What are the top basic bank accounts on offer?Still, not all basic current accounts are quite the same. Factors vary such as daily cash withdrawal limits, how you can use your debit card abroad, and the way the accounts can be opened and managed. We’ve rounded up (November 2022) five of the best options to consider. Show
FEATURED PARTNER OFFER Nationwide Building Society FlexBasic Max daily cash withdrawalOpen/ManageBranch, phone, online/Branch, phone, online Customer Service Score*Max daily cash withdrawalOpen/ManageBranch, phone, online/Branch, phone, online Customer Service Score*Why We Picked It The FlexBasic Account from Nationwide Building Society lets you take care of your day-to-day banking needs. You can manage it through the Nationwide Banking app, which gives you access to features such as instantly freezing a lost card, setting up savings goals, and receiving notifications about your balance. This account comes with a contactless debit card that’s compatible with mobile payments, and you can withdraw up to £500 a day from ATMs. Although the account is free to open and maintain, you will pay a fee of 2.99% the transaction value if you use your card abroad or make a purchase in non-Sterling currency. To apply, you’ll need to be 18 or over, not hold any other Nationwide accounts, and live at a UK address. The building society won’t carry out a credit check when you apply. Pros & Cons
FEATURED PARTNER OFFER The Co-operative Bank CashminderMax daily cash withdrawalOpen/ManageBranch, online/Branch, online Customer Service Score*Max daily cash withdrawalOpen/ManageBranch, online/Branch, online Customer Service Score*Why We Picked It The Co-operative Bank’s Cashminder account lets you carry out essential banking tasks online, through an app, or in a branch. The account comes with a contactless debit card, which you can also add to your mobile payment wallet. Bear in mind there’s a daily withdrawal limit of £250, so you may need to plan ahead for larger cash purchases. Although the Cashminder account is free to open and manage, you’ll be charged a fee of 2.75% the transaction value when you use your card abroad. When you apply, the bank will carry out a ‘soft’ credit check, which won’t appear on your credit report. Pros & Cons
FEATURED PARTNER OFFER Virgin Money M AccountMax daily cash withdrawalOpen/ManageBranch, online/Branch, online Customer Service Score*Max daily cash withdrawalOpen/ManageBranch, online/Branch, online Customer Service Score*Why We Picked It The M Account from Virgin Money comes with a few helpful resources that could make it easier to manage your cash. Through the Virgin Money app, you can access tools such as a budget creator, and access to occasional cashback offers with certain brands. The account comes with a contactless debit card, and you can use it to withdraw up to £500 a day from ATMs. When you open the account, you’ll automatically get access to a linked savings account paying an interest rate of 2.02% AER (variable). If you expect to travel outside the UK frequently, this account could be a good choice, since Virgin doesn’t charge fees for spending on your card or withdrawing cash abroad. However, you will be charged £7 if you receive an overseas payment over £100. When you apply, Virgin Money will run a ‘hard’ credit check. This will appear on your credit report and could affect your score. Pros & Cons
FEATURED PARTNER OFFER Halifax Basic AccountMax daily cash withdrawalOpen/ManageBranch, phone, online/Branch, phone, online Customer Service Score*Max daily cash withdrawalOpen/ManageBranch, phone, online/Branch, phone, online Customer Service Score*Why We Picked It The Basic Account from Halifax comes with a contactless debit card you can add to a virtual wallet, and allows you to withdraw up to £500 a day from ATMs. You can also make free withdrawals and purchases throughout Europe — so long as the local currency is Euros. You can manage your account in a branch, over the phone, online, or through the Halifax app. Alongside its day-to-day banking functions, the app offers a tool that lets you round up all of your payments to the nearest £1, and set aside the change in a Halifax savings account. To switch on this feature, you’ll need to open a savings account with Halifax. Halifax Basic account holders can also access the bank’s Cashback Extras — occasional cashback offers on certain brands that you can optionally activate through the Halifax app. To open this account, you must first apply for one of Halifax’s standard current accounts. If you don’t qualify, you’ll be offered a basic account. During the initial application, Halifax will run a ‘hard’ credit check which will be visible on your credit report. Pros & Cons
FEATURED PARTNER OFFER Metro Bank Cash AccountMax daily cash withdrawalOpen/ManageBranch/Branch, phone online Customer Service Score*Max daily cash withdrawalOpen/ManageBranch/Branch, phone online Customer Service Score*Why We Picked It Metro Bank’s Cash Account provides essential banking features without any added extras. The account is linked to a contactless debit card, which you can also use to make mobile payments. You can also use the card to withdraw up to £300 cash a day from ATMs. You can’t use your card outside the UK, however. Another potential drawback of this account is that you can’t use it to set up direct debits. You can, however, set up standing orders. Anyone aged 11 or older can open a Metro Bank Cash account, making it a good option for younger people. Children aged 11 to 15 can only open an account in store, with a parent or guardian present. Metro Bank will not run a credit check when you apply for a Cash Account. Pros & Cons
*Fairer Finance, November 2022 What’s our methodology?We’ve ordered these basic bank accounts based on their customer service score (data from Fairer Finance), how easy it is to open and manage, and how much you can withdraw from an ATM each day. Whether the bank carries out credit checks – and how – has also been considered as well as any additional features the accounts have to offer. Account details are correct at the date of publication. What are basic bank accounts?Basic bank accounts allow you to carry out everyday banking, such as paying bills, receiving income, and making debit card purchases. But these accounts stick to the essentials. They rarely come with any perks or rewards and you won’t be offered an overdraft facility or a cheque book. On the plus side, you can open a basic bank account even if you have poor credit history, or no history of credit at all. The UK’s biggest banks — including Barclays, HSBC, NatWest, Halifax and Santander — are required by law to offer basic accounts. You may not see them actively promoted as much as their more attractive standard current accounts, but ask in-branch or search online and you’ll see