Banking

Establishing a Local Bank Account.  

You’ll need a Great Britain Pound (GBP) bank account right away after you get to the UK.  Nearly all bills require payment via “direct debit” from a GBP checking account (commonly referred to as a “Sterling” account), including the rental deposit for your new home. For many cell phone companies, you will also need to set up a GBP account before you can get an account.  There are three main options for banking: 

a. DoD Community Bank.  

Subsidiary of Bank of America (BoA) with branches at RAF Croughton, RAF Alconbury, and RAF Lakenheath.  You must go to RAFs Croughton, Alconbury, or Lakenheath to set up the account.  Call the BoA Community Bank branch ahead of time to ensure you have all the required documents to set up your account.  There are no wire fees for transferring money from your current bank account to your DoD Community Bank account – and you are guaranteed the best exchange rate - BUT there is a 2-3% commission.  The drawback is that there are no local branches in the London area.  

b. British Bank Accounts. 

There are five main banks in the UK, including but not limited to: 

1. HSBC - www.hsbc.co.uk  (There have been instances of procuring this account before arriving in the UK)

2. Barclays - www.barclays.co.uk  

3. NatWest - www.natwestoffshore.com 

4. Lloyds TBS - www.lloydstsb.com 

5. Santander - www.santander.co.uk   

c. Digital Bank Accounts. 

There are several web- and app-based companies that offer digital banking options. Some examples are Wise, Revolut, or Monzo. Fees vary by platform, so doing your own research is advised.  Wise is commonly used among individuals and may save money before establishing a UK account. 

Setting up a UK bank account can be problematic, as you must provide proof of residency with a rental agreement or a utility bill.  The Air Force Housing Office at Blenheim Crescent can give more information and assistance to you, which will be covered during your in-brief with them.  

Turning Dollars into Pounds.  

There are three primary currency conversion methods for depositing into your GBP account:

 a. Wire money from your U.S. bank into your UK account.  

If you use Community Bank, you can avoid wire transfer and conversion fees since your U.S. Bank will treat Community Bank as it would any other U.S. Bank.  If you are wiring money to a British bank account, make sure you understand all the rules, fees, exchange rates, and time required to fund your GBP account...don’t wait until the day before your rent is due to wire money to your UK account! You’ll have to do this every pay period to ensure your UK bills are paid. 

b. Setting up an international allotment with the Defense Finance and Accounting Service (DFAS).  

This is the most cost-effective way to deposit money into a British bank account because it lets you avoid international wire transfer fees.  This takes approximately two months to activate, but once complete, you can set and adjust allotments from DFAS to your UK account directly through the MyPay website.  The U.S. Element Admin personnel can assist with the paperwork once you get here. 

c. Online currency conversion services like Wise allow you to exchange your home currency for the home currency of foreign customers. 

In essence, you send them dollars from your US bank account to their US bank account, and they wire you, or the account of your desired recipient, a converted amount in British pounds.  Even though the exchange rate is typically better than a bank rate, these online services generally charge a one-time transfer fee. A small nominal fee is charged for each money transfer when you connect your US bank account, typically around 7 USD per 1000 USD.