Money and banking
It's important to organise your finances while you are studying. You will need to open a bank account in the UK to access your cash, and you'll have to work out a budget and learn how to spend your money wisely. Here are some tips:

Banking

If you are planning on staying in the UK for longer than a few months you will need to open a bank account. It is not safe to carry large amounts of cash and travellers' cheques around with you. Opening a bank account in the UK can take up to two or three weeks. If you already have a bank account in your home country ask them whether they have any special relationships with banks in the UK. They may be able to set up an account for you before you even arrive in the UK, and may give you preferential deals. If not, then make sure you have enough travellers' cheques for those two or three weeks that you do not have an account.

Spending money

You will be spending a lot of money during your stay on tuition fees, accommodation, books and socialising. Ask your university or college how much you are expected to spend and whether you can arrange to pay most of it from your home country first. This way you will not have to carry much money around with you.

When you open your bank account, whether from abroad or in the UK, you will need your passport, a letter of acceptance from your institution and proof of where you live (if you are still living at home when you open your account you can notify the bank of your UK address once you have arrived).

You will be given a bank account number and a sort code (a reference to the bank branch your account is held at). You can write these down but try not to tell too many people what they are.

Banking language in the UK

Here are some terms you will need to know when talking to your UK bank.

Balance: The amount of money in your account.

Bank statement: A record of your account over a given period of time, usually a month. It lists all money deposited, withdrawn or taken out by standing order, as well as any charges or fines the bank has given you. Read your statements carefully and keep them together in a safe place. If there are any mistakes on your statement contact your branch immediately.

Cash card: A plastic card that allows you to take money from your account using a cashpoint machine. When you receive your card you will be given a personal identification number (PIN) to use with it. Your cash card, cheque guarantee card and debit card are usually all combined in to a single card for convenience.

Cheque guarantee card: A plastic card that allows you to write cheques up to the limit printed on it. See cash card.

Credit card: A plastic card that acts like a bank account. You can pay for goods on it or withdraw cash from a cashpoint with it. You can transfer money to it and be in credit but most people use it as a type of loan or overdraft. Interest rates can be very high, especially after an initial trial period, and hidden fees can add up. Try not to get a credit card at all but if you do, always pay off what you have spent and the charges on it every month.

Current account: A common bank account that does not pay interest on savings but allows immediate withdrawal of your money and lets you write cheques.

Debit card: A plastic card that allows you to spend money directly from your account without withdrawing money or writing a cheque. See cash card.

To deposit: To put money into an account.

Deposit account: A savings account that earns you interest on your money but often requires you to give notice if you want to withdraw any money (often a month). You cannot write cheques with this account.

Direct debit and standing order: An automatic regular payment to a particular person or company. This is a good way to ensure your rent and bills are paid on time, but make sure there is enough money in your account to do so or you will be fined.

Interest: Either money paid to you by the bank for the amount of money you have deposited, or the fee charged to you by the bank for loans or an overdraft.

Overdraft/to overdraw: An overdraft is an agreed limit that you may spend of the bank's money when yours is gone. It is best not to rely on this too much and only use it for emergencies, as you have to pay interest on what you spend. To overdraw is to spend more money in your account than you have and without permission. You will be fined for this, sometimes for each £10 you spend over the limit.

PIN: Your PIN or personal identification number is a number that allows you to use your cash card and your debit card. Memorise it, do not write it down and do not tell anyone else what it is, even if someone contacts you claiming to be from the bank.

Student account: An account for students only that provides an interest-free overdraft. Banks will offer a lot of free gifts for you to open a student account with them. Choose one that is quite local and has the best services and interest rates. This will save you time and money in the long-term. However, some banks do not provide student accounts to international students so shop around.

To withdraw: To take money from your account with a cheque or cash card.