Financial Checklist for Newcomers: How to Settle Financially in the UK

Blog post, 13th May 2025

Financial Checklist for Newcomers: How to Settle Financially in the UK

Moving to a new country brings excitement and challenges, especially when it comes to managing your finances. If you’re relocating to the UK, having a clear financial roadmap can make your transition smoother and less stressful. This comprehensive checklist covers the essential financial steps you’ll need to take when settling in the UK.

Before You Arrive

Research Cost of Living

Understanding how far your money will go is crucial before making the move. UK living costs vary significantly by region, with London being considerably more expensive than other areas.

Research average rent, utilities, groceries, and transportation costs in your specific destination

Use cost comparison tools to compare your current location with your UK destination

Factor in council tax, which varies by property and location

Understand the UK Tax System

The UK has a Pay As You Earn (PAYE) system for income tax and uses tax codes to determine how much tax is deducted from your salary.

Learn about UK tax years (April 6 to April 5)

Familiarise yourself with income tax bands and the personal allowance

Check if you need to complete a Self Assessment tax return

Plan Your Initial Budget

Arriving with sufficient funds to cover your first few months is essential.

Budget for temporary accommodation if needed

Plan for security deposits (typically 5 weeks’ rent)

Include set-up costs for utilities and home essentials

Factor in initial transportation expenses

First Priority: Banking

Opening a UK Bank Account

This should be one of your first priorities upon arrival.

Research traditional and digital banks—traditional banks may require more documentation but offer branch services; digital banks like Monzo, Starling, or Revolut may provide quicker setup

Prepare necessary documentation:
- Passport or ID
- Proof of UK address (utility bill, tenancy agreement)
- Proof of immigration status

If you’re struggling to provide proof of address, some banks offer accounts specifically for international customers

Money Transfer Services

Until your UK bank account is active, you’ll need ways to access your money.

Research international money transfer services with favorable exchange rates (Wise, Revolut, XE)

Consider keeping a bank card from your home country as backup

Essential Setup Steps

National Insurance Number

Your National Insurance (NI) number is crucial for working and paying tax in the UK.

Apply for your NI number as soon as possible

You can start working before receiving your number, but you must have applied

Your employer will use a temporary tax code until your NI number is assigned

Housing and Utilities

When securing accommodation:

Budget for deposit protection schemes

Set up direct debits for rent and utility payments

Shop around for utility providers—comparison sites can help you find the best deals

Healthcare Financial Planning

The National Health Service (NHS) provides free healthcare, but there are financial aspects to consider.

If you’re on a visa, check if you’ve paid the Immigration Health Surcharge

Budget for prescription costs (currently £9.90 per item in England)

Consider dental payment plans, as NHS dental care has charges

Building Your Financial Foundation

Employment and Income

Understanding your employment rights and pay is essential.

Ensure you have the right to work in the UK

Check your employment contract for salary, pension contributions, and benefits

Understand statutory benefits like sick pay and holiday entitlement

If self-employed, research your tax obligations and necessary registrations

Building a Credit History

UK credit history doesn’t transfer from other countries, so you’ll need to build it from scratch.

Consider credit-building products like Loqbox or a secured credit card

Pay bills on time and maintain good financial habits

Use services that report to credit reference agencies

Pension Planning

The UK has automatic enrollment for workplace pensions.

Understand your workplace pension scheme

Check contribution rates from both you and your employer

Consider additional voluntary contributions if appropriate

Research how UK pensions differ from retirement plans in your home country

Protecting Your Finances

Insurance Considerations

Certain types of insurance are essential or legally required in the UK.

Contents insurance for your belongings

Building insurance (if you own property)

Car insurance (mandatory if you own a vehicle)

Life and income protection insurance as needed

Emergency Fund

Building a safety net is crucial when living in a new country.

Aim to save 3-6 months of essential expenses

Keep this money in an easily accessible savings account

Research and compare interest rates for savings accounts

Long-term Financial Planning

Understanding ISAs and Tax-Efficient Saving

Individual Savings Accounts (ISAs) offer tax advantages for UK residents.

