Banking and paying in Scotland: the basic bank account, and why your Scottish notes may be refused in England
Nine large British banks, including Bank of Scotland and Royal Bank of Scotland, must give anyone legally resident in the UK a basic bank account: no fees, no overdraft, and a decision within ten working days. In Scotland three banks issue their own banknotes. They are backed just as securely as English ones, but a shop in England does not have to accept them.
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Written and checked by Auke on , against the sources at the bottom. Is something no longer right? Report it below and I'll fix it.
Yes, you can open a bank account in Scotland, even if you have just arrived and have no British history yet. Nine large banks have been designated by the Treasury to offer a basic bank account, a simple current account. Anyone legally resident in the UK who has no account yet can get one:
- without fees for ordinary payments in pounds;
- without an overdraft;
- with a decision within ten working days.
The law adds that people without a fixed address also count as legally resident. And at the till in Scotland you sometimes get notes you never saw in the Netherlands: three Scottish banks issue their own money.
Which banks must give you a basic account?
The nine designated institutions are:
- Barclays UK;
- The Co-operative Bank;
- HSBC UK;
- Lloyds Banking Group, with Halifax and Bank of Scotland;
- Nationwide Building Society;
- NatWest Group, with RBS and Ulster Bank;
- Santander UK;
- TSB;
- Virgin Money UK.
The two big Scottish names, Bank of Scotland and Royal Bank of Scotland, are therefore included, through their parent groups.
| Rule | What it means |
|---|---|
| Who is entitled | anyone legally resident in the UK without an account, or not eligible for the standard account |
| No fixed address | also counts as legally resident |
| Decision period | no later than 10 working days after your completed application |
| Fees | none, for ordinary transactions in pounds |
| Overdraft | not allowed |
| Closure by the bank | at least 90 days' notice, with a specific reason, for contracts from 28 April 2026 |
A bank must refuse if opening the account would be unlawful, for example under the fraud or money laundering rules. That is why your immigration status may come up. Keep your passport and your share code at hand, the code you use to show your eVisa.
Ask for it by name. Say that you want a basic bank account. A bank may also direct you to its standard account if you are eligible for it. If that does not work, the basic account is your right.
When do you move to a standard account?
You do not have to force it. The banks themselves review from time to time whether you can move to a standard current account. They look at the eligibility criteria, your financial circumstances and how you use the account. You can also ask yourself.
How do Scottish banknotes work?
In England and Wales only the Bank of England issues banknotes. In Scotland three banks may do so too:
- Bank of Scotland;
- Clydesdale Bank;
- The Royal Bank of Scotland.
So you see three kinds of Scottish pounds alongside the English ones. They are worth the same. The law requires these banks to set aside assets worth all of their notes in circulation. If one of these banks failed, those assets could be used to repay everyone holding a genuine note. The Bank of England supervises this.
One surprise: Scottish notes are not legal tender anywhere, not even in Scotland. English notes are not legal tender in Scotland either. In Scotland only Royal Mint coins are legal tender. According to the Bank of England, legal tender has a narrow meaning, about paying off debts. In a shop the seller may choose what to accept.
| Note | In Scotland | In England |
|---|---|---|
| Scottish note | in normal circulation; not legal tender | a shop may refuse it; not legal tender |
| English note (Bank of England) | in normal circulation; not legal tender | legal tender |
| Coins (Royal Mint) | legal tender | legal tender |
In practice this means: if you take Scottish notes to England, a shop may refuse them. Paying by card avoids the hassle.
How safe is your money?
The British deposit guarantee, the FSCS, protects £120,000 per person per bank. Note the word bank: institutions that share one banking licence also share that limit. If you want to protect more, spread the money over institutions with their own number with the regulator (the FRN), with no more than £120,000 per institution.
For emigrants one exception is useful. If your account temporarily holds a high balance because of a major life event, such as selling your house, the FSCS protects up to £1.4 million for six months. That gives breathing room if the sale in the Netherlands and the purchase in Scotland do not fall on the same day. See buying a house in Scotland.
And your Dutch account?
You keep it, alongside the British one. You can have your AOW or pension paid in pounds into your British account, but for your Dutch affairs a Dutch account remains useful. Why you never cut that and your DigiD is in keeping your bank account and DigiD.
In Vertrekklaar this is phase 5 of 5 of the journey, step 5.3: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Scotland or go straight to step 5.3 in the open plan.
What this rests on
The facts in this article come from these official pages. Rules change. When in doubt, go by the source, not this article.
- HM Treasury — basic bank accounts, the nine designated banks and the 90-day notice period — gov.uk
- Payment Accounts Regulations 2015, regulation 23 — legally resident, including without a fixed address — legislation.gov.uk
- Payment Accounts Regulations 2015, regulation 24 — open or refuse within ten working days — legislation.gov.uk
- Bank of England — Scottish and Northern Ireland banknotes, the three Scottish issuers and the backing — bankofengland.co.uk
- Bank of England — what legal tender is, and that a shop may choose — bankofengland.co.uk
- FSCS — the £120,000 deposit protection and temporary high balances — fscs.org.uk
- GOV.UK — your eVisa and the share code as proof of your immigration status — gov.uk
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