Basic Bank Account
A basic bank account allows you to receive money and pay bills. For many people, it can be a first step towards opening a current account later on.
With a basic bank account you can:
- have your wages, benefits, State Pension or tax credits paid directly into your account
- pay in sterling cheques for free (you will have to wait four business days before the money is available for you to spend)
- take money out at cash machines in the UK with a cash card. This is usually free, but some bank cash machines make a charge. Some convenience cash machines such as those inside small shops, on garage forecourts and in nightclubs may also charge you each time you withdraw money from them
- take money out at the Post Office
- pay your bills by Direct Debit
You don't get a cheque book with a basic bank account and you can't usually go overdrawn by more than £10, if at all. Some basic bank accounts have a 'buffer' zone, so if there's only £6 in your account, for example, you may still be able to withdraw £10 from a cash machine. See the Different types of basic bank accounts table to find out which accounts have a buffer zone.
Some banks let you have a debit card to pay for your shopping and some let you pay your bills by standing order. Most let you take money out, pay money in or check your balance at bank counters.
Opening a Basic Bank Account
If you want to open a basic bank account and you meet the bank or building society's conditions, you should generally be allowed to open one. But there may be reasons why the bank or building society will not let you open an account.
All banks and building societies have to identify new customers by law. This is to stop criminal activities, such as money laundering.
Most banks and building societies will also carry out a full credit check on you. Before such a check the bank or building society should tell you and explain whether this will impact on your future ability to apply for credit.
If you application is turned down, you are entitled to know why. The bank or building society should tell you (unless there are exceptional circumstances such as suspicion of fraud or money laundering).