Cash ISAs for savings

Stocks and Shares ISAs for investments

Lifetime ISAs for first-time home buyers or retirement

Property Considerations

If you’re planning to stay long-term:

Research Help to Buy schemes for first-time buyers

Understand the UK mortgage market and how residency affects eligibility

Learn about stamp duty and other property taxes

Useful Resources

Citizens Advice Bureau offers free financial guidance

Money Helper (formerly Money Advice Service) provides free money management tools

Your local council website for information on local services and payments

HMRC website for tax information

Financial Conduct Authority’s register to check if financial advisers are legitimate

Final Tips

Keep detailed records of all financial transactions and documents

Stay informed about changes to UK financial regulations that may affect you

Consider seeking advice from financial advisers specialized in expatriate finances

Connect with community groups for newcomers who can share practical advice

By following this checklist, you’ll be well on your way to establishing a solid financial foundation in the UK. Remember that financial systems vary by country, so give yourself time to adjust and learn. With proper planning and information, you can navigate the UK’s financial landscape with confidence.
Download the Hyfa Foundation Pocket Guide to Moving to the UK for more help with housing, healthcare, and employment.

by Stephen Mix

Banking in the UK: A Guide for New Arrivals – How to Open a Bank Account and Understand the System

Blog post, 13th May 2025

Banking in the UK: A Guide for New Arrivals

Introduction

Moving to a new country comes with plenty of admin, and banking is often near the top of the list. Setting up a UK bank account helps you receive wages, pay rent, shop online, and manage your day-to-day spending. But if the system is unfamiliar, knowing where to begin can be tricky.

This guide explains how the UK banking system works, what types of accounts are available, the difference between banks and building societies, and how to open an account as a new arrival.

1. Understanding the UK Banking System

The UK has a well-established banking system with a mix of traditional high street banks, building societies, and digital-only banks. It’s regulated by the Financial Conduct Authority (FCA) to ensure fairness, security, and transparency.

All UK banks and building societies are also covered by the Financial Services Compensation Scheme (FSCS), which protects your money up to £85,000 per person, per institution in case the provider fails.

2. What’s the Difference Between a Bank and a Building Society?

While they offer similar services, the structure of banks and building societies is quite different:

Feature	Banks	Building Societies
Services offered	Full range – accounts, loans, credit	Mainly personal banking and mortgages
Customer focus	May prioritise shareholders	Often more customer- and community-focused
Ownership	Shareholders	Members (account holders)
Profit distribution	Profit goes to shareholders	Profits reinvested or returned to members

Example banks: HSBC, Barclays, NatWest
Example building societies: Nationwide, Yorkshire Building Society

Many building societies are known for better interest rates on savings and a more personal approach, though they may have fewer branches and products.

3. Types of Bank Accounts in the UK

Depending on your needs and immigration status, here are the most common account types available:

Current Account: Standard account for day-to-day use, includes a debit card, direct debits, and online access

Basic Bank Account: A simpler version without an overdraft – easier to open if you have limited ID or credit history

Savings Account: Helps you put money aside with interest – can be opened alongside a current account

Student Account: For those studying in the UK – often comes with perks like railcards or interest-free overdrafts

Digital-only Account: Banks like Monzo, Starling or Revolut operate fully online – fast setup, useful if you don’t have proof of address yet

4. What You Need to Open a UK Bank Account

To open a standard account, you’ll usually be asked for:

Proof of identity: Passport or Biometric Residence Permit (BRP)

Proof of UK address: Utility bill, tenancy agreement, or a letter from your employer/university

National Insurance number: Sometimes requested, especially if you’re working

Tip: If you don’t have a permanent address yet, some digital banks allow verification through their apps using location services or scanned documents.

5. Choosing the Right Provider

Here are a few things to consider when picking a bank or building society:

Ease of account setup – do they offer online signup or require an in-branch visit?

Customer support – do they offer multilingual service or in-app chat?

Fees and charges – some charge for overseas transfers or cash withdrawals

Reputation and reviews – helpful to know how newcomers have been treated

Digital tools – do you want strong budgeting features or a user-friendly app?

6. Can You Open a Bank Account Before You Arrive in the UK?

Most high street banks require you to be in the UK with an address before you open an account. However, digital banks like Monzo and Revolut may allow you to start the process using your phone and passport while you’re still abroad – a useful option for planning ahead.

7. Common Questions from New Arrivals

Can I open an account without a job?
Yes – you don’t need to be employed to open a bank account, but it may affect what type of account or credit options are available to you.

