Best US Dollar Account in the UK: How To Open a Dollar Account in the UK

There are many reasons why you might need a US dollar account while in the United Kingdom. Perhaps you are considering a move from the United States to the United Kingdom. You might be attracted to the stunning countryside, the rich and colourful history, or even the picturesque seaside villages. But many of the key reasons for moving usually involve study and work opportunities and the fact there’s no language barrier to overcome.  

Whatever your reason for settling in the UK, it’s likely that you’ll want to send money back to the States at some point. In which case you will want a bank account that allows you to do just that. In this guide, we take a look at all you need to know about opening a US dollar account in the UK.

Opening a US Dollar Bank Account in the UK

Jarrod Suda

Traditionally, your only option for opening a bank account in the UK was to approach a high street bank. With branches dotted across the country, many people tended to opt for the one that was closest to their home. 

New and Better Alternatives

These days, however, things are a little different and banking has become a lot more competitive. You can still choose to open a USD bank account with a high street bank if you want branch access, but you also have the option of applying online with a digital-only bank instead.

Online USD Accounts in the UK

Also known as “challenger banks” or “neobanks”, these frequently offer lower fees and can be more accessible if you don’t yet have proof of a UK address. However, the caveat is that you’ll need to be prepared to manage all of your banking transactions online or via the provider’s app.

Option 1 — Opening a US Dollar Account With a High Street Bank

The main high street banks you’ll want to explore include Barclays, HSBC, Lloyds, NatWest and Santander. 

To open a dollar account in the UK you’ll need to provide proof of identity such as your passport, as well as proof of address such as a council tax bill, rental contract or utility bill. If you’re yet to arrive in the UK or you only arrived recently, these requirements could make it more difficult to open a US dollar account with a high street bank.

Below we’ve outlined the main accounts available:

Barclays

Multinational universal bank Barclays is one of Britain’s best-known banks. With more than 24 million customers, it operates as two divisions, Barclays UK and Barclays International. It also offers a foreign currency account that can be opened in US dollars (as well as 11 other currencies).

Below we have outlined some of the main features of the account:

• Fee-free transfers from your foreign currency account to a Barclays sterling account in the same name;
• Fee-free SEPA credit transfers made via all payment transfers;
• Fee-free international transfers made via online banking (transfers made via branch or telephone banking cost £25);
• You must have a Barclays sterling current account to be eligible (not including basic accounts);
• Accounts can be opened in branch or by phone.

Transfers into your foreign currency account are free of charge if they are less than £100, but are charged at £6 if they are over £100.

HSBC

One of the largest banking and financial services institutions in the world, HSBC has more than 40 million customers and a network covering 64 countries and territories. As part of its international network it offers a Currency Account that can be opened in 14 major currencies, including US dollars.

Below are the main highlights:

• No charges for any payments made to other HSBC accounts;
• International transfers to other accounts in any currency except EUR cost $6 for online transactions and $14 for branch/telephone transactions;
• Fee-free cash withdrawals in both pounds sterling and USD in the UK;
• Electronic bank transfers into your account won’t be charged;
• Online international payments can be made up to £50,000. International payments in branch are unlimited;
• You must hold an active HSBC current account (excluding the basic account) to be eligible.

Lloyds Bank

One of the oldest and most respected banks in the UK, Lloyds Bank is part of Lloyds Banking Group and offers two international bank accounts via its international arm. These include:

• International Current Account: With three currencies to choose from, including US dollars, the main highlight of the account is its fee-free international payments. The downside is the $10 monthly fee which takes effect after the first three months. You will also need a gross annual income of £50,000 or currency equivalent, or have £25,000 to save with Lloyds Bank international banking services.
• Premier International Current Account: There are no monthly fees with the Premier account. It offers all of the above, plus a dedicated relationship manager and worldwide travel insurance for you and your family. However, eligibility criteria are a little stricter. You will need a deposit of at least £100,000 (or currency equivalent) to save and maintain with Lloyds within six months, or you will need to have a sole annual income of £100,000 and be able to save and maintain a balance of £100,000 within 12 months.

