How to deposit foreign currency into a UK bank account?

Find out how foreign currency can be deposited into a UK bank account.

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Jason Loewenthal

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If you’re trying to send money to your account in the UK or receive a payment from someone else overseas, you’ll need to work out how to do it.

Can it be done?

Yes, foreign currency can be deposited into a UK bank account, but it’s not as straightforward as that. There are a few different ways this is done, which we’ll cover in this guide.

The various methods for a personal account

A non-bank multicurrency account

This type of account is designed specifically for the purpose of holding multiple currencies and sending money overseas. Generally offered by fintechs and e-money institutions, they’re becoming increasingly more popular, as their offerings are tailored to enhance the international money experience. They’re usually cheaper, faster and simpler than what a traditional bank account can provide. We also review a selection of multicurrency accounts & Euro accounts for those running a business.

Pros

  • Exchange rates are normally better than the banks
  • Quicker
  • Lower, more transparent fee structures
  • Wider range of currencies

Cons

  • Might have a limited range of banking features
  • Can sometimes involve various know your customer (KYC) checks
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App-based Revolut lets you receive money from more than 160 countries in more than 30 currencies. To receive international transfers, you’ll need to inform the sender of your account details or send them a payment link. You can also select in which currency you want to receive the money. If you receive the money in a currency other than pounds sterling, it will be converted at Revolut’s exchange rate. Revolut to Revolut transfers are the quickest and cheapest option, but will only work if the sender also holds a Revolut account. Transfers from non-Revolut accounts may take 3 to 5 days.

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You can deposit 9 major currencies into iFAST Global’s multi-currency account and you’ll even earn interest on those funds - although the interest rate you receive depends on the currency. There are no fees for opening or maintaining the account. If you also want to set aside some funds for savings, there’s the option to open a fixed-term deposit account, notice account or cash ISA, and you can hold different currencies in these accounts too.

A GBP account with the bank

For most people, this is the most likely way you’ll receive money from overseas, as the end goal will be to get that money into your account in the UK so you can spend, save or invest it. You’ll need to get your international bank account number (IBAN) from your bank, which can often be found in your bank’s app or online banking. If not, you’ll have to contact your bank to get it. This number can be used by the sender with their foreign bank to send the money directly to you. It’ll get converted from that currency to sterling and arrive in your account. You can compare current accounts here.

Pros

  • Simple process
  • The banks will organise the transfer once they've received the details

Cons

  • Can take a while
  • Is usually quite expensive

A foreign currency account with the bank

Another option is for you to open a foreign currency account with a UK bank, possibly with a bank you already have an account with. Not all banks offer this though and some only offer it for business accounts. If you do go for this option, you’re able to hold money in multiple currencies and spend it using a debit card, which could allow you to take advantage of better exchange rates than if you send it all at once. Of course, you might end up with a worse exchange rate if you need to spend the money.

Pros

  • You can avoid or reduce currency exchange fees
  • Can be a quicker way to receive money from overseas
  • Transaction fees can sometimes be cheaper

Cons

  • Not always available to everyone
  • Monthly fees can be high
  • Currency options are generally limited to the major currencies, such as euros or US dollars

Withdraw cash from a foreign card and deposit in your account

This last one is a novel approach and only available if you hold money in a foreign account or prepaid card and are in the UK, but it’s still an option. It involves you withdrawing money from an ATM using your foreign card then depositing it in your UK account.

Pros

  • Depending on the ATM, exchange rates can be competitive
  • It's quick and convenient if you live near your bank branch

Cons

  • Need to be wary of withdrawal fees
  • Can be dangerous carrying large amount of cash
  • ATM limits can be quite low, so it might only be useful for smaller amounts

FAQs

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Jason is a writer and editor. He worked as a senior subeditor for Finder for 5 years and in that time became familiar with a wide range of financial products and services. Before that, he worked for Australian Associated Press. He has a BA from Macquarie University in Australia. Jason loves to help other people find new ways to save money. See full bio

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