Basic bank account feedback thread

System

Unfortunately,

Withdrawals are limited to Post Offices and their ATMs only and they don't have any payment facilities such as Direct Debit.

OK in a crunch but a bank account (or even card based savings account) is better in most circumstances.

ConnieOC wrote: »

Post Office Card Accounts are great for cash withdrawals, but you can't use them as a debit card.

10pence

rob_2512 wrote: »

Can anyone tell me if you can have more than one basic account?

This is prompted by a friend who struggles with money and repeatedly has charges for rejected direct debits, not helped by their benefits being 4 weekly but the direct debits being monthly.

I'd like to suggest having a separate account just for the regular direct debits with a standing order 4 weekly on the day the benefits are paid for 1/13 of the annual total to ensure that the DDs were covered. This would leave the balance as a regular amount every 4 weeks for other spending.

Would this work?

Without sounding harsh but what has the payments of his benefits got to do with his poor budgeting skills? There are many people that get paid wages every 4 weeks who don't seem to struggle?

I would suggest you friend learns some budgeting skills, otherwise if they use two or more bank accounts they could actually be compounding to their problems not easing them.

In my area the local Citizens Advice Bureau and Housing Associations are running budgeting classes so was the local church (all welcome), maybe they run in them in your area.

System

If someone doesn't have the discipline to pay by Direct Debit, it can often be better to pay manually ether on a weekly or within a day of getting their income.

Another option is to open a saving account with an ATM card and only leave the value of Direct Debits + 10% in the basic current account - the Piggy-banking technique.

10pence wrote: »

Without sounding harsh but what has the payments of his benefits got to do with his poor budgeting skills? There are many people that get paid wages every 4 weeks who don't seem to struggle?

antclrk

I work for an advisory service and had many clients that have been refused basic bank accounts. The trick is to keep trying other banks to see if they can offer you one. A variety of banks now you can get an instant decision if they will give you a bank account online. The main 3 I have been using for my clients are

TSB Cash Account

RBS Basic Account

Nationwide Cash Card


Also there are GOOD alternatives if you are indeed having issues getting an account. The following two you just need to confirm your identity with such as passport or driving licence.

FFREES (no credit check)

This is literally a head office Natwest Account. You do pay for withdrawals at ATMs the trick is get cashback instead. Also the account was have transactions on it each month to keep it going without incurring £2 fee.You can pay your benefits and wages into it. No Credit Check.

POCKIT Prepaid

You apply for account costs 99p from your mobile. They send out a prepaid mastercard. Payments are made into your account excatly like a Barclays Account (as Head Office Barclays) they use. Again a fee to withdraw from ATMS but you can get around this with cashback. You can pay your benefits and wages into it. No Credit Check.

manicspaniard

now, apparantly there is only 1 bank in the uk that will give bankrupts a basic bank account... Barclays

but, what if you already with barclays when you go bankrupt :mad:

anyway... heres a hint, if you know you are going to declare bankruptcy... the co op will let you have a current account BEFORE bankruptcy...

and upon bankruptcy... just downgrade it to a cashminder account...

Yay!!

Chutney13

Hi. I'm new here so I hope I've posted this correctly. I have debts with MBNA, Natwest, Barclaycard and M&S. Can anyone tell me please if I will be 'safe' to open a basic bank account with either the Co-op, Halifax or Nationwide as I don't know who is affiliated with who. Thanks.

badger09

This might help.

It shows which banks share the same authorisation for FSCS cover, and also which belong to the same banking group.


http://www.fsa.gov.uk/Pages/consumerinformation/uk_groups/index.shtml

Chutney13

Hi. I'm new here and posted this once before but it went in the middle of posts in March(!), so I hope I've posted correctly this time. I have debts with MBNA, Natwest, Barclaycard and M&S. Can anyone tell me please if I will be 'safe' to open a basic bank account with either the Co-op, Halifax or Nationwide as I don't know who is affiliated with who. Thanks.

debtorwithaquestion

If you are going bankrupt or through a Debt Relief Order Barclays will give you a cash card account even if you had debts with them.

If you are just 'in debt' and aren't going through a formal insolvency and want a basic bank account while you sort your finances out, then go with nationwide. Their cash card account is great and from 01 December 2015 all cash card customers will be moved to a new flex basic account which gives you a contactless visa debit card as standard, good online and mobile banking and the statements are really good too. And their customer service is highly rated. Nationwide are a building society not a bank so have no affiliations with any of your creditors.

I wouldn't go for Halifax as their easy cash (basic) account only gives you a visa electron and many places don't accept this type of card.

With nationwide they also regularly review your account so after a while they will probably upgrade you once you've run your account well- with many other basic accounts they can never be upgraded- only a brand new account opened, so nationwide are good for the long term too.

Hope this helps in some way.

badger09

Chutney13 wrote: »

Hi. I'm new here and posted this once before but it went in the middle of posts in March(!), so I hope I've posted correctly this time. I have debts with MBNA, Natwest, Barclaycard and M&S. Can anyone tell me please if I will be 'safe' to open a basic bank account with either the Co-op, Halifax or Nationwide as I don't know who is affiliated with who. Thanks.

Did you read this, which is my post immediately above yours?

badger09 wrote: »

This might help.

It shows which banks share the same authorisation for FSCS cover, and also which belong to the same banking group.


http://www.fsa.gov.uk/Pages/consumerinformation/uk_groups/index.shtml