Basic Account Over a Current Account?

sjw623

Hi. Sorry, a bit new to all this. I received advice recently regarding our financial position which included starting a DMP and opening a 'basic bank account' to keep our money away from our creditors. It was explained that this type of account is code for a safe account and that our money would not be available here to these creditors.

My question though, is this: Is this basic account better for me than a current account? Or, if I am able to open a current account (major benefit being the use of a debit card!), should I do this instead?

Thanks in advance for your advice.

immoral_angeluk

You can open a bank account anywhere whether it be a basic account or a current account. However, you need to get an account which is not linked to any of your creditors as it is common for them to have a term and condition in their contract which states they can take money out of linked accounts to pay off arrears in others. For example if you had a barclays bank account and a barclaycard in arrears, they could take money out of your barclays account to pay off the barclaycard without warning. This is why you need to get an account that is not linked to anyone, that includes any companies who are owned by a bank but trade under a different name.. for example if Santander own Abbey AND Alliance and leicester so although they aren't the same bank they are still linked.

Have a look at this list to see who is owned by who..
http://www.thisismoney.co.uk/savings-and-banking/article.html?in_article_id=440726&in_page_id=7

sjw623

Thanks for your response. So there is no added protection from the Basic Account over the Current Accounts that are available, both being from a non-linked bank?

Thanks again.