Basic bank accounts give customers financial confidence

More than three quarters of people with basic bank accounts feel that they have become more confident in dealing with their finances as a result of having the account, a survey has found.

The study of 1,000 basic bank account users carried out on behalf of the British Bankers’ Association (BBA) found that 77 per cent had gained in confidence as a result of the current account.

Basic bank accounts are designed to prevent anyone holding the account from becoming overdrawn and might also be the best account for people who might not be able to open a standard current account with a bank.

Ian Mullen, chief executive of the BBA said: “Access to banking services is the lynch pin to financial inclusion and this research clearly shows that the features of the basic bank account closely match peoples’ needs.

“As customers become more confident with their finances, a change to an account with fuller features may be appropriate.”

The study also found that 90 per cent of those questioned thought that the account met their banking needs.

A net total of 121,000 basic bank accounts were opened in the fourth quarter of 2005. A total of 1.64 million basic bank accounts have been opened since their launch in April 2003.

© Adfero Ltd

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