For over 300 years, Scotland has had a long history when it comes to banking. Due to the vast number of banks in Scotland, the need to go for the best is important.
Knowing the best banks in Scotland will help you choose the right bank with the best interest rates, account type, and minimum deposit.
This article highlights the best banks in Scotland with their respective banking systems.
However, Scotland’s banking system is very sophisticated and offers some unique advantages, such as not paying bank fees if you remain on your account credit.
So, you can choose between various types of accounts, depending on the services offered but also on the duration of your stay in the country.
Let’s dive in!
Table of contents
How Many Banks are there in Scotland?
The UK has many banks (over 300), with good interest rates, minimum deposit, and outstanding account types.
According to Wikipedia, 14 banks in Scotland are solving the problem of financial transactions while delivering a delightful banking experience.
Out of these banks in Scotland, they allow three retail banks to print notes for circulation in Scotland: Bank of Scotland, Royal Bank of Scotland, and Clydesdale Bank.
People who read this article, end up reading: Best Investment Banks in Australia In 2023 | Rates, Minimum Deposit. Check it Out!
Can I Open a Bank Account in Scotland?
Yes, you can open a bank account in Scotland even if you just moved to the country newly.
However, opening a bank account can be complicated or expensive depending on your nationality.
If you are an EU / EFTA citizen, you have the right to open a basic account, which allows you to perform basic banking functions.
It’s always recommended for a foreigner to start with opening a basic account.
Let’s show you how to open a basic bank account.
People who read this article, end up reading: 7 Easy Steps On How To Change Banks Without Stress | Full Guide. Check it Out!
How to Open a Basic Bank Account in Scotland
To open a basic account, you don’t need proof of Scottish employment or credit history (which of course you won’t have yet).
The earliest you can open a basic bank account in Scotland, provided you haven’t found a job, is three months.
In general, you will need the following to open a “basic” bank account:
- Proof of identity (valid passport or European identity card)
- Current photo
- Proof of UK address in the form of an electricity bill issued within the last 3 months
After six or twelve months, you can switch to a “current” bank account.
Note: Although you can bring water, gas, or electricity bills, in Scotland telephone or cable bills are not considered proof of identity or address.
How to Open a Current Bank Account in Scotland
If you are a citizen of a third country, you do not have the right to open a basic account, so you must wait at least three months and open a “current” account.
Documentation may vary by bank, but generally, the following is required:
- Proof of identity (valid passport)
- Current photo
- Proof of residence in the UK in the form of an electricity bill issued within the last 3 months
- Details of your current job, income, or savings (including those in your home country)
- A substantial deposit to be made into your new Scottish bank account, the exact amount of which varies from bank to bank
- Pass a credit check
As mentioned above, the deposit required for a third country citizen to open a bank account in Scotland can be large and varies from bank to bank. So thorough market research to stay informed of the differences in rates is very important.
Now, let’s help you compare and contrast different bank offers in Scotland according to your needs.
List of Best Banks in Scotland in 2023 | Rates, Account Types, Min. Deposit
Scotland does not necessarily have thousands of banks, but its existing banks often stand out in their banking system.
So, we conducted research on the banks that have outstanding interest rates, account types, and minimum deposits.
Here are the best banks in Scotland, UK:
#1. Bank of Scotland
Bank of Scotland is dedicated to helping Scottish households, businesses, and communities prosper. The bank presence is efficient in all major towns and cities in Scotland.
They combine outstanding customer and long-term commitment to building deep relationships.
Basically, the Bank of Scotland operates on three different account types; Classic, Platinum, and Youth and Student Accounts.
To open an account, you need a minimum deposit of £1 with a 1.50% AER interest rate on balances between £4,000 and £5,000.
#2. Royal Bank of Scotland
Royal Bank of Scotland was founded in Edinburgh in 1727. Over the years, the bank has paved the way in banking since its establishment.
Royal Bank of Scotland has a history of making life easier for its customers through its fully-fledged internet banking service. The bank is committed to serving communities and putting customers’ interests first.
Royal Bank of Scotland has over three account types with additional account types, namely; Everyday bank accounts, Joint, and Foundation accounts. The additional account type include Reward, Student,
Child & Teen bank account.
In their everyday account type, there is no minimum deposit but you can expect to pay a 3% Gross / 3.04% AER interest rate on balances up to £1,000.
