Money

Banks

The most popular option for newcomers is Monzo. It's a branchless bank operating only through a mobile app (like Tinkoff in Russia). For registration, you only need a phone number and passport (or other ID). You also need a UK address. This is because Monzo accounts can currently only be held by UK residents (however, Monzo plans to expand to the US). App registration is very quick; the card arrives by post in one or two days. Don't try to open a Monzo account while outside the UK!

Generally, you can live without problems using only Monzo, but it may make sense to open an account with one of the large (so-called high-street) banks:

  • Barclays (seems to be the most common choice),
  • Lloyds,
  • HSBC,
  • NatWest,
  • Santander,
  • etc.

Unlike Monzo and other mobile banks, to open an account with a large bank you'll need proof of address (some utility bill you can pay while having a bank account — a catch-22) and work documents. It's worth contacting the bank in advance to ask if a letter from work will suffice. The letter needs to be requested from HR. The letter must include your address, your position, your salary.

Account opening takes some time (5-7 days); you can apply through the app or at a branch (but the nearest appointment may be a month away) if your documents can't be verified in the app.

If your income is £75,000 or more, you can apply for a premier account at Barclays. There aren't really special advantages though. You'll get special offers, discounts, a small cashback, and be offered a personal consultant.

What If Not Monzo?

Temporary alternatives:

  • Starling — roughly the same as Monzo, but also asks for proof of address.
  • Monese. Service created for cases when you can't show proof of address to get a full bank card.
  • Wise. They give a card you can even receive salary on, but it's also not a bank with all associated risks.
  • Revolut. But be careful. There are many stories of false triggers from their suspicious transaction detector, when all funds in the account were simply frozen without explanation. Often (but not always) they can be quickly unfrozen, but it leaves a bad taste.

Note that many alternatives aren't banks. You may have some limitations (can't receive salary, request bank statement, or connect direct debit). Lack of FSCS insurance isn't actually a problem since electronic money regulation in the UK is quite strict.

It's probably better to go straight to one of the large banks, such as Barclays or Lloyds.

How to Break the "Bank Account — Proof of Address" Cycle?

Banks must comply with regulator requirements, so they strictly follow KYC — know your customer. To open a bank account, you almost always need to provide proof of address. Usually, these are utility bills.

On the other hand, to rent housing and put bills in your name, you need a bank account.

Several solutions:

  • Temporarily get a Monzo account. Requirements are less strict there. When you have permanent housing, open a bank account.
  • Ask a friend to add you to a utility bill. Downsides — you need friends, and you'll have to wait for a new bill. Some providers let you immediately download a PDF with the added name; others issue bills irregularly.
  • Provide a letter from work instead of proof of address (it should include: your name, your temporary address, your position, your salary, start date, contract type, and HR contact details), but then you'll need to go to the bank and resolve it individually. One employee managed to open an account at Lloyds with a temporary Airbnb address this way (don't forget to get the host's consent).

How to Deposit Cash into Monzo

Cash can be deposited into Monzo at any PayPoint, but they charge £1 per transaction. If you don't want to spend money and search for a PayPoint, just give cash to someone with a Barclays or other bank card with ATMs, let them deposit it into their account at the nearest branch to the office, and then transfer to you. All UK bank transfers are free.

Money Transfers

PaySend — transfers with low fees (£1 per transfer regardless of amount). Wise — fees are lower compared to better-known money transfer systems. They show in the app how much competitors charge. They also open bank accounts in some countries (which can be very useful) and issue MasterCard. Revolut can be used, but probably shouldn't store large amounts. According to reviews, there are constantly stories where one fine day your account is blocked without warning.
Be careful when transferring. Transfers can't always be made without currency conversion. For example, transfers via Wise to Russia are only possible with conversion to rubles. There are other restrictions too.

Leaving the UK — How to Keep My Account?

You'll probably have to close the account. But large banks have international accounts. Google "{bank name} international." Check conditions carefully since this may only be for UK citizens.

Pension

By default, employees are enrolled in a pension scheme where part of salary goes to a private pension fund. For example, Aviva.

You can receive your pension even if you leave the UK later. Generally, whether you can receive a pension from another country depends on the provider, but they can be changed.

The minimum age to access your pension savings is 55. Theoretically possible earlier, but apparently only in exceptional cases.

You can opt out of the pension program, but it has advantages.

  • Employee contributes 5% of salary, and Snap adds another 5%.
  • The amount set aside for pension isn't taxed. More precisely, it may be taxed when received and depending on withdrawal conditions.

There's a pension calculator on the Aviva website.

Don't forget to register on the Aviva website and get full access to your pension plan. This allows you to:

  • make one-time contributions,
  • manage the funds your savings are invested in,
  • view reports.

Be sure to specify people who will receive the money if you don't live to retirement.

For full functionality, you'll need a Policy Number. It's usually in the paper letter Aviva sends after registration.

How to Cash a Cheque?

If you're sent a cheque, you can cash it either at a bank branch or through the mobile app. In apps like Barclays or Monzo, you can photograph the cheque. After some time, money will appear in your account.

A cheque might be sent by, say, an energy company that overcharged you. So it's not that rare.

How to Find the IBAN for a Barclays Account?

To get an IBAN for a Barclays account, there's a special form on the bank's website.

SWIFT/BIC code: BUKBGB22