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  • FIRST POST
    • sgx.saint
    • By sgx.saint 3rd Dec 06, 12:27 PM
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    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 2
  • melaniec
    basic account
    Hi

    I have a cash account with Lloyds but i hate the fact I don't have a debit card and being disabled this can be a huge problem.

    Some one suggested Citibank but it doesn't seem to be a basic account are you sure they won't reject me outright?

    Also I'm worried about loosing control of my spending again has anyone got any advice?

    Melanie
    • sgx.saint
    • By sgx.saint 5th Dec 06, 9:43 AM
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    sgx.saint
    Hey Melanie,

    In relation to an account with a debit card.

    Have a look at this two links in my first post on this thread. The second one in particular lists the type of card you receive with each account/bank.

    For example Yorkshire Bank offer a Maestro Card which is a debit card.

    See if any of the banks on the list or YB fit the bill.

    Otherwise if you wanted to apply for a CitiBank Account and I don't see why you can't. At worse they can reject the application and at best you will be accepted.

    In relation to spending, its best if you pop over to the DFW board. But what I will say in relation to the CitiBank Account is that they probably won't extend you any credit anyway. So nothing to worry about on that front.
    • biged670
    • By biged670 5th Dec 06, 10:44 AM
    • 394 Posts
    • 36 Thanks
    biged670
    Is it possible to apply for a Yorkshire ready cash account online?
  • moonlightpjs
    Is it possible to apply for a Yorkshire ready cash account online?
    by biged670

    No, I tried but had to go into branch to make appliction. Sorry.
    • sgx.saint
    • By sgx.saint 5th Dec 06, 5:19 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Is it possible to apply for a Yorkshire ready cash account online?
    As Weller said you have to apply in the branch. If there isn't a Yorkshire Bank near you, Clydesdale Bank is Yorkshire Banks sister bank and they offer the same account.

    Otherwise as has been mentioned a lot recently, CitiBank's standard current account seems to be a good option also. A lot of people with poor credit histories have successfully opened this account.

    I myself have tried too, will keep you posted!

    Oh and its worth £50 through Quidco too
    • lisaf
    • By lisaf 6th Dec 06, 6:17 PM
    • 273 Posts
    • 169 Thanks
    lisaf
    Hi,
    I've just heard back today from Natwest regarding their step account. Basically, they've turned me down. If it's only a 'no frills' account then what have they got to lose? Anyway, has anyone got any ideas of another account that I would have more chance of getting?
    I just didn't want loads of searches on my already bad record!
    Many thanks in advance
    Lisa
    • sgx.saint
    • By sgx.saint 6th Dec 06, 6:25 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Hi Lisa,

    Sorry to hear that. I am surprised that you got turned down for the Natwest - Step Account.

    Did you have a look at the two websites in the OP on this thread?

    I can also recommend the Yorkshire Bank - ReadyCash Account.

    Also, quite a few people are having success getting a full current account from CitiBank (less any overdraft naturally).

    You could apply online to CitiBank, but use Quidco to get your £50 cashback if your accepted.
  • melaniec
    Lloyds bank accepted me when Natwest closed my account last year, but note you can only use your cash card in their machines
  • dexters_mum
    As I posted before, hubby was rejeted by Noriwch & Peterborough & he has also now been rejected by Co-op for their Cashminder account too.
    As he is really unhappy with Natwest but does like the debit card facility they offer, just not sure whether to stay with a bank despite terrible customer service just because of what they offer!!

    When hubby spoke to N&P, they said to contact the FSA should he have problems opening a basic account...it seems from this post he is not the only only person.

    Personally, I thought getting a basic ank account was supposed to be fairly straightforward, it seems like now it is becoming harder, anyone know why this might be?
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    • sgx.saint
    • By sgx.saint 8th Dec 06, 10:58 AM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Personally, I thought getting a basic ank account was supposed to be fairly straightforward, it seems like now it is becoming harder, anyone know why this might be?
    Can't shed any light on it really dexters_mum. I do know that some confusion can occur with some people when they goto open an account and the bank staff don't put the application through as a basic account.

