Best Basic Accounts

Basic bank accounts are an option for people who can’t open a normal account, such as people with a bad credit rating. A basic bank account usually comes without some of the features of other accounts, such as an overdraft and debit card, although cash withdrawal cards are provided. Other features usually include the ability to set up Direct Debits, standing orders and pay in a salary, tax credits, benefits or pension. You usually need to be over the age of 16 to open a basic bank account.

This may be the best bank account for someone who is concerned about overspending and/or avoiding bounced payment charges. Additionally it could be a good bank account for someone with a bad credit history or individuals with low income, as the basic current accounts are designed to help people steer clear of the red. Many providers will still charge for missed payments, but there is usually no overdraft, so account holders can avoid charges for dipping into an unarranged overdraft.

In order to find the best bank account for you, you should shop around and compare features and benefits associated with each account. As well as Direct Debit and standing order facilities, most basic bank accounts will offer over-the-counter and Post Office withdrawals. Depending on the provider, the basic bank account may come with a debit card, or a cash card – which only allows cash withdrawals. Most individuals should be able to open a basic bank account just by proving their identity and address, although undischarged bankrupts and those with a record of fraud may still be unable to open these kinds of account.

These types of account are usually free to open, although a basic bank account can levy charges for missed payments or bounced cheques. Individuals should take into consideration any missed payment charges if they are likely to be affected by them, as this could work out more expensive than a ‘paid for’ account that doesn’t charge in this way. Also, for those with occasional or frequent missed payments, there is a possibility that some accounts would be closed down.

To find the best bank account, it is important to research how the features and benefits would work for you. A similar option to a basic bank account is a managed bank account.

The managed service with the thinkbanking current account has all the features of the above basic current accounts, minus the charges for missed payments and may be the best bank account for those who need help to manage their money. It’s open to anyone, from those with bad credit to undischarged bankrupts. Each account holder has access to Money Managers, whose job it is to ensure all essential expenses, such as mortgage payments and bills, are paid from account holder’s “Salaries” account, before transferring the rest into a “Card” account for spending. The account also comes with a Debit card. There is a set up charge of £25 (or £30 for a joint account) plus a monthly charge of £14.50 (or £19.50 for joint account holders), so customers should consider whether their existing bank charges amount to more than the cost of paying someone to manage their account.