Establishing a strong financial foundation as an international student in the UK is crucial. Managing your daily finances effectively will significantly impact your academic performance and overall study abroad experience.
International students studying in the UK often face unique financial challenges. Clearly, it depends from person to person, such as navigating a new banking system, handling live currency exchange rates, and managing the cost of living in an unfamiliar environment.
Financial Guide for International Students in the UK
The following guide aims to help you set up a solid financial base, ensuring you can focus on your studies and enjoy your time in the UK without financial stress.
- Understanding the UK Banking System as an International Student.
International students studying in the UK can manage their finances more effectively. Let us guide you on saving money and making better transactions for your daily expenses and student accommodation rent without any hassle.
- Types of bank accounts available to international students.
- Current Account – bank accounts for daily money transfers in the UK usually come with debit cards and other banking facilities.
- Savings Account – designed to save your money, comes with an earning interest rate. Flexible for long-term savings.
- Major UK Banks for Students
- HSBC – offers student accounts with facilities like interest-free overdrafts and easy banking.
- Lloyds Bank – offers student bank accounts which provide free TOTUM cards and easy mobile banking.
- Barclays – offers student accounts that include rewards for joining and contactless.
- Nat West – Known for offering students accounts with interest-free overdraft and mobile baking features.
- Santander – Offers the Santander 123 Student Current Account with benefits like a free 16-25 Railcard.
- Opening a Bank Account
- Document required:
- Passport or National ID – documentation requires your original Passport or National ID from your home country as proof of residence.
- Student Visa – Carry your valid UK student visa.
- University Acceptance Letter – you need your university offer letter as proof of being a student of your institution.
- Proof of Address – you need proof of your current accommodation address like an electricity bill or rent agreement.
- Process:
- Compare different banks – you must compare different banks and proceed with the bank requirements.
- Visit the bank or apply online – many banks provide online account opening services, or you can visit the bank and do it manually.
- Submit your documents – you must submit all the necessary documents to create an account.
- Wait for account activation – after following the above steps, you can sit back and wait for your account to activate and start your transactions.
- Choosing the Right Bank Account
When selecting a bank account, you must consider all the necessary factors, like fees, accessibility, wire transfers and other services.
You should sit down and do thorough research on major banks and their offerings for international students, comparing popular student bank accounts to find the ideal bank that perfectly suits your needs.
- Budgeting and Managing Your Finances
Understanding how to budget and manage your finances will help you stay away from future uncertainties. Make a habit of using a banking app and online tools to keep track of your financial planning and savings.
As a student living abroad, always consider opening a savings account to ensure you get enough interest. Set aside some money to be on the safe side in your host country for future uncertainties and emergencies.
- Understanding and Avoiding Hidden Banking Charges
Every bank has hidden fees. However, there are ways to avoid these unnecessary charges and fees, such as choosing the right student account with low interest rates. Banks have a certain limit to charge overdraft fees, so keep a check on it to avoid accidentally crossing the overdraft limit.
It is essential to maintain a budget and track your expenses. To do that, you can try budgeting apps and allocate your different expenses, such as rent, bills, and savings.
- Building and Maintaining Good Credit
A credit score is a numerical representation of your creditworthiness based on your credit history. If you’re new to the UK and don’t have a credit history, consider starting with a secured credit card, where you deposit a certain amount as collateral.
Some banks offer student credit cards with lower credit limits, which are easier to obtain and manage and will help you build credit in your early days as an adult.
Never miss your credit bills, and always pay at least the minimum amount due on your credit card by the due date to avoid late fees and interest charges. Use your credit card for small, manageable purchases and try to keep your balance below 30% of your credit limit.
If you’re unsure about how to build or maintain your credit, consider seeking advice from a financial advisor or your university’s financial services.
Conclusion
It is vital to be proactive when managing your finances abroad as a student. We hope the above-mentioned guide will help you understand things and that your financial management as a new adult will be prosperous. Good luck budgeting, and have an exciting academic journey!
About AmberStudent—Amber Student is one of the leading student accommodation platforms, established in 2016 and serving over 80 million students globally. Amber Student is your one-stop destination for all your housing needs, fully assisted by Amber experts. Download the Amber app from the Google Play or App Store to book an affordable home for your adventure.
Author’s Bio – Bobby Sinha is a storyteller; she enjoys watching Japanese indie movies and knows various ways of using a chopstick. A graduate in business, working as a writer, and someday aspiring to become a Filmmaker proves how versatile she is.
