Basic Bank Account Thread

frugalpam

dacon wrote: »

Have seen lots of ads on net etc by companies offering to "ARRANGE"bank accounts for a fee regardless of your status.

A friend of mine paid for this service went into the bank as arranged and was given a full current account, he had been refused in the past.

How do they do this???

Curious to know how that works! Maybe you could post details about which bank it was, and which service he used/paid for?

I'm quite happy with my basic account with Yorkshire Bank. I don't want an overdraft facility, a debit card (Maestro) is fine for me, and I don't need a cheque book (can do telephone/internet banking) and so can carry out all the transactions I need to do.
In view of my past credit history - fortunately improving all the time through hard work on my part - at this time, I don't want the temptation of being able to overspend/overdraw again. When I've proved to myself that I can manage my finances better, maybe I'll look into getting an account upgrade, but right now, I don't want the temptation of being able to overspend again.

Pam

dacon_2

I think he saw the ad in exchange and mart.
Foolishly posted cash to them, was told to go into bank and apply for the account, a full current account not a basic. lo and behold immediate acceptance.
Beats me how they do it.

frugalpam

I'd think any bank offering overdraft facilities etc to someone with a poor credit history is not being a responsible lender. Even the sharks on the High Street with whom I took out a loan at the height of my problems, would not increase my loan facility!

Again, maybe you could post details about which bank it was, and which service he used/paid for?

Pam

dacon_2

This morning I had 2 letters arrive from nat west re my step account.

one from application verification in unit Edinburgh saying they cant open the account as i dont meet their criteria.

The other letter from sales and service in Leeds welcoming me to nat west and the account is open also giving account no and sort code.

Dont want to ring them in case I rock the boat.

What shall I do???

Tori_Bellatrix

dacon wrote: »

This morning I had 2 letters arrive from nat west re my step account.

one from application verification in unit Edinburgh saying they cant open the account as i dont meet their criteria.

The other letter from sales and service in Leeds welcoming me to nat west and the account is open also giving account no and sort code.

Dont want to ring them in case I rock the boat.

What shall I do???

I suppose you need to ring them to confirm either way .... A few posters have had the same sort of thing happen with NW recently ...

dacon_2

What response have they had

Tori_Bellatrix

dacon wrote: »

What response have they had

I think that the account had been declined after being told it was open ... :undecided

stickman

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

Hi There,
Just wondering I am currently on a DMP with CCCS all payments up to date.
Currently have basic a/c with co-op with the useless electron card other than that a/c is fine, no o/d/chequebook facilities; salary in DD out its just the electron card. If I try to apply for the co-op current a/c or any other current a/c with any other bank does the fact that I am on a DMP prevent me from getting a current a/c ie am I now classed as a bad risk bad credit rating even though my DMP is all ok or do my creditors "spread the word" amongst themselves and mark me down as bad credit rating.
All advice greatly appreciated
Thanks

auslaender

I would like to thank sgx.saint for his post and other contributors to this thread.

After 5-6 weeks of confusion, wait, delay, postponement, missing salary blah blah blah, I have finally got a basic account with Yorkshire bank.

If sgx.saint can add to the original post about advantage of Maestro over VISA Electron & Solo in terms of acceptability at retail outlets (especially online), it can be quite beneficial to future users of this thread.

moonpixiewitch

BYould wrote: »

Could I also mention that although not strictly a basic bank account Citibank's Sterling Account is very good and they seem to accept almost anybody. I haven't heard of anyone being refused one after reading the message boards.

I held two basic bank accounts due to a recent bankruptcy but was still accepted for the citibank account.

Good luck everybody.

Just wanted to say , I applied to citibank , and despite being Bankrupt over 3 years ago and now discharged , I was refused .
I can not seem to get a debit card anywhere , I dont want an overdraft or a cheque book . I have had to resort to prepay debit cards , which are very expensive!:mad:
Also got refused for Vanquis and Club Card plus !:mad:
It would seem a bankruptcy due to my ex partners spending habit is doomed to follow me for life!