startnewlife Mendee CIC · London

Banks and Money

Updated: 13 April 2026
In short

As an asylum seeker you get an ASPEN card with £49.18/week. You can open an account at Lloyds with ARC. After status — Monzo, no address needed, through the app. Basic Bank Account is free and it is your right.

£49.18
per week
ASPEN card
Monzo
no address
after status
Lloyds
accepts ARC
+ GP letter
£0
Basic Account
free, your right

💳 ASPEN Card — money while you wait

ASPEN is a card from the Home Office. Every week, money for food and things goes on it. It works like a normal bank card — pay in shops and take out cash.

👤
£49.18/week — per person (in a house or flat)
🏨
£9.95/week — if you live in a hotel (food is included)
🤰
+£5.25 — extra for pregnant women
👶
+£9.50 — babies under 1, +£5.25 children 1-3

Cash: you can take out up to £300 per week from ATMs (look for LINK — they are free).

Lost your card?
Call 0800 246 1327 (free). Also contact Migrant Help: 0808 8010 503. A new card will be sent by post.

🏦 How to open an account with ARC — step by step

1
Register with a GP
This is free. A GP is your doctor. If you have not registered yet — see our guide.
2
Ask for a GP letter of address
This is a letter on the clinic headed paper, signed by the doctor. It proves your address. It may cost £0-25. If your GP does not do this, ask your charity or support worker for a letter of introduction.
3
Go to the bank with ARC + GP letter
Lloyds, Halifax, Bank of Scotland accept ARC. Say: "I would like to open a Basic Bank Account". You do not need a passport.
Other options
Metro Bank, HSBC — also accept ARC, go to a branch.
Suits Me — online, no proof of address, accepts ARC. But it is a prepaid card (not a full bank).

🎉 After status — open an account straight away

Got refugee status? It is easier now. With your eVisa or passport you can open an account through an app. No address needed.

Open an account RIGHT AWAY — you need it for Universal Credit. Without an account you cannot get benefits.

🟠
Monzobest choice, through the app in 10 minutes, no address, free
🟣
Starlingalso through the app, BRP or passport, no address needed

📊 Which bank to choose

Bank ARC Address How to open
Lloyds GP letter In branch
Metro Bank GP letter In branch
Suits Me Not needed Online (prepaid)
Monzo ⭐ Not needed App
Starling Not needed App

✓ = accepts ARC, ✗ = needs passport/eVisa. Monzo is best after getting status.

⚖️ Basic Bank Account — your right

By law, 9 big banks must open a Basic Bank Account for you. It is free. No credit check. Even if you do not have a passport.

A Basic Account is a normal card. You can pay and take out money. You cannot go into minus (overdraft).

If the bank says no:
1. Ask to speak to the manager
2. Say: "I have a right to a Basic Bank Account"
3. If they still say no — Financial Ombudsman: financial-ombudsman.org.uk

🌍 Sending money home

💚
Wise
Cheapest option. Fee 0.5-1.5%. Real exchange rate. Takes 1-2 days.
📦
Remitly
Good for cash pickup — the person collects cash in their country.
🌐
Western Union
Expensive, but works everywhere — even small towns.

📈 Credit history — starts from zero

In the UK everyone has a credit score. Yours starts from zero. A good score is needed for renting a flat, phone contracts, and loans.

How to improve it:
✓ Register on the Electoral Roll (even without the right to vote)
✓ Pay bills on time — phone, internet
✓ Get a credit builder card (for example Loqbox)
✓ Rent reporting — report your rent payments (CreditLadder)

🚨 Warning: scammers

Do NOT do this:
✗ Never give your PIN to anyone — not even a "lawyer" or "helper"
✗ Do not believe texts from "Home Office" asking for money
✗ Do not borrow from strangers (loan sharks)
✗ Do not send money to a "lawyer" who promises to speed up your visa

How to check a lawyer: oisc.gov.uk
Been scammed? Call Action Fraud: 0300 123 2040

✨ Useful tips

✓ Never share your PIN with anyone
✓ Only use LINK ATMs for cash — they are free
✓ After getting status you have 28 days of transition — plan your budget
✓ Download your bank's mobile app — easier to track your money
✓ Keep all bank statements — you may need them later

Frequently Asked Questions

Can I open an account with an ARC card?

Yes. Lloyds, Halifax, Bank of Scotland, and Metro Bank accept ARC. You also need a GP letter or a letter from a charity. Suits Me accepts ARC online without proof of address, but it is a prepaid card.

Which bank is best after getting status?

Monzo is the best choice. You can open it through the app in 10 minutes, no address needed, and it is free. Starling is also a good option.

What is a GP letter and how do I get one?

A GP letter is a letter from your doctor on the clinic headed paper with a signature. It confirms your address. It may cost £0-25. If your GP does not do this, ask your charity or support worker for a letter of introduction.

How can I send money home?

Wise is the cheapest (0.5-1.5% fee). Remitly is good for cash pickup. Western Union is expensive but works everywhere. Never transfer money through strangers!

How do I protect myself from scammers?

Never give your PIN to anyone. The Home Office never asks for money by text. Check lawyers at oisc.gov.uk. If you are scammed, call Action Fraud: 0300 123 2040.

What is a Basic Bank Account?

A free account with no credit check. 9 banks in the UK must open one for you by law. If they refuse, ask for the manager, then complain to the Financial Ombudsman.

Sources: FCA · Basic bank accountsgov.uk · FCAWhich? · Bank accountsCitizens Advice · Banking Updated 24 Apr 2026
🏥 Register with a GP — needed for bank account
⚠️ StartNewLife is an information project — not regulated by the IAA (Immigration Advice Authority). We do not provide immigration advice within the meaning of Section 84 of the Immigration & Asylum Act 1999. All content is general information only and does not replace advice from a regulated lawyer (IAA / SRA / BSB) about your specific case.