Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • 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 3
    • lisaf
    • By lisaf 11th Dec 06, 5:32 PM
    • 273 Posts
    • 169 Thanks
    lisaf
    Hi sgx.saint,
    I'm pretty sure There's not a Yorkshire bank near me.
    Lisa
    • sgx.saint
    • By sgx.saint 11th Dec 06, 8:47 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Pitty, as your probably aware they offer a Maestro on their ReadyCash Account.

    If there is a Clydesdale near you then they are a sister bank of Yorkshire Bank and offer the same account and card.

    Otherwise, go with CitiBank and keep your fingers crossed and you will hopefully get an account with them and a Visa Debit Card.
  • sadken
    I have just come in to a bit of money (£13,750) and have wages (£1512) going in my bank early next week.
    I have a basic account with Nationwide and would like a debit card.
    I rang them and they said the amount in the bank doesn't matter as credit checks still take place.
    Is it best for me to live the Citibank dream and wop all the funds over to them to guarantee a debit card?

    Regards

    Mike
    • sgx.saint
    • By sgx.saint 14th Dec 06, 2:07 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Probably the best route Sadken.
  • computerwoman
    I have been with barclays for 15 years, had everything, came out of work, forgot about my tv licence dd, they shut down my accounts and threw my cards away, went back 6 months later, no bad credit, no ccj's, no nothing, they would only give me a cashcard account, went in the bank one day, they asked would I like to up-grade my account, I said oh yes please, went to see the bank manager and said if it were up to him he would give me the top accounts they had but there's something against my name, that is stopping it, so I closed the account, went to hsbc and they would only give me a basic cashcard account, I have to pay all my dd's through my son's account, which is a nightmare, hsbc said they would review my account after I have been with them for 12 months, not holding my breath, barclays have asked me to go back with them, but only with the cashcard account again, so I've said no, inccidentally, did'nt I hear on the news that citibank were putting in a bid for barclays, which if it is make's me doult that they will give me an account, I just don't understand it, all I can think is that someone has stolen my ID and I'm getting the s**t for it, I'll let you know what comes up next.



    Pls be nice to all MSer's
    There's no such thing as a stupid question, and even if you disagree courtesy helps.
    Tomorrow never come's as today is yesterday and tomorrow is today:confused:

    MERRY CHRISTMAS FELLOW MSer's
  • MediaFrenzy
    Good morning,
    Just thought I'd let you know that I received my Citibank welcome letter this morning stating that VISA card is in the post; it took about 2 weeks from application.
    I had been refused basic accounts from Natwest and Clydesdale (Yorkshire) bank before applying to Citibank; I already had a (very) basic account with LTSB.
    MF
    • sgx.saint
    • By sgx.saint 24th Dec 06, 12:41 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Thanks for the update MediaFrenzy.

    I too as I have mentioned will keep you all informed of my progress too.

    Merry Christmas.
    • PJHilder
    • By PJHilder 25th Dec 06, 12:10 PM
    • 132 Posts
    • 27 Thanks
    PJHilder
    I've applied with Citibank and sent off proof of address. Couldn't send them a cheque but was told on the phone to write this on the letter to them.

    Here's hoping I can finally get a debit card.
  • nagaraju_th
    I had 2 basic accounts in 2 banks,...1 with barclays and 2 with Natwest,
    the problem is i had recently changed the Natwest bank account address to other address,
    and i didnt changed the second bank address.. /
    mean while i had applied for credit card and i got rejected......
    Does my address at the natwest bank effect this// please help me....
  • nagaraju_th
    Can one persson have 2 current accounts....or not..
  • nagaraju_th
    plaese help
    • sgx.saint
    • By sgx.saint 28th Dec 06, 8:43 AM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    I had 2 basic accounts in 2 banks,...1 with barclays and 2 with Natwest,
    the problem is i had recently changed the Natwest bank account address to other address,
    and i didnt changed the second bank address.. /
    mean while i had applied for credit card and i got rejected......
    Does my address at the natwest bank effect this// please help me....
    I am not 100% sure what you are asking here, so I will answer the questions that I think your asking (if that makes sense).

