How to get a bank account - if you're unbanked - basic bank accounts

flippy178

I opened a Cash Account with Lloyds TSB a couple of years ago after I ended up in a downward spiral of bank charges with the current account I had with Nationwide. I chose the Cash Account by looking at the Lloyds website and doing some research into basic bank accounts on MSE. Also, I have no debts with Lloyds. When I opened the account I specifically asked for the Cash Account - I seem to remember that they did ask me whether I wanted a normal current account but I knew that my bad credit rating would rule me out of that so I said no, the Cash Account. I took my passport and I think some proof of address ID which were both required. There was no credit check and they agreed the Cash Account was suitable for me as my income was relatively low.

The account has been OK, I have a Visa Debit card, online banking and access to their call centres if I have questions about the account. Reading some other people's accounts makes me realise that I have been fortunate that the account was not closed when I have gone overdrawn - by a few pounds only - though of course I have paid charges for that. The only downside is not having a cheque book which would be useful as I try to avoid having too many direct debits - I just feel more in control paying bills in cash or by standing order on a date I specify. However, I am not expecting to get one any time soon and I don't expect to be upgraded by Lloyds at any point, nor have they suggested this.

jamesknight1

Joodle wrote: »

I work for a company supporting people back to work, and one of the major barriers people face is not having a bank account, as employers won't pay wages in any other way.
We always advise our clients to follow the process Martin suggests, and even as far as asking for the specific name of the basic bank account in that particular bank (i.e. step account for NatWest).

However, the major problem is ID. If you don't have a passport or driving licence, which frankly many unemployed or low income people don't because of the cost, not all banks will accept a benefits letter. Also if you still live with your parents then its unlikely that you'll have a utility bill in your name, not even a mobile bill if you have a PAYG phone, and for some banks mobile contract bills aren't even accepted.

I think the Government or the FSA, or whoever, should make a list that spells out very clearly what ID is required for a basic bank account. Even between branches of the same bank the requirements are different - its appalling.

Hi,
Not sure if this applies but if you are opening any sort of account these days you have to be on the electoral roll(18 years old) as if not you would be turned down.These companies now do a trace through this because of the high level of fraud..
Normally,A wage slip if employed,National insurance card ,Driving Licence photo ,Passport,letter from D.S.S is proof enough to open basic accounts

smilee2106

Hi everyone. In 2006, My husband and I had to give up a leased pub and closed our business accounts with Lloyd's. We then had to close personal accounts with BoS after getting into difficulty due to my husband being able to find work for approximately 6mos. We were expecting to be made bankrupt but in the end we had to do it ourselves (1mos before the Scottish laws changed the bankruptsy period from 3yrs to 1yr). When we approached Clydesdale Bank (owned by an Aussie bank now I think) and explained everything and asked if they had an account we could pay wages into, pay DD/SO out of and come with a debit card of some sort we were given a basic cash account with no problem (we had all ID required). Since then we have added a basic savings account I can transfer some money over each week to ensure we can pay the monthly bills and leave some in the current account for food shopping, petrol, etc. We can actually use a debit card for the savings account also if need be. I have to say, Clydesdale Bank have been really good with us; even refunding charges on the rare occasion something briefly went wrong for whatever reason and would recommend them to anyone looking for a basic acount. Even though they are basic accounts you have all the facilities of any other accounts - online and telephone banking, debit cards, DD, SO, etc. I'm surprised I never hear Martin speaking about Clydesdale Bank and their offers - I often think they are very comparable to the others! We are now discharged bankrupts and will be working on improving our standing. Good Luck to Anyone in similar circumstances; it can be done!

vikir99

When I went bankrupt a couple of years ago I was advised to get a basic bank accout, & told Coop & Barclays were my only options, I applied to Coop & the account was opened without problems.
I now have a slightly confused debit card that looks like a normal visa card but registers as electron meaning certain places can't accept it but other than that the account has been problem free (maybe a slight lack of branches) but my mother (age 61) who has never had a bank account is about to apply for the same account for somewhere to keep her pension, I will check out details (what she asked for, what form she has been given) and we'll see!!!

GAZZA7745

I couldn't get an account to save my life, and I had to suffer with a basic Post Office account. I was told the the CO-OP was the place to go, but I was quickly refused for their most basic of basic bank accounts. After many refusals, as a last resort I tried Halifax online. You can even apply for their basic account online (which you cannot do with any other). You do need to provide a photocopy of your passport or drivers license, but I was accepted practically straight away. Granted, you don't get any interest, but you do get a Visa Electron card which is accepted in most places. This enables you to buy online and in store with the chip and pin. You can also transfer money easily online and set up Direct Debits and Standing Orders.

I am not on any electoral role and have not been for over 20 years. I still had no problem with this account, as you only have to be 16 and older to open it.

As a new user, I am not allowed to post links. But you just need to google Halifax and click on other bank accounts. After that, just search for the Easycash account and apply online.

PS. Although you cannot pay money in over the counter (although I have on several occasions with no problems), you can just pay it into one of the machines inside the bank.

Good Luck

b0051490

I don't have a driver's licence, or a passport and aren't on benefits no banks want me as I can't supply the narrow range of documents and they have no discretion.


I work in a bank and the reason we have no discretion is to stop money laundering and fraud

Who are you?? Prove it with having the Identification.
Its £50 for a driving licence or £30 for an ID card.
It really annoys me when people say why should I pay that just to open an account you obviously dont want one enough. You get discounts for paying bills by direct debits anyway

rb10

b0051490 wrote: »

I don't have a driver's licence, or a passport and aren't on benefits no banks want me as I can't supply the narrow range of documents and they have no discretion.


I work in a bank and the reason we have no discretion is to stop money laundering and fraud

Who are you?? Prove it with having the Identification.
Its £50 for a driving licence or £30 for an ID card.
It really annoys me when people say why should I pay that just to open an account you obviously dont want one enough. You get discounts for paying bills by direct debits anyway

Council tax bill?
Letter from HMRC? (If you don't have one to hand, just phone them up and ask for a Notice of Coding).

These two documents will be sufficient to open an account at many banks.

leon2008

needed account for savings. no driving licence or passport. all bills payed on line bank would not take a copy. so much for paying these on line to save money. they would only accept my electrol photo card and an a letter from an investment after they checked with head office. no wonder people cannot get account. the banks need to be more flexabile. leah

glider3560

leon2008 wrote: »

needed account for savings. no driving licence or passport. all bills payed on line bank would not take a copy. so much for paying these on line to save money. they would only accept my electrol photo card and an a letter from an investment after they checked with head office. no wonder people cannot get account. the banks need to be more flexabile. leah

Did you ask HMRC for a letter of coding, as mentioned in previous posts?

Fizzy12

dotstar24 wrote: »

5 years ago i applied for basic bank accounts with natwest, barclays and halifax. all of them turned me down.
in the end i went to nationwide, asked for a card savings account (which can have money paid into it, but cant have DD's etc going out of it) which i got, and about a year later they let me have a basic bank account, which is now finally going to have a 'proper' bank card and not a cash only card.
it's frustrating especially when your being told you should be able to get one!

Is Nationwide going to be issuing debit cards to it's basic bank account customers then? I have lloked online and can't find it anywhere, but would be a huge help to me if it were to do it.