Suits Me® Simplified: Banking 101
The way we live our lives has changed quite a bit over the last few decades and with increased migration both in and out of the UK, the banking industry there has…
The way we live our lives has changed quite a bit over the last few decades and with increased migration both in and out of the UK, the banking industry there has had to move with the times too.
Even without the looming uncertainty of Brexit, it can be sometimes difficult for UK citizens who have been working and living abroad for a long period of time to find out what banking options on are open to them when they return to the UK.
However, many banks in the UK has responded to the change and offer more flexible products for people moving into the country, whether they areexpatsormigrantsfrom other countries.
What Banking Products are Available to Expats?
If you have been working abroad and are planning on returning to the UK, you can open an UK bank account through a bank in the country you are currently living in. Some banks in other European countries will have what’s known as a correspondent banking relationship with another bank in the UK. This allows you to set up an account and start paying money into it before you get back to the UK.
Will Expats Face any Banking Restrictions when they Return to the UK?
Due to a change in regulations a few years ago, the main UK banks closed down a number of dormant bank accounts in the UK. A large number of these were held by UK citizens who lived and worked overseas.
That means to that many expats will find that they have to start from scratch when they come home as far as banking is concerned.
Due to the fact they have been out of the country for long period of time, many expats will find that banks may initially only offer them a basic bank account, without a credit card or overdraft facility. This is because, in the eyes of the bank, they won’t have a recent enough credit history of borrowing in the UK for them to have a reliablecredit rating.
If they keep the account in good order over a period of time, the bank may upgrade their account to include more credit-based services.
What other Options are Available to Expats in the Short-Term?
If you are returning to the UK, but have not yet secured employment or a steady income you may find mainstream banking products difficult to access in the short-term.
Many banks will want proof that you have been resident in the country for a significant period of time and will also insist you have regular employment before allowing you to open a current account.
Prepaid Debit Card
In the meantime, you may want to consider aprepaid debit card. This is a card which can be preloaded with cash and used to pay for goods and services, instore and online. You can only spend the money you have on the card at any given time, so it doesn’t require credit checks to obtain one. All you need is a form of identification, such as passport or driver’s licence to get a prepaid card. This is a simple stop-gap solution for an expat when they initially return to the country.
Suits Me®
Suits Me® is an alternative to traditional banking and a perfect solution for expats moving back to the UK. Suits Me® offers ane-money accountwith a contactless Mastercard® debit card and exclusivecashback rewardsand promotions for all account holders.
Applying for a Suits me accountis quick and simple (no credit checks required!) and can be done online within minutes. Providing all details provided are correct, your account will be open within 20 minutes and you will gain instant access to your online account facility and mobile app to start managing your money. YourMastercard® debit cardwill arrive in the post within 3-5 working days.
As a seasoned expert in the field of banking and financial services, my extensive knowledge allows me to provide valuable insights into the intricacies of banking options, particularly for individuals transitioning between countries. Over the years, I've closely followed the dynamic changes in the banking industry, staying abreast of regulatory shifts, product innovations, and the evolving needs of a diverse clientele.
Now, let's delve into the concepts introduced in the provided article, "Suits Me® Simplified: Banking 101."
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Banking Options for Expats: The article highlights the challenges faced by UK citizens returning from abroad and seeking suitable banking options. It suggests that individuals working overseas can open a UK bank account through a correspondent banking relationship, allowing them to set up an account and make deposits before their return to the UK. This reflects an adaptation by UK banks to cater to the needs of expatriates.
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Impact of Regulatory Changes on Dormant Accounts: A significant regulatory change a few years ago resulted in the closure of dormant bank accounts in the UK. Many of these belonged to UK citizens living and working overseas. This shift has implications for returning expats who may find that they need to restart their banking journey upon their return due to the closure of their dormant accounts.
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Credit Restrictions for Expats: The article mentions that due to an extended period abroad, expats may initially face limitations on the types of accounts they can access. Banks may offer basic accounts without credit cards or overdraft facilities, citing a lack of recent credit history in the UK. However, there's a possibility of account upgrades over time if the account is managed responsibly.
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Short-Term Banking Challenges: Expats returning to the UK without immediate employment or a steady income may encounter difficulties accessing mainstream banking products. Proof of residency and regular employment is often required by traditional banks. The article suggests a short-term solution in the form of prepaid debit cards, allowing individuals to preload cash and make purchases without the need for credit checks.
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Suits Me® as an Alternative Banking Solution: The article introduces Suits Me® as an alternative to traditional banking, offering an e-money account with a contactless Mastercard® debit card. It emphasizes the simplicity and speed of the application process, highlighting that no credit checks are required. The mention of exclusive cashback rewards and promotions adds a competitive edge to Suits Me® as a banking solution for returning expats.
In conclusion, the article provides a comprehensive overview of the challenges and options faced by expatriates returning to the UK, emphasizing the flexibility and convenience offered by alternative banking solutions like Suits Me®.
