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  • FIRST POST
    • sgx.saint
    • By sgx.saint 3rd Dec 06, 12:27 PM
    • 1,571Posts
    • 443Thanks
    sgx.saint
    Basic Bank Account Thread
    • #1
    • 3rd Dec 06, 12:27 PM
    Basic Bank Account Thread 3rd Dec 06 at 12:27 PM
    Official MoneySavingExpert.com insert

    For full info on basic bank accounts, see our fully researched Basic Bank Account guide.

    Back to the original post...

    ------------------------



    Hello All.

    I thought I would start this thread in relation to all the posts that I see regularly on this board regarding Basic Bank Accounts.

    The purpose of this thread is to answer questions, support and help those who are looking for a Basic Bank Account for whatever reason. Basic Bank Accounts are designed to do exactly what they say on the tin so to speak, serve the purposes of having a bank account, with none of the frills. Basic Bank Accounts will not come with any credit facilities, which probably wont come as much surprise.

    Why would I want a Basic Bank Account?

    The most common reason is that people with adverse credit histories (Defaults, CCJ's, Bankrupts) are usually unable to open a 'standard' bank account with any of the high street lenders. Basic Bank Accounts are designed to allow people in such circumstances to open and operate an account. In saying that, some banks are still very strict in their application criteria and people still are sometimes declined. It is a common misconception that banks have to provide an account to absolutely anyone. The FSA made strong recommendations to the banking industry that they provide an account to people who would normally not meet their standard eligability criteria, however at this stage they do not enforce this recommendation. So just like a nighclub, a bank has the right to refuse entry. Fear not though, as there are a large array of accounts available and you will almost certainly find one to suit your needs.

    Of course Basic Bank Accounts are not just for people with adverse credit problems, as the accounts offer no credit facilities, some people prefer to use them as they feel they can manage their money better. People open them as second accounts to manage direct debits, a second account for 'Matched Betting' or even as a 'parachute' account if you are reclaiming bank charges from your current bank. So as you can see there are quite a few reasons you may want to open an account.

    Links

    I myself have two basic bank accounts, and a few months ago when I was 'shopping' around for the right basic account, this board proved invaluable. So I thought I would share my personal recommendations, advice and opinions to help others who too need a basic account. I use my Basic Accounts for Matched Betting and managing my array of Direct Debits, but of course they can be used for whatever purpose you require.

    Moving on, I would direct all newcomers to the following two websites, which both list the majority of Basic Bank Accounts provided within the UK.

    The first link is to the Financial Services Authority website and is a .pdf document that lists the various basic bank accounts, their features and also provides a little banking background information as well, such as terminology and so forth:

    http://www.fsa.gov.uk/consumer/pdfs/bank_account.pdf

    The second link I found very useful, this website provides a very good breakdown of the various accounts available including information about what type of card you will receive, i.e. Maestro, Solo, Cash Card. Also it even details the interest rates if applicable and if the accounts support Standing Orders or Direct Debits.

    http://www.moneyfacts.co.uk/banking/bestbuys/banking_basic_bank_accounts.aspx

    What do I need to open an Account?

    To open a Basic Bank Account, the procedure is pretty much the same for any other account. When you have decided which bank to visit and apply for an account you will need two forms of ID and proof of address.

    Usually you need a form of photographic ID, such as a Passport or Driving Licence. You will also need proof of address, this can usually be a Utility Bill or Council Tax Bill. Obviously do check with your bank first as this is just a general rule of thumb. Some Banks policies may differ slightly.

    Also, a tip .... When you goto open a Basic Bank Account, make sure the person (Staff Member) who is opening the account is fully aware that you want a Basic Account. If possible mention the name of the account to be sure. A few members on here have been caught out where the bank staff have applied for a full current account and as a result the member has been turned away (only applicable to members with adverse credit histories).

    Usually, even when applying for a Basic Account, a credit check is still performed. This is normally just to confirm your identity and your financial status. i.e. that you have'nt lied about being bankrupt etc. Some banks of course will accept bankrupt individuals (check the two websites for more information!).

    CitiBank

    Before we go any further, I have to mention CitiBank. CitiBank are a large international banking organisation with a signifcant worldwide presence. They originated in the USA and also have a large UK operational presence. CitiBank offer a current account package called the 'Sterling Current Account'.