#3. Clydesdale Bank
Clydesdale Bank is one bank in Scotland that stands to help you achieve your ambitions and enjoy the security and confidence that saving can bring you, whether you want to save a little regularly or have a lump sum to invest.
Whether you’re looking for an everyday account with perks, great digital tools, or something else, their accounts are designed to help you control your finances.
Make the most of life by saving for the future. You can sign up for their Basic, Current, and Savings account types.
To open an account with Clydesdale Bank, you must deposit at least £1 to open the account. Also, there is no maximum balance restriction or need to pay in regularly.
Each savings on your current account comes with an exclusive linked Savings Account paying 0.50% AER /Gross (variable) per year on your savings balance, and interest is paid quarterly.
#4. HSBC
HSBC is a bank that will manage your money easily with its current account. You also have a lot to consider with their access to a linked savings account, overdraft, and digital banking.
This bank operates on two major account types; Current and Savings account.
The current account includes Premier, Advance, Bank, Student, and Children’s, while the savings account is a Regular and Fixed Rate Saving account which extends to children too.
To hold an account with them, you need a £1 minimum deposit with a 1.00% AER/gross interest rate, fixed for 12 months.
#5. Lloyds TSB
The Trustee Savings bank (TSB) in Scotland accepts savings deposits from those with moderate means. TSB is the first-ever Pride of Scotland.
It is one of the retail banks with a trusted customer brand and a committed workforce that offers full-service banking to more than five million customers.
TSB operates majorly on current accounts comprising Spend & Save, Cash, Student, Graduate, and Under 19s accounts.
Whether you’re opening your first ever bank account, getting set for college or university, or just looking for an everyday account, it is free (you don’t need a minimum deposit).
However, not all account type gives an interest rate. Expect a 5% AER interest rate from the student account and a 2.5% AER rate from the under 19s account. The rest account type doesn’t have an interest rate.
#6. Barclays
Barclays is always proud to support businesses across Scotland.
This bank operates on two major account types; Current and Savings account.
The current account includes an everyday account comprising Barclays Bank, Premier Current, Basic Current, and Joint Accounts; Student accounts comprising Student addition and Higher Education Accounts; Young people comprising Children’s Bank and Young Person’s Account; and Foreign currency account. While the savings account is a Regular and Fixed Rate savings account that extends to children too.
You need a £1 minimum deposit fee to open an account with Barclays while you stand to enjoy a 0.01% interest rate in their Everyday savings account.
#7. Halifax
Halifax is a division of Bank of Scotland plc. This bank understands that people like you save money for different reasons, hence, they have different account plans.
The Halifax range of bank accounts can offer you simplicity when managing your everyday spending, or a little bit more, with accounts that include a wide range of insurance benefits.
The bank operates on both current and savings accounts. Halifax Current account offers a 0.10% AER interest rate. However, all interest rates for the different account types are variables.
To open an account, you’ll need to provide at least a £5 cash deposit to your account.
Conclusion
The table below clearly summarizes the list of the best banks in Scotland. You can open an account with any of them according to your priority.
| Ranking | Banks in Scotland | Account Types | Interest Rates (AER%) | Min. Deposit |
|---|---|---|---|---|
| #1 | Bank of Scotland | Classic, Platinum, and Student Accounts | 1.50% | £1 |
| #2 | Royal Bank of Scotland | Every day, Joint, Savings, Foundation | 3% Gross / 3.04% | Free |
| #3 | Clydesdale Bank | Basic, Current, and Savings | 0.50% | £1 |
| #4 | HSBC | Current and Savings | 1.00% | £1 |
| #5 | Lloyds TSB | Spend & Save, Cash, Student, Graduate, and Under 19s | 5%/2.5% | Free |
| #6 | Barclays | Current and Savings | 0.01% | £1 |
| #7 | Halifax | Current and Savings | 0.10% | £5 |
References
- expat.com – Banking and finance in Scotland
Recommendation
- Best Banks in Alabama in 2023 | Rates, Account Types, Min. Deposit
- Best Banks in New York in 2023 | Rates, Account Types, Min. Deposit
- How to Separate Bank Accounts for Budgeting in 2023
- Best Banks For Personal Loans In 2023
- Best Investment Banks in Australia in 2023 | Rates, Minimum Deposit
- Best Banks In Maryland In 2023 | Rates, Account Types, Min. Deposit
