Which bank account?

rattters

Hi to you all- I am currently setting up a debt management plan with step change and they have advised me to open a new bank account because one of our credit cards is with our bank. Do we need to close down our account? We have banked with them for over 20 years and would like to return to them in the future. Also- when it says a basic account - is that different to a standard current account?
Any particular reccomendations for which bank to go with?

Thanks in advance

a newbie debt free wannabe

~Beanie~

You are usually advised to open an account with someone you have no debt with. This is because if you owe them money on your credit card yet have a positive balance in your bank account, there is the chance that they could take the money from your account and put it towards your card debt.

You could leave a nil balance or close it, doesn't really matter as long as you don't put any money into it. Any reason why you would want to return to them in the future?

A basic account is just that, basic. You will get a debit card but no overdraft facilties.

fatbelly

A basic bank account is one that should still be offered to people with poor credit history

http://www.moneysavingexpert.com/banking/basic-bank-accounts

All the banks offer them (but don't really market their availability). You should still get a debit card (not sure about Santander though)

rattters

thanks for the replies.
We like the service we get from our bank and how we have our accounts set up online and my husband has an account he uses for his works expenses ..... ohhhhh- they wouldn't be able to take money out of that would they?
Shall go in to town on monday and see what I can find!

Cheers

edinburghlad

what is the balance on the credit card with said bank? do you want to include it in your debt management plan?
if not then there is no requirement for you to move.

rattters

edinburghlad wrote: »

what is the balance on the credit card with said bank? do you want to include it in your debt management plan?
if not then there is no requirement for you to move.

It is around £14000 and yes - it will be included - step change advised me to open another bank account.

JES_F1

When starting my DMP, Step Change (then CCCS) told me to do the same thing but I stupidly didn't do it. I had some warped sense of loyalty to Nationwide because I'd been banking with them for 20+ years.

As I owed a relatively small amount on my Nationwide credit card (about £1,200), I didn't think they'd actually help themselves to money in my bank account. I couldn't have been more wrong.

They were my most awkward creditor and eventually froze my bank account until I'd paid a certain amount - about £400 if memory serves me right.

I sought advice from Step Change and we agreed that I had no choice but to pay it. I'd recently inherited some money, which I'd paid into an account at Santander, so was fortunately able to immediately pay Nationwide to regain access to the account. If I'd not come into that money, I'm not entirely sure what I'd've done!

I then made sure my salary got paid into my Santander account and stopped using Nationwide.

Good luck!

rattters

JES_F1 wrote: »

When starting my DMP, Step Change (then CCCS) told me to do the same thing but I stupidly didn't do it. I had some warped sense of loyalty to Nationwide because I'd been banking with them for 20+ years.

As I owed a relatively small amount on my Nationwide credit card (about £1,200), I didn't think they'd actually help themselves to money in my bank account. I couldn't have been more wrong.

They were my most awkward creditor and eventually froze my bank account until I'd paid a certain amount - about £400 if memory serves me right.

I sought advice from Step Change and we agreed that I had no choice but to pay it. I'd recently inherited some money, which I'd paid into an account at Santander, so was fortunately able to immediately pay Nationwide to regain access to the account. If I'd not come into that money, I'm not entirely sure what I'd've done!

I then made sure my salary got paid into my Santander account and stopped using Nationwide.

Good luck!

Oh my goodness!!! I was wondering if I went to the bank to explain my situation they would be "nice" and not do that!!! I will DEFINITELY get a different account- thanks for that!