Facts about basic bank accounts

What you need to know about basic bank accounts

06:59 03 February 2014

Basic bank accounts may not be the best account to be had.  However, if this is the only type of account that you can open for now, then that may do for the meantime.  Know the important details pertaining to basic bank accounts prior to opening one.

 

No account fees or mandatory maintaining balance is necessary

Most standard bank accounts come with monthly fees much like the annual fees for the more popular credit cards.  The basic bank account is free and you will not be required to maintain a minimum balance to keep the account active.  (Some banks may require a minimum £1 balance though). While having the benefit of having direct debit and standing orders privileges, you will not have to worry about having overdrafts and fees that come with the more complicated bank accounts.  However, it goes without saying that you will be charged a fee if you issue a direct debit payment order without having a sufficient balance in your account to cover it.

 

Prepare substantial identification when applying for a basic bank account

Applying for the basic bank account is easy enough because there will be no credit checks done.  However, what takes the place of a rigorous credit check has to present a number of valid identification documents, such as current passport, UK driver’s license, and Northern Ireland or EU identification cards.  Other forms of acceptable identification documents could be bank statements from other banks, tax documents, vehicle ownership documents or utility bills.

 

If it is not possible for you to get another type of bank account yet, getting a basic bank account with a bank of good standing could be your only alternative. Do a research on the bank of your choice so you will know their requirements and their options for basic bank accounts. Just make sure that when you get the application forms for opening the basic bank account, that it is for a basic and not a regular bank account.  Otherwise, you will have to go through the required credit check.