Why can't I get a basic bank account?
There are so many benefits of a bank account.
It is a safe place to store and manage your money. You can set up Direct Debits, transfer money between accounts, withdraw cash, send cheques and shop online. There are also other benefits: for example, most employers pay wages into a bank account these days, rather than paying cash-in-hand. Setting up Direct Debits to pay your bills often gives you a discount on your services.
This means that those who cannot get a current account can be at a real disadvantage.
Who can't get a bank account?
People can have difficulty obtaining a normal current account for a number of reasons. For example, if:
- They have been made bankrupt in the past.
- They are new to the country.
- They have a bad credit history, such as arrears and CCJs (County Court Judgments).
This does not mean, however, that they will never be able to obtain any bank account.
Basic bank accounts
You might think 'basic bank account' is just another way of saying 'standard bank account', but there is a big difference: basic bank accounts are geared towards people who are unable to get a 'normal' bank account.
Basic bank accounts are not usually widely advertised, which is one reason many people don't know about them. They can provide you with most of the services you would expect with a bank account: a place to keep your money, a cash or debit card to withdraw money with, Direct Debits etc.
What they don't do is provide you with a cheque book or overdraft facilities. This could be viewed in a positive light, however - when you can't accidentally spend more money than you have, this can help you avoid getting into debt without even knowing about it.
Click here to learn more about basic bank accounts .
Who can get a basic bank account?
Basic bank accounts are open to people who have struggled with money in the past, and therefore have a poor credit history. They sometimes do not involve a credit check at all.
They may also be beneficial for people with limited financial knowledge or experience, who would be more comfortable with a more 'basic' way of managing their money. Basic bank accounts can also be a good idea for people who are concerned about spending too much, as they will be unable to go overdrawn.
If you feel that a basic bank account is right for you, enquire at your bank or search online for 'basic bank accounts'.
Click here to see if the thinkbanking account is right for you
- it's a type of basic bank account with a difference.
Related resources
- How is the thinkbanking account different from a basic bank account?
- Basic bank account FAQs
- What role do basic bank accounts play in the UK?
- Who needs a basic bank account?
- Can I get a basic bank account if I have an IVA?
- Can`t get a basic bank account
- Can you have a bank account if you are made bankrupt?
- Bank accounts for people with an IVA
Tags: bank account, bank, bankruptcy, CCJ, County Court Judgments, credit rating, credit history