Some Banks Are Closing The UK Accounts of British Expats

A guest blog article from our partner TorFX who specialise in currency transfer

Many British expats have had their bank close their UK accounts recently, as the financial sector continues to adjust to post-Brexit Britain. This could be a major headache for anyone receiving a private pension or investment income.

These actions, not limited to banks but also affecting investment accounts, result from the end of the EU passporting system that allowed UK banks to operate in the EU. Expats affected have options like specific expat bank accounts or transferring investments to non-UK institutions.

Some UK private pension and investment funds have policies that restrict payments to accounts within the UK. This creates challenges for expats who may not have access to a UK bank account due to closures or other reasons. Expats facing such issues might need to explore alternative banking solutions that cater to their specific circumstances, such as international or expat-specific bank accounts that can receive UK pension or investment fund payments.

What’s the solution?

So, if you’re now an EU resident and your UK accounts are at risk of closure, you will need to find a new way to access your money. Fortunately, as a TorFX client you can continue to receive payments, before swiftly and seamlessly sending them to your EU account at excellent exchange rates. We pride ourselves on an unrivalled service, offering our clients personalised guidance and expert support. If you want to know more about sending funds overseas, we’re here to help.

 

A case study on How TorFX has helped expats in this situation:

Challenge

Martin and Emily had been living in Mallorca for ten years and were both full EU residents. Although Emily worked part time, most of their money came from their state and private pensions, as well as payments from an income fund. Everything was running smoothly until the couple received a notification from their UK bank that their account would be closed. While their state pension could be transferred directly to their Spanish account, their private pension and investment income required a UK account. They looked into using one of the newer ‘challenger’ banks. But the couple found that they could only open a British account from within the UK.

Solution

A colleague of Emily’s suggested using TorFX, and the couple got in contact with us. Within minutes they had opened a client account and were discussing their needs with their dedicated Account Manager. TorFX client accounts are based in the UK, meaning they can accept payments by BACS, which is required by many pension and investment companies. Martin and Emily were able to direct their pension and income fund payments straight into their TorFX account. They were then able transfer the funds to their Spanish bank at the tap of a button.

Impact

The couple had understandably been a little anxious about their bank account closure, but TorFX were there to provide guidance and reassurance. Martin and Emily’s new account was up and running within minutes, and they were delighted with the support they received. In addition, they found that their money went much further now that they were using TorFX. We exchanged their Pounds into Euros at a far better rate than their bank had, and we didn’t charge transfer fees. Martin and Emily also received regular market updates from their Account Manager and took advantage of the many services we offer so that they could really get the most out of their currency transfers.

Visit the TorFX website for more information.

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