Key Points and Things to Think About
Key points
With a basic bank account you:
- Don’t get a cheque book.
- Can pay in cheques for free.
- Can take money out at cash machines.
- Can pay bills by direct debit or standing order.
- Cannot have an overdraft.
Things to think about
- Check that; you can use cash machines near where you live
or work for free (ask the bank or building society if your are not
sure)
- Check that; there is a branch of the bank/building society near
you where you can pay in money and check on your account
- Check that, you can pay money in or get money out at a post
office branch, if this is important for you.
- Check that; you will get the services you need like a debit
card, direct debits or standing orders.
- You will get a statement in the post, usually once every three
months, show what money has been paid in and what has gone
out. You will be able to get a mini statement from a
cash machine showing the most recent transactions.
- Remember if there isn’t enough money in your account to pay
direct debits or standing order, then the bank will NOT make the
payment and you may be charged a fee or the bank may cancel your
direct debit or standing order, or even close your account.
- You cannot go overdrawn with a basic bank account because you
won’t get an overdraft limit.
- The cash machine only gives out £10.00 notes: If
you only have £6.00 left and your account has a Buffer Zone the
machine will let you have £10.00 even if there is only £6.00 left
in your account. The bank will not
charge you for going overdrawn up to the buffer-zone
limit. If it doesn’t have a buffer zone, you won’t be
able to take out £6.00. You can take out the exact
amount of money you have in your account over the counter either at
your bank or building society or at a Post Office branch.
.
- Credit History – Almost everybody should be able to open a
basic bank account. The bank or building society may
want to check your credit history to see if you have any County
Court Judgments (CCJs) against you or have been made
bankrupt. But even if you have, you may still be able to open
an account.