Solution to UK Banks Closing Expat Accounts
Published / Last Updated on 27/11/2020
With the Brexit transition period ending on 31/12/20 and still no deal agreed between the UK and the EU, many UK Banks are now starting to close or give notice of closure of UK bank accounts held by expats.
Many high street bank brands such as Lloyds and Barclays have already issued notices of closure but some are still holding on. The Financial Conduct Authority has also warned banks to be fair to clients when closing accounts.
That said, under EU rules, if you are resident in an EU country, any financial group outside the EU is not allowed to offer services to residents of the EU. Currently, it is allowed as many UK banks, investment companies and financial advisers ‘passport’ services into the EU but without an ongoing trade agreement, this must stop.
Already, many EU nations central banks have ruled that UK banks cannot have accounts held by resident expats. Indeed, some UK banks have already confirmed closure for UK bank accounts for expat residents in places like Germany, Holland, Ireland, Italy, Portugal and Slovakia.
Solutions:
- Appeal to the UK bank to stop closure
- Link your bank account to a UK address
- Open a bank account with a UK bank that will still deal with expats
- Consider offshore banking
- Use online money transfer accounts that offers UK and Foreign banking facilities
There are a number of money transfer accounts that will not only accept applicants from all over the World, including Europe with some accounts available in 50, 60, 80, 100+ countries but also then offer actual bank account number and sort code facilities in £, US $, Canadian $, Auz £, NZ $ and Euros. So you can get paid by a UK pension or investment into your UK account number and likewise simply move that to say your Euro account and transfer it to the bank where you live or even spend on a debit card.
These are available from many providers such as Transferwise, WorldRemit, Revolut, Western Union, Qonto, Azimo, Remitly, PayPal, N26, Ebury, MoneyGram and Payoneer etc.
