Banking abroad for university

Moving abroad to study means setting up money in a new country, often before you have an address or know how anything works. Plan the banking side early and you avoid weeks of stress and unnecessary fees.

Before you fly

• Requirements vary by bank and country, so check the bank's own website and your university's student money pages.
• Some UK banks will not open an account if you are staying six months or less, and identity checks can cause delays, so start early.
• Starting an online application or booking an appointment before you arrive can speed things up.
• Keep your home account open and working, with your current phone number, so you can still receive security codes.

Documents for a UK student account

• Identity: your passport, plus your visa or eVisa details if applicable.
• Proof of UK address: many universities provide a bank letter showing your term-time address once you have enrolled (matriculated).
• Proof of student status, such as your visa or a certificate of enrolment.
• If you live in private housing, a tenancy agreement or a utility bill may be needed instead.

What kind of account you will get

• International students usually get a basic or everyday account without an overdraft, rather than a student account.
• Some banks let under-18s open accounts without parental permission; others do not, so check if you start university at 17.
• Only use banks regulated by the FCA, which you can check on the Financial Services Register.
• UK deposits are protected by the FSCS up to 120,000 pounds per person, per authorised firm.

The first few weeks

• Your first rent payment may come from your home account, but later payments usually need a UK account.
• International banks without UK branches may charge a fee on every transaction and may not allow direct debits.
• A local account avoids a currency charge every time you withdraw cash.
• Check the ATM screen for fees before confirming any withdrawal.

Exchange rates and transfer fees

• Providers choose their own exchange rate and fees, so the cost of the same transfer can vary a lot.
• The hidden cost is often the margin: the gap between the rate a provider gives you and the market rate.
• Example with made-up rates: sending AED 10,000 when the market rate is 1 AED = 0.2000 pounds would give 2,000 pounds. A provider offering 0.1960 with an AED 25 fee gives (10,000 - 25) x 0.196 = 1,955.10 pounds, so the true cost is 44.90 pounds.
• Compare the total amount the recipient will get, not just the fee. The World Bank's Remittance Prices Worldwide site compares costs by country.
• Check whether the recipient's bank also deducts a fee.

Sending and receiving money safely

• In the UAE, remittances and currency exchange are regulated by the CBUAE, so use a licensed bank or exchange house.
• Use licensed exchange houses only, never informal or unlicensed money changers.
• In the US, providers must show you the total cost and exchange rate before you pay, you can usually cancel within 30 minutes, and you can report errors within 180 days.
• Once money reaches a scammer it is almost impossible to recover, so double-check account details before sending and never send money to someone you have only met online.