    Why is he mentioning this I hear you cry!

    There has been a lot of discussion on this board over the past three months regarding this account as CitiBank appear to have a very flexible eligability criteria for the account. Many members have successfully opened an account even with adverse credit histories. I therefore highly recommend trying to open a CitiBank account before continuing down the route of a Basic Bank Account. This account is a full account, and even offers 500 interest free overdraft and chequebook (if your eligable) and even if your not, most people are still able to open the account, complete with Visa Debit Card. Many of the features I just mentioned are not available on Basic Accounts so I again urge you to try and apply for this account first before continuing.

    --
    http://www.citibank.co.uk
    --

    I won't go into much more detail here, but there is an ongoing thread you can join here:-

    http://forums.moneysavingexpert.com/showthread.html?t=321204

    Basic Account Recommendations

    My two personal recommendations for Basic Accounts are:-

    Yorkshire Bank - ReadyCash Account. http://www.ybonline.co.uk

    &

    Natwest Bank - Step Account. http://www.natwest.co.uk

    Both accounts I find to suit my needs brilliantly and the accounts are in my opinion superb. But of course everyone is different.

    A recent thread started on this board (I can't find it at the moment) also suggests you can try opening an account with your local Credit Union if they do indeed provide an account. You could try searching for this thread if your interested in exploring this route.

    I will of course link this thread when I find it for a better explanation of Credit Unions.

    I hope this thread goes a long way to answering your questions and helping you locate the right account for you.

    Thanks

    SGX Saint
    Last edited by Former MSE Andrea; 25-03-2014 at 10:48 AM.
Page 1
  • Edinburghlass
    • #2
    • 3rd Dec 06, 12:29 PM
    • #2
    • 3rd Dec 06, 12:29 PM
    Done and thanks for this, saved me a good deal of time today
    • sgx.saint
    • By sgx.saint 3rd Dec 06, 12:35 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    • #3
    • 3rd Dec 06, 12:35 PM
    • #3
    • 3rd Dec 06, 12:35 PM
    Done and thanks for this, saved me a good deal of time today
    No worries, I should actually be doing some University work right about now but I just can't concentrate. If I'm not doing Uni work, then I am on the MSE forums, it's a form of addiction you know!

    Back to the thread .... I hope this helps all the people who have questions about Basic Accounts.
  • Edinburghlass
    • #4
    • 3rd Dec 06, 1:06 PM
    • #4
    • 3rd Dec 06, 1:06 PM
    Please also have a read of Martin's article regarding Current Accounts

    And the Resource bar at the top of this board.

    Budget Planner Best Buy Articles: Current Accounts | Stop Paying Overdraft Interest Current Account Comparisons: Moneysupermarket* | Uswitch* Other: Problem Debts | Credit Rating
    Last edited by Edinburghlass; 03-12-2006 at 1:09 PM.
  • mouse_potato
    • #5
    • 3rd Dec 06, 2:45 PM
    • #5
    • 3rd Dec 06, 2:45 PM
    If you have a basic bank account with one of the banks / building societies listed below you can take out cash free at the counter of Post Office™ branches using your card and PIN:

    * Abbey
    * Alliance & Leicester
    * Bank of Ireland
    * Bank of Scotland
    * Barclays
    * Clydesdale Bank
    * The Co-operative Bank
    * First Trust Bank
    * Halifax
    * HSBC
    * Lloyds TSB
    * Nationwide Building Society
    * NatWest
    * Northern Bank
    * The Royal Bank of Scotland
    * Ulster Bank
    * Yorkshire Bank

    The link lets you see what services the P.O offers those with basic bank accounts.

    http://www.postoffice.co.uk/portal/po/jump2?catId=19400181&mediaId=19700174
  • BYould
    • #6
    • 3rd Dec 06, 6:43 PM
    • #6
    • 3rd Dec 06, 6:43 PM
    Could I also mention that although not strictly a basic bank account Citibank's Sterling Account is very good and they seem to accept almost anybody. I haven't heard of anyone being refused one after reading the message boards.

    I held two basic bank accounts due to a recent bankruptcy but was still accepted for the citibank account.