NatWest

With more than 7.5 million customers, National Westminster Bank or NatWest is owned by NatWest Group which also includes Royal Bank of Scotland (RBS). The key features of the NatWest foreign currency account - the International Select account - are outlined below:

• Fee-free international payments; 
• Monthly account fee of £8;
• Ability to manage your account via the mobile banking app or online banking;
• You must open the account with at least £25,000 or pay in a salary of £40,000.

Santander

Leading UK bank Santander has roots in three different financial institutions: Abbey National, Bradford & Bingley and Alliance & Leicester. Today, Santander UK has more than 14.3 million customers, including 6.3 million digital customers.

Santander’s multicurrency account, the Island Gold account, can be held in US dollars, euros or sterling and its key features can be found below:

• No monthly account fee;
• Ability to manage your account online or by telephone banking;
• Fee-free international transfers;
• SWIFT payments via online banking are charged at $40 (rising to $60 for telephone banking);
• Fee-free cash withdrawals (in correct currency).

Option 2 — Opening a US Dollar Account With a Digital Only Bank

An increasing number of challenger banks have opened their virtual doors in the UK over the past few years. Many of these offer low-cost transfer fees, making them a more competitive option if you’re looking to send money home on a regular basis. Additionally, those applying won’t necessarily be required to show proof of address, making them a great option for newcomers or those yet to make the move to the UK.

The downside is that while a number of digital-only banks offer Euro accounts (see more about these accounts here), far fewer currently offer US dollar accounts. In fact, the main contender is Revolut – as explained below.

Revolut

Personal finance app Revolut has over 26 million personal customers and allows you to hold, transfer and spend money in more than 30 currencies, including US dollars. What’s more, you won’t need proof of residence to open an account.

UK Revolut Online Account Pricing

There are four different pricing structures to choose from, and each one offers a different ATM withdrawal allowance. The more you’re prepared to pay, the higher those allowances will be:

• The 'Standard' account has no monthly fee, the 'Plus' account costs £3.99 a month, the 'Premium' account costs £7.99 a month, and the 'Metal' account costs £14.99 a month. The premium tier, 'Ultra', costs £55 per month.
• The 'Standard' account offers up to five free withdrawals or £200 per month, the 'Plus' account offers free ATM withdrawals up to £200 a month, the 'Premium' account offers free withdrawals up to £400 a month, and the 'Metal' account offers fee-free withdrawals up to £800 per month. For withdrawals on all accounts, fair use limits, third-party ATM charges, and weekend surcharges may apply.
• No fees for transferring money to other Revolut users or non-Revolut accounts in the SEPA region.
• For transfers outside the SEPA region, 'Premium' customers are permitted one fee-free international payment per month, and 'Metal' customers have three fee-free monthly international payments. Anything over this is charged at 0.3% of the amount transferred with a minimum fee of £0.30 and a maximum of £5. Fair use limits and weekend surcharges may also apply.

Option 3 — Open a Wise Multi-Currency Account

There is one other option those moving to the UK should consider and that’s a Wise Multi-Currency Account. The main attraction of this account is its ability to hold several different currencies, allowing you to switch between them as you choose and make and receive payments all over the world. You’ll be able to benefit from being paid like a local in the UK, whilst also sending money back to the US at low rates. 

To register for the account, all you’ll need is an email address, or Google, Facebook or Apple account. You’ll need to verify your ID with your passport or government ID card, but proof of address won’t strictly be necessary. You can either supply proof from a standard list of documents, or you can send in a selfie in which you’re holding your ID. It is completely free to open.

Wise US Dollar Account Benefits in the UK

Once your account is up and running, you’ll be able to make the most of the following:

• Hold, exchange and top-up up to 56 currencies;
• Local bank details in the UK, as well as several other countries;
• A multi-currency Mastercard that you can use to pay in foreign currencies with no hidden fees;
• Access to Wise’s international money transfer service from your account balance.

As an example, if you have just moved to the UK from the USA, you’ll be able to:

1. Send dollars from your regular account to your Wise dollar account;
2. Convert all or part of it to British pounds for a low fee (0.42% or $4.62 to convert 1,000 USD to GBP);
3. Pay with your Wise debit card, set up direct debits with UK providers to pay your bills or make local transfers free of charge.