Do I need a UK address?
Usually yes, but some banks and apps offer alternatives like letters from a hostel, university, or employer.

Can I have more than one account?
Yes – many people open a digital account for everyday spending and a traditional one for salary or rent.

8. Hyfa Foundation Tip: Be Clear on Your Rights

If a bank or building society refuses to open an account, they should explain why. You’re entitled to access basic banking services, and there are alternatives if the first provider isn’t a good fit.

Conclusion

Opening a bank account is a vital part of settling into life in the UK. From traditional high street banks and community-focused building societies to fast, flexible app-based options, there’s a solution for every situation.

Knowing what to expect helps you take control of your finances early and avoid unnecessary delays.

Download the Hyfa Foundation Pocket Guide to Moving to the UK for more help with housing, healthcare, and employment.

by Stephen Mix

Navigating the UK Banking System: A Guide for Newcomers to the Country

Moving to a new country is both exciting and challenging. Among the many things you’ll need to figure out, setting up a bank account in the UK is crucial for managing your finances. At Hyfa Foundation, we understand that getting your financial footing in a new place can be intimidating, so we’ve put together this comprehensive guide to help you navigate the UK banking system smoothly.

Why You Need a UK Bank Account

Whether you’re working, studying, or settling into life in the UK, having a local bank account makes things far easier. You’ll need it for:

Receiving Your Wages: Most employers will require a UK bank account to pay your salary.
Paying Bills: Utilities, rent, and other living expenses are easier to manage through a local account.
Making Everyday Purchases: Having a debit card for daily transactions will simplify your life.

Types of Bank Accounts in the UK

Understanding the types of bank accounts available is a good first step. The main types are:

Current Accounts: The most common type, used for day-to-day transactions like receiving wages, paying bills, and shopping. Many current accounts offer features like online banking and contactless payments.
Savings Accounts: Designed to help you save money and earn interest. These are usually secondary to your current account and can be a good option once you’re financially settled.

What You Need to Open a Bank Account

Opening a bank account in the UK requires a few key documents:

Proof of Identity: A passport, biometric residence permit, or EU national ID card.
Proof of Address: This can be a utility bill, tenancy agreement, or a letter from your university or employer.
Visa or Residency Status: Depending on your immigration status, banks may also ask for documents that prove your right to live and work in the UK.

Steps to Open Your First Bank Account

Research Your Options: Compare different banks and their account offerings. Some banks are more immigrant-friendly, offering special packages for newcomers.
Gather Your Documents: Make sure you have all the paperwork required. It’s better to be over-prepared!
Visit the Bank or Apply Online: Many banks allow you to start the application process online, but you may still need to visit a branch in person.
Activate Your Account: Once your account is approved, you’ll receive a debit card and instructions on how to activate your online banking.

Tips for Newcomers Navigating UK Banking

Consider Digital Banks: In addition to traditional banks, there are digital banks like Monzo, Starling, and Revolut that offer easy online account setup, which can be particularly helpful for newcomers.
Know the Fees: Some bank accounts come with maintenance fees or charges for certain transactions. Always read the fine print.
Exchange Rates: If you’re sending money overseas, look for banks or services that offer favorable exchange rates and low transfer fees.

Common Challenges and How to Overcome Them

Proof of Address Issues: If you’re new and don’t have a utility bill yet, ask your landlord or university for a formal letter confirming your address.
Credit History: Without a UK credit history, you might not qualify for some accounts. In this case, start with a basic current account and build your credit score over time.
Language Barriers: Some banks offer support in multiple languages or have resources for non-English speakers. Don’t hesitate to ask for help.

Financial Education and Support

At Hyfa Foundation, we’re committed to promoting financial equality through education. We understand that your financial journey in the UK is just beginning, and we’re here to support you every step of the way. Make use of our Knowledge Hub for more resources on managing your finances and planning for your future.

Final Thoughts

Navigating the UK banking system as an immigrant doesn’t have to be overwhelming. With the right knowledge and preparation, you can set yourself up for financial success and peace of mind. Remember, taking control of your finances is a crucial step towards achieving financial independence.

Resources

Ready to take the next step in your financial journey? Visit our Knowledge Hub for more resources and tips.

Here are some other useful links:
Citizens’ Advice website
Which magazine article – How to open a bank account online
List of UK Banks and Building Societies

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by Stephen Mix