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  • FIRST POST
    • sgx.saint
    • By sgx.saint 3rd Dec 06, 1:27 PM
    • 1,533Posts
    • 441Thanks
    sgx.saint
    Basic Bank Account Thread
    • #1
    • 3rd Dec 06, 1:27 PM
    Basic Bank Account Thread 3rd Dec 06 at 1:27 PM
    Official MoneySavingExpert.com insert

    For full info on basic bank accounts, see our fully researched Basic Bank Account guide.

    Back to the original post...

    ------------------------



    Hello All.

    I thought I would start this thread in relation to all the posts that I see regularly on this board regarding Basic Bank Accounts.

    The purpose of this thread is to answer questions, support and help those who are looking for a Basic Bank Account for whatever reason. Basic Bank Accounts are designed to do exactly what they say on the tin so to speak, serve the purposes of having a bank account, with none of the frills. Basic Bank Accounts will not come with any credit facilities, which probably wont come as much surprise.

    Why would I want a Basic Bank Account?

    The most common reason is that people with adverse credit histories (Defaults, CCJ's, Bankrupts) are usually unable to open a 'standard' bank account with any of the high street lenders. Basic Bank Accounts are designed to allow people in such circumstances to open and operate an account. In saying that, some banks are still very strict in their application criteria and people still are sometimes declined. It is a common misconception that banks have to provide an account to absolutely anyone. The FSA made strong recommendations to the banking industry that they provide an account to people who would normally not meet their standard eligability criteria, however at this stage they do not enforce this recommendation. So just like a nighclub, a bank has the right to refuse entry. Fear not though, as there are a large array of accounts available and you will almost certainly find one to suit your needs.

    Of course Basic Bank Accounts are not just for people with adverse credit problems, as the accounts offer no credit facilities, some people prefer to use them as they feel they can manage their money better. People open them as second accounts to manage direct debits, a second account for 'Matched Betting' or even as a 'parachute' account if you are reclaiming bank charges from your current bank. So as you can see there are quite a few reasons you may want to open an account.

    Links

    I myself have two basic bank accounts, and a few months ago when I was 'shopping' around for the right basic account, this board proved invaluable. So I thought I would share my personal recommendations, advice and opinions to help others who too need a basic account. I use my Basic Accounts for Matched Betting and managing my array of Direct Debits, but of course they can be used for whatever purpose you require.

    Moving on, I would direct all newcomers to the following two websites, which both list the majority of Basic Bank Accounts provided within the UK.

    The first link is to the Financial Services Authority website and is a .pdf document that lists the various basic bank accounts, their features and also provides a little banking background information as well, such as terminology and so forth:

    http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf

    The second link I found very useful, this website provides a very good breakdown of the various accounts available including information about what type of card you will receive, i.e. Maestro, Solo, Cash Card. Also it even details the interest rates if applicable and if the accounts support Standing Orders or Direct Debits.

    http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

    What do I need to open an Account?

    To open a Basic Bank Account, the procedure is pretty much the same for any other account. When you have decided which bank to visit and apply for an account you will need two forms of ID and proof of address.

    Usually you need a form of photographic ID, such as a Passport or Driving Licence. You will also need proof of address, this can usually be a Utility Bill or Council Tax Bill. Obviously do check with your bank first as this is just a general rule of thumb. Some Banks policies may differ slightly.

    Also, a tip .... When you goto open a Basic Bank Account, make sure the person (Staff Member) who is opening the account is fully aware that you want a Basic Account. If possible mention the name of the account to be sure. A few members on here have been caught out where the bank staff have applied for a full current account and as a result the member has been turned away (only applicable to members with adverse credit histories).

    Usually, even when applying for a Basic Account, a credit check is still performed. This is normally just to confirm your identity and your financial status. i.e. that you have'nt lied about being bankrupt etc. Some banks of course will accept bankrupt individuals (check the two websites for more information!).

    CitiBank

    Before we go any further, I have to mention CitiBank. CitiBank are a large international banking organisation with a signifcant worldwide presence. They originated in the USA and also have a large UK operational presence. CitiBank offer a current account package called the 'Sterling Current Account'.

    Why is he mentioning this I hear you cry!

    There has been a lot of discussion on this board over the past three months regarding this account as CitiBank appear to have a very flexible eligability criteria for the account. Many members have successfully opened an account even with adverse credit histories. I therefore highly recommend trying to open a CitiBank account before continuing down the route of a Basic Bank Account. This account is a full account, and even offers £500 interest free overdraft and chequebook (if your eligable) and even if your not, most people are still able to open the account, complete with Visa Debit Card. Many of the features I just mentioned are not available on Basic Accounts so I again urge you to try and apply for this account first before continuing.

    --
    http://www.citibank.co.uk
    --

    I won't go into much more detail here, but there is an ongoing thread you can join here:-

    http://forums.moneysavingexpert.com/showthread.html?t=321204

    Basic Account Recommendations

    My two personal recommendations for Basic Accounts are:-

    Yorkshire Bank - ReadyCash Account. http://www.ybonline.co.uk

    &

    Natwest Bank - Step Account. http://www.natwest.co.uk

    Both accounts I find to suit my needs brilliantly and the accounts are in my opinion superb. But of course everyone is different.

    A recent thread started on this board (I can't find it at the moment) also suggests you can try opening an account with your local Credit Union if they do indeed provide an account. You could try searching for this thread if your interested in exploring this route.

    I will of course link this thread when I find it for a better explanation of Credit Unions.

