Basic bank account

GlassFull

Apologies for another basic bank account question, but after reading various existing threads I’m still undecided

I’m about to apply for a DRO (after visiting Citizens Advice)
I’ve been advised to open a basic bank account as my current account is with Halifax and my debt owed is to my Halifax credit card. I’m assuming that’s incase they take my wages from me?

I was looking at opening a CO OP cashminder after looking at the top picks on one of the articles on MSE but then my friend recommended MONZO?

I don’t want to have to pay any monthly/transaction fees whatsoever

Would anybody recommend one card over the other? Or can you suggest any others?

The card will be used mainly for online purchases and food/petrol. Ideally I’d like to be able to the cars asap without further credit checks and the potential of them declining me

Many thanks

realgonekid_2

Co op is a good pick !

EarthBoy

Your choice will be limited because several of the main banks won't open basic bank accounts for people who already have an ordinary current account with another bank, which you do with Halifax.

Also, many of them won't let you open a basic bank account direct. You have to apply for an ordinary current account first and if you fail the application (e.g. for a bad credit record etc.) they will offer you a basic bank account instead.

NatWest Foundation Account: "You can’t apply directly for the Foundation current account. We may offer it to you if we think it might be more suitable after you’ve applied for one of our other accounts."

https://personal.natwest.com/personal/current-accounts/foundation_account.html

RBS Foundation Account: "You can’t apply directly for the Foundation current account. We’ll offer it to you if we think it might be more suitable after you’ve applied for one of our other accounts."

https://personal.rbs.co.uk/personal/current-accounts/foundation_account.html

Barclays Basic Bank Account: You can apply direct, but only in branch, not online. However: "You could get this account if you don't qualify for one of our other accounts and/or you have no bank current account in the UK."

https://www.barclays.co.uk/current-accounts/basic-account/

This implies that even if you apply direct in branch, they won't let you have a basic account if you qualify for an ordinary account, or already have a current account with a different bank.

Lloyds Basic Account: "A Lloyds Basic Account may be available if you don’t meet the conditions for one of our other current accounts.....If you live in the UK you cannot apply for a Basic account directly. If you apply for one of our other current accounts, we will try to obtain information about your credit history to decide the most appropriate account for you."

https://www.lloydsbank.com/current-accounts/all-accounts/basic-account.asp

Halifax Basic Account: "A Halifax Basic Account may be available if you don’t meet the conditions for one of our other current accounts....If you live in the UK you cannot apply for a Basic account directly. You will need to start by applying for one of our current accounts. We will try to get information about your credit history to decide which account is right for you."

https://www.halifax.co.uk/bankaccounts/current-accounts/basic-account/

HSBC Basic Bank Account: "Our Basic Bank Account is designed only for customers who don't qualify for our other accounts...Before applying for a Basic Bank Account, we first need to see if you are eligible for one of our standard range of accounts to ensure we open the account best suited for your needs."

https://www.hsbc.co.uk/current-accounts/products/basic-bank-account/

Nationwide FlexBasic Account: "FlexBasic is only for those who’ve been made bankrupt or who aren’t eligible for any of our other current accounts."

https://www.nationwide.co.uk/products/current-accounts/flexbasic/features-and-benefits

Co-operative Bank Cashminder Account: "A basic account for people who may not qualify for other kinds of current account." You can apply direct, but: "Approval is based on an assessment of your personal circumstances. We may use Credit Reference Searches to validate your information." This implies they might not give you a Cashminder account if they decide your circumstances qualify you for an ordinary account"

TSB Cash Account. The terms and conditions document states, under "Eligibility": "You must...not have access to another current account in the UK"

https://www.tsb.co.uk/current-accounts/cash-account/cashaccount-terms-and-conditions.pdf

Santander and Metro Bank are the only banks I can find which don't publish any caveats about who might be eligible, at least on their websites:

Santander Basic Current Account: https://www.santander.co.uk/uk/current-accounts/basic-current-account

Metro Bank Cash Account: https://www.metrobankonline.co.uk/bank-accounts/products/current-account/cash-account/

eDicky

GlassFull wrote: »

MONZO?

I don’t want to have to pay any monthly/transaction fees whatsoever

Monzo has no fees whatever (except for foreign ATM withdrawals in excess of £200/month). There is only ID check, not full credit check, to open the account if you don't apply for an overdraft. There's no facility to deposit cash but otherwise it has the full services of a bank account, which it is.

EarthBoy

eDicky wrote: »

Monzo has no fees whatever (except for foreign ATM withdrawals in excess of £200/month).

Monzo also charge for accidental overdrafts, which Basic accounts don't:

https://monzo.com/blog/2017/08/24/overdraft-preview/

"There are a few cases where your account might still go overdrawn without you expecting it — most notably with delayed transactions from organisations like TfL or bills from hotels that come in late that we can’t reject (because they’re presentments — more detail here). Most of the time, these payments should fall within your £20 buffer, but if they don’t, we’ll notify you through the app and give you at least until midnight of that day to clear it. If you don’t clear it, we’ll just treat it like the normal overdraft and you’ll be charged 50p/day. This will also be reported to credit reference agencies."

luvchocolate

You need to open a BASIC bank account with either co op, Nationwide, Barclays. etc
You are not allowed an account with any overdraft facility.
The Halifax will not tolerate B.R's so you will be well rid of them in my opinion.
Pop over to the B.R board lots of information on there.

River.Bee

I opened a cashminder account with Co op in June and I'm not bankrupt or anything along those lines (my credit rating is excellent), and I got accepted with no hitch. But I regret having an account with them as they insist on sending a statement every 25 transactions! It's ridiculous, I get sent an email notification at least 4 times in a single month saying I have a new statement and I don't think there's a way to change the frequency.

EarthBoy

River.Bee wrote: »

I opened a cashminder account with Co op in June and I'm not bankrupt or anything along those lines (my credit rating is excellent), and I got accepted with no hitch. But I regret having an account with them...

Switch to a different bank then. You shouldn't have any problem getting an ordinary current account elsewhere if you've got an excellent credit record.

River.Bee

EarthBoy wrote: »

Switch to a different bank then. You shouldn't have any problem getting an ordinary current account elsewhere if you've got an excellent credit record.

Oh I do. I just needed a separate account to keep some particular transactions separate from my other accounts. I just wanted to say that the Co op accepts applications for the cashminder account even if you're not bankrupt so you CAN apply directly for it, unlike other banks where you have to get denied for their other products first, to then be accepted for their basic accounts.

jonnygee2

I’ve been advised to open a basic bank account

There's no need anymore. Open a full current account with Monzo or Starling.

Monzo also charge for accidental overdrafts, which Basic accounts don't:

It's extremely rare to go more than £20 overdrawn from delayed transactions. The vast majority of people will never have this happen to them.

Also, Barclays charges 75p / day for unarranged overdraft fees, does it not?

System

jonnygee2 wrote: »

There's no need anymore. Open a full current account with Monzo or Starling.

It's extremely rare to go more than £20 overdrawn from delayed transactions. The vast majority of people will never have this happen to them.

Also, Barclays charges 75p / day for unarranged overdraft fees, does it not?

Why would you want a Monzo or Starling account rather than a basic account with a real bank/BS that you can actually deposit cash & cheques if needed?



You have been misinformed about Barclays BTW.



The OP need a current/basic account outside Lloyds Bank Group (Halifax, Bank of Scotland and Lloyds Bank)