Bank Account Articles

What is a Basic Bank Account?

What is a Basic Bank Account and how can you find out how they work?
A Basic Bank Account has become the generic name for bank accounts offered outside of the 'normal' bank accounts offered by high street banks and often were very basic. In fact many high street banks still offer basic bank accounts however they really are very basic, allowing the user to simply pay in and take out, so no Internet banking, no debit card and certainly none of the other facilities generally taken for granted.

A Basic Bank Account will in simple terms only allow you to deposit money in and withdraw money out of the basic bank account but only at the actual branch, meaning they are actually totally inflexible and really not very useful as they are so restrictive. There is always the opportunity of being able to upgrade this basic bank account however that will only ever be considered once your bank account has been open for over 6 months and even then, it is not guaranteed you will have access to the other features a normal bank account offers.


What about the 'new' type of Basic Bank Accounts on offer?
There is a new breed of "basic' type bank accounts available however when you look closely, they are far from basic bank accounts and in fact offer many features normally associated with regular high street type bank accounts.
The first thing you will notice with this new breed of basic bank accounts is that there is not a credit check, meaning no matter how poor your credit rating is, you will always be accepted assuming you can identify yourself. There is a reason, however, why there are no credit checks with this basic bank account and that is that is simply no credit facilities, so no overdraft or credit facilities, so no requirement to see anything regarding your past credit activity.

Whilst you may think this is a negative for this basic bank account the thing to consider is that with no credit facilities there is no chance you will go overdrawn and incur any penalty charges or excessive charges for going into a negative bank balance, so there is a plus side to this no credit check bank account.

All of these basic bank accounts come with a pre-paid debit card attached meaning like any other normal bank debit card, you can have access to the available funds in your bank account whether you wish to spend in-store, online or anywhere that accepts the chosen card of the basic bank account providers.
Internet banking and the regular payments associated with direct debits and standing orders can also be made available, meaning that as long as you have available funds, your regular payments will automatically be paid direct from your account.

For paying into your basic bank account the simplest and quickest way to credit your account will be to have any money paid in directly over the Internet however you can normally pay cash & cheques in over the counter at a high street bank or even sometimes at the Post Office.

The other significant thing to remember is without any credit facilities there is no way of making money from your basic bank account, so in order to pay for all the functionality there is normally a modest monthly charge which ranges from £12.50 a month for the CardOne Bank Account to £14.50 a month for the Think Banking basic current bank account, however these charges are normally considerably less than some of the bank charges levied by some banks and are realistically levied given the amount of 'service' made available - if you have a good credit rating we would always suggest you open a regular high street bank account as they very rarely charge for their bank accounts but may make penalty charges if you do go overdrawn without prior consent.


So in essence the Basic Bank Accounts available from the high street banks are basic in the facilities they offer however there are some alternative basic bank accounts now available which are considerably better given they function just like a 'normal' bank account and are available to everyone who can identify themselves.

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