As previously highlighted by ExpatMoneyChannel, the confusion over whether or not British expats can keep open a UK bank account is pushing them out of the safety net of the UK's regulatory authority and compensation scheme. We asked expats for their experiences on the worrying trend for UK-based banks to ask expats to close their UK accounts.
There are many practical reasons why a British expat would need to have a UK bank account. These would include the convenience of receiving state or private pensions, particularly if you are an expat in a country which does not have an arrangement with the UK to pay pensions directly overseas, such as Greece and Thailand.
In addition, setting up an international account with a UK bank offshore is out of reach for many expats, with an increasing number of international accounts requiring new customers to have a minimum annual salary of £50,000 or savings of £25,000.
And while this requirement is sometimes waived if you are an existing customer, after a couple of years our survey indicates that even these expats are being asked to stump up the extra cash.
And when it comes to private pensions, not all companies have the facility to make electronic payments overseas which means for expats living in remote locations where post may be a problem, the safest way to receive pension payments is to set up an overseas electronic transfer arrangements via a UK bank account.
Then there are those expats who may eventually return to the UK and who do not wish to cut financial ties. Indeed, an expat may still have property in the UK that is let out or they may have a mortgage to pay, so having a UK bank account to accept such payments is convenient.
Finally, there is the pressing question of whether or not an expat with financial ties in the UK wants to be placed outside the safety net of the UK's regulatory authority and compensation scheme.
So far responses indicate that the problem is not as cut and dried as originally thought. Based on ExpatMoneyChannel research, whether or not an expat can keep open a UK-bank account will very much depend on who you bank you with; how long you have banked with them; whether you retain a UK address and what type of account you have.
What's more, our research shows some banks are taking a lottery-style approach as to whether or not expats can keep their UK bank accounts by applying different rules even to the same customer base.
