Are there advantages to a basic bank account?
-For someone with a poor credit rating, a basic account can help them conduct most of their day to day banking needs when they would usually be turned down for a standard current account. They can also help people who find it challenging to manage their money, basic bank accounts offer no credit facilities or overdraft.
What are the disadvantages of a basic bank account?
+As basic bank accounts have fewer features than a current account and don't offer credit facilities, they can be slightly limiting if you have been used to accessing an overdraft facility, for example. Apart from an overdraft, you won't be offered a chequebook, credit card, or benefits such as cashback, rewards and interest. Later, once you have a better credit rating or an established credit history, you may be able to change your account and have these additional offers.
I have really bad credit and have been bankrupt — can I still get a basic bank account?
+You may still be able to get a basic bank account, it depends on the bank's policies and your situation. If you are unable to get a basic bank account, other alternatives may be available for you to access, such as prepaid card accounts, Post Office card accounts, guaranteed bank accounts (these require you to pay fees), or even managed accounts, where someone else handles the day to day money going into and out of the account.
Why might a bank refuse to open a basic bank account for me?
+This will be down to the bank and its policies. You may be reused if you don't meet their basic criteria, for example you don’t have the residency status required, or you are under age. You can also be refused if a bank is unable to verify your identity or address (you will likely be asked for proof of ID or proof of address). A bank may also refuse to offer you a basic account if you could get another type of account.
Can I get an overdraft with my basic bank account?
+No, basic bank accounts do not normally offer any type of credit including overdraft facilities.
Will I get a debit card with my account?
+Yes, most basic bank accounts now offer a debit card, that you can use in shops and to withdraw money at a cash machine.