US Dollar Account in the UK - Best Alternatives in 2024

You can also get a linked physical or virtual debit card to spend and make ATM withdrawals at home and abroad. All currency conversion uses the mid-market exchange rate with low, transparent fees.

• Wise fees: No fee to open a personal account, no ongoing fees, 7 GBP for personal account holders to get a card

• Supported currencies: 40+ including USD

• Wise exchange rates: Mid-market rate

• Receiving payments: Get paid with local details in 10 currencies

• Other notable features: Send to 160+ countries, spend with your card in 150+ countries. UK customers can also invest using Wise Assets

  Read our Wise review or our Wise multi currency account review for more details.

• Revolut fees: No monthly fee for standard accounts. Upgrade to a fee paid personal account for up to 45 GBP/month or a fee paid business account for up to 79 GBP/month. Fair usage and transaction fees may apply

• Supported currencies: 25+ fiat currencies available

• Revolut exchange rates: Mid market rate to plan limits - fair usage fees apply after that

• Receiving payments: You may be able to receive payments with local details for select currencies, depending on account type

Other notable features: Choose from 4 different account tiers to unlock a broad range of account services including savings and investments, insurance and lounge access

Read a full Revolut review here.

Starling Bank

Starling Bank offers business customers the option to open a US dollar account which has a 5 GBP/month fee. To get started you’ll need to have a GBP Starling business account, but you’ll then be able to use your GBP debit card to spend and make withdrawals in USD when you need to. Accounts can be opened by eligible customers who have a registered business in the UK - they’re not currently available to sole traders.

• Starling fees: 5 GBP/month; transaction fees apply depending on account use

• Supported currencies: You must have a GBP account, you can then add a USD account alongside this

• Starling exchange rates: Starling rate or network rate, depending on transaction type

• Receiving payments: Receive US dollar payments

• Other notable features:  24/7 currency conversion, FSCS insured for 85,000 GBP/depositor

Barclays

Barclays is one of the largest high street banks in the UK so it’s no surprise that they offer US dollar accounts for both personal and business customers. Barclays US dollar account holders can manage their money online and in the Barclays app - but it’s also possible to pay in and withdraw cash at a local branch. The exact services you can access - and the fees you’ll pay for them - can vary between account types, but the option of an account you can manage both online and in person may appeal to some customers.

• Barclays fees: No fee for the USD account, but you also need a GBP account which may have fees

• Supported currencies: Accounts offered in US dollars - or separate account options in other major currencies

• Barclays exchange rates: Barclays rates are likely to include a markup

• Receiving payments: Pay in and out from other Barclays accounts

HSBC

Global banking giant HSBC offers US dollar accounts for both personal and business customers. There are no regular fees for personal account holders, although you’ll pay a charge for some types of international payment from your account. For businesses there are a few different account types including everyday checking accounts, savings accounts, and foreign currency accounts opened directly with HSBC’s operation in the overseas market.

• HSBC fees: No opening or monthly fee for personal accounts, although there are charges for some transactions; business fees can vary based on account type

• Supported currencies: Personal accounts can be opened in 14 currencies, business accounts can operate in any tradeable currency

• HSBC exchange rates: HSBC rates are likely to include a markup

• Receiving payments: Pay into your account from other HSBC accounts

• Other notable features: Several different types of foreign currency business account available

Santander

Santander UK’s US dollar account focuses on high wealth individuals who are eligible to use the Santander Private Banking service. That means you’ll usually have to have savings of 500,000 GBP or an annual income of 250,000 GBP to get a US dollar account with Santander. If you’re eligible for the private banking service you can access accounts and linked debit cards for USD and EUR as well as the standard GBP account.

• Fees: Available to high wealth individuals through the private banking service
• Currency conversion: USD, GBP and EUR available
• Other notable features: Get debit cards for each of the 3 available currencies and services through a private banker

Lloyds and Halifax

Lloyds has an international account offer - and although Halifax does not trade internationally, Halifax customers can access the Lloyds US dollar account instead as the 2 banks are partnered.

The Lloyds US dollar account is available for personal customers, and comes with a monthly fee of 7.50 GBP. You can also open a EUR account, and will only pay one monthly charge to access both currencies. There’s no Lloyds fee when you want to make a transfer out of your US dollar account, but correspondent bank fees will apply - these can be up to 20 GBP and vary depending on the destination country.

