Best US Dollar Account UK 2023 – How to Open a US Dollar Account in the UK

Choosing the best US dollar account in the UK can help you save a lot of money in currency exchange and international money transfer

Opening a US dollar account in UK can be a great choice if you receive an income from the United States, send money USD abroad often, plan on moving abroad, or travel frequently.

US Dollars are not only the official currency of the US – they’re also commonly accepted in many other countries, and by online sellers worldwide. If you find yourself using dollars a lot, getting a dollar account can help cut costs and make it easier to keep track of your money.

Read on for more about:

• The features and benefits of a dollar account – and how to open a US dollar account in the UK
• The best US dollar account in UK
• The costs you can expect to pay when you open a USD account in UK
• The process and documents usually needed, including a look at an alternative to the high street banks – the multi-currency account from Wise (formerly TransferWise)

Opening a US Dollar Account in the UK?

You can open your FREE USD account in 5 minutes and safely at Wise. Wise Multi-Currency Account lets you hold up to 50+ different currencies, all in one account. When you convert one currency to another. It also gives you local bank details, even for a USD account.

Open a USD Account

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What is a USD Account?

A dollar (USD) account, which might also be called a foreign currency account or multi-currency account, allows you to receive, send and hold money in US dollars instead of British pounds. Accounts might accept only dollars, or let you keep your money in a range of foreign currencies, depending on the specific product you choose.

Read more: How to open a US bank account from abroad(as a non-resident)

Can I Open a US Bank Account from the UK?

It is possible to open a USD account in the UK, although UK residents will find it very difficult to open a dollar account directly with an American bank. Banks in the US typically require account holders to have local social security numbers (SSN), and be a legal US resident.

So if you are wondering how to open a US dollar account in the UK? You can either choose a foreign currency account from one of the large UK banks such as HSBC or Barclays, or opt for an alternative provider of multi-currency accounts such as Wise multi-currency account.

High street banks typically offer foreign currency accounts in major currencies, which let customers hold their money in dollars. However, these accounts might be somewhat more limited than your usual current account, so it’s worth checking out the features before you commit. Some banks offer free US dollar accounts, while some also charge a monthly fee to manage and hold US dollars. There are also dollar denominated savings accounts on offer from some traditional banks.

Before we talk about how to open a US dollar account in the UK, let’s compare all the options to open a USD account in the United Kingdom.

The Best US Dollar Account in the UK in 2023

Account	Monthly fee	Features
Wise multi-currency account	Free personal account One-time fee of 16 GBP for a business account	50+ currencies Send money to 80+ countries USD Bank details
Barclays USD Account	Fee: £0 Int’l transfer cost: 4% – 10% Int’l card payment cost: 2.99%	12 currencies (including USD) 20+ currencies for business accounts
HSBC USD Account	Fee: £0 Int’l transfer cost: 1.5% – 8% Int’l card payment cost: 2.75%	Hold 14 currencies (including USD)
Lloyds USD Account	8 EUR/month	Personal and Business accounts in EUR, GBP, and USD

Wise (Formerly TransferWise)

If you want the benefits of a USD account in the UK, plus a few extra, you might also consider a multi-currency account from Wise (formerly TransferWise). This account can be opened and operated online, and lets you hold your money in over 50 different currencies – including a free US dollar account – all in the same place.

Wise US Dollar Account comes with a local bank details, as well as pounds, euros, New Zealand and Australian dollars, which allow you to receive payments in these currencies fee free. This is especially helpful if you’re a freelancer and receive an income in a foreign currency, or you have a holiday home abroad which you earn rent from.

For day to day spending, you can get a unified Visa debit card linked to your multi-currency account, which you can use in shops and restaurants, or for ATM withdrawals. The Wise debit card is accepted anywhere you see the Visa symbol – in the UK, US or elsewhere – and spending in a currency you hold in the account is fee free. You can also withdraw up to the currency equivalent of £200 a month for free, with a small charge per withdrawal after that.

Wise (formerly TransferWise) is regulated by the Financial Conduct Authority (FCA) in the UK, and uses bank level security to make sure your money is safe – just like a regular bank would. And because Wise is a currency specialist without the overheads of high street banks, you’ll find the costs are typically lower.

With Wise US dollar account, sending money with Wise can be up to eight times cheaper than using your normal bank – perfect if you’re sending money regularly overseas to friends and family, or make international payments to fund your travels.

Barclays USD Account

Barclays USD Account is one of the most popular option because it’s one of the largest bank in the UK. You can manage the foreign currency accounts with the Barclays mobile app – but you can also walk in to the local branch for banking services. 

