Best basic bank account

Anthorn

pmduk wrote: »

Many of the high street basic accounts have recently scrapped fees, I know for a fact both Barclays and Nationwide have scrapped their returned debit fees. All the more reason to avoid the overcharged "managed" accounts.

I hesitate to use the term "managed" when applied to prepaid bank accounts and prepaid cards because to me the term means something else entirely. We need to consider that for as long as any bank account has fees for anything it's not free. The benefit of for example Secure Trust Bank is that you know what fees to expect - £12.50p a month and that's it (+ £12.50p one-time setup fee). For those on a low income or on benefits, fees are an important consideration.

There could be a revolution happening with bank accounts in the form of new "digital" accounts operated through a mobile app. Atom Bank looks to be currently the leader in this. But we'll have to wait for the details probably much later. It could be that incentives to open an account will be replaced by convenience.

System

Basic account fees are being withdrawn due to new EU legislation coming into force.

The FlexBasic has no fees other than for foreign usage and other non-core activities. It doesn't charge for bounced payments etc. Therefore your £12.50 is more than they have to pay.

Other than people who have been rejected by the 'big boys', I'm struggling to see a case for recommending Secure Trust & it's doppelgangers.

Anthorn wrote: »

The benefit of for example Secure Trust Bank is that you know what fees to expect - £12.50p a month and that's it (+ £12.50p one-time setup fee). For those on a low income or on benefits, fees are an important consideration.

Anthorn

Heng_Leng wrote: »

Basic account fees are being withdrawn due to new EU legislation coming into force.

The FlexBasic has no fees other than for foreign usage and other non-core activities. It doesn't charge for bounced payments etc. Therefore your £12.50 is more than they have to pay.

Other than people who have been rejected by the 'big boys', I'm struggling to see a case for recommending Secure Trust & it's doppelgangers.

What it comes down to is being burned by bank fees (or the perceived threat of being burned by bank fees). As I have already explained the prepaid fixed nature of a single bank fee may be much more attractive than unexpected charges which may amount to a lot more which may be unaffordable.

I remember seeing somewhere that the UK alternative financial market is worth billions. Certainly new prepaid startups such as Revolut and Fidor UK think the UK prepaid market is attractive. What it comes down to is that more than a few people are already using prepaid products and more than a few who are perceived as users in the future.

colsten

Anthorn wrote: »

What it comes down to is being burned by bank fees

And that is being changed by EU legislation that most major UK banks have already implemented. As Heng Leng said, basic account fees are being withdrawn due to new EU legislation coming into force.

There is absolutely zero reason now for paying Secure Trust or similar firms for basic banking facilities. Please stop peddling them.

Anthorn

colsten wrote: »

And that is being changed by EU legislation that most major UK banks have already implemented. As Heng Leng said, basic account fees are being withdrawn due to new EU legislation coming into force.

There is absolutely zero reason now for paying Secure Trust or similar firms for basic banking facilities. Please stop peddling them.

I think that most of us will know that what happens in the EU stays in the EU. But the U.K. has it's own amendment at least to Basic Bank Accounts in process:
https://www.gov.uk/government/news/new-basic-fee-free-bank-accounts-to-help-millions-manage-their-money.

Secure Trust Bank is in fact very well respected as part of Arbuthnot Banking Group since 1985 and established in 1959. Arbuthnot itself provides private banking through Arbuthnot Latham since 1833 and Secure Trust Bank must surely be the only prepaid product which enjoys Acceptance House status through it's parent company. And STB must surely have the sexiest-sounding operators in banking. I banked with them for over 2 years without any problems whatsoever.

So just because something is prepaid doesn't mean it's bad. In the case of STB, it's a different take on retail banking but it does have a rich heritage. Lastly learn about it before you criticise it.

As I explained in a previous post, any bank account whether basic or not which has fees for anything at all cannot be free. The two terms "fees" and "free" are contradictory. For some people a monthly flat fee may be cheaper than paying fees for their allegedly free bank account!

colsten

Not sure what you are trying to say. But I am sure that there is no need for anyone to pay the likes of Secure Trust Bank for basic banking services.

Anthorn

colsten wrote: »

Not sure what you are trying to say. But I am sure that there is no need for anyone to pay the likes of Secure Trust Bank for basic banking services.

What I'm doing is replying in a thread about basic bank accounts and STB is a basic bank account.

colsten

Anthorn wrote: »

What I'm doing is replying in a thread about basic bank accounts and STB is a basic bank account.

Why would you, on MSE, recommend an account that comes with a monthly charge if there are many no-charge accounts that serve the same purpose?

EarthBoy

Anthorn wrote: »

What I'm doing is replying in a thread about basic bank accounts and STB is a basic bank account.

STB is a basic bank account with fees. Nationwide's FlexBasic account is a basic bank account without fees.

pmduk

I'm not sure I'd describe Fidor as a prepaid account either.