If you are studying overseas for a period of time (i.e. over six months) it's probably best to open a UK bank account.  This will save you from expensive withdrawals from your bank account back home (particularly if the exchange rate is fluctuating), and from other problems associated with using travellers’ cheques.

Furthermore, if you take up the opportunity to work while you are studying (international students on courses lasting longer than 6 months can work for 20 hours per week during term time, and full time during holidays), you will need to have some way of depositing the money you earn – especially if you are paid by cheque.

Find out as much as you can before you leave home. Contact your UK universities to find out how you have to pay your fees, so you can make sure you open an account with the right facilities. Then contact your own bank to find out the best ways to transfer your money to the UK and whether your bank has a particular relationship with any UK banks.

However, even if you plan to open a UK bank account, it is still a good idea to keep your bank account at home open for emergency funds. It also means that you don’t have to go through the whole process of opening a bank account when you return from the UK. Make sure your key card has access to Cirrus – then you can use it at most ATMs throughout the world (take note that ATMs in the UK are called Cash Points, and NETS are referred to as Cash Cards).

Monitor your account in the UK carefully and make sure you don’t overdraw – or, if you’ve arranged an overdraft, make sure you don’t go over the amount you agreed with the bank. Problems may arise, for example, if there is a sudden change in the exchange rate, if there are unexpected delays in transferring your money, or if your personal circumstances change (i.e. your accommodation arrangements, marital status etc). In these situations, don’t be tempted to borrow money. Instead, get advice from a reliable source. Start by meeting the student counsellor at your college or university. S/he can tell you what to do about paying your tuition fees, and whether there are any college funds or charitable trusts that might be able to help you. If the problems are caused by changes in foreign exchange, also ask the Singapore High Commission in the UK for advice.

Banking services and accounts

UK banks offer a variety of banking services and accounts. You should decide which of the following services would meet your needs and then visit banks to enquire which services they can provide.:

Some of the services provided by the banks:

Cheque book

Chequebooks are not available for all types of account. Cheques allow you to pay for goods and services without having to use cash. You can also take money out of your account (a withdrawal) using a cheque. When you open your account ask the bank to show you how cheques should be completed as this may differ from your home country.

UK banks normally give customers one cheque book at a time. When you have used most of the cheques the bank will automatically send you a new cheque book. Unlike in some countries, banks in the UK do not send cheques back to the customer once they have been processed, but you will be sent regular statements of the transactions in your account.

Always keep your cheque book in a safe place. If you lose your cheque book, or want to cancel a cheque you have written, contact your bank immediately.

Debit cards

You should ask the bank, before opening an account, whether your account will offer a debit card facility. In all cases your cash point card and debit will be combined. This can be used to pay for goods and services instead of a cheque. Unlike a credit card, the money comes out of your account immediately. Some supermarkets and stores also offer a useful ‘cash back’ facility where you can withdraw up to £50 in cash when you are using your debit card to pay for goods

Direct debits

This is a method of transferring money directly from your bank account to the account of another person or organisation. It is often used for paying regular bills. If you set up a direct debit from your account, you give details of your bank account to an organisation (for example, an electricity company). You also give your permission for the organisation to request money from your bank account on a regular basis.

Standing orders

If you wish to transfer a fixed amount of money directly from your account to the account of another person or organisation, you can set up a standing order. You might instruct your bank to pay your rent to your landlord or landlady, for example, on the first day of the month.

For more information, please refer to 'Financial & legal matters' of 'Studying and Living in the UK 07-08'.