    Have you tried CitiBank for the full current account? A lot of people on this thread and others with adverse credit histories seem to be getting accepted no problem at all. Account comes with a debt card and cheque book.

    oh and £50 cashback on Quidco.
    • cifpower
    • By cifpower 8th Dec 06, 1:17 PM
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    cifpower
    I would advise anyone to try HSBC. Ring them on 0800 032 4738. I am on disability and was given a full account. My friend has missed 4 or 5 payments on his mortage an has some other bad debt from the past. He was also offered a full account.

    HSBC seem very accommodating and the internet service is very good.


  • julesb31
    Jus thought i'd let people know that i have been on a dmp for approx 2 years, have 4 defaults and 2 ccjs. I received my citibank visa debit card a couple of days ago. Only took about two weeks from applying.

    Very surprised but obviously there's hope for us all yet
  • thriftykatie
    Intending to claim for bank charges but have dithered a bit as I don't want the aggravation of having to change bank accounts. First of all, has anyone any experience of claiming back from the Woolwich? Also, if I set up a bank account 'just in case' do they not need a regular income going in? I need an account with a debit card and also direct debit/standing order facilities and looking at the Citibank account it seems from the application form I need to have my salary paid in each month. New to this (although thinking about it for a while but now seriously going to do something about it) so would appreciate any help.
  • dexters_mum
    With Citibank you have to producce a cheque for your initial deposit, we don't have a cheque book as we have a Step account (Natwest) and they won't accept a single signatory cheque, which I have but hubby doesn't.
    N&P are supposed to have a cheque book on their basic accounts but they won't let you open a basic account with a CCJ, which my hubby has!

    I'm OK bank & credit wise but he's got really quite adverse credit and we really need a joint account!
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    • sgx.saint
    • By sgx.saint 9th Dec 06, 9:11 PM
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    • 443 Thanks
    sgx.saint
    dexters_mum, just to let you know, you don't need a cheque to open a CitiBank Account.

    You can provide an additional form of ID instead. You just need to give them a ring.
  • dexters_mum
    Ooooohhhhh THANK YOU SO MUCH SGX.SAINT!!!!
    Saint by name and saint by nature!!

    THANK YOU!
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    • sgx.saint
    • By sgx.saint 10th Dec 06, 12:15 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Ooooohhhhh THANK YOU SO MUCH SGX.SAINT!!!!
    Saint by name and saint by nature!!

    THANK YOU!
    lol, no problem .... I have to live up to my saintly image sometimes
    • richt71
    • By richt71 10th Dec 06, 1:09 PM
    • 925 Posts
    • 303 Thanks
    richt71
    Hi,
    I've just heard back today from Natwest regarding their step account. Basically, they've turned me down. If it's only a 'no frills' account then what have they got to lose? Anyway, has anyone got any ideas of another account that I would have more chance of getting?
    I just didn't want loads of searches on my already bad record!
    Many thanks in advance
    Lisa
    by lisaf
    Lisa,
    I have one step account with natwest but recently tried to open a second account (for sole trader purposes) and got declined. I asked why and they said that as a rule more than 1 ccj will get you declined. They told me to come back if I got 1 or both sorted. In fact they told me if I got both CCJ's satisfied (1 is now) they'd upgrade my step to a basic current account because of the time I've held the step (just over 2 years now!).
    Hope that helps.
    • lisaf
    • By lisaf 10th Dec 06, 4:14 PM
    • 273 Posts
    • 169 Thanks
    lisaf
    Hi Richt, thanks for that. I don't have any CCJ's but I did apply for a joint account and my other half has got them so that must have been why! Having said that, my sister got approval yesterday and she has a CCJ. So I really don't know what's going on. I've just tried citibank on my name only so I'll just wait and see.
    Lisa
    • sgx.saint
    • By sgx.saint 11th Dec 06, 3:43 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Lisa.

    As per my original post here, have you a Yorkshire Bank near you?
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