Basic Bank Account Thread

Midslad27

Tef wrote: »

Just been told by a friend that some of Martin's info on the front page is wrong.. Barclays do not redirect to a Basic Bank account application should you fail the credit scoring. Also Nationwide rejected application despite the fact that the lady concerned is in full employment and has been debt free for two years... Be careful who you apply to as of course it will show up in credit searches.

Hes right... i applied online for barclays current account got rejected and had a bouce back email offering cash card acccount. I had sign the email and send it and the account was open

no1wf

Hi all

My other half and myself are looking to open our first joint bank account where we can save up for a 5% mortgage. The bank we save with doesn't have to offer the 5% mortgages as we'll probably just close the account when we have enough money.

I'm with Natwest and he's with Barclays, there's only those and a Santander in our local town and a Lloyds but it's in the next town.

I work part time and he works full time but at the moment he's on a 6 month temp job. We don't mind one where you need to deposit a certain amount each month but only if it's not a huge amount.

What do you think, do any of those banks offer a decent interest rate? We don't need the best interest rate just a decent one, it's more to help teach him how to save (he's terrible at it!) so any interest is just a bonus

Debutante

Clare1971 wrote: »

I spoke to Nationwide yesterday to ask about upgrading my cash card account. Don't bother! Worth a try I suppose but they wont upgrade (as they suggested in a previous convo) they just offer to open a new account which is no good as there's a credit check!

Sorry to hear that. Look on the bright side though, at least you have a fully functioning bank a/c
(my new sort code & a/c no arrived yesterday !

Clare1971

Debutante wrote: »

Sorry to hear that. Look on the bright side though, at least you have a fully functioning bank a/c
(my new sort code & a/c no arrived yesterday !

Thanks I'm not too bothered, I only really needed it so I could have a cheque book so I didn't have to send cash into school. I'm happy with the cash card account, it's easy to manage. Keep things simple eh!

Debutante

Clare1971 wrote: »

Thanks I'm not too bothered, I only really needed it so I could have a cheque book so I didn't have to send cash into school. I'm happy with the cash card account, it's easy to manage. Keep things simple eh!

Yes, keep things simple and I for one, definitely do not want to be offered an overdraft
As I said, we should think ourselves lucky to have a bank a/c. I suppose we should spare a thought this Christmas for those who are in such a mess they cannot even get one.

Debutante

Card, various pin numbers etc have now all arrived. The whole process took 17 days and that included the holiday break. Quite good service imho. Thanks for all the help

Sweetrl

I have a HSBC basic account for over 5 years now and they now do a visa debit card with the account now.

viking1

It is a no brainer really. Best interest rate at moment is 5% on first £2,500 in Nationwide current a/c which is all you need to start with but have to have £1,000 per month going in.
If you have a substantial cash sum getting derisory interest (in all savings accounts at the moment) open up a Santander current A/c and only have to put £500 a month in it. My wife and I recently did this and did not switch a/cs. Important as retained original current a/c s and their benefits with another provider and also get cash back on credit card at Santander 3% on petrol ! 2% on stores like BHS & Debenhams, John Lewis and 1% at supermarkets. This in addition to 3% gross on an extra £40 k between us in the current a/c. It is easy staff will advise you and no penalty with Santander for re arranging direct debits etc yourself. On bank a/c you also get 1% back on some direct debits like water, council tax and Santander mortgages 2% on gas & electricity bills 3% on communication bills eg sky & virgin packages.

You do not have to have a credit card if not wanted for the current a/c . £2 a month charge waived for us for 1st year but pay £2 a month for the current a/c but nothing compared to the extra net interest of £480 per year each without the extra cash back still to be added. So ditch your savings accounts (except cash ISAs which we are keeping untouched for now most tied up in fixed rate a/cs) and get your money working for you. Also worth asking if can set up more than one a/c each and see if they will just transfer the £500 between the a/c s.

Also previous low staffing issues and poor service now resolved in our experience

innovate

You aren't wrong in what you say, though it is more than likely largely irrelevant to this thread, which is about Basic Bank accounts. Last thing on the mind of someone looking for a Basic Bank account is where to put their savings because they are not likely to have any.

joserose

Soooo.... I was a customer of The Co-operative Bank, which I chose due to their ethical investment policies. However, I returned from holiday to find that my Visa Debit card was no longer working for me to top up my Oyster card etc. I went to a cash machine to draw cash and despite me having money in there, the card was swallowed. I called Co-op upon my return home who informed me that they were closing my account and that I would be unable to use my card, and that my direct debits had all been cancelled also.

This now meant I had no cash card, no means of obtaining money (this was a Saturday post-1pm), and that all of my bills (paid in installments by Direct Debit) were now required to be fully paid. What a lovely way to return from a Christmas break!

Co-operative Bank closed my account because as far as I can see, I went into the red with them once in November and twice in December (due to Paypal payments that were supposed to be covered by inbound, and unfortunately not-timely paid, payments). It says in the Ts+Cs that they will close one's account should the account go into an unauthorised overdraft three times, so BE AWARE all those who have opened Co-op bank accounts; be very careful!

As I had no card with which to validate transfers, I had to transfer money to an existing payee in my online account, who kindly brought the cash to me. I have now opened a NatWest account, and I am awaiting my debit card.

While I am aware that I wasn't very wise with my finances here, I thought it best to call these Ts+Cs out for anyone who has a Co-op Basic Account.