Basic Bank Accounts


Basic Bank accounts provide you with a secure place to keep your money, just without the credit facilities and payment options that you would expect from a standard current account. A basic bank account is available to anyone over the age of 16 and there is no minimum amount that you need in order to set up an account. If you have been bankrupt or had other serious debt issues recently, you will not be approved for any account where you would have access to credit facilities, and a basic bank account will therefore act as a step towards recovering your credit rating.

You can have your wages and income from other sources such as state benefits or a state pension paid in to the account, and you can pay in cheques for free. You should also be able to withdraw money (up to the balance available in your account) at cash machines or at the post Office. Many basic bank accounts will also let you set up direct debts and standing orders for paying bills, to allow for easier financial management – but make sure you have enough in your account to pay these, or you will be charged a fee. You will not be able to make card payments (except in places that accept Solo, Electron or Maestro cards), have a cheque book or an overdraft facility. However, most basic bank accounts will provide a free 'buffer zone' of £10 so that if you have, say £8 available in your account, you would be able to get money out at a cash machine that only dispenses notes.

Basic Bank Account Facts


  • You will be able to open a basic bank account from the age of 16, with a balance of £1. 
  • You will not be offered an overdraft facility, so can only spend the money that you have available.
  • You can access your money at cash machines, in bank branches (you will usually need ID) or at the Post Office.
  • You will usually be charged between £20 and £40 if a direct debit or standing order is unpaid due to a lack of funds in your basic bank account, so make sure you keep it topped up.
  • If you are an undisclosed bankrupt or have a record of fraud, your application is likely to be declined, because the bank will check your credit history before approving you for an account.
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