Issues finding a basic bank account.

sofaman

Hi.

I read the sticky thread on here re basic bank accounts (for those with credit issues), but I can't seem to find any basic accounts anywhere (ie the Citilink one that was recommended, no longer offers it via the site).

Is it still possible to apply online, or do you have to request it in the bank? I tried Barclays today, and the staff kept pushing me to apply for it via their new terminal, but it only offers a current account!

PeacefulWaters

sofaman wrote: »

Hi.

I read the sticky thread on here re basic bank accounts (for those with credit issues), but I can't seem to find any basic accounts anywhere (ie the Citilink one that was recommended, no longer offers it via the site).

Is it still possible to apply online, or do you have to request it in the bank? I tried Barclays today, and the staff kept pushing me to apply for it via their new terminal, but it only offers a current account!

Many banks will offer you the basic account once they've declined you for full facilities.

sofaman

I see, so they still perform a credit check then.

I'll just go the usual route, and apply for a current and hope I'll be offered a basic one.

Thanks!

EarthBoy

sofaman wrote: »

I see, so they still perform a credit check then.

Yes they do. Basic accounts are reserved for people with poor credit histories who have difficulty getting an ordinary current account, so they do a credit check to make sure that you don't qualify for the ordinary current account.

I'm told, but can't guarantee it's correct, that Virgin Money doesn't do a credit check for their current account. That's probably because they only offer a basic account at the moment.

gregor123

ive just seen a similar thread.... as long as you dont have a debt with a bank they will offer you an account.

problem though may be that it is a very basic one with hardly any functionality and a basic debit card.

as an alternative, have a look at a prepaid current account - these are increasing in popularity and imo are far better. There are fees however a lot cheaper than an overdraft (i know this first hand!!!)

EarthBoy

gregor123 wrote: »

problem though may be that it is a very basic one with hardly any functionality and a basic debit card.

Nearly all basic accounts offer the same functionality as an ordinary current account, apart from an overdraft. The only thing you might not get is a contactless card, but that varies between banks.

gregor123 wrote: »

as an alternative, have a look at a prepaid current account - these are increasing in popularity and imo are far better. There are fees however a lot cheaper than an overdraft (i know this first hand!!!)

Don't bother. Basic bank accounts have no fees, so why should anybody be interested in a prepaid card instead?

gregor123

EarthBoy wrote: »

Nearly all basic accounts offer the same functionality as an ordinary current account, apart from an overdraft. The only thing you might not get is a contactless card, but that varies between banks.

I wouldnt want contactless anyway. They may not offer an overdraft however you can still become overdrawn and incur charges as classed as unauthorised - i know this first hand with Halifax

Don't bother. Basic bank accounts have no fees, so why should anybody be interested in a prepaid card instead?

i think they will suit some - but not all. They may prefer them because of additional facilities. example being Pockits Cashback facility, icounts credit repair or cashplus purchase protection (you cant get the latter with a basic bank account)

as mentioned, they will be good for some, but wont suit all

Anthorn

gregor123 wrote: »

as an alternative, have a look at a prepaid current account - these are increasing in popularity and imo are far better. There are fees however a lot cheaper than an overdraft (i know this first hand!!!)

In fact the opposite is true: Prepaid accounts and cards are declining in popularity due to the newish breed of basic current accounts. At one time there were certain people who could not get a bank account and prepaid accounts were the alternative. These days not needed.

For example Secure Trust Bank blamed the demise of its prepaid current account on basic current accounts. That was something of a blow to the alternative financial market because they were the only prepaid account which had the protection of FSCS.
https://www.securetrustbank.com/current-account

We'll see what happens with the new breed of Fintech challenger banks upcoming early in 2017. Imagine B from Clydesdale and Yorkshire Banks from a mobile app only bank which doesn't have the expense of bricks and mortar branches. That will possibly give you some idea of what is possibly coming.

Flobberchops

sofaman wrote: »

Is it still possible to apply online, or do you have to request it in the bank? I tried Barclays today, and the staff kept pushing me to apply for it via their new terminal, but it only offers a current account!

The thing prospective customers don't seem to realise is that you can't *choose* to have a Basic Bank Account. Even within the set of customers with low income and/or financial difficulties only a small proportion will qualify. The rest will be served by a normal Current Account.

My advice would be to humour the bank staff and use the self-service machine: either your unsuitability will be flagged up then and there, or else it will become apparent when you're sitting in front of a more qualified advisor, and at that point the conversation will quickly switch to "oops, bad news Mr Customer, we can only offer you a Basic account, is that OK?". The third possibility is that you actually qualify for a Current Account, albeit possibly without any overdraft facility.

Unless you've for some reason been blacklisted by Barclays they should be able to offer you some banking facility. Keep on trying.

Jlawson118

Try the Yorkshire Bank ReadyCash account. I applied for a regular current account online and they offered me that one. I'm not sure if you can apply online though but it's worth a shot

Mrs_Ryan

Barclays have just given me a full account- I've had a basic account since 2001! And I've had to open a full account to use Apple Pay. I have 30 odd defaults lingering on my file (although all have been written off) so give it a go- you never know. The ironic thing is the full account is identical to the basic one- I'll never get an overdraft so the only difference is Apple Pay! (I already have a contactless card with my basic account)