Banking in the land of Shakespeare?

Shara's POV:

To bank or not to bank? 

This was one of the first questions I asked myself when I arrived in the UK.  The advantages were being able to write checks, not losing the value of my money due to fluctuating exchange rates and it would be close at hand.  However, it meant that in times of need, such as paying my credit card bill, my parents here in the States would not have had access to my account.  Credit card companies like money. Access was necessary.  It also meant that when I began running out of money, they wouldn't have had as easy of a time transferring much needed emergency funds into my account.  Food is necessary and unfortunately, money is needed for food!

In the end, I decided to to leave my money in my home bank and I added my Mom to the account so she could easily take care of any issues and problems I had.  This choice really had it's plus and minuses.  As mentioned, the biggest plus was having the availability to pay bills however, I lost money much more quickly.  At the beginning of my year there, the exchange rate was $1.50 to 1 British Pound, however, by midway through the year it had changed to about $2 to 1 British Pound.  It doesn't sound like a huge difference, but as you're spending money in the UK, it dwindles much more quickly and by the last two months I was completely out of funds.  I think in hindsight, I would have opened a bank account and transferred some money, but also left a good deal in my home bank.  The money in the UK could be used as spending money and the money at home for bills and hopefully a cushion for my return home. 

Just a note, you don't need to open a bank account to pay for the fees to the University.  These can actually, if you prepare your home bank and the University in advance, be transferred over quite easily. I just contacted the office before I went over to ask how they wanted to work out the payments and then discussed it with my bank.  The bank needs warning or they think your account is being tampered with. They frown on tampering.  When I arrived in England I went to the office to finalize everything and it all worked out just fine.  Also, if you are studying abroad and not going as an international student, you want to check with your own University.  They might prefer you pay them and they send the checks off to the British institution. 

Ultimately research of your bank here, the banks in the UK (such as Barclays, Lloyd's of London, NatWest, HSBC, Royal Bank of Scotland, etc) and your specific needs will help you choose which path to take.  The question I put to you is, which way are you leaning?

-S.

You might also be interested in:

Money Matters - Banking (Lauren's POV)