• You can have benefits paid straight into
your bank account
• You can pay bills, for example, your
rent, by direct debit
• Having a bank account helps to give you
a good credit record and you may be able to benefit from other
banking services
• Cashing cheques can be difficult and
cost you money if you don't have a bank account to pay your cheque
into
What is a basic bank account?
The government says that banks have to make basic bank accounts
available to everyone, even people with a poor credit record.
For
more information you can download a leaflet about basic
accounts.
How do I open a basic bank account?
You will need to:
• Visit the bank you would like to use and
ask to open a basic bank account
• Show them at least two proofs of your
identity and where you live, for example, a passport, driving
licence or utility bill.
What can I use my basic bank account for?
You will be able to:
• Pay money into your account
• Pay cheques into your account
• Have benefits paid directly into your
account
• Set up regular direct debits to pay
bills
Also – most basic bank accounts will offer a cash card so you
can take out money free of charge at a cash machine or post
office.
Will I have a chequebook and debit card?
Probably not - Most basic bank accounts do not offer a
chequebook or credit card.
Can I be overdrawn?
Most basic bank accounts will not allow you to have an
overdraft. If you do not have enough money in your account to cover
any payments going out (direct debits) you will probably be
charged.
How will I know how much is in my account?
You will receive regular statements from the bank and you will
probably be able to check your balance at a post office or cash
machine at any time.
Is there an alternative to a basic bank
account?
You may prefer to open an account with a credit union. Visit our
page about Danum Credit Union to find out more.
Are you paying too much for essential goods and
services?
A study has found that poor families have to pay on average
£1,000 more every year for
essential goods and services such as gas, electricity and
insurance. This extra amount is known as the 'poverty premium'.
Basic goods, such as a fridge or oven can cost 150% more if bought
on credit, and fuel can cost 10% more on a prepayment meter.
The study was carried out by the charity Save the Children and
the Family Welfare Association.
If you would
like to find out more, visit the Save the Children website.
You
can also download the charity's report.