Warning: Long Post!
I have heard that it is incredibly difficult to get a bank account in the UK if you are new to the country. I guess this is due to issues of identification and credit history. I personally never had this problem: I was here on a student visa and showed my passport with said visa to obtain a bank account. Granted, this was on the campus of the university I attended, but they had virtually no questions at all. I had what is called a Basic Bank Account, with cheques, and a debit card (the type of which virtually nobody takes!). I did this almost as an afterthought, and boy am I glad that I did, because of what happened later:
By the time I came back again as a student about a year later, my bank had introduced a service for international students. They were only too happy to let me ‘upgrade’ to this service. This involved getting the next step up on the debit card, and keeping the cheques. Ostensibly this was introduced as a great scheme to ‘hook’ the international students who end up staying in this country. But when I came back here to settle permanently, I discovered that I could not just ‘upgrade’ my account, I had to close that account, with no guarantee that my (nonexistent in this country) credit rating would get me approved to have a new account, with the same bank. So on I go with an ‘International Student Service’ account, which seems to work OK, but wasn’t the point supposed to be that I eventually could upgrade the account??
This ties into another issue. One can only get paid for work via cash or direct deposit to a bank account (called BACS) in this country. Cash-in-hand work is considered extremely questionable, because it is associated with not having the right to work or live here (illegal immigrants). So who knows what kind of trouble I’d have gone through to get a bank account, and/or payment for my job, if I hadn’t opened that account whilst a lowly undergrad? Oh, and if you’re wondering, yes, I have the legal right to live and work here.
A couple of other things I’ve noticed that are pretty different here, regarding cheques:
1) you don’t get cancelled cheques back. You also don’t get the ’scan page’ of the cancelled cheques, like a lot of US banks do nowadays. Now, if you are used to getting these your whole life, to prove that someone has taken your money, or as a receipt, that’s a bit irritating.
2) Bank A will not cash cheque written by a person with Bank B. I think perhaps because there are so many independent local banks in the USA, banks seem only too happy to cash checks (yes, note the spelling) from other banks. Here, of course, banks are mostly limited to the ‘Big 4′ (or ‘5′), and their rationale seems to be that Bank A won’t get any revenue from cashing Bank B’s cheque.
3) A photo ID is not good enough to write a cheque to a business here. One has to have a Cheque Guarantee Card (which I do not have with the aforementioned ‘international student account’), and write the number of the card somewhere on the back of the cheque, to write a cheque to a business. I can write cheques for personal transactions, between people, all I want, but not to a business.
I could start on the whole bank charging issue, but as I haven’t encountered this problem personally, I shan’t. Currently it is a hot-button issue in the UK, with many disgruntled customers threatening to sue the banks for unfair charging.