Understand the new EU rules on cross-border bank accounts
Residents of France are now able to open accounts with British banks thanks to an EU directive which was transposed into British law last year – however the details of the rules have caused some uncertainty. Here we look at issues readers have raised.
I asked to open a savings account but was refused as I am a French resident – why, if I have the right to one?
The regulations do not require banks to allow residents in other EU countries to open every kind of bank account and they do not apply to every British bank.
The rules require non-discrimination on place of residence for opening a ‘basic account’. This is defined as a sterling denominated ‘payment’ account with simple features – the possibility to pay into and out of it, to pay bills, to make payments with a card and use bank machines, etc.
You should be allowed to make use of online facilities ‘where available’ (eg. if UK-resident holders can do this). ‘Basic’ accounts do not have an authorised overdraft and are not ‘savings’ accounts designed for leaving money in to accrue interest.
The EU directive also did not require all banks in a given EU country to offer the facility, but enough to ensure wide access. In the UK they are: Barclays, Clydesdale and Yorkshire Bank, Co-operative Bank, HSBC, Lloyds Banking Group (including Halifax and Bank of Scotland), Nationwide, Royal Bank of Scotland (including NatWest and Ulster Bank), Santander and TSB.
Must I go to a branch to open one?
You should not face extra discrimination compared to a UK-based customer and the UK’s Money Advice Service says “you can usually apply for a basic account in person, by post, over the phone or online”.
Barclays, Lloyds and RBS confirmed to Connexion that accounts may be opened online. They said ID and proof of address documents may be sent by post (Lloyds say they should be originals, which will be returned; Barclays said they can be copies ‘certified’ by someone such as a lawyer, bank official or consulate employee).
I researched opening a Barclays account before but they only allowed opening an offshore based one, not a UK account
This was perhaps before the regulations came in, on September 18, 2016? Barclays is now one of the banks offering the service.
I have been a Lloyds customer for years. I was refused another new account.
THE new rules relate only to ‘basic’, no-frills accounts. They also allow banks to refuse to open an account for someone who is eligible for one of their other accounts offering fuller services. They may also refuse to open one for someone who already holds an account with another UK bank.
Nationwide refused to add me as a joint holder on my husband’s account
The rules on what banks must do are narrow and do not necessarily include adding you to your husband’s account.
I have had an account for decades in the UK despite not having a UK address – so what has changed?
Many banks allowed expats to retain existing bank accounts, but few previously allowed them to open one if they had no UK address at the time of opening.
Can British residents open an account at a French bank?
It has always been possible to open one with a French address (eg. a holiday home). As for compliance with the directive, it is in theory in place in France and Banque de France recently said compliance was not expected to cause significant problems and some major banks would be designated. It noted however that the EU rules allow banks to require people to show some ‘genuine interest’ as to why they want an account in the country and that people may be refused on grounds such as failing to comply with rules on money laundering (eg. not providing required documentation).
- Note that if you open an account in the UK you must declare this when you make your French tax return.
