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MSE News: Government wants smarter basic bank accounts

Former_MSE_Guy
Posts: 1,650 Forumite



"New financial products to help benefit claimants better manage their money will be set up alongside Universal Credit ..."
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What the Government wants and what it gets is likely to be very different. Just look at how difficult it is currently for many people to get a basic bank account. Universal Credit will lead to a lower income for most people, will the banks want to deal with the debt consequences?0
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Just look at how difficult it is currently for many people to get a basic bank account.
No, it's quiet easy for most people. It's harder and almost impossible to get a full facilities current account if you've had money problems in the last 6 years and which show on your credit reports.
Basic bank accounts don't have a cheque book or overdraft but you do still get charged for requesting an overdraft when a payment bounces. I've never understood how we can request something that is not on the account.
They all come with a debit card.0 -
For crying out loud, if the Government want it to happen they are the biggest shareholder in one bank and the majority shareholder in another.
But really, multiple bank accounts all with direct debit facilities will confuse the hell out of 80% of benefits claimants.
The whole point of basic bank accounts is that they are simple and accessible. This proposal removes simple from that equation.0 -
Piggybank accounts???
Way to reinforce the concept that these people will be subsisting on pocket money!0 -
What the Government wants and what it gets is likely to be very different. Just look at how difficult it is currently for many people to get a basic bank account. Universal Credit will lead to a lower income for most people, will the banks want to deal with the debt consequences?
Really? Says who?
I agree it's a stupid idea though. If you are so inept at budgeting that you need to have a separate bank account for every expense category you have - how are going to effectively manage them? If you can't manage one account, what makes you think you'll manage 10 accounts any better!
Of course some people do this already to a lesser degree and do genuinely find it easier to budget that way - but I wouldn't imagine that would be suitable for many.0 -
I find it easier to have several accounts, stops me spending money that is spoken for!
I am quite annoyed with natwest's decision to only allow withdrawals from branded machines and the post office for basic account holders, if I want to get cash out on a Sunday its a 2.5 mile trip to town that takes me past the free cash machine in the premier shop in the village, which is a 2 minute walk from my house!Mum of several with a twisted sense of humour and a laundry obsession:o
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I much prefer the envelope system....pull all of your cash out of the banks and put bill money in separate envelopes, it has worked for me for years as it did my mother and both grandmothers and I am never overdrawn.Blessed are the cracked for they are the ones that let in the light
C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
Not Buying it 2015!0 -
I think the other term being banded around for this product is more helpful - jam jar accounts - 'piggy bank' accounts suggest saving up for something nice - rather than your rent or gas0
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as usual the banks will make the right sounding noises and then refuse people who need the accounts. At my credit union, not a day goes by without someone telling us how badly their bank has treated them.
NatWest recently caused upset by downgrading a normal debit card to a cashcard only for a load of people, which can only be used in a Natwest ATM, not in shops or anywhere else. That isnt much use to someone whose employer expects them to pay for train tickets and petrol and then claim back expenses later for example.
My credit union already offers this jamjar account mentioned in the report. Its one account, but then we follow the members request to split the money into several sub-accounts.
Real example: Member tells employer to pay in their wages to their credit union account. We send the rent by Bacs to the landlord, then £5 into their Xmas Club account, then £15 into the bill account, and the rest onto their prepaid Visa card which can be used online, in shops and cashback etc0 -
Real example: Member tells employer to pay in their wages to their credit union account. We send the rent by Bacs to the landlord, then £5 into their Xmas Club account, then £15 into the bill account, and the rest onto their prepaid Visa card which can be used online, in shops and cashback etc
Lovely stuff. Now scale that service up from a tiny credit union to a bank the size of, for example, Lloyds TSB. Logistical nightmare.
Also, not surprising most of your customers are unhappy with banks. Credit unions (similarly to building societies) tend to attract people who are dissatisfied with/do not trust banks for ideological reasons, or people who have well and truly b*ggered their finances up with banks and blame the banks for it.NatWest recently caused upset by downgrading a normal debit card to a cashcard only for a load of people, which can only be used in a Natwest ATM, not in shops or anywhere else. That isnt much use to someone whose employer expects them to pay for train tickets and petrol and then claim back expenses later for example.
Not true. They removed the ability to use non-RBS Group ATMs from Basic cardholders. You could still use the cards in cash machines owned by RBS Group (including Tesco, RBS and NatWest) and as debit cards in shops.
Lovely idea from the Government, anyway. I presume banks will be forced to offer these for free too? I bet they'll adore doing that. They already don't want to do basic bank accounts as it is. And no, I don't consider it a positive that they will be forced to do so.urs sinserly,
~~joosy jeezus~~0
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