How Basic Bank Sccounts work
A basic bank account allows you to receive money and pay bills
It can be a first step towards opening a current account later on. A basic bank accounts can be the first step towards opening a bank account.
With a basic bank account you can:
- Have your wages, benefits, State pension or tax credits paid directly into your account
- Pay in sterling cheques for free (you will have to wait four business days before the money is available for you to spend)
- Take money out at cash machines in the UK with a cash card. This is usually free, but some bank cash machines make a charge. Some convenience cash machines
- Such as those inside small shops, on garage forecourts and in nightclubs may also charge you each time you withdraw money from them;
- Take money out at the Post Office®
- Pay your bills by Direct Debit. Some banks let you have a debit card to pay for your shopping and some let you pay your bills by standing order. Most let you take money out, pay money in or check your balance at bank counters
Opening a basic bank account
If you want to open a basic bank account and you meet the bank or building society’s conditions for one, you should generally be allowed to open one. But there may be reasons why the bank or building society will not let you open an account
Proving your identity
The law says that banks and building societies have to identify new customers. This is to help stop criminal activities like money laundering. They will explain which documents they will accept
Running a credit check on you
If the bank or building society needs to carry out a full credit check (rather than an enquiry) on you, it should tell you this and whether this may have an impact on your future ability to apply
for credit.
If your application is turned down
If your application for a basic bank account is turned down, you are entitled to ask why. The bank or building society should tell you (unless there are exceptional circumstances such as suspicion of fraud or money laundering).
Listed below are some of the frequently asked questions on Banking & Credit
- Banking Information Centre - Introduction
- How Basic Bank Accounts work
- Advice on Basic Bank Accounts
- Basic Bank Account Information
- Keep Track of your Basic Bank Accounts
- Basic Bank Accounts with Direct Debit
- Basic Bank Accounts Help
- What proof is needed to open a Basic Bank Account?
- Basic Bank Accounts for International Students
- Basic Bank Accounts for Migrant Workers
- Basic Bank Accounts for Refugees
- Basic Bank Accounts for Asylum Seekers
- Basic Bank Accounts for Prisoners
- Ex-Offender Basic Bank Account Help
- Common Banking Terms
- Bankruptcy Bank Accounts
- Facilities on Bankruptcy Bank Accounts
- Guaranteed Bank Accounts
- Will your account be frozen upon bankruptcy?
- Bankruptcy Bank Account upgrades
- Basic Bank Accounts when you are bankrupt
- Open a new bank account after bankruptcy
- Bank Accounts Help after bankruptcy
- Pre-Paid debit cards for bankrupts
- Bank Accounts with no credit checks for Bankrupts
- How to get a bankruptcy bank account
- What features does a bankruptcy bank account offer?
- Can I stay with my bank account if I have just been made bankrupt?
IVA's
The IVA Guide
Money Advice Direct has put together an IVA Guide based on the enquiries and questions that we receive at our helpline offices.
In the guide we cover such subjects as IVA Approval, early settlment of your IVA, missed IVA payments, IVA failure, additional debt claims and much more.
[click here for IVA Guide]
What is an IVA?
The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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DANGER
Due to the tremendous demand for debt consolidation services the United Kingdom is now overloaded with debt management companies that contain misleading information. [more...]