), whether or not they will be happy if you later tell them you live overseas is another thing. Some banks are more lenient about this, others not too much (I've heard Barclays is somewhat strict about this)
    • eDicky
    • By eDicky 12th Apr 19, 8:53 AM
    • 4,432 Posts
    • 2,593 Thanks
    eDicky
    • #3
    • 12th Apr 19, 8:53 AM
    • #3
    • 12th Apr 19, 8:53 AM
    I think you can consider yourself a resident of UK at your parents' address, using that and your UK mobile phone number to apply for a Starling Bank or Monzo (or both) account. It's entirely on the phone app, except for delivery of the debit card, which has no fees or exchange rate loading for overseas use (except Monzo's 3% on foreign cash withdrawal in excess of 200/month).
    • Fan Of 2018
    • By Fan Of 2018 12th Apr 19, 9:42 AM
    • 27 Posts
    • 7 Thanks
    Fan Of 2018
    • #4
    • 12th Apr 19, 9:42 AM
    • #4
    • 12th Apr 19, 9:42 AM
    I think you can consider yourself a resident of UK at your parents' address, using that and your UK mobile phone number to apply for a Starling Bank or Monzo (or both) account. It's entirely on the phone app, except for delivery of the debit card, which has no fees or exchange rate loading for overseas use (except Monzo's 3% on foreign cash withdrawal in excess of 200/month).
    Originally posted by eDicky
    I am actually in the UK for a bit of time now, so I don't necessarily need an internet bank. I can apply for to a regular bank, and go into the branch if I need to.

    But I don't want to do it if its against the bank rules. (Feels like stealing to me).
    Last edited by Fan Of 2018; 12-04-2019 at 9:46 AM.
    • ss53
    • By ss53 12th Apr 19, 10:47 AM
    • 87 Posts
    • 67 Thanks
    ss53
    • #5
    • 12th Apr 19, 10:47 AM
    • #5
    • 12th Apr 19, 10:47 AM
    My daughter studied in Rome for a year and just continued to use her UK Santander account. Used Transferwise to pay her rent in EUR. Used Santander cashpoints where possible to minimise fees. Most of her friends did the same. Mainly those who were earning abroad who set up local accounts.
    • eDicky
    • By eDicky 12th Apr 19, 10:56 AM
    • 4,432 Posts
    • 2,593 Thanks
    eDicky
    • #6
    • 12th Apr 19, 10:56 AM
    • #6
    • 12th Apr 19, 10:56 AM
    You can apply to a 'regular' bank if you think there's any advantage, but they might require proof of your address. If you can provide that, as far as they are concerned that's your residence.

    But if you will be using the 'regular' bank account and card while overseas, it's most likely going to cost you in fees and exchange loading. There are exceptions but you don't mention your actual propose, country concerned, or your age.
    • Fan Of 2018
    • By Fan Of 2018 12th Apr 19, 11:16 AM
    • 27 Posts
    • 7 Thanks
    Fan Of 2018
    • #7
    • 12th Apr 19, 11:16 AM
    • #7
    • 12th Apr 19, 11:16 AM
    You can apply to a 'regular' bank if you think there's any advantage, but they might require proof of your address. If you can provide that, as far as they are concerned that's your residence.
    Originally posted by eDicky
    Yes of course, but the question was am I then lying, or is that still considered my address?
    • badger09
    • By badger09 16th Apr 19, 10:18 AM
    • 6,822 Posts
    • 6,411 Thanks
    badger09
    • #8
    • 16th Apr 19, 10:18 AM
    • #8
    • 16th Apr 19, 10:18 AM
    I imagine yours is a very similar situation to domestic students who live away from home but return over the holidays. Most banks are different but pretty much all of them state you need to be at least an EU resident to open a basic account, however most current accounts are reserved for UK residents only.

