Basic Bank Accounts Top accounts for poor credit scores

There are over a million people in the UK without access to bank accounts. Yet there is a way many can get one, the only problem is most banks try to keep it quiet.

This is a quick guide to the best basic bank accounts, where you don't need to pass a credit check. Anyone with basic ID should be able to get one and get a debit card to boot.

What is a basic bank account?

There's a tragic problem in the UK with banking exclusion. If you are one of the people who can't get an account, it's a nightmare. Yet the under-publicised route is a 'Basic Bank Account'. These are specially designed products for those with poor credit scores.

As the name suggests these are just a place to store money and pay out of, without an overdraft facility or any in-credit interest. Yet some do give you a debit card, so you can make payments in stores and online and all allow you to set up direct debits - good news as this usually means you get things cheaper.

Are they completely free of charges?

No, just because you don't have an overdraft doesn't mean there aren't charges. If you have a direct debit or set up a payment when there aren't funds in the account you will receive a charge - these can be up to £20 a time. If you need help managing your money read the Budgeting guide.

Therefore it is crucial that you ensure you know exactly what money you have in the account and manage it carefully.

Why are they so under-publicised?

They usually cost the banks money and that means banks don't really want people to have them. Therefore they make it bureaucratically difficult to open one, so unless you specifically ask for them by name, the bank staff may not mention the option.

Instead you'll just be given the normal bank account application forms, fail the credit score, and be rejected.

This may make you wonder why they bother having them at all? Our suspicion is it's just a political sop, they know if they didn't offer them there may be legislation to force them to do so - this way they can argue it is a service they offer.

A simple rule change would instantly solve this situation - so that when you apply for a normal account, if you're rejected due to the credit check they should be forced to offer you their basic account there and then.

Who are basic bank accounts for?

The current account market is extremely competitive, with some big banks throwing free £100 deals out just to tempt new customers in (see Best Bank Accounts for the top deals). Yet to get those you'll need to pass a credit check - where the bank assesses whether it wants you as a customer.

There are a myriad of reasons why you may be rejected. Don't assume because one bank doesn't want you, no one will; read the Credit Rating article for a full explanation - yet if you've a poor credit history with serious defaults, CCJs, or bankruptcy it can be very difficult to get a standard bank account.

Yet never think you can't get a bank account at all - most banks do have accounts available to those with poor credit scores.

Who can open a basic bank account?

The two top rated basic accounts we list below both allow anyone to open them - even those with very serious credit history problems - such as having been declared bankrupt in the past year (ie, it is undischarged).

There are two exceptions to this though, the first is some people with history of criminal convictions for fraud may be turned down (though both banks work with prisoners to give them access to accounts so having a criminal record is not an exclusion).

The second is that the financial regulations require you to have ID.

List of ID needed

To confirm who you are, you'll usually need one (original) of the following:

• Full, current passport

• Current European Union member state Identity Card

• Current UK Photocard driving licence or UK full paper driving licence

• Shotgun Licence or Firearms Certificate

• Identity card issued by the Electoral Office for Northern Ireland

• Benefit books/benefit entitlement letters; includes pension, Child Benefit, income support, disability and Job Seeker's Allowance

• HMRC Tax Notification or assessment letter

See full list of ID and proof of address requirements on the Barclays or Co-op websites.

If you're struggling to provide these documents there are other forms of ID you may be able to use. Check the full and detailed list in the ID Handbook pdf.

Easiest to get basic bank accounts

While many banks offer these accounts, the anecdotal feedback we have is that two banks seem to welcome customers and are far more pro-active in helping their basic bank account clients.

The two banks who get this thumbs up are Barclays Cash Card and the Co-op Cash Minder - both have said that as long as you have the required proof of address and ID you'll be able to get a basic bank account. If you have a credit union near you a few of those offer bank accounts too - it's worth checking.

Neither account gives an overdraft (though Barclays has a £15 buffer), nor any interest if you're in credit. However, you'll get a Visa debit card and can set up direct debits and standing orders, though ensure you have enough money for any payments or else you'll be charged a fee - if you incur multiple chargs, these banks could cancel your DD facility, or close the account.

See below for full info or for info on all basic accounts see the FSA's PDF Guide.

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