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Once you decide to study in the UK, you will probably secure a part time job. The government allows foreign students to work for up to twenty (20) hours per week during term time and as many hours as your employer will allow during holidays. You will however, need to have proof of right to work which may be in the form of a letter drawn up by the college outlining the date (s) for opening and closure of the institution. The UK operates a tight regime when it comes to employment and the system does not take lightly to students who choose to work illegally. It is for this reason among others that the system is designed to ensure that wages and salaries are paid into a UK based account. Some students will arrive with their personal bank account and bank cards from their respective countries. If you are a member of an international bank that exists here in the UK, you will find it easier to open an account here. In any case, you will need a letter from the college to confirm that you are a student in this country. The letter we offer is usually enough to take along with any other required documents such as passport or other forms of identification.
Bringing Money into the UK
Some countries restrict the amount of cash that you can take overseas, please check this before you come over to the UK. It is recommended that you bring a relatively small amount of cash into the UK and arrange for money to be transferred over to the UK after your arrival, to be put into your newly-opened bank account. You will need enough cash to cover your journey to London and any food you need for the first few days here and a small deposit to open a bank account with. This should not be more than about 200 pounds sterling. You could also bring some travellers cheques with you, which is a safer way of carrying money.
Opening a Bank Account
It is not possible to open a bank account until after you have arrived in the UK. However, this is one of the first things that you must do immediately after you have arrived, as this is the safest way to keep your money and pay your accommodation and college fees. First you should decide which bank you would like to open an account in:
- Do they offer any incentives to open an account - many banks give away free gifts to new customers
- Check that international students are eligible for these incentives
- Do they offer an interest-free overdraft?
- Would you be able to get a cash card / cheque book / cheque guarantee card?
- Do they have a special Student Business Officer?
- What is their interest rate?
- How much notice do you have to give to withdraw money?
- Do they offer telephone/internet banking?
Types of account available
Most students find that they keep money in two accounts: a current account and a deposit account.
- Current accounts - are ideal for using on a day-to-day basis for small amounts of money, for purchases like food and clothes etc. You should receive a cheque guarantee card, a cash card and a cheque book from this sort of account. Banks usually offer the most convenient forms of current accounts.
- Deposit accounts - offer a higher rate of interest but you would usually need to give at least two weeks notice to withdraw money. These accounts are best for larger amounts of money and for payment of accommodation and tuition fees, although you must check that the account you are considering offers the option to pay bills by Direct Debit (this is how you will be asked to pay your accommodation fees). Building societies usually offer the best forms of deposit accounts.
Putting money in and taking money out. Putting money in
You simply need to take cash, or cheques, into your bank, complete a paying-in slip and hand it over to the cashier. Cash will be in your account the same day you deposit it at your branch. If you deposit cash in another branch it will take around three working days to clear; cheques normally take five working days to clear. If someone else is paying money into your account they will need to know your:
- Account number
- Sort code
- Name and address of the bank, including post code
Taking money out
Most banks have cash machines enabling you to simply put your card into the machine, type in your details and money will be given, providing it is in your account! You can also go into the bank and request cash from the cashier. For some deposit accounts you may need to fill in a form to request money at least two weeks before you anticipate needing it. The Building Society would then send you a cheque in the post.
Plastic Cards:
There are five main types of plastic card in the UK. These are:
- A cash card - this allows you to draw money from a cash machine.
- A 'switch' card - this allows you to buy from shops, but is not a credit card; the money is drawn out of your account on the day of the purchase. Sometimes called a 'debit' card.
- A 'solo' card - is like a 'switch' card but with some restrictions. The card is offered by some banks but will not be accepted by many smaller shops.
- A cheque guarantee card - (this is often also a cash card) if you pay by cheque this card will guarantee a set amount, usually £50 - £100. If you post a cheque you do not need this card to guarantee a cheque.
- A credit card - such as American Express, Visa, MasterCard. A very expensive way to buy goods as the interest rates are extremely high.
At LCMS we do not recommend any particular bank. We urge you to take care over your finances. The following organisation might well prove of use:
www.citizensadvice.org.uk |
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