    1) Yes, you can have as many Basic Bank Accounts as you like. They do not affect your credit rating as they do not show on your credit file.

    2) If you have two Basic Bank Accounts already, then that suggests to me that your credit rating maybe poor. So this is the most likely reason you got declined for a Credit Card.
  • MediaFrenzy
    Hi,
    Just another Citibank update; this morning I received my VISA debit card. It's taken around 3 weeks from application, not bad considering the time of year. I'm just waiting on my PINs now to activate my account and card.
    Good luck to everyone else who is trying for this account.
    MF
    • xxdiddiexx
    • By xxdiddiexx 28th Dec 06, 7:20 PM
    • 319 Posts
    • 91 Thanks
    xxdiddiexx
    Hi,
    Just another Citibank update; this morning I received my VISA debit card. It's taken around 3 weeks from application, not bad considering the time of year. I'm just waiting on my PINs now to activate my account and card.
    Good luck to everyone else who is trying for this account.
    MF
    by MediaFrenzy
    That's excellent news
    Looking forward to some good news myself on this one!
    • forever_skint
    • By forever_skint 29th Dec 06, 12:26 AM
    • 289 Posts
    • 6,931 Thanks
    forever_skint
    Do you gat a cheque book with the citibank account?
  • dexters_mum
    Yes, you do apparently get a cheque book with a Citibank account and well as a Visa Debit card, but the card is apparently not a cheque guarentee card.
    £2 Coin Savers Club (Christmas)- £86
    £1 Jar (Christmas)- £29
    Christmas Vouchers Saved: £145
  • PhilippaH78
    Basic Bank account query!
    Hello

    My husband was recently refused a bank account from the HSBC, according to the info from the FSA, they will only refused undischarged bankrupts, and he is discharged. Has he got any chance of complaining? And getting this changed? He has a basic bank account with the Co op but there is no Co op's near us and it is hard to pay money in, I'm with the HSBC and it would make more sense for us to be with the same one so we can transfer money between us, etc.

    Thanks.
    • sgx.saint
    • By sgx.saint 1st Jan 07, 1:28 PM
    • 1,571 Posts
    • 443 Thanks
    sgx.saint
    Hello

    My husband was recently refused a bank account from the HSBC, according to the info from the FSA, they will only refused undischarged bankrupts, and he is discharged. Has he got any chance of complaining? And getting this changed? He has a basic bank account with the Co op but there is no Co op's near us and it is hard to pay money in, I'm with the HSBC and it would make more sense for us to be with the same one so we can transfer money between us, etc.

    Thanks.
    Hi Philippa.

    You are well within your rights to complain, and you are entitled to send a complaint to the FSA making them aware of the situation.

    However, a bank is well within its rights to refuse your husband a bank account. The FSA does not enforce banks to ensure that they offer an account which anyone can open. The FSA simply made strong recommendations to the banking community that they should offer some type of basic account which pretty much anyone would be entitled to open regardless of financial circumstance.

    However as I have already stated, a bank can and will still refuse individuals as you have seen first hand.

    My recommendation would be to try opening a different account with a different bank.

    Three I recommend:-

    Natwest - Step Account
    Yorkshire Bank - ReadyCash
    CitiBank - Sterling Current Account (This is a full current account)
  • TheTrueKing
    Hello......He has a basic bank account with the Co op but there is no Co op's near us and it is hard to pay money in,
    by PhilippaH78
    Do you have a Post Office near you?

    You can deposit cash and cheques via the Post Office - but you need your card to deposit cash and you need a Co-Op envelope (which they send you, as soon as you open an account with them) to deposit cheques.
  • Icemoose
    Still not heard anything back from Natwest been 15 days since I went in to apply for there basic account the one with the solo card. My application had to be sent away along with my certificate of discharge from my bankruptcy. They did say they had no problems letting me have this account if I provided this proof as I have a savings account with them which is conducted well (there words…)

    Wonder how long I should wait till I contact them to chase it up…. With it being Christmas and all!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

695Posts Today

6,590Users online

Martin's Twitter