Basic Bank Account Thread

khurammm

I just saw my experian credit report and was amazed to see that citibank with whom I have got a full current account with did only do an enquiry check and halifax and nationwide with whom I have basic accounts with did full current account checks even for their basic accounts. :eek:
So its not true that banks do not do credit checks for their basic accounts.

auslaender

khurammm

how do you differentiate between the two types of checks ?

Is citibank check marked "OPT OUT" ? This is the only thing I could find in mine.

Tori_Bellatrix

khurammm wrote:

I just saw my experian credit report and was amazed to see that citibank with whom I have got a full current account with did only do an enquiry check and halifax and nationwide with whom I have basic accounts with did full current account checks even for their basic accounts. :eek:
So its not true that banks do not do credit checks for their basic accounts.

Most banks will do credit checks for basic accounts just to confirm there is no history of fraud or bankruptcy ... the actual score from the check doesn't always matter

(obviously this is not the case with me and nationwide who i still haven't had a letter from ... lol )

khurammm

Tori_Bellatrix wrote:

Most banks will do credit checks for basic accounts just to confirm there is no history of fraud or bankruptcy ... the actual score from the check doesn't always matter

(obviously this is not the case with me and nationwide who i still haven't had a letter from ... lol )

To do enquiry checks for the basic account is ok but they have done proper current account checks.

khurammm

auslaender wrote:

khurammm

how do you differentiate between the two types of checks ?

Is citibank check marked "OPT OUT" ? This is the only thing I could find in mine.

For citibank current account it states:
Application type - Enquiry

For halfax and nationwide basic accounts it states:
Application type - Current account

ampersand

I have just phoned Natwest, having received p/w from an online application for a Step a/c(approved in principle) a couple of weeks ago.
Martin declares them 'pants' in his Bank a/c recommendations, BUT - let me say this:
1. Freephone no. was answered instantly by a real 'Sandra', somewhere near Birmingham.
2. I wished to upgrade, have chqbk, was offered more than I wanted, though income is Benefit only and a/c is to be for household biz only, initially.
2. I brought a contradiction in terms, re: opting out of 3rd party spam,to her attention. She agreed with me and will take this further.
3. Asked whether I was right or left-handed for chqbk purposes(very nice touch-we are both Sinisters).
4. I appreciated the encls. of the non-taxpayer form.
5. She also briefed me and apologised ahead of reading from the required scripted bits.

#I realise much of this is superficial, early days, proof of pudding etc.etc.and maybe ALL Banks do this now, but this is my experience so far, during the last hour. Such a contrast - unpressured, pleasant, informative. Liars Incestor have been bullies and bunglers,unprofessional, inaccurate and unhelpful - charges thus reclaimed successfully.
For every bad experience with one Bank, there's probably a counter-.
It seems only fair to relate mine.

s1h

yorkshire bank maestro card arrived friday opened the acc on tuesday so so far so good.

keggie1979

hi there. new to this site and have a couple of questions i wonder if anyone can help with.......
I applied for the natwest step account online and was delighted to see i had been privisionally accepted. This morning i recieved the application form to sign and return to them-does this mean they havent yet done a credit search and could still possibly get declined???
Have also just read a few peoples comments about the citibank account and think i should maybe apply for this one but don't want too many searches added to my alredy bad credit history!!
Anyone any ideas on which is the best one to go for and if citibanks are in most towns and if not how do you pay cheques etc into your account?

s1h

i am still waiting to hear from Citibank, sent off the application forms etc 2 weeks ago. Not a great start if you ask me. They only have branches in London & Manchester. However you can pay in at a lloyds bank and Id imagine you could prob send a cheque off by post.

Have you thought about signing up for the 30day free credit report at https://www.creditexpert.co.uk just cancel it before the 30days is up. It is handy because you can view your credit report, but it also texts/emails you when a search is made or details change on your credit report.

scoty1

CITI BANK NOW WILL BE CHARGING £10 PER MONTH FOR THIS ACCOUNT IS THIS RIGHT

sgx.saint wrote:

Hello All.

I thought I would start this thread in relation to all the posts that I see regularly on this board regarding Basic Bank Accounts.

The purpose of this thread is to answer questions, support and help those who are looking for a Basic Bank Account for whatever reason. Basic Bank Accounts are designed to do exactly what they say on the tin so to speak, serve the purposes of having a bank account, with none of the frills. Basic Bank Accounts will not come with any credit facilities, which probably wont come as much surprise.

Why would I want a Basic Bank Account?

