If you don't have a bank account, you may struggle to manage your everyday finances.

There are many reasons why a bank account is important - and here are just a few.

Somewhere safe to keep your income

It's safer and usually much more convenient if your income is paid into a bank account. This could include your salary, a pension or benefits and tax credits.

Many employers can only pay your salary into a bank account. If you want to receive benefits, you don't have to have a bank account - but it makes life much simpler if you do. And a bank account is the ideal safe place to keep pension payments.

Shop online, pay for goods and services

If you open a bank account that comes with a credit or debit card, then you can enjoy the convenience of online shopping and paying for goods and services with your card.

Often, you'll find discounts and e-vouchers online, so having a bank card that lets you shop online could save you more money than paying with cash.

Easier and safer to pay for regular bills

Without a bank account, paying bills can be a bit of a hassle. Direct Debits and Standing orders make it simpler to pay the rent or mortgage regularly and for paying regular bills.

Many utility companies offer discounts for people who pay by Direct Debit too. And it's arguably less risky paying your bills directly from your account than by carrying money to the shops or sending it in the post to pay bills.

Savings

It's safer to keep your savings in a bank than under the mattress. Your money is protected when it's in a bank account: savings up to £85,000 are guaranteed by the Government-backed Financial Services Compensation scheme (FSCS). This means if your bank went bust, you'd be compensated up to that amount.

If you've had problems opening a bank account…

You could have problems opening a bank account if you have a bad credit rating.

Many banks and building societies offer 'basic bank accounts' that should be available to most people regardless of credit rating - but some people still struggle.

However, there are alternatives to a basic bank account that are even available to people who have been made bankrupt - such as the thinkmoney Personal Account. This account offers many of the benefits of a basic bank account, along with a personalised budgeting service that makes sure money for bills is set aside at the start of the month.