Barclays has announced plans to shut down the UK current and savings accounts of British expatriates, a move set to affect thousands of customers. The decision, confirmed on Monday, will potentially leave these customers without access to their savings and pensions. The bank has been issuing a six-month notice to affected customers, urging them to transfer their funds.
This development comes after a review of Barclays' international offerings initiated in 2021. A spokesman for the bank stated that "UK products are designed for customers living in Britain". The bank advised expats to open a global account with Barclays, however, this requires maintaining a balance of £100,000 to avoid a £40 monthly charge.
Barclays' approach mirrors the actions of Lloyds Banking Group (LON:LLOY) in 2021, which informed 13,000 expats living in Europe that their UK-based accounts would be closed as it was no longer permitted to offer services.
Under the latest closures by Barclays, holders of cash ISAs and fixed-rate bonds residing in Estonia, Italy, the Netherlands or Slovakia will have their accounts closed. Similarly, mortgage and loan holders registered outside the UK will not have their accounts closed but will be unable to remortgage at the end of their term. Crown employees and their spouses are exempt from these closures.
The Financial Conduct Authority (FCA) clarified that banks can set their own rules concerning the residency of account holders. However, they must comply with local laws and regulations when serving customers outside the UK. The FCA also stated that it expects banks to treat customers fairly and provide adequate notice if they decide to close an account.
The decision by Barclays is influenced by the expiration of "passports", an arrangement allowing financial services in the UK to trade across the European Economic Area (EEA) due to shared regulatory frameworks. While the UK has legislated for EU banks to continue providing services to customers in Britain, the EU has not reciprocated. This situation has led to UK banks being unable to provide current or savings accounts to retail customers in certain EEA countries, such as the Netherlands.
The closure of accounts is expected to impact "a small percentage" of Barclays' overall customer base. Customers who believe their accounts have been closed unfairly have the right to complain to the Financial Ombudsman Service.
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The decision, confirmed on Monday, will potentially leave these customers without access to their savings and pensions. The bank has been issuing a six-month notice to affected customers, urging them to transfer their funds. This development comes after a review of Barclays' international offerings initiated in 2021.
It may feel as if you're leaving everything familiar behind, but remember that British banks may provide accounts for people living and working abroad.
Can I have an address outside the UK and keep my accounts open? You'll only be able to have an address outside the UK and keep your accounts open if: You're a UK Crown employee, or you're the spouse or civil partner of a UK Crown employee.
Most Barclays current and savings account holders with registered addresses outside of the UK will have their accounts closed. Barclays' UK personal savings and current accounts will, however, remain available to those based in so-called 'Crown Dependencies' (Guernsey, Jersey, and the Isle of Man).
Many British expats have had their UK bank accounts closed recently, as the financial sector continues to adjust to post-Brexit Britain. This could be a major headache for anyone receiving a private pension or investment income.
Many major UK banks also have so-called 'international' or 'expat' accounts, like the HSBC expat bank account. These are designed specifically for non-residents, so they're a great option if you don't have the documents to prove your UK address. In fact, you can even apply for an international account online.
UK Bank Account for Non-Residents – Documents Needed
To open a bank account, you will need identification. As a non-resident, opening a UK bank account will require a passport and drivers' license, but your bank may also request other documents, particularly one that shows your current address.
If you're already registered for telephone banking with Barclays, you can simply call 0345 734 5345¹ to request the closure of your account. If you're outside the UK, the number to call is +44 (0)247 684 2099¹.
Major UK banks like HSBC and Lloyds also cater to US citizens, offering a range of accounts for international clients. Various types of bank accounts are available, including current accounts for daily transactions and savings accounts with interest.
As long as the account you'd like to close is not the last account you hold with us, you can use Online Banking to transfer the balance out and request closure of your Everyday Saver account. For any other type of savings or current account, or if this is your last remaining account, you can't use Online Banking.
Barclays announced that they would be closing thousands of bank accounts belonging to expats. News that was met with universal negativity from customers. The news was broken to the accounts holders after they received letters informing them of the forthcoming closures.
If you have a current or savings account with us that you haven't used for some time, we might need to close it to help protect you from potential fraud, such as identify theft. We'll always try to contact you before we do this.
Barclays stated that the move is part of a global strategy to focus on providing a banking service in a limited number of countries, which don't include Cyprus, Malta or Greece – unless the individual is classed as “high net worth” (i.e. has deposits of over £100,000).
Ideal for expats needing sterling, dollar (US and AU), or euro transactional banking, flexibility across borders, access to FX, savings, and lending services, and digital solutions like internet and mobile banking. Key Details: Minimum Balance: £5,000 (currency equivalent applies).
In fact, if you have an account with an overdraft you don't use, by closing it and reducing your overall credit limit, it could actually work in your favour. There are plenty of other ways to keep your credit score in good standing too.
If the customer's salary drops or they move to a lower-paid job, their account could be closed. Sometimes banks reverse the right to close certain accounts that have been dormant for long periods of time. However, in all these cases, the bank must provide clear and timely information to the customer.
Foreigners can open a traditional bank account in the UK as long as they have proof of the address, which sometimes it's hard to get. Good news is that there are companies like Monzo or Monese which offer UK bank accounts, even without proof of the address.
An HSBC Expat Account gives you control of your finances and flexibility when you're living or working abroad. Based in Jersey, Channel Islands – just a short flight from London, an expat account is available in pounds sterling, as well as euros and US dollars, with savings accounts available in many other currencies.
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