• Lloyds/Halifax fees: 10 USD/month

• Supported currencies: USD, GBP and EUR available

• Lloyds/Halifax exchange rates: Rates are likely to include a markup

• Receiving payments: Pay in with digital transfer or cheque

• Other notable features: Correspondent bank fees for international payments will apply and can be up to 20 GBP/transfer

Natwest

Natwest’s US dollar accounts for both personal and business customers offer both US dollars and a range of other major currencies. Cash Management accounts pay interest on savings and have both easy access saving options and fixed term deposits which allow customers to lock away their money for an agreed time in exchange for a better exchange rate. Availability for business customers is fairly limited - check you’re eligible before you apply. As a personal customer you’ll need to have savings of 25,000 GBP or a salary of 40,000 GBP to get an account. There are also US dollar account options through Natwest’s premier banking service. Customers must deposit 100,000 GBP or have a salary of 75,000 GBP to access these accounts.

• Fees: 8 GBP/month for international select account, no fee for cash management account
• Currency conversion: 25 major currencies covered
• Other notable features: Cash management accounts offer interest and both easy access and fixed term deposit options

OFX

US dollar accounts from OFX are tailored to online sellers looking to get paid in a range of global currencies. Receive and exchange payments in USD and 6 other major currencies, and access OFX’s range of currency risk management products as and when you need them. These include products like forward exchange contracts which can be used to lock in an exchange rate for a future payment, minimising the risk involved with fluctuations in the forex markets.

• OFX fees: No fees to open or operate account

• Supported currencies: 7 currencies offered

• OFX exchange rates: Rates include a small markup

• Receiving payments: Receive payments in 7 currencies

• Other notable features: OFX transfers and currency conversion have no upfront fees but there will be a markup on the exchange rate used. Currency risk management products also available, with support of personal brokers.

What is a USD account?

US dollar accounts are available in the UK from banks and non-bank alternative providers. Some accounts hold USD only, while others let you manage dollars along with other currencies for greater flexibility.

The features of your USD account will depend on the exact product you pick - you may be able to receive payments from others in USD, or spend USD in person and online with a linked debit card. There are also accounts which are more focused on customers who want to invest and save in foreign currencies. It’s worth considering how you want to use your account before you pick the right product for you, to make sure you end up with all the features that are important to you.

How to open a US dollar account in the UK

The exact process to open a US dollar account will vary depending on the provider you select. In some cases you’ll need to show you meet eligibility criteria to be able to open an account. However, many USD account providers allow customers to open and manage their accounts online and through mobile apps for convenience and speed.

The steps you’ll usually need to take to open a US dollar account include:

1. Choose the best provider for your needs

2. Check you meet any eligibility criteria

3. Register for your account online, through the provider app, or in a branch location

4. Give your personal and contact information

5. Complete the required verification steps

6. Fund your account - and you’re ready to go

Customers opening bank accounts in the UK will need to provide some documents for verification processes. This keeps accounts safe and is required by law. The exact documents you need will vary depending on the provider and the account type, but can include:

• Government issued photo ID to prove your identity

• Proof of address - a utility bill or bank statement in your name for example

• Business registration documents if you’re opening a business account

How does a USD account work?

It’s useful to note that USD accounts are usually designed with a specific customer type or need in mind. That means that there’s a huge variety in the features you’ll find, from accounts which are great for saving or paying bills - but not designed for travel spending - to accounts which are more about flexible currency management, and which come with a debit card and the option to hold dozens of other currencies as well as USD. Generally you’ll need to either add money yourself with a digital transfer, or have someone send you money, before you can start to spend.

What are the advantages of a US dollar account in the UK?

A US dollar account can be useful for both individuals and businesses who make USD payments, get paid in dollars or need to hold USD.

Having a foreign currency account can make it easier to manage fluctuations in the currency exchange rates. You could benefit by buying USD when the rate is favourable to you - and being able to hold USD in your account means you’re not forced to sell or convert when the rates are poor. Simply hold your USD balance in your US dollar account until the exchange rate improves. Being able to hold a USD balance can also act as a natural hedge - make US dollar payments from your balance instead of having to convert from pounds every time, even if the rate isn’t looking great.

