Basic Bank Account

GENERAL BANK ACCOUNT INFORMATION!!!

With the many financial transactions undertaken in the UK today, a bank account has become more of a necessity rather than a luxury. Anyone engaged in any form of monetary transactions with other people would have to have a bank account. In essence, banks act as safe-keepers of one’s money sometimes giving back at an interest. There are various types of bank accounts ranging from current, savings and basic bank accounts. All these types have fundamental differences making them appropriate or suitable for specific circumstances. A basic bank account is more suitable for individuals whose credit history is not very attractive and whose main aim is just to store some money. Savings accounts are suitable for individuals who wish to save some money and earn some interest on the deposited amounts.

Many banks have gone mute as to the existence of basic bank accounts. In fact, financial institutions will dangle a carrot when advertising their other accounts. They will offer terrific deals all in an effort to have a higher market share. However, even before you are allowed to open current or savings accounts, you would have to be subjected to credit history tests. In case, your credit history is wanting, you would be denied the account. It would actually be unlikely that the bank even mentions the existence of the basic bank accounts since it is understood that they are a liability to the banks.

The UK however has a number of institutions that would offer an individual a basic bank account. These include-

Yorkshire bank (Readycash account)

Metro Bank (Cash account)

Clydesdale bank (Readycash Account)

Lloyds TSB (Cash account)

Northern Bank (Northern Access Account)

All these basic bank accounts come with no monthly charge. A debit and an ATM card would be issued in which case you can make purchases online or in the stores thereby saving some money. All of them offer direct debit services but you would not earn any interests on the deposits that you make to the accounts. However, you will appreciate that all of them come with web, branch and telephone banking.

While there are variations as to the process of opening a basic bank account in different institutions, the requirements are more or less the same. There is a requirement as to the minimum age that you must have attained so as to be eligible. Some will settle for 18 years while others will go for 16 years.

While there may be no restriction as to the credit history, some banks will not allow any individual convicted for a crime more so, fraud to open an account. This is however not an open and shut case since recent times have seen banks angling towards former prisoners.

For all the banks, it would be important that you have an ID which could be in the form of a shotgun license, full ID card for any EU member state, benefit entitlement letters, valid passport, ID issued by the electoral office for Northern Ireland or even a National Insurance card.