This article appeared in Homes & People Summer 2010

Having problems opening a bank account?  Why not try a basic account?

Bank accounts are an important way of helping you to manage your money well.  However, some people have problems when they try to open a bank account – this might be because of poor credit history or because they don’t have suitable identification.  If you’ve had problems like this in the past, then a basic bank account might be for you.

What is a basic bank account?

Basic bank accounts offer many of the same facilities as a current account but do not have overdrafts and are easier to obtain if you have a poor credit history.  They are often available if you have county court judgements and sometimes even if you have been made bankrupt. 

You will have to provide identification to open an account but don’t worry if you don’t have a passport or driving license – many banks will accept your tenancy agreement or a letter confirming your right to benefits.

What are the benefits of basic bank account?

• You can have your wages, benefits, tax credits and pension paid directly into your account. 
• You can pay in cheques free of charge.
• You can take money out at cash machines.
• You can set up direct debits to pay your bills – this helps you keep up to date with your payments and can save you money, especially with your gas and electricity suppliers.
• Some banks will also give you a debit card which you can use in shops, restaurants and online.

What next?

Most high street banks offer basic bank accounts.  Money Made Clear can tell you which banks in your area offer these accounts and give you information about opening your account.

Visit www.moneymadeclear.org.uk or call the Money Made Clear helpline on 0300 500 5000.

(Calls should cost no more than 01 or 02 UK–wide calls and are included in inclusive mobile and landline minutes)

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