What are basic bank accounts?
Basic bank accounts are like conventional current accounts, only with restricted features. You can withdraw and deposit money, but you won't get a cheque book or an overdraft.
You'll often receive a cash card instead of a debit card, meaning you can use ATMs but not make in-store purchases.
Who can get a basic bank account?
Anyone can apply for a basic bank account, and the requirements are far lower than those of standard current accounts regarding credit ratings.
However, some individuals with particularly bad credit scores may be turned down even for basic accounts. If you find yourself in this position, don't worry; there are still options available to you, which we'll go over in the last section of this article.
Advantages of basic bank accounts
Basic bank accounts are good for those who have trouble managing their money, as they limit access to credit.
Basic bank accounts are often used by those with bad credit ratings who've been turned down for standard current accounts.
Disadvantages of basic bank accounts
The disadvantages of basic bank accounts are quite clear. Reduced features and lack of overdraft access mean you can do less with your account than with a standard one.
If you want to guarantee access to a debit card and the ability to set up standing orders, a standard current account would be better.
Bad credit accounts
Another option if you have poor credit is to open a specialised bad credit account.
These accounts offer more features than bad accounts but charge a monthly fee.
Bad credit accounts are not subject to credit checks, so anyone can open them. Those who do can usually enjoy all the features of a standard current account, like overdrafts and debit cards.