Best basic bank account?

luhrmann

I'm trying to save money by sticking with a very tight budget but as you all know, temptation is hard to resist... So I'm hoping to open a very basic account and transfer my living money each month into that account so I know that's all I have to spend.

Which basic account would you recommend? All I need is an account that doesn't charge me to have it (no thank you Santander...) and a debit card I can use in the shops.

Thanks!

colsten

There is lots of information about all sorts of bank accounts in this article: http://www.moneysavingexpert.com/banking/?tab=sect8

grumbler

If it's for spending only (without cash withdrawals), a prepaid card can do the job fine.
E.g. Pockit that even pays cashback for some retailers.

luhrmann

thanks for that colsten!

grumbler - ideally i would like to make withdrawals but i'd never heard of pockit before!

Anthorn

I really don't think that "free", "debit card" and "cash withdrawals" go together in any bank account except in a savings account. Look at it this way: If the account has a fee table there is not a cat-in-hell's chance of it being free.

Probably the only relief is an account which doesn't charge fees such as Secure Trust Bank, Cashplus, etc. But there is still a monthly flat-fee to pay.

The only real way to ensure a free bank account is the way I and countless others do it by being careful to not go overdrawn and ensure that sufficient funds are available in the account to cover spends, standing orders and direct debits.

But look at Yorkshire Building Society Cash Transactor which could be what you're looking for. ATM card (or passbook) but no debit card but you could compromise with a prepaid card such as Pockit and fund it with a standing order from the YBS account.
http://www.ybs.co.uk/savings/easy-access/cash-transactor.html

Archi_Bald

Anthorn wrote: »

I really don't think that "free", "debit card" and "cash withdrawals" go together in any bank account except in a savings account. Look at it this way: If the account has a fee table there is not a cat-in-hell's chance of it being free.

Just because there is a fee schedule doesn't mean you cannot use the account for free.

I have been running dozens of current accounts with debit cards and cash withdrawals and bill payments without ever paying a single penny in fees, for decades. I believe there are tens of millions of others who have done the same. The "trick" is not to spend more money than you have.

luhrmann

i meant free as in they don't charge you to simply use the account. i understand fees for late payments, overdrafts, etc which is fine as i don't plan on using the account for anything but day to day spending so i don't go over what i have budgeted. but there are some accounts where you have to pay a fee simply for using the account regardless and i'd like to avoid that!

Anthorn

Archi_Bald wrote: »

Just because there is a fee schedule doesn't mean you cannot use the account for free.

How do you work that out? If there is a fee table there must be circumstances where a fee is charged. Therefore the account is not in any way in this world or the next free.

Archi_Bald

Anthorn wrote: »

How do you work that out? If there is a fee table there must be circumstances where a fee is charged. Therefore the account is not in any way in this world or the next free.

It is free if you do not use money that doesn't belong to you. If you want the flexibility to use the bank's money without arranging for a loan, this costs money, as per the fee schedule.

EarthBoy

Anthorn wrote: »

How do you work that out? If there is a fee table there must be circumstances where a fee is charged. Therefore the account is not in any way in this world or the next free.

It's free if you don't use any of the facilities, or fall into any of the circumstances, where a fee is charged. I've never paid any current account charges in my life.

Archi_Bald

luhrmann wrote: »

i meant free as in they don't charge you to simply use the account.

The vast majority of all current accounts available in the UK fall into this category.

Those that come with a mandatory usage charge are accounts that offer various benefits that some account holders consider worth paying for.