American Banks in the UK

Tommy Buckley

28.05.23

4 minute read

There are an increasing number of American banks in the UK. This is largely due to the market’s requirements for easy access to the American Dollar (USD). The American Dollar is still the most widely traded currency in the world¹, and with the United Kingdom’s long and well established economic and financial ties with the US, it is only reasonable to expect a large number of American financial institutions operating in the United Kingdom’s wealthy market to give access to consumers and institutions alike wanting to trade in the US Dollar.

There is also an increasing number of digital nomads looking to base themselves out of Europe, namely the United Kingdom. With this increase in international labor, the demand for banking in American Dollars also increases within the UK. As many digital nomads are paid in a foreign currency, it makes sense to maintain an account in the currency of pay, as such, with an increasing number of digital nomads paid in US Dollars in the UK, the demand for American banks has been on the rise.

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Not only do individuals paid in US Dollars have to spend in Pound Sterling within the UK forcing them to convert funds, but also because a lot of the workforce must also repatriate money back to their country of origin. In both these situations, maintaining a US Dollar account can be beneficial to minimize the costs and fees associated with converting and transferring currency.

What is the Difference between an American Bank and a Traditional bank?

In general, there is a large understanding that British and American banks don’t differ vastly in the way they conduct and operate businesses. There are some minor differences in the way American banks operate in the UK, but these differences can be argued as negligible. Most US banking institutions present in the United Kingdom do not provide private banking (for example, simple checking and savings accounts), they operate largely for providing financial services in the asset markets. A lot of times these banks exist in order to gain access into the local market for investing purposes, in this case to grant them access into the UK’s asset markets. While some American banks in the UK do offer regular checking and savings accounts, they differ from traditional banks by sometimes charging transaction fees on debit card usage, and also applying conversion rates to your purchases made in the UK as the bank account maintains deposited funds in US Dollar amounts as opposed to Pound Sterling.

American Banks in The UK

Citibank UK

Citibank Group is an incredibly large banking conglomerate founded and based out of the United States. Citibank maintains interests in the United Kingdom and offers multiple different wealth management solutions to its clientele. Of particular interest to us is Citibank International Personal Bank UK’s Citigold International Citi Debit Card. This debit card is an account in which you can deposit and maintain your funds in a US Dollar account. With the Citi Debit Card, if your Citibank branch is the Citibank N.A. Jersey Branch and you have chosen to have your funds kept in GBP and you make a purchase in the UK, the amount will first be converted into GBP, and then a 2.00% transaction fee is applied. The debit card also allows you to make contactless payments for up to £100 GBP².

Morgan Stanley Bank International

Morgan Stanley Bank International is another American bank that has been present in the United Kingdom since 1977. Morgan Stanely, while not private banking in the traditional sense (traditional checking accounts not offered, even in the United States), offer a wide-range of financial products and services to sovereign funds, investors and other institutional clientele.

Morgan Stanley also offers investment strategy services, financial advisory, equity and debt underwriting, and financing in the UK³.

Northern Trust Global Services

Northern Trust is a large financial institution based out of Chicago, Illinois. While Northern Trust focuses mainly on providing services to corporations, institutional investors and high net individuals, they also offer individual client focused services in both the United States as well in the United Kingdom. Northern Trust’s client services include; consulting, financial advice, pension funds and even individual wealth management⁴.

Chase UK

Chase, also known as JPMorgan Chase Bank, is an incredibly large financial institution originating in the US. Chase has recently also arrived in the UK banking market and is currently offering both, Current & Savings accounts.
Chase UK’s current account offers 1% cashback on purchases for the first 12 months of registering your account and offers no monthly fee, no account opening fees and no ATM fees applied by Chase, amongst other perks⁵.

Bank of America

Bank of America also operates and maintains an office in the United Kingdom. Bank of America is a large financial institution that offers banking services in the UK.

Benefits of American Banks

While it may be convenient for individuals that want to maintain US Dollar accounts in the UK, there aren’t many many factors that set American and Traditional banks apart. If your concern is mainly for spending money locally, an excellent option for you to check out is Wise’s Multi-currency Card. With this card, you can spend money abroad and only be charged the real exchange rate, without a markup and definitely without any sneaky transaction fees. Not only so, you can withdraw up to £200 a month for free.

If you have been looking for an American bank in the US because you need a safe, reliable and cost-effective way to transfer money across markets, or convert currency, Wise can also help with that. With Wise’s mid-market exchange rates, you can transfer funds and convert currency across borders safely and practically without paying any unfair fees while ensuring you are paying the “real” rate, the mid-market exchange rate.

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In conclusion, while there don’t seem to be remarkable differences between American and Traditional banks, there can be some practical differences in maintaining a US Dollar account within the United Kingdom. For some, it is merely an easier way to convert their USD amounts into GBP for local spending, while for others maintaining USD accounts in the UK is absolutely crucial to ensure their finances remain in order, institutional investments continue in the selected currency, or even to continue sending money back home. Either way, Wise’s multi-currency account can handle all of these concerns and help you reduce the amount of time, effort and money you spend on dealing with multiple currencies through traditional banking.

Sources:

Sources last checked: 20.06.2023

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