    I hope this thread goes a long way to answering your questions and helping you locate the right account for you.

    Thanks

    SGX Saint
    Last edited by MSE Andrea; 25-03-2014 at 11:48 AM.
Page 101
    • dr_adidas01
    • By dr_adidas01 21st Jul 14, 9:19 PM
    • 1,202 Posts
    • 565 Thanks
    dr_adidas01
    As far as I'm aware, a credit check is NOT carried out for basic bank accounts
    Originally posted by Chrisblue1962
    Wrong Barclays now do it as do Santander oh and Lloyds Banking Group and TSB.

    Plenty of posts on this forum about people having basic accounts not opened as there credit files are seriously ruined, or even after further checks have been closed having them closed a week after them being opened.
    Time is a path from the past to the future and back again. The present is the crossroads of both.
    • Midgarosormr
    • By Midgarosormr 2nd Aug 15, 9:34 PM
    • 4 Posts
    • 0 Thanks
    Midgarosormr
    Hi all, I'm hoping someone here can help me with some advice.

    Since the end of my teens I've pretty much been housebound by an illness, and I've never had a bank account because of it.

    I now need to open an account because of various online activities, like Swagbucks and Fiverr: it doesn't have to have any fancy features or additions, as all it needs to have is the ability to verify my PayPal, be open for online banking (so I can manage things digitally without having to go to a branch), and have no maintenance fees (like most basic accounts).

    However, you can see my dilemma: I literally can't get out to open an account.

    Does anyone know of a bank where I can open an account remotely either by post or online, sending documents (to and from) by e-mail or post to confirm who I am and where I live?

    The current forms of address/ID I have are:

    A benefits letter confirming identity and/or address
    An Equifax credit check/report .pdf that went through the electoral poll search
    A scanned copy of my birth-certificate and the original, though I'd rather not post or risk the original, as you can imagine!

    Or, is there a another, new way to confirm my identity remotely to the satisfaction of the banks?

    If this isn't possible, are there any Pre-Paid Debit Cards that will verify a PayPal account (I have an Orange, but it can't verify)?

    Thanks for any help you can give.
    Mike.
    • pmduk
    • By pmduk 3rd Aug 15, 10:46 AM
    • 7,618 Posts
    • 5,482 Thanks
    pmduk
    Some banks, including RBS and Natwest, will open accounts if they can verify you electronically.
    • stclair
    • By stclair 3rd Aug 15, 10:52 AM
    • 6,378 Posts
    • 3,395 Thanks
    stclair
    Hi all, I'm hoping someone here can help me with some advice.

    Since the end of my teens I've pretty much been housebound by an illness, and I've never had a bank account because of it.

    I now need to open an account because of various online activities, like Swagbucks and Fiverr: it doesn't have to have any fancy features or additions, as all it needs to have is the ability to verify my PayPal, be open for online banking (so I can manage things digitally without having to go to a branch), and have no maintenance fees (like most basic accounts).

    However, you can see my dilemma: I literally can't get out to open an account.

    Does anyone know of a bank where I can open an account remotely either by post or online, sending documents (to and from) by e-mail or post to confirm who I am and where I live?

    The current forms of address/ID I have are:

    A benefits letter confirming identity and/or address
    An Equifax credit check/report .pdf that went through the electoral poll search
    A scanned copy of my birth-certificate and the original, though I'd rather not post or risk the original, as you can imagine!

    Or, is there a another, new way to confirm my identity remotely to the satisfaction of the banks?

    If this isn't possible, are there any Pre-Paid Debit Cards that will verify a PayPal account (I have an Orange, but it can't verify)?

    Thanks for any help you can give.
    Mike.
    Originally posted by Midgarosormr
    You will find banks will not accept a birth certificate as proof of ID if your over 18.

    Given your circumstances do you not have a carer or similar. Have you also thought about giving someone Power of Attorney to administer your finances.
    Last edited by stclair; 03-08-2015 at 11:42 AM.
    I Work For the RBS Group
    However Any Opinion Given On MSE Is Strictly My Own
    • sofaman
    • By sofaman 22nd Nov 16, 5:14 PM
    • 92 Posts
    • 75 Thanks
    sofaman
    Re Citibank; it doesn't seem like you can register anymore.
    • Pink dragon
    • By Pink dragon 8th Feb 17, 2:23 AM
    • 1 Posts
    • 0 Thanks
    Pink dragon
    Hi all
    I am in the process of setting up an IVA I have been told that I must set up a new bank account ahead of my creditor meeting. I seem to have a great deal of trouble doing this despite applying for basic accounts only. I have applied of the Natwest foundation account however, the application has been referred to a decision maker. I have just got a new job and I am really worried that I will end up without a bank account to pay money into every month.
    I looked up my credit score on clear score and it was 78 😳 this has worried me I only want an account to pay wages in pay money out and that's it I don't want an overdraft facility or anything else. Will I have to quit my new job and stay on benefits? I was hoping to progress forward after having a horrendous year last year after not only suffering from financial difficulty that resulted in my debt but also suffering 2 car crashes and a miscarriage. I was hoping to at least continue along the path of establishing a career
    Thanks
    • Henry Blu
    • By Henry Blu 10th May 17, 12:30 PM
    • 2 Posts
    • 0 Thanks
    Henry Blu
    Official MoneySavingExpert.com insert
    Excellent post SGX.SAINT !
    More info than I've seen ANYWHERE.
    When are you joining the MSE team?
    Regards and thanks.
    HB
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