If you want to know how to open a UK bank account and budget effectively, these tips will help you manage your money with confidence as an international student.

Budgeting for the move

1. Visa fees

Your visa application will be one of the first big expenses. The student visa (formerly Tier 4) currently (2025) costs £524, and you will also need to pay the Immigration Health Surcharge (IHS) which gives you access to the UK's National Health Service (NHS) during your stay. Both of these need to be paid before you travel.

2. Flights and travel

Airfares can vary greatly depending on when you book. It's often cheaper to book your ticket several months in advance.

3. Initial accommodation costs

Whether you choose student halls or private accommodation, you may need to pay a deposit plus your first month's rent upfront. You are required to provide a UK or international guarantor to be able to pay your rent in instalments, which is usually 3 to 7 instalments depending on your accommodation policies.

4. Moving essentials

You might need to buy essentials for your new room, such as bedding, kitchen items, or small appliances. These can add up quickly, so plan for an initial "settling-in" budget. Some student accommodation will provide items such as a mug, cleaning brush, and kettle which can save you some money. When you move into your accommodation, it's essential that you look around and make a quick list of things you need - otherwise, shopping can quickly become overwhelming.

5. Set aside an emergency fund

Unexpected costs can arise - from medical expenses not covered by the NHS to urgent trips home. It's wise to have a small savings buffer you can access quickly.

Visit our money guide for budgeting advice, financial guides, and resources to keep your finances on track while studying in Hallam.

Banking in the UK

One of the first things you should do after arriving in the UK is open a bank account. Having a UK bank account makes it easier to pay rent, receive money from home, and avoid expensive international transaction fees.

1. Why open a UK bank account?

While you might be able to use your existing bank card from your home country, you could face high charges for each transaction and unfavourable exchange rates. A UK bank account will allow you to:

• Pay bills and rent directly in pounds sterling.
• Receive any salary from part-time work.
• Avoid foreign transaction fees.
• Use online banking and contactless payments easily.

2. Types of bank accounts

For students, the two most common options are:

• Student Bank Accounts - Some UK banks offer special student accounts with benefits like free railcards or interest-free overdrafts. Check if these are available to international students, as some offers are only for UK residents.
• Basic Current Accounts - A simple current account allows you to deposit money, withdraw cash, and make payments. These are often easier to open for international students.

3. What documents you will need

Each bank has its own requirements for opening a bank account, but most will ask for:

• Passport.
• Valid UK Visa (if applicable).
• Proof of address in the UK (tenancy agreement, utility bill, or university accommodation letter).
• Proof of student status (a letter from your university confirming your enrolment).

You can find a letter with your UK address in My Student Record - add your bank name and you should be able to download it. If you think you need to change your UK address on the letter, go to the 'My details' page and update your personal details.

4. How to open a bank account

• Research banks and account types before you arrive to see which best suits your needs.
• Book an appointment online or by phone (some banks allow walk-ins, but this can mean longer wait times). Banks like Lloyds allow you to register on their app, so you'll only need to go in-store for verification.
• Bring all required documents in both original and photocopy form.

5. Popular banks for international students

• High street banks: Barclays, HSBC, Lloyds, NatWest, Santander.
• Digital banks: Monzo, Starling, Revolut (app-based, easy set-up, good for budgeting).

If you want more information on banking in the UK, visit the University's Banking for International Students guidance.