More and more British expats are receiving letters telling them that their UK based financial accounts are shortly going to be closed. This article explains the background and various options available if you are faced with an enforced account closure
For many British expats, keeping a UK bank account feels essential, whether it’s to receive pension income, pay a mortgage, manage savings in sterling or simply keep a financial foothold in the UK.
Yet in recent years, thousands of non-residents have discovered that long-standing UK accounts are being restricted or closed altogether.
If you’ve received a closure notice from your bank, you’re far from alone. While the situation can be unsettling, expat-friendly solutions exist and taking action early can protect your access to funds and avoid unnecessary disruption.
The information in this article is provided for general information purposes only and does not constitute financial advice. Banking eligibility varies depending on your country of residence and personal circumstances and the rules are determined by each bank, so are liable to change at any time. Before opening or transferring any account, seek advice from a qualified financial adviser or confirm details directly with the bank.
This article contains links to our trusted partners and if you open an account, we may receive money. This is known as an affiliate link but it does not constitute advice or a recommendation in any way. Affiliate links help keep Experts for Expats free of adverts.
In short: because maintaining some bank accounts below a certain saving threshold are no longer profitable for some banks.
Following Brexit, UK-based financial institutions lost “passporting rights”, meaning they could no longer provide services to EU-based customers under UK regulation.
Maintaining local licences across multiple countries proved too complex and costly for many banks, so they chose to withdraw services for non-resident clients.
Alongside this, global transparency laws such as FATCA and the Common Reporting Standard (CRS) require banks to identify and report account holders’ tax residency. Compliance costs have risen sharply, and some institutions view servicing non-resident customers as higher-risk with limited commercial benefit.
The result is widespread account closures, particularly affecting British citizens living across Europe and other regions once covered by UK banking permissions.
First, don’t panic. Account closures can feel alarming, but they’re rarely immediate and there’s usually enough time to arrange an alternative. Most banks will give at least 30 days’ notice, sometimes longer, which gives you a clear window to act calmly and methodically.
Start by contacting your bank to confirm:
Then begin researching new arrangements. Opening an offshore or international account can take anytime from a few minutes to several weeks, so it’s sensible to begin early rather than rushing at the last minute.
If you already hold savings or income in more than one currency, this can also be an opportunity to review your wider financial setup and choose a solution that better fits your long-term plans as an expat.
Remember: this is a logistical issue, not a reflection on you personally.
UK banks are closing accounts as a result of rising costs triggered by regulatory reasons, not because of any particular problem with individual customers. With preparation and the right support, you’ll be able to move your finances smoothly and maintain uninterrupted access to your funds.
When your UK bank account is being closed, the best alternative depends on how you live, earn, and move money internationally. Most expats end up relying on one or both of the following types of accounts — each serving a distinct purpose.
Multi-currency accounts are built for people who manage income or savings across borders. They allow you to hold, send and receive several currencies, typically GBP, EUR and USD, within one account.
They’re particularly useful if you:
Banks such as HSBC and Standard Bank offer dedicated multi-currency and offshore accounts designed for expats. These typically come with secure global transfers, regulated deposit protection and, in many cases, a relationship manager who can advise on cross-border needs. They suit those managing larger balances or ongoing international income.
Currency transfer accounts are provided by specialist foreign-exchange firms rather than traditional banks. They’re not designed for everyday banking, but for efficiently moving money between countries and currencies, often at better rates than banks can offer.
These providers employ FX specialists who help customers plan and structure transfers, offering tools to lock in exchange rates or schedule conversions over time. While they can’t predict future currency movements, they can help you manage timing and exposure more strategically.
Currency transfer accounts may be suitable if you:
Some providers also issue cards for direct spending abroad, but these accounts generally complement, rather than replace, a regulated bank account. Funds are usually safeguarded under e-money or payment service regulations rather than protected by a traditional deposit guarantee.
For most expats, the optimal setup is a combination:
The balance between the two depends on your country of residence, frequency of transfers, and overall financial objectives. A qualified adviser with cross-border experience can help you select the right mix and ensure your arrangements remain compliant and efficient.
While many high-street banks have withdrawn services from non-residents, some international banks continue to welcome expat customers through their specialist divisions. A couple of banks that we partner with include:
HSBC Expat operates international and expat-focused banking services suitable for people living and working overseas. These accounts are specifically designed to manage multi-currency finances and cross-border income and are typically based in Jersey.
There are two options through HSBC:
These accounts are not available directly through the HSBC Expat website, so you would need to speak to one of their partner managers at expatpartners@hsbc.com if you would like more information.
Alternatively, we can arrange an introduction directly with one of their team for you to have a free discovery call with them: Request your free introduction >
Standard Bank offers offshore banking for expats through its international divisions, providing secure accounts and investment services for individuals living abroad.
They offer the Optimum Bank Account specifically for expats. Based out of the Isle of Man, this account is available for people with a minimum £5,000 in savings. You can review the account’s full details via their website: Standard Bank Optimum Account.
Both HSBC and Standard Bank are used by many expats seeking continuity, global access and stability when traditional UK banks no longer meet their needs.
These are not the only two banks helping expats, you can review our full list of expat bank account options here: Best Banks for British Expats
If your UK account is being closed or you’re unsure where to move your funds, it’s worth speaking to a cross-border banking specialist.
They can help assess your residency position, explain the pros and cons of offshore and multi-currency accounts, and ensure your new setup is both compliant and cost-efficient.
You can request a free introduction through Experts for Expats.