    Ignore the rules related to tax residency - they are only applicable if you are earning money overseas. What matters most is if the banks will consider you a UK resident at the time you are opening an account. If you have documentation that shows identity and proof of a UK address (eg. bank statements, utility bills, tax bills, etc) then you will technically be able to open an account (providing you pass credit checks, etc), whether or not they will be happy if you later tell them you live overseas is another thing. Some banks are more lenient about this, others not too much (I've heard Barclays is somewhat strict about this)
    Originally posted by PRAISETHESUN
    I have to disagree with your interpretation. When UK banks refer to 'UK Resident', they mean 'UK Resident for tax purposes'

    random example:
    https://www.santander.co.uk/personal/current-accounts/everyday-current-account/apply-for-an-everyday-current-account

    However, from the info OP has provided, he/she would almost certainly be classified as UK resident for tax purposes.
    • Fan Of 2018
    • By Fan Of 2018 16th Apr 19, 10:33 AM
    • 27 Posts
    • 7 Thanks
    Fan Of 2018
    • #9
    • 16th Apr 19, 10:33 AM
    • #9
    • 16th Apr 19, 10:33 AM
    However, from the info OP has provided, he/she would almost certainly be classified as UK resident for tax purposes.
    Originally posted by badger09
    Can I ask what do you base that on? As far as I could make out from the rules, the only reason I would be a resident is if my parents home would be considered my home. But I couldn't find any place where my circumstances are talked about.
    • badger09
    • By badger09 16th Apr 19, 3:35 PM
    • 6,822 Posts
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    badger09
    Can I ask what do you base that on? As far as I could make out from the rules, the only reason I would be a resident is if my parents home would be considered my home. But I couldn't find any place where my circumstances are talked about.
    Originally posted by Fan Of 2018
    I based my comment on my interpretation of your first post. You mention your parents still live here and you still consider yourself as living in their house. My assumption was that all 3 of you are (normally) permanently resident in UK and, if you weren't temporarily studying abroad for part of the year, you would be living and working in the UK. If those assumptions are wrong, please explain.
    • Fan Of 2018
    • By Fan Of 2018 16th Apr 19, 3:40 PM
    • 27 Posts
    • 7 Thanks
    Fan Of 2018
    I based my comment on my interpretation of your first post. You mention your parents still live here and you still consider yourself as living in their house. My assumption was that all 3 of you are (normally) permanently resident in UK and, if you weren't temporarily studying abroad for part of the year, you would be living and working in the UK. If those assumptions are wrong, please explain.
    Originally posted by badger09
    Your assumptions are 100% right. However, I'm not sure why your convinced that I am considered a UK resident. I have been studying abroad for over 3 years now. I am abroad most of the year, being in the UK for less than 90 days a year.

    Even though I still consider myself as living in the UK, the question is what is my legal status. Do you have any knowledge in this area, or are you just telling me your gut feelings?
    • badger09
    • By badger09 16th Apr 19, 4:26 PM
    • 6,822 Posts
    • 6,411 Thanks
    badger09
    Your assumptions are 100% right. However, I'm not sure why your convinced that I am considered a UK resident. I have been studying abroad for over 3 years now. I am abroad most of the year, being in the UK for less than 90 days a year.

    Even though I still consider myself as living in the UK, the question is what is my legal status. Do you have any knowledge in this area, or are you just telling me your gut feelings?
    Originally posted by Fan Of 2018
    Retired Senior Tax Inspector
    CAVEAT this was not my speciality and I've been retired almost 13 years

    This is the easiest to read basic guide I could find. Unless something in your circumstances means you are not UK resident for tax purposes, then you are

    https://www.taxguideforstudents.org.uk/going-abroad/residence
    • jonnygee2
    • By jonnygee2 16th Apr 19, 6:55 PM
    • 1,153 Posts
    • 1,151 Thanks
    jonnygee2
    Your tax status isn't actually relevant to opening most accounts. What banks need, for compliance purposes, is a UK residential address.

    You may also be asked to confirm that the UK is your 'normal country of residence'. If your permanent base is in the UK and you intend to return after your studies, it is fair to say that your normal residence is the UK.

    Realistically, if you have a British passport an established address in the UK you can easily open an account.
    • Fan Of 2018
    • By Fan Of 2018 17th Apr 19, 9:53 AM
    • 27 Posts
    • 7 Thanks
    Fan Of 2018
    Retired Senior Tax Inspector
    CAVEAT this was not my speciality and I've been retired almost 13 years

    This is the easiest to read basic guide I could find. Unless something in your circumstances means you are not UK resident for tax purposes, then you are

    https://www.taxguideforstudents.org.uk/going-abroad/residence
    Originally posted by badger09
    I read the guide you linked to. It does say that I should be a UK resident because of sufficient ties. But when I checked the government guidelines for sufficient ties, it says I need 3, and as far as I can see I only have one (accommodation). Or did I misunderstand which residency test they were referring to?

    And I was born abroad, but have lived here from less than a year old. My parents were UK citizens abroad for a few years. Does this make any difference?

    Thanks for your help badger09!
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