If you send or receive payments in US dollars - either for yourself or on behalf of a business - having a US dollar account can cut the costs of transactions. If you’re a freelancer or contractor you can give your USD bank account details to clients and have them pay you with a local transfer - and you can also use your account to collect payments from PSPs like Stripe and marketplaces like Amazon if you’re an online seller.

USD account with debit card

Looking for a US dollar account because you plan to travel to the US, or for online shopping? Be sure to pick one which comes with a debit card for ease of spending and withdrawals. While a few of the accounts we’ve picked out above come with cards, this isn’t always an option - so comparing a few banks and non-bank alternatives makes sense.

Here’s a reminder of the non-bank alternatives we introduced earlier:

Wise account and card: Order a card for a one time fee, and spend in 150+ countries, in 40+ currencies. USD supported for holding and exchange, and all currency conversion uses mid-market rates with low fees

Revolut account and card: All Revolut account plans have a linked card which can be used for spending and withdrawals in the US and globally. The amount you’ll pay per transaction will depend on your account type - all account plans have some no fee currency conversion, but fair usage fees apply once you’ve exhausted your plan limit.

What are the advantages of a USD account in the UK?

USD accounts are handy for anyone who needs to send or receive payments in USD - you won’t need to convert your money back to GBP every time, which cuts down on unnecessary costs. Some people also want a US dollar account to get a linked international debit card that can be used when travelling in the US. Providers like Wise and Revolut have payment cards optimised for overseas use, with great value currency exchange and some no-fee ATM withdrawals, too.

Other people may choose to open a US dollar account to save and invest. Holding savings in a different currency can be handy if you’re planning to travel, but it’s also a good way to diversify your investment portfolio.

Businesses can also benefit from a US dollar account if they need to pay and get paid in USD. You can hold a US dollar balance as a hedge against exchange rate fluctuations, or for future payments, plus you can get paid in US dollars by customers and clients, marketplaces and PSPs like Stripe.

How to use a USD account

As we’ve seen, the US dollar accounts you can open from the UK can have some very varied features to suit different customer needs. What you get will depend on the specific product you pick, but you can commonly do the following with US dollar accounts in the UK:

• Hold and exchange USD as well as a selection of other currencies in one account

• Receive payments in USD by giving others your account details for a bank transfer

• Spend in USD with a linked debit card

• Invest in USD, or save for a future bill or purchase without needing to convert back to pounds

USD account details

If you need to get paid by others in USD, you’ll want to find a US dollar account which has its own local USD bank details for receiving local payments. Some of the accounts we’ve looked at in this guide - such as the account from Wise and the business account from OFX - offer US dollar account information including an IBAN and all you need to receive a payment in USD just like a local.

USD business account

If you own a business which has customers, contractors or suppliers in the US, you might benefit from a business foreign currency account in USD. Business customers can often unlock extra features compared to personal customers, to allow them to send money in USD to others, receive US dollar payments from customers and payment providers, run international payroll, issue cards for employees, and so on. Again, the features of different USD business accounts can vary a lot - some of the options can include:

Wise business account: One time 45 GBP fee to open an account, with no ongoing charges. Hold 40+ currencies, exchange with the mid-market rate, get debit and expense cards and extras like cloud accounting integrations and batch payments

Revolut business account: Choose from accounts with no monthly fees to options with 79 GBP/month charges, with varying features included in the account price. All options have cards for convenient spending and can hold, receive and exchange USD and many other currencies

OFX business account: For businesses and online sellers, looking to receive customer payments and get paid through PSPs and market places. USD offered alongside  6 other currencies.

Conclusion: USD account in the UK

Opening a US dollar account has big advantages for anyone who needs to receive, send or hold US dollars. Accounts can be opened by individuals and business owners, freelancers and online sellers, and providers include highstreet banks and online specialist companies.

There’s plenty of choice when it comes to US dollar accounts, so choosing one will simply be a question of your personal requirements and preferences. Use this guide to the best US dollar accounts in the UK to start your research and find the perfect USD account for your specific needs. We also have guides on the best euro account here or best multi currency account here.