Barclays USD Account is available for both personal and business customers. The fees to open a personal or business dollar accounts may vary. You must first open a GBP account to get a Barclays USD Account

• Fee: £0 for personal, Business account fees may vary based on company 
• International transfer cost: 4% – 10% (depending on the currency)
• International card payment cost: 2.99%
• Available Currency: Hold USD and 11 other currencies with personal account; business accounts offer 20+ currencies
• Proof of UK residence required: Yes

Lloyds US Dollar Account 

Lloyds offers an international account that come with 3 other currencies – USD, EUR and GBP. The Lloyds US dollar account is available for personal customers and comes with a monthly fee of €8 or £7.5 to access all the 3 currencies including USD. 

Lloyds US Dollar Account offers free money transfer to other USD account, but there are additional charges from correspondent bank fees are applied – that may go up to 20 GBP (generally around 3.5% – 8% of the total transfer amount depending on the currency).

• Monthly fee: €8 or £7.5 for personal account
• International transfer cost: 3.5% – 8% (depending on the currency)
• International card payment cost: 2.99%
• Available Currencies: USD, EUR, and GBP
• Proof of UK residence required: Yes

HSBC USD Account

HSBC is UK’s largest bank by market value that offers multi currency account that allows you to manage and hold 14 currencies for both personal and business customers. It is totally free to open a personal HSBC USD Account, but you may pay some fee on international transfers.

For business customers, there are few different types of HSBC USD account available that includes checking and savings account. However, to be eligible to open an account, you must be over 18 years of age and have an HSBC current account

• Fee: £0
• International transfer cost: 1.5% – 8% (depending on the currency)
• International card payment cost: 2.75%
• Currency available: 14 currencies including USD, EUR and GBP
• Proof of UK residence required: Yes

USD Account Fees in UK

Each dollar account comes with different costs, so it’s important to understand the best US dollar account in UK for your needs, and the fees attached if you want to open a US dollar account.

Even if you choose to open a US dollar account in UK with your regular high street bank, the charges levied on the dollar account will be different to those on your sterling current account. You’ll also find there are different terms and features. It’s common for example, to be able to get a cheque book for your US dollar account in the UK, but to find that setting up a direct debit is impossible.

The fees you will want to consider include the following:

• Monthly maintenance fee – Most of the top banks and providers offer free USD Account  for personal customers
• Costs for sending money in USD within the UK – payments usually cost between £0-£10
• Fees for sending payments to accounts held outside the UK – up to £40 depending on whether you use online, phone or in branch banking
• Recipient fee for incoming payments – £0-£7
• Exchange rate markup – some banks add a markup to the exchange rate used for international payments, which can make them more expensive

To help you find the best US dollar account in the UK, it’s a good idea to look at alternatives to opening a USD account in the UK via high street banks. Here are the costs associated with a Wise multi-currency account, that comes with a local US bank account details (account number and swift code) along with the option to hold 50+ other currencies.

How to Open a US Dollar Account in the UK

The steps you’ll need to take to open a USD bank account in the UK will vary depending on which bank or alternative provider you choose.

It’s common for high street banks to offer dollar accounts only to people who already hold a sterling account with them. You’ll also usually need to be over 18, and a legal UK resident.

You can expect to be asked to provide some documents to your bank to get started, including proof of identity, such as a passport, and a proof of address, like a recent utility bill in your name. Some banks will allow you to open an account online by uploading copies of the documents needed – but others will require you to visit a branch and present original paperwork before you can proceed.

If you’re interested in opening a Wise US dollar account, you’ll be pleased to know that this process is done entirely online. Here’s how to open a US dollar account in the UK with Wise

• Go to the Wise website and click Get Started
• Confirm a few personal details – you may need to upload copies of ID documents to keep your account safe
• Activate your account and choose which currencies you want to use – you can add more later
• Apply for your linked Wise debit card for ATM withdrawals and day to day spending
• Get started – add money to your account, or use your local bank details to receive fee free payments in US, New Zealand and Australian dollars, pounds and euros. You can now send, receive and spend money via your borderless account

Opening a USD account can be a smart move for many people living in the UK. If you work with international companies or clients, and pay or are paid in dollars, this can make life easier and keep your costs down. You might also find a dollar account handy if you travel a lot – but whatever your reasons, doing some research on the options out there is the best way to make sure you’re getting the right fit for your needs.

What Are the Benefits of Opening a USD Account in the UK?

Choosing the best US dollar account in the UK have a great benefits, especially if you travel frequently to the US, receive payments from clients in dollars, or intend to move there in the future. However, even if this is not the case, having money in dollars appeals to many people because the dollar is one of the most commonly accepted currencies around the world, used for day to day needs not just in the US but in plenty of other places too.

Here are a few other reasons you might benefit from holding a dollar account:

• Send and receive payments in dollars easily
• Get a dollar cheque book for making payments in USD
• Use your dollar account for online shopping at sites which trade in USD
• Hold money in dollars and convert to pounds when the rates look good
• Choose an account regulated by the Financial Conduct Authority (FCA), and you can be sure your money is safe

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USD Account FAQs