Basic Bank Accounts

Understanding what a basic bank account is can be important, but once you understand the simplicity of the account you need to determine how you can open one. Let’s take a look at what the bank will want to see.

First, with basic bank accounts the bank does not have as strict a policy for opening an account. Bad credit, poor credit, CCJ’s, bankruptcies, or low income will not stop you from opening a basic bank account. In fact these situations are what the bank accounts have been set up for.

Any bank you want to open an account with is going to run your credit history. A bank typically runs your credit through one of the reporting agencies, whichever one they work for. They will look to see how long you have been at your current position, how much salary you earn, what your monthly bills are, and any arrears you might have. The bad credit rating is not going to stop you from getting the account. In fact it will determine if you can get a better account than the basic option.

Within the basic bank account offered you may receive a debit card. The debit card will have a cap on how much you can spend in one day. It will also have a direct bearing on how much you have in the account. If you do not have enough money in the account for the purchase the payment will not be accepted. Basic bank accounts do offer online access.

Once the credit check has been run the banker will tell you what they are prepared to offer regarding your account. You may have certain restrictions placed on the account. For example they may require you to have a set balance that remains in the account or you will face a fee. This is to protect the charges you may make against that money. For example if you are using bill pay for the gas or electric bill you will always be required to have that amount in your bank account.

Typically with a basic bank account anywhere from 100 to 1000 pounds is required. Since individuals obtaining the basic bank account are usually in arrears, have been in arrears, or have a low income generally 300 pounds is the balance required. By doing research you can determine what the bank offers.

When you open the account you will not be able to get interest earned on the balance you keep. Counter services also have restrictions. You may only be able to withdraw a certain amount of money in one day. You may also have a set number of transactions you can make in a month.

The banker you are sitting down with to open the account will have you fill out an electronic application. This application will ask for personal details. The application is needed to run the credit check and to ultimately decide if you will get the bank account. The process can take a few minutes to a half hour.