    Good luck everybody.
  • dexters_mum
    • #7
    • 3rd Dec 06, 10:13 PM
    • #7
    • 3rd Dec 06, 10:13 PM
    Could I mention that my husband was decline by Norwich and Peterborough for their Basic Bank account. He's in a DMP with Payplan and has one CCJ and 3 defaults. They refused him an account.

    We have a joint account with Natwest and this is a step account, it is very good, aside from the dubious customer service!
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    • theboylard
    • By theboylard 4th Dec 06, 6:32 AM
    • 1,176 Posts
    • 2,831 Thanks
    theboylard
    • #8
    • 4th Dec 06, 6:32 AM
    • #8
    • 4th Dec 06, 6:32 AM
    Following some of the other threads about accounts, I really wanted to be completely independent of the joint account so Nationwide's FlexAccount, whilst I'll still use it for holiday money, was not a long term answer for me as they wouldn't give a debit card.
    Not even after I pleaded and showed proof of income and took in copies of credit file showing no debts - mortgage only, nowt else!

    So following on from folks commenting about Yorkie Bank, phoned up my local branch on Monday morning, had an appointment Monday afternoon where I signed various bits - and she was quite pushy but knew when to stop (ie. when I told her to!!) -then walked out with some bumpf an hour later.

    Thursday, Maestro card arrives and letter for internet banking registration.

    I simply cannot fault that service, way beyond anything I've had in the past, and I've had accounts over the years with a lot of them!!!

    Oh, and the internet banking works properly, unlike Nationwide which times out for me when trying to transfer money to an external account. Been nagging at them to fix it for months, plus I'm not alone on this either!!

    Transfer time from Nationwide to YB? Transferred £500 On Tuesday, in YB on Thursday when I logged in for the first time. IF to YB, transfer on Tuesday, in YB on Friday.

    Excellent stuff!!!! Open an account today
  • moonlightpjs
    • #9
    • 4th Dec 06, 11:17 AM
    yorkshire and nat west
    • #9
    • 4th Dec 06, 11:17 AM
    Can anybody help - just been refused basic account with both the Yorkshire Bank and Nat West. Thank you
  • MediaFrenzy
    credit unions
    Hi,
    There are nine credit unions now offering current account services, with VISA debit, SO and DD facilities:

    Capital Credit Union providing services to people living or working in Edinburgh, Lothian and the Borders
    Glasgow Council Credit Union providing services to public sector employees in Glasgow
    Hull and East Yorkshire Credit Union providing services to people living or working in Hull and the East Riding of Yorkshire
    Leeds City Credit Union providing services to people living or working in Leeds
    Scottish Postal Workers Credit Union providing services to postal workers across Scotland
    Scotwest Credit Union providing services to public sector employees in the West of Scotland
    Southwark Credit Union providing services to people living or working in the London borough of Southwark
    Voyager Credit Union providing services to public transport employees across England and Wales
    White Rose Credit Union providing services to people living or working in Wakefield, West Yorkshire.

    If you look on the abcul website or google them you should find contact details.
    MF
    • sgx.saint
    • By sgx.saint 4th Dec 06, 1:07 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Can anybody help - just been refused basic account with both the Yorkshire Bank and Nat West. Thank you
    Weller, when you applied to both banks, did you make sure they understood that it was a basic account that you wanted to open?

    In the case of Natwest a Step Account and Yorkshire Bank a ReadyCash Account?

    If so, did they give you any reason for declining you for the accounts?

    In theory, a basic bank account should be available to all, with only possible rejecting in cases of previous bankruptcy.
  • moonlightpjs
    I did state which account with the Natwest and when I questioned the Yorkshire they said it had been referred to head office and head office said no offer of any kind would be made to me - they had intially applied for a current account which was not what I asked for and I asked today if I could have a Readycash account and they said no. They both just said it was information received re: adverse cedit which obviously I knew about and to contact the credit reference agencies which doesn't help me at the moment as I don't have an account to have my money paid into. No history of bankruptcy.
  • premiere
    I did state which account with the Natwest and when I questioned the Yorkshire they said it had been referred to head office and head office said no offer of any kind would be made to me - they had intially applied for a current account which was not what I asked for and I asked today if I could have a Readycash account and they said no. They both just said it was information received re: adverse cedit which obviously I knew about and to contact the credit reference agencies which doesn't help me at the moment as I don't have an account to have my money paid into. No history of bankruptcy.
    by weller711
    You posted a message in another thread saying that you had been accepted for a full blown Citibank account with visa debit card and cheque book, so why are you still applying for basic accounts?? Or did you get knocked back for the Citibank account 'after' being accepted??

