NoOfficialComment

What's the approach each of you has used to maintaining bank accounts in the UK? ...if at all.

Did you shift everything over to the US? Did you retain everything untouched in the UK as well? Did you consolidate down to one account left in the UK for trips/emergencies?

I have some rental property here so I'm assuming the reasonable approach will be leaving a single current account (wher ethe mortgages/bills etc are drawn from) here with a functioing balance in it and then closing any others/savings/ISA etc down and moving that to the US?

Whilst I will of course tailor what works for me, could you folks provide any precedent for me please. Any guidance you can offer would be appreciated.

Pulaski

Keep at least one. It is just about, if not absolutely, impossible to open an account in the UK while living in the US (or anywhere overseas).

I moved my registered address to my parents house, others report having supplied a US address that their bank has accepted.

Definitely close your ISA - it will be PITA and loses it tax sheltered status when you become liable for US taxes. Getting rid of any unit/ investment trusts would also greatly simplify your US tax returns, and not least your liability for US CGT.

iceflow

Mr. Clarkson has way more experience in these matters than me, so think very very very carefully before shutting the UK accounts. As he says, it's 99.999% certain you will not be able to open a new UK account if your are no longer resident in teh UK. Check with your bank.

Jerseygirl

We are with the Nat West...left the UK almost 20 years ago...for 17 years they sent correspondence to our US address...now they send it to our Canadian address. Normally UK banks do not mind you being an expat if you already have a UK bank account. The problem lies if you try to open an UK bank account whilst not being a UK resident.

A couple of years ago I was behind a very young couple who were trying to open an account. They were married but lived with parents. They were refused because they couldn't produce a utility /property tax bill in their name. They were too young to be on the electoral roll. Any of these are proof of residency.

durham_lad

When we moved to the USA we rented out our UK house for a few years. We closed all out accounts except our Midland Bank account (checking and a savings account). We gave them our US address, which has changed many times over the years and the bank was taken over by HSBC.

It has been extremely useful to have retained these 2 accounts even after we sold the house in 1993. Next year, after 29 years away, we are moving back to the UK so opening a bank account is one item that we won't have to do.

excpomea

We kept our Barclays account open for about 12 years.
Each month HMG would deposit my various pensions into it then we would either transfer over here or spend in the UK.

Problems arose when I decided to have my pensions deposited direct into the US account.
Barclays act then became a fee paying account as there was no monthly deposit.

We closed it pretty sharpish.
If you have no plans to return or UK financial interest then I see no reason to keep a UK account, unless it's fee free.

Jerseygirl

I think you are about the only person on here who thinks that way. We accrue payments then either use them when we are in the UK or transfer them when exchange rates are in our favour.

Pulaski

Agreed, absolutely.

I don't plan to return to the UK, nor do I have rental property there, but having a UK current account is convenient and I would go out of my way to keep it if only because reopening another would be likely impossible.

I expect eventually I will use it for pension receipts, but for now I use it for minor expenses in thr UK, to fund my Class 2 NI contributions, and to "exchange" currency (my mother makes GBP deposits and I draw USD from my US account, for cash gifts to my daughter, or for spending money when my mother visits.)

celticgrid

Here's a thought...

Anyone moving to the US from the UK should at least think about opening UK bank accounts for their children, if they don't already have them.

It won't be for everyone, but might be useful for those children in years to come.

Just a thought I haven't seen mentioned in various recent threads on UK bank accounts.

The thought comes to mind because both our children have UK accounts, set up with parental control, from before we planned to move.

MsElui

just remember to move money into the accounts periodically or they close them on you. we left most of our various accounts up and running. ive had letters recently telling me that one of my savings accounts has been closed for inactivity. im not bothered because i wasnt using it - but have noted to send quarterly one pound inter bank transfers between my accounts that i do want to keep just in case.

iceflow

Yep...make sure there is some movement on the account and that may strengthen the argument for having two accounts if there is little to no activity on either. We move 5 GBP / month from one to the other by standing order.

Disenchanted

Agreed. I had four accounts with NatWest when I came here in 1985. I never went back to the UK for many years so they all sat dormant. They closed my current account but left the others open.

Several years after they closed the Current account I went back home for a visit and opened a new current account, they were a little reluctant to do so but I insisted because I had previously had one. Also, none of the remaining accounts could do external transfers or direct debit so I needed a current account.

I presently have a DD by HMRC for Class2 NIC's so it keeps my remaining two accounts active, I transfer funds online from savings to current account for the DD payments.

bullettoothtony

I've been in the USA for a year and I was thinking about which accounts I can leave open. I bank with natwest. I have an is a which I will close but I will want to keep a current account open for travel.

Btw - what are class 2 national insurance contributions?! I don't make any such contribution - Have I missed something?

OCKF

Its the NI Contribution that people make to ensure they qualify for State Pension etc. in time to come as far as I am aware. Just Google it if you need more info.

Pulaski

Class 2 NICs are (have been) what you pay towards qualifying for a British state pension if you don't live in the UK (there are also some others who can make Class 2 contributions). I think this is the last year that years can be purchased at the Class 2 rate, in future it will require the more expensive Class 3 contributions. You can also contribute six years in arrears in most cases.

There are certain requirements to contributing, so you need to contact the DWP and speak to them, then "apply" to be allowed to make contritions. When you reach 35 years of contributions you will likely get something around (there are complicating factors such as if you were contracted out of SERPS) the standard UK state pension, of around £150/wk.