Which banks allow you to keep your account as an expat?

If you decide to retire or move abroad, how you manage your money overseas will be an important part of your new life.

But, many banks no longer allow expats to use their UK current or savings account abroad. 

Most recently, Barclays has been writing to expats giving them six months’ notice that their accounts will be closed after it changed its policy in 2021. 

Here, Which? explains what to do if you’re a Barclays customer living overseas and what policies other banks have in place for expats.

Why do expats keep their UK bank account?

Many people living outside of the UK still have financial ties to the country. For instance, thousands of Brits choose to move abroad for retirement, but need an account for their UK state pension to be paid into.

Many expats also have buy-to-let property they're letting out in the UK, and it's often easier to set up payments for things such as landlord insurance and other associated bills from a UK-based bank account that's specifically for expats.

Also, the majority of non-UK accounts often have fees or poor exchange rates for converting pounds into local currency. 

• Find out more: working abroad and tax.

What’s happening to Barclays accounts for expats?

Barclays will no longer offer personal current or saving accounts to customers who have an address registered with them outside of the UK.

This means that customers need to be living in the UK and all their addresses registered with the bank must be UK addresses, except in limited circumstances. 

The bank changed its policy in 2021, and since then it has been writing to customers and giving them a six-month warning. 

Barclays told us that the change only applies to Barclays UK products and services, and doesn't apply to any account, product or service provided by another part of the Barclays Group, such as Barclays International Banking. 

Barclays won't close mortgages or loans of existing Barclays UK customers living outside of the UK.

• Find out more: best banks 2023.

What steps do you need to take?

Barclays told Which? that it is proactively contacting all impacted customers to outline the next steps and any actions they need to take. 

If it needs to close your account, you’ll be given six months' notice where possible. 

To make sure you're not locked out of your finances, you’ll need to follow the instructions you receive. 

If you need extra time, you should contact Barclays as soon as possible. 

The bank told us that in some cases you may be able to keep using your account without a UK address if: 

• You’re a Crown Employee serving overseas
• The address on the account is for someone who manages the account on your behalf
• You're living outside the UK for six months or less, in which case you should inform Barclays when you return so it can update the details

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What about other banks?

We contacted several banks and building societies to find out what their policies are when it comes to living overseas and maintaining an existing UK account. 

First Direct

Any existing UK customers can retain their current account and savings, but no new products can be opened until a UK address is held.

HSBC

The bank offers normal current accounts to UK nationals who live in the EU, depending on their local country regulations. 

Lloyds Group (including Lloyds Bank, Bank of Scotland and Halifax)

The vast majority of existing customers who move overseas can manage their existing bank or savings account online, or by using telephone banking.

New customers who already live overseas could apply for an international bank or savings account through Lloyds Bank International.

Nationwide

The building society allows existing customers to keep their savings and current accounts if they move abroad, subject to some exceptions for residents of the Netherlands and Italy. There may be situations where they will need to be closed, such as to comply with legal and regulatory obligations and guidance. 

It doesn't allow UK nationals living overseas to open new accounts. 

Santander

Any existing UK accounts will remain open for existing customers who relocate overseas for them to carry out basic maintenance, such as changing the address registered. However, customers won't be able to amend the account itself, such as increasing the size of an overdraft or opening a new account. 

Customers who aren't UK residents can open a new account with Santander International. 

Virgin Money

If existing customers move abroad they can retain their Virgin Money account, unless they move to Italy or the Netherlands.

The bank’s products don't extend to international customers. 

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What are your options for banking overseas? 

Here are some options to consider if you’re thinking of moving, or if your existing account is being closed by Barclays. 

Open a local bank account 

You could opt to get a bank account from the country you've moved to, but you’ll need to check if you can receive the payments you were getting into your UK account. 

For example, the state pension can be paid into an overseas bank account, but you’ll need to factor in how currency conversion impacts what you get.

If you're a legal resident in an EU country, you're entitled to open a basic bank account – banks can't refuse your application. 

The drawbacks here are possibly needing a visa or work permit to open the account, and if you earn income in the UK it will be tricky to receive it.

The advantage is that you’ll start to build up a credit history in your new country of residence. 

Expat international accounts 

Several banks offer accounts suited for expats, where you can hold multiple currencies, however, they come with high minimum deposits, which won’t be an option for everyone.

For example, for the Barclays Overseas Account, you’ll need a minimum deposit of £100,000.

Other banks may require a gross income and charge a monthly fee, such as the Lloyds International Current Account, which requires a gross income of £75,000 and charges £7.50 a month. 

Use a money transfer company 

Providers such as Wise offer options if you need to hold multiple currencies.

With Wise you can hold 40 different currencies and can spend them with the Wise Debit card. Plus, you can also send money between the UK and your new home country for a fee, and you get the mid-market exchange rate.

However, Wise is not a bank and therefore doesn't offer services such as overdrafts and your money won't be protected by the Financial Services Compensation Scheme (FSCS).

• Find out more:FSCS: are my savings safe?.