Markie

Okay, so I'm not really "moving back" as I have never lived in the UK except for summers as a kid, but still, same idea...

What do I need to do to get a British bank account? I think I have the rest figured out paperwork wise (where to get NI number, etc) but opening a bank account seems to be a darn near impossible task when one first moves to the UK. So I have a few questions:

1. What bank is best overall for someone new to the UK?

2. What banks do not ask you to declare non-British citizenship (would like to not disclose my US citizenship, if possible)?

3. What banks, on the same note, will not refuse an account for someone with US citizenship (my understanding is that most banks ask and then refuse you an account if they find out you have US citizenship)?

4. Are there any banks other than HSBC (no HSBC where I live in the States) that actual prevent all this hassle and just let you open an account in the US and transfer it to the UK?

5. Anything else I need to know? I know for credit it's easy, just call American Express and done.

Editha

Can you explain more about the problem you think you have opening an account in the UK?

I don't see why you think having American citizenship is a problem or why you want to hide it. Do you also have British citizenship? If so, why do you think there is a problem?

Orangepants

Why are you reticent to declare your US citizenship? Because of FATCA? I believe that all countries that have signed a FATCA type IGA with the US will ask on their account opening documentation to disclose all citizenships. They should have amended their documents by now as FATCA becomes active July 1 for new accounts. All financial institutions have to adhere to the regs so all should ask about your citizenships.

I don't believe there are any retail banks which have a presence in both countries for individuals except HSBC.

To open an account you need proof of identity and an address.

Markie

My understanding is that, because of FATCA, the vast majority of banks in the world will no longer do business with American citizens, even if they have local citizenship. I have British citizenship, my fear is that I'll be denied a bank account everywhere I go in the UK because of having American citizenship.

To the best of my knowledge, only HSBC has no problem with American citizenship and then, only if you had an account with them in the States before you moved.

SanDiegogirl

Try Citibank in the UK - as a US bank they won't have any issues with your US citizenship.

I think having a bank account is the least of your worries - what about investments in the UK which will need to be declared?; and you know you have to do US tax returns don't you?

Markie

I'm a university student, I don't really have any meaningful worries about investments. There are none. I have a couple thousand dollars to my name each semester before then paying it in tuition. I'm planning to move the day I graduate (well, within a week) May 2015.

As for tax returns, yes, sadly I do. It's utterly ridiculous, I have no desire to stay in America, and I doubt I'll ever have a desire to return. Yet, I'm enslaved to a lifetime of spending many hours a year filing tax returns... it's insane.

Orangepants

Yes I heard that and that will be true of smaller financial institutions who don't have the capability to deal with the b*** and in turn, want to streamline their reporting. I believe at the moment there are major concerns in the banking community as the deadline approaches and no-one is ready. Hence this flashing red light - No USCs.
In the last few months the OECD have proposed global sharing of information so what was just an agreement with the US (FATCA) will now be rolled out as agreements with all the G20 countries. So banks will be forced to introduce the technology and reporting capability. This doesn't help you now I know in the short term but I am sure the major UK banks are not going to turn away business.

Markie

Do you think it'll help me by May 2015 when I plan to move?

Renouncing US citizenship is not an option as I have family in the States that I'll be leaving behind and want to be able to come visit.

theOAP

At the current time it appears all UK banks and building societies are accepting US citizens. There are some FI's who will not accept US citizens for investment accounts. This may be more to do with SEC regulations, and not FATCA.

At the moment, no one knows what may transpire prior to the start of the official FATCA reporting date of 1 July. Circumstances may change. In Switzerland, banks have been giving as little as 4 weeks notice.

Additionally, it is also unknown what paperwork the banks may require. Again, in Switzerland, banks are asking for the completion of a W-9, a signed statement releasing the bank from protecting the account holders privacy/data rights, and verification that an FBAR has been submitted. Again, this is in Switzerland where the IGA is a model 2 (the banks report directly to the IRS). The UK signed a Model 1, so the requirements of data transfer may be different. It's still too early to tell.

I know of one high street bank, and have heard of two other FFI's, who are already asking about nationality.

Markie

Thank you very much OAP. If it wasn't for not wanting to never be able to see my family again, I'd try my best to get hired with the British government to lose my US citizenship and not have to worry about this stuff.

Snap Shot

Unrelated to banking, however.

You will not be able to get car insurance as an American citizen in Britain. I don't know why. I don't write the insurance laws.

You will have to get car insurance from your American Car Insurance company to be insured to drive a car that you own in Britain.

JAJ

Really? If you're going to make a statement like that as fact, a reference would be appreciated.

JAJ

The experience in Switzerland is not typical of other countries that have signed FATCA agreements. In Switzerland, there's firstly perhaps a cultural tendency to apply rules and regulations quite literally, and secondly many of the Swiss banks have already been targeted by the U.S. authorities for their role in facilitating U.S. tax evasion. Also, the Swiss agreement on FATCA is Model 2, which means that banks have to report directly to the IRS, which is much more difficult to do than report to local tax authorities.

In the U.K., banks already report to HMRC and anything additional for FATCA purposes is not going to be significant. U.K. banks have known about FATCA for a few years, and the U.K. was one of the first to sign a FATCA agreement with the United States. Although banks have changed their terms and conditions to allow reporting to foreign tax authorities, there is no sign that they are refusing to deal with U.S. citizens. It may be a minority view, but perhaps if U.K. banks were going to start refusing to deal with locally resident U.S. citizens, they would have done so before now.

Jerseygirl

The OP is British as well as American.

Snap Shot

When I worked in Britain there were Americans in the office who could not get car insurance because they were American citizens. They had to put up with the frustration and expense of getting car insurance from their American car insurance companies to drive the car/s they had purchased in Britain.

That's how I know.