Simple bank account?

Running_Horse

Are there any downsides to opening a basic bank account?

It would be a fun money account. £100 per month from our current account to be spent on socialising, football, days out etc. All I need is a debit card and no charges. It would never build up long term savings. Want it to be separate from our joint current account.

Or is there a better non current account option?

Thanks for any thoughts or ideas.

p00hsticks

'Simple' (as in thread title) or 'Basic' (as in text ) ?

A 'basic' bank account is a specific type of bank account which tends to be for people who aren't able to get a standard current account. It won't allow you to go overdrawn which as far as I'm aware means that you may potentially not be able to pay for items using your debit card if the transaction is offline (where the retailers system cannot immediately contact the bank for authorisation). 

If you already have an ordinary joint account, then presumably you'd also qualify for a standard current account rather than a basic one. 

P.S. You've posted on the 'ISA & tax free savings' board - I'm going to ask for it to be moved over to the more appropriate Banking board. 

Zinger549

Have you thought about an app only bank (Starling, Monzo, Chase ect).

elsien

Yes, I was thinking Starling as well. Seems to suit what you want.

Running_Horse

Thanks for the replies so far. It’s been so long since I posted, got a little lost. Feel free to move to the appropriate board.

Will look into an app only bank. The problem I’ve found in my search so far is any account wants to become my main current account. 

Looked at the Metro basic account, as there is a branch in my town. But I’m also aware it’s generally an account for those who cannot get a normal account.

Our mortgage is just paid off, we are debt free and now saving like mad for retirement. This account would be for keeping “fun money” separate and budgeted. 

wmb194

Running_Horse said:

Thanks for the replies so far. It’s been so long since I posted, got a little lost. Feel free to move to the appropriate board.

Will look into an app only bank. The problem I’ve found in my search so far is any account wants to become my main current account. 

Looked at the Metro basic account, as there is a branch in my town. But I’m also aware it’s generally an account for those who cannot get a normal account.

Our mortgage is just paid off, we are debt free and now saving like mad for retirement. This account would be for keeping “fun money” separate and budgeted. 

They might *like* any current account you open to become your main account but they really don't have to be, don't worry about that. Anyway, for resiliency it's a good idea to have at least two current accounts with separate institutions.

Rob5342

Basic usually means a specific account aimed at people with bad credit. If you don't hsve bad credit you should be able open an account with any bank, they all have accounts with no fees, it's up to you how little or often you use it.

When did you last use a branch? Most people never do. I'd recommend an account with a modern bank like Monzo or Starling. They hsve lots of useful budgeting feature, and you could even use them as your main account and use their pots/spaces feature to keep your socialising money separate. 

elsien

No, I have a Starling account and they asked if I wanted to use it as primary current account and I said no and that was it. 

Basically  I just pay money in as and when and use my card or phone to spend it. And that’s it. It runs along quite happily with the bonus of a small amount of interest. 

Magnolia

Another vote here for Starling - I use mine as an everyday spending account keeping the balance mostly below £100 with no overdraft so if it gets cloned there is beggar all in there to nick!

Spaces are very useful - I have my holiday spends and Christmas in separate ones.  I top up  my holiday fund all year round with the 'Save the Change' function.  Seems to work quite well for me.

Oh yes and not a problem using it in Greece and Bulgaria.

Desmond_Hume

elsien said:

No, I have a Starling account and they asked if I wanted to use it as primary current account and I said no and that was it. 

Basically  I just pay money in as and when and use my card or phone to spend it. And that’s it. It runs along quite happily with the bonus of a small amount of interest. 

Just checking that you’re aware interest is no longer being paid on current account balances for Starling as of…about now I think?

GeoffTF

You are likely to find that most banks will not allow you to open a Basic Bank Account if you qualify for a standard bank account.

The majority of the accounts with the challenger banks like Starling are used as secondary accounts, which is not profitable for them. They do not appear to be closing them though. If you were to say that you intend to use your account as your primary account and then "change your mind", I do not expect that they would close it.

I use a Tesco Clubcard Pay+ account as a secondary account. Tesco is content with that because it is part of their loyalty scheme. (These accounts are even more stripped down than a Basic Bank Account, and are now administered by Barclays.)