they are there for the taking. Who is eligible for a basic bank account?To open a basic bank account, you must usually be 16 or over — although some providers stipulate you need to be 18. You’ll also need proof of a UK address, such as a recent bill or tenancy agreement, and proof of identity such as a driving licence or passport. Individual providers may have additional criteria. If you’re unsure whether you’re eligible for an account you want to open, contact the provider directly. Frequently Asked Questions (FAQs)Will I need a good credit score to open a basic bank account?No — basic bank accounts are designed to be a money management solution for people with a poor credit report. When you apply for a basic bank account, providers may run a credit check. But this is really only for ID purposes and to better understand your circumstances. And, unlike with a standard current account, a returned bad score will not preclude you from opening a basic current account. The provider may also only carry out a credit search which – depending on whether it’s a ‘hard’ or ‘soft’ search – may or may not be visible on your credit report. We’ve set down how our listed banks treat credit scores but you can find out by asking the bank at the point of your application. Are basic bank accounts free?A basic bank account is free to open and manage. And you can’t be charged for failed payments or an overdraft, as it won’t offer the facility. However, if you step outside the basic banking parameters such as by withdrawing cash from an overseas ATM, or carrying out a same-day payment transfer (CHAPS), the regular associated fees will apply. Can I get an overdraft with my basic current account?Overdrafts are a form of borrowing and are only available on regular or ‘standard’ current accounts – and for these you will need to pass a credit check. As basic bank accounts don’t require you to pass a credit check, you will not be offered an overdraft. Can my basic bank account be closed?The bank is within its rights to close your basic bank account. But it will only do this if you violate its terms and conditions, opened it using false information, or use it for fraudulent activity. Your bank may also upgrade the account if your circumstances change, and you become eligible for a standard account. The bank will give you written notice that this is happening. How long does it take to open a basic bank account?To open a basic bank account you will need to provide some personal details, such as your full name, age, and address. There are a few different ways to open the account – in person, by telephone, by post, or online – with options available depending on the provider. Completing an application is usually quick, so long as you have these details to hand. Are there any alternatives to a basic bank account?
High street banks are not the only option if you need a bank account that can be opened with poor credit. You could also try a credit union. Credit Unions are best-known for offering low interest loans, but some — including London Mutual Credit Union, Darlington Credit Union, and Central Liverpool Credit Union — also offer current accounts called Engage accounts. These are accounts that anyone can open, irrespective of their credit history. Engage accounts offer similar benefits to a basic bank account: you can send and receive money, manage regular payments, and pay bills. You’ll also get a debit card, but this must be pre-loaded with money before use. To open an Engage account, you’ll need to join a credit union and pay £2 a month in account management fees. Bear in mind that money held on an Engage card is not covered by the Financial Services Compensation Scheme (FSCS) which protects the first £85,000 of your cash if the bank was to fail. If you would sooner try your chances with a standard current account first, rather than plump for a basic bank account or Credit Union, it might be worth heading to a digital or online-only bank such as Starling or Monzo. These banks only tend to carry out a ‘soft’ credit check, which will not be visible to other lenders. So if you are turned down, there’s no harm done. Can I switch to a different basic bank account?You are free to switch between basic bank accounts at any time and the Current Account Switch Service makes this process simple and risk-free. It means that, when you open the new account, all your regular incoming and outgoing payments are transferred automatically, and the old account is closed for you. Can I upgrade a basic bank account?If your financial circumstances improve, you may be able to upgrade from a basic to a standard current account. Whether you are eligible for a standard account depends on your individual circumstances and the bank’s specific acceptance criteria. If you want to upgrade, get in touch with your bank directly. Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results. Forbes adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. I’ve been writing for a broad array of online publications for four years, always aiming to make important insights accessible. It’s my goal to ensure that as many people as possible can make informed decisions about their money, and get the most out of their finances with the least amount of stress. What is the best bank for someone with bad credit?Best Bank Accounts For People With Bad Credit. Chime Account. 5.0 /5.0 Stars. APPLY NOW » Your Chime Checking Account comes with a debit card, no monthly fees or maintenance fees. ... . Current. 4.8 /5.0 Stars. APPLY NOW » ... . GO2bank. 4.8 /5.0 Stars. APPLY NOW » ... . Flare Account. 4.7 /5.0 Stars. APPLY NOW » ... . Oxygen. 4.3 /5.0 Stars. APPLY NOW ». Which bank is easiest to get approved for?Easiest Credit Cards to Get with Bad Credit. No Credit Check: OpenSky® Secured Visa® Credit Card.. No Deposit: Credit One Bank® Platinum Visa® for Rebuilding Credit.. Rewards Categories: U.S. Bank Cash+® Visa® Secured Card.. Unlimited Cash Back: Capital One Quicksilver Secured Cash Rewards Credit Card.. What bank does not run credit?Varo Bank is a no-fee online bank willing to work with customers with bad credit. The bank doesn't look at ChexSystems reports or run your credit report to determine if you're creditworthy, which ensures you're in the clear to open a checking account. Here are the details: Monthly fees: None.
Which accounts can I open with low credit score?Comparison of Leading Accounts Available to People With Bad Credit. Bank of America Safe Balance Checking Account. This Bank of America account has a $4.95 monthly fee. ... . Wells Fargo Clear Access. This Wells Fargo account has a $5 monthly fee and no personal checks can be written.. Go Bank. ... . Chime. ... . Varo. ... . Dave. ... . Albert. ... . Acorns.. |
Best basic bank account for bad credit
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