Basic Bank Accounts - What is a basic bank account?

A basic bank account allows you to receive money and pay bills and it can be the first step towards opening a regular current account in the future.

With a basic bank account you can:

• Have your wages, benefits, state pension or tax credits paid directly into your account;
• Pay in cheques for free (but remember you will have to wait a few days before the money is available for you to spend)
• Take money out at a cash machines with cash card (this is usually free, but some cash machines make a charge)
• Withdraw money at the Post Office and
• Pay your bills by direct debit meaning you could pay less for some things – especially gas, electricity or telephone.

Some banks let you have a debit card to pay for your shopping and some let you pay your bills by standing order.

Lots of banks and some building societies offer basic bank accounts; see links at www.moneymadeclear.fsa.gov.uk/pdfs/bankaccount/pdf for a full list.

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