Basic Account

stevieyork

Hello, I'd like to open a Basic Account in preparation for debt management/solutions (likely defaults followed by a DMP). I was told Nationwide was the best but I noticed it said you cannot apply if you currently hold another UK current account. I checked some others and they seem to say this too.

I notice Lloyds states you can't apply directly for their Basic account, but one of their current accounts and they assess your credit history and decide what is best for you. If they decided a normal current account was best for me now but then I got my DMP in a few months, would they downgrade me automatically or would they potentially do something odd to my account and leave me without access to my money/paying my bills for some period of time?

Any information is much appreciated and if you have a specific recommendation/experience of a bank/account, please do let me know!

WillPS

Co-operative Bank (Cashminder) and Santander accept applications specifically for their basic accounts, as far as I know all the others only offer it if they decline you for their non-basic account.

Rob5342

Nationwide are extremely old fashioned, I'd try Starling or Monzo instead which are decades ahead of Nationwide.

Basic just means they don't have an overdraft facility. You don't specifically need a basic account for a DMP, if your credit history is good now you could just open a standard bank account now without an overdraft and use that. The important thing is that you don't bank with a bank you owe money to. Modern banks like Monzo and Starling don't have confusing terms like basic account, they just have their standard account with or without an overdraft facility.

PRAISETHESUN

My experience with basic accounts is that most banks don't like to offer them unless they have to. Usually, this requires you to apply for, and be declined for, a standard current account first.

Things may have changed over the last several years, but this is what I did with Santander when I first moved to the UK. I applied in branch as I had ID issues, specifically asking for a basic current account. The clerk helping me had to go through the motions of applying for a standard account, telling me I was rejected, and then the system allowed him to sort out a basic account for me.

stevieyork

Thank you all for your advice. I did indeed have to apply for a normal Current Account then got "declined" and offered a Basic Account instead. So, that account is being setup now and hopefully I will have access soon.