Finances
On this page:
Money Setting up a bank
account Credit
Unions Sending Money
Home Financial
Difficulties Direct
Debits Tipping
Money
The national currency is the British pound (sterling) (£), with
one hundred pence to each pound. Notes are issued in the value of
£50, £20, £10 and £5, and coins to the value of £2, £1, 50p, 20p,
10p, 5p, 2p, and 1p. Value Added Tax (VAT) is a 17.5% tax which is
payable on most retail purchases. All major credit cards and charge
cards are widely accepted for goods and services. There are no
currency controls and visitors to, or residents of the UK can
freely transfer all currency provided that this does not contravene
the regulations of the country to which the money is being
transferred. Check with your bank at home the best way to transfer
money to the UK to save you bringing significant amounts of cash
with you. Customs Officers may question you if you bring a large
amount of cash with you.
Setting up a bank
account
There are around 20 major commercial banks in the UK, many of
which also have branches overseas. The four largest are Lloyds TSB,
Barclays, NatWest, and HSBC. Other institutions including the Post
Office, various savings banks, and cooperative and building
societies also provide banking services. Most banks provide a range
of additional services and many offer telephone and Internet and
banking facilities.
There are cash machines ("ATMs") located at most banks. If you
intend to keep your existing bank account you may want to check
that you will be able to withdraw cash from UK ATMs. Bank opening
hours are generally from 9:30 to 16:30 on weekdays. They are closed
on public holidays and sometimes at weekends. In order to open an
account, non-UK nationals may be asked to show their passport,
evidence of their UK address and employment details. The British
Bankers' Association have published a leaflet entitled "Opening a
bank account if you are new or returning to the UK" and this is
available at
http://www.bba.org.uk/content/1/c4/39/71/Openingbankaccountleaflet2004.pdf.
You will need to make an informed decision when choosing a bank
and the type of account you wish to open. Charges for both agreed
and unauthorised borrowing can be high, so be sure to be aware of
what fees and interest rates are involved.
Credit
Unions
Credit Unions are local financial co-operatives owned and
controlled by their members. They offer savings and good value
loans, even if you do not have a bank account. You can start saving
with as little as £1. Each Credit Union has a "common bond" which
determines who can join it. The common bond may be for people
living or working in the same area, people working for the same
employer or people who belong to the same association, such as a
church or trade union. As with banks, you will usually need to
produce two forms of identification to open an account. There is
one credit union in Worcestershire, which can be found at:
Sending Money Home
There are several methods of sending money to other countries.
It is not recommended that you send money through the post. There
may be charges for transferring money and you will need to verify
this with the service you decide to use. Your bank may be able to
transfer money for you, the Post Office offers a "Money Gram"
system and there are many commercial companies specialising in the
transferring of funds abroad. Always do your research and if
possible seek personal recommendations.
Financial
Difficulties
If you find yourself in financial difficulties it is important
to prioritise your bills and seek help as soon as possible. In
Worcestershire, the Citizens Advice Bureau provides confidential
help and support, free of charge. There is also an informative
website to help people who are in debt: http://www.adviceguide.org.uk/index/life/debt
Direct
Debits
A Direct Debit is an instruction from a customer to their bank
or building society authorising an organisation to collect varying
amounts from their account, as long as the customer has been given
advance notice of the collection amounts and dates. Many bills can
be paid this way. More information can be found at www.bacs.co.uk/BPSL/directdebit/generalpublic.
Tipping
Tipping in the UK is usual for some services. Most hotels and
some restaurants include a service charge of around 10-12% of the
bill, but if it's not included, this is a guide of how much you
might want to leave as a tip. But remember that you are not obliged
to leave a tip, even if it is included in the bill, so only tip
when you have received good service.