The most common reason is that people with adverse credit histories (Defaults, CCJ's, Bankrupts) are usually unable to open a 'standard' bank account with any of the high street lenders. Basic Bank Accounts are designed to allow people in such circumstances to open and operate an account. In saying that, some banks are still very strict in their application criteria and people still are sometimes declined. It is a common misconception that banks have to provide an account to absolutely anyone. The FSA made strong recommendations to the banking industry that they provide an account to people who would normally not meet their standard eligability criteria, however at this stage they do not enforce this recommendation. So just like a nighclub, a bank has the right to refuse entry. Fear not though, as there are a large array of accounts available and you will almost certainly find one to suit your needs.

Of course Basic Bank Accounts are not just for people with adverse credit problems, as the accounts offer no credit facilities, some people prefer to use them as they feel they can manage their money better. People open them as second accounts to manage direct debits, a second account for 'Matched Betting' or even as a 'parachute' account if you are reclaiming bank charges from your current bank. So as you can see there are quite a few reasons you may want to open an account.

Links

I myself have two basic bank accounts, and a few months ago when I was 'shopping' around for the right basic account, this board proved invaluable. So I thought I would share my personal recommendations, advice and opinions to help others who too need a basic account. I use my Basic Accounts for Matched Betting and managing my array of Direct Debits, but of course they can be used for whatever purpose you require.

Moving on, I would direct all newcomers to the following two websites, which both list the majority of Basic Bank Accounts provided within the UK.

The first link is to the Financial Services Authority website and is a .pdf document that lists the various basic bank accounts, their features and also provides a little banking background information as well, such as terminology and so forth:

http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf

The second link I found very useful, this website provides a very good breakdown of the various accounts available including information about what type of card you will receive, i.e. Maestro, Solo, Cash Card. Also it even details the interest rates if applicable and if the accounts support Standing Orders or Direct Debits.

http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

What do I need to open an Account?

To open a Basic Bank Account, the procedure is pretty much the same for any other account. When you have decided which bank to visit and apply for an account you will need two forms of ID and proof of address.

Usually you need a form of photographic ID, such as a Passport or Driving Licence. You will also need proof of address, this can usually be a Utility Bill or Council Tax Bill. Obviously do check with your bank first as this is just a general rule of thumb. Some Banks policies may differ slightly.

Also, a tip .... When you goto open a Basic Bank Account, make sure the person (Staff Member) who is opening the account is fully aware that you want a Basic Account. If possible mention the name of the account to be sure. A few members on here have been caught out where the bank staff have applied for a full current account and as a result the member has been turned away (only applicable to members with adverse credit histories).

Usually, even when applying for a Basic Account, a credit check is still performed. This is normally just to confirm your identity and your financial status. i.e. that you have'nt lied about being bankrupt etc. Some banks of course will accept bankrupt individuals (check the two websites for more information!).

CitiBank

Before we go any further, I have to mention CitiBank. CitiBank are a large international banking organisation with a signifcant worldwide presence. They originated in the USA and also have a large UK operational presence. CitiBank offer a current account package called the 'Sterling Current Account'.

Why is he mentioning this I hear you cry!

There has been a lot of discussion on this board over the past three months regarding this account as CitiBank appear to have a very flexible eligability criteria for the account. Many members have successfully opened an account even with adverse credit histories. I therefore highly recommend trying to open a CitiBank account before continuing down the route of a Basic Bank Account. This account is a full account, and even offers £500 interest free overdraft and chequebook (if your eligable) and even if your not, most people are still able to open the account, complete with Visa Debit Card. Many of the features I just mentioned are not available on Basic Accounts so I again urge you to try and apply for this account first before continuing.

--
http://www.citibank.co.uk
--

I won't go into much more detail here, but there is an ongoing thread you can join here:-

http://forums.moneysavingexpert.com/showthread.html?t=321204

Basic Account Recommendations

My two personal recommendations for Basic Accounts are:-

Yorkshire Bank - ReadyCash Account. http://www.ybonline.co.uk

&

Natwest Bank - Step Account. http://www.natwest.co.uk

Both accounts I find to suit my needs brilliantly and the accounts are in my opinion superb. But of course everyone is different.

A recent thread started on this board (I can't find it at the moment) also suggests you can try opening an account with your local Credit Union if they do indeed provide an account. You could try searching for this thread if your interested in exploring this route.

I will of course link this thread when I find it for a better explanation of Credit Unions.

I hope this thread goes a long way to answering your questions and helping you locate the right account for you.

Thanks

SGX Saint