    I ask, cos I'm waiting to hear from Citibank about my application...
  • moonlightpjs
    You posted a message in another thread saying that you had been accepted for a full blown Citibank account with visa debit card and cheque book, so why are you still applying for basic accounts?? Or did you get knocked back for the Citibank account 'after' being accepted??

    I ask, cos I'm waiting to hear from Citibank about my application...
    by premiere
    Sorry, I have been accepted but I had to write a cheque from my current bank to Citibank to open an account and because I am so overdrawn I think the cheque will bounce and I wasn't sure if Citibank would still allow me an account if this happened so I was just trying to cover all bases if you know what I mean. The cheque hasn't been presented yet so am a bit worried though I called them to explain and they just said I would have to go into a Lloyds bank once I get my new account details to pay some money in to the account (Citibank only have branches in London I think so you must be able to pay in at a Lloyds bank). Sorry for the confusion. How long ago did you apply and have you sent your form, id and cheque back yet, if so why not give them a call to chase it up?
  • moonlightpjs
    You posted a message in another thread saying that you had been accepted for a full blown Citibank account with visa debit card and cheque book, so why are you still applying for basic accounts?? Or did you get knocked back for the Citibank account 'after' being accepted??

    I ask, cos I'm waiting to hear from Citibank about my application...
    by premiere

    Don't like the fact that you are implying that I am lying!!!!!
  • HeaddyMX
    Thanks for the thread. I recently moved from NatWaste to the Cooperative Bank for my main account (never going back), but recently I've run into problems with the provided Visa Electron card. I'm going to research some others banks for additional accounts.
    • pukkamum
    • By pukkamum 4th Dec 06, 7:34 PM
    • 3,777 Posts
    • 9,159 Thanks
    pukkamum
    I am new to this forum hope someone can help me I have a cardcash account with RBS i am desperate to have a debit card as cant buy on internet or order tickets etc if i ask them for one will they then do a credit check? bit worried cos dont want to have a failed application posted on my credit file.
  • premiere
    Don't like the fact that you are implying that I am lying!!!!!
    by weller711
    No...No...Sorry if that's how it came across.

    I was just thinking that maybe you had been accepted and then got given a dear john by Citibank. It's just that I didn't want to get my hopes up (IE possibly accepted) only then to be rejected!!

    I am sorry if I gave the wrong impression...

    As for calling them... I did earlier. Sent the form back early last week...they said they haven't received it yet
  • moonlightpjs
    No...No...Sorry if that's how it came across.

    I was just thinking that maybe you had been accepted and then got given a dear john by Citibank. It's just that I didn't want to get my hopes up (IE possibly accepted) only then to be rejected!!

    I am sorry if I gave the wrong impression...

    As for calling them... I did earlier. Sent the form back early last week...they said they haven't received it yet
    by premiere

    It did take me a while to get a decision - just over a week till they recieved forms, a couple of days to process it and then a decision. Jst try again in a couple of days. Hope you get the account.


    Sorry about previous e-mail - I'm female and just getting a bit upset with the bank thing and my current bank have me in tears everyday. Just seem to be taking everything the wrong way - hubby says I'm driving him mad and its only banks!!!!! Anyway, things will get sorted sooner or later.
  • dexters_mum
    I am new to this forum hope someone can help me I have a cardcash account with RBS i am desperate to have a debit card as cant buy on internet or order tickets etc if i ask them for one will they then do a credit check? bit worried cos dont want to have a failed application posted on my credit file.
    by pukkamum
    They probably would but Natwest offer a Solo card on their basic account, Yorshire bank offer a Maestro card and Co-Operative & Halifax offer Electron on their basic accounts, you could try them too if you get declined from RBS, if you have been a good customer they may well give you one to keep your customer, especially if you say you'll walk away otherwise....
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