PLEASE HELP A NEWBIE!Basic bank accounts

blt

Hi all, I really hope that you can help me - I've been reading posts on here for a couple of weeks now and decided to sign up today for some much needed advice! I've got a current account with Lloyds TSB and thanks to my non-existent budgeting skills, messed all of my direct debits up over Xmas. To cut a long story short I went into Abbey National after work to pen one of their basic bank accounts because a) my credit rating is awful and b) I thought it would help me budget bu transferring my direct debits and a fixed sum of money into this account every month. The woman in the branch said that because I already had a bank account, they wouldn't let me open one and said that she doubted if anyone else would let me. I know that this may seem a bit trivial but I'm in a right mess with my finances and had this all planned out in my mind. Is there a bank which will open one for me? She did try and open a normal bank account with just a cashcard but it wouldn't let me. I feel terrible and am losing so much sip worrying about the mess I've got myself into

inmypocketnottheirs

Listen, don't worry. You can open any number of bank accounts, I am sure you have been wrongly advised. You could try a Nationwide flexaccount. It gives a cashcard for atm withdrawals, you can pay direct debits and standing orders from the account. Alternatively a Woolwich cardsaver account gives a visa electron debit card, but no standing order or direct debits. Either accounts can be opened on line.

Hope this helps!

blt

What about the credit score though? Won't that matter? I mean, Abbey refused me for their account with an ATM card. Sorry to be such a pain!

inmypocketnottheirs

Neither of these accounts, to the best of my knowledge, are credit scored. I have an atrocious credit file, and did not have any problem with either account. If you credit is 'screwed' any way, what does it matter if it gets you a new account so you can budget better?!?!?

Pontoon

You are not a pain, just getting bad advice from banks as they don't make any money from cashcard accounts as you don't get an overdraft.

I got in debt about 4 years ago and did very similar to what you are planning. I have my current account and a cashcard account and an ISA.
Current account = direct debits and my pay
cashcard = daily spending/play/food etc
ISA = whatever is left at the end of the month from the current account.
All of these were with Halifax (before the HBOS thing) so maybe try them.

I'm now not in debt (Apart from some stuff I bought off the internet for christmas on the 0% credit card, which will be paid off long before the 0% runs out.)

You are allowed more than one account and it does work.

Set up a new account for your spending/cash and leave the direct debits and pay for your current account and leave the card at home in a safe place. That way you only spend your weekly/monthly allowance.

blt

I really appreciate your help. I just want to do soemthing very similar to you! ie transfer about £800 a month into a separate account to pay all my bills, mortgage etc so that what is left in my current account is for me. I'll try the banks you mention and let you know. Thanks ever so much again. I had that awful feeling of dread when I left the bank but I'm feeling a lot better

sparklymessygirl

Hi BLT,

I started off with one account with my bank but opened a second account just to deal with DD and SOrders. Every payday I transferred a fixed amount from the first current account into the second current account. I made an appointment first to discuss the plan and the bank person said that is what they had done themselves to make sure they knew how much spare money they had each month.

Sparkly

blt

Thanks sparklymessygirl. I've just phoned my bank (Lloyds) and made an appointment for next Wednesday to go through it with them. I was just really confused as I thought everyone was guaranteed to be accepted for a basic bank account. I'll let everyone know how I get on in case it's of some use. In the meantime, if anyone else has any advice that would be great!