

Basic bank accounts
Top easy-to-open accounts with no fees and no overdrafts
If you've a poor credit score, you might have struggled to find a bank account that will accept you. If so, you're not alone – more than one million people in the UK don't have a bank account. Yet there is a solution – a basic bank account. This guide runs you through what they are, what you need to know, and our top-pick accounts.
Other MSE banking guides...
Best bank accounts: Can you get a 'standard' bank account?
Packaged bank accounts: £100s of insurance from £13/mth
Cut overdraft charges: How to pay less and pay it off

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What is a basic bank account?

Basic bank accounts are products designed for those with poor credit scores. As the name suggests, these accounts offer a place for you to store your money and pay bills from, though they don't come with overdrafts, or many of the perks that standard bank accounts offer.
You still get all these features with a basic bank account:
- A debit card
- The ability to set up direct debits and standing orders to pay bills
- Free access to UK ATMs (unless the ATM itself charges)
- Online or phone banking
However, you won't get:
- A chequebook
- An overdraft
- Perks such as cashback or interest
The six basic bank account need-to-knows
Before applying for a basic bank account, there are some key points about them you should be aware of...
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Easiest-to-get basic bank accounts
While many banks offer these accounts (and the nine largest banking groups have to), the anecdotal feedback we have is that three banks seem to welcome basic bank account customers, and are far more proactive in helping them.
The accounts which get this thumbs up are Co-op's Cashminder, Santander's Basic Current Account and the Virgin Money M Account. All three accounts allow you to set up direct debits/standing orders and give you a debit card which means you can withdraw cash from UK ATMs.
You can also set up all three as joint accounts, provided you both qualify. Two of these providers also let you open a basic bank account online. While all of the accounts below run a credit check to confirm your identity when you apply, The Co-operative Bank and Santander only carry out a soft check – this means that only you can see it on your credit report, and it won't affect your ability to get credit in the future.
Below is a summary of the three accounts, so you can decide which is the best fit for you.
Top-pick basic bank accounts
TABLE_CELL_STYLE | Co-op Cashminder | Santander Basic Current Account | Virgin Money M Account |
Accepts those with an undischarged bankruptcy | ✓ | ✓ | ✓ |
Accepts those in an IVA, DMP, DRO or discharged bankruptcy (1) | ✓ | ✓ | ✓ |
Accepts those with a record of fraud | ❌ | ❌ | ❌ |
Minimum age | 16 | 16 | 16 |
Proof of address plus one piece of ID required | ✓ | ✓ (2) | ✓ |
Credit check to confirm identity? | ✓ (3) |
✓ (3) | ✓ |
Allows direct debits and standing orders | ✓ | ✓ | ✓ |
Free access to UK ATMs | ✓ | ✓ | ✓ |
In-credit interest | Nil | Nil | Nil (4) |
Unpaid direct debit charge | Nil | Nil | Nil |
Open it | Online/ branch | Online/ branch | Phone/ branch (5) |
Operate it | Online/ app/ phone/ branch | Online/ app/ phone/ branch | Online/ app/ phone/ branch |
(1) When you are made bankrupt, your assets (your possessions, home, income etc) can be used to pay your debts. Bankruptcy usually lasts 12 months and after this time you are discharged, or freed, from your bankruptcy debts. (2) In certain circumstances, such as if a customer is homeless and therefore has no standard proof of permanent address, Santander works with them to find alternative means of confirming their identify and opening an account. (3) This is a 'soft search', which only you can see on your credit report. (4) Has a linked savings account paying 0.35% AER variable. (5) You can apply online, but bizarrely you'll need to apply for the Virgin Money M Plus account*. If you don't qualify for that, but are eligible for the M Account, it'll offer you that instead.
Alternatives to basic bank accounts
If you can't get – or don't want – a basic bank account, there are some alternatives you can try. However, they're not available to all, and in many cases, they're not cheap.
Fee-paying card-based accounts
There are a couple of bank or card-based accounts out there that don't credit check, so are open to all – they're another option if you don't want any of the basic bank accounts above, but they do tend to have some fees to get or use the accounts. Our top picks...
- The Cashplus Freedom* account is a fully fledged bank account (though as some get the option of applying for an overdraft later on, it's not a basic bank account). It's open to all, provided you're over 18 and a UK resident.
The Freedom account costs £9.95 to get your initial debit card. But then there's no monthly fee, and spending on the card and making ATM withdrawals is also free. You'll pay a 0.3% fee if you need to deposit cash (minimum £2) and you can only deposit at the post office, as Cashplus doesn't have branches.
Cashplus won't credit-check you when you apply for an account, though it may check with credit reference agencies to verify your ID and address. If it can't verify you electronically, you may need to provide it with ID and proof of address to open an account.
The big advantage of Cashplus being a bank is that any money up to a balance of £85,000 you hold with it is protected by the Financial Services Compensation Scheme (FSCS). This means that if Cashplus went bust, you'd get your money back.
- The Monese* account is technically a prepaid card, but it acts like a bank account as it lets you make transfers and pay bills by direct debit – you can even pay your income into it. Anyone over 18 living in the European Economic Area can open an account by filling in their details and submitting a photo of their ID and a video 'selfie' – you don't have to have a UK address. There are three account options:
- 'Simple' has no monthly fee or transaction fees in the UK, but charges a fee of £4.95 for your card, then 2% (minimum £2) for each top-up and ATM withdrawal above £200/month.
- 'Classic' has a £5.95/mth fee, which gets you £900 free in ATM withdrawals and top-ups.
- 'Premium' has no ATM or top-up fees, but is a hefty £14.95/mth.
Monese holds your cash in a separate account, which is entirely ring-fenced from its own finances. This means if Monese went bust, you should be able to get your money back – though it's not FSCS-protected, and if the ring-fencing bank went under, your money could be lost.
Credit unions
A couple of credit unions across the UK now offer bank accounts, and most of these allow those with undischarged bankruptcy to get them. You'll usually have to pay a monthly fee of £2 to £5 and/or commit to keeping a certain balance in your account to be a member. However, some credit union current accounts offer cashback in certain stores which can offset the fee.
Read the Credit Unions guide for more, including to see if there's one local to you.
Want to complain about your bank account?
If your bank has charged you the wrong amount, taken the wrong amount in payment or its service has been atrocious, then you don't have to suffer in silence.
It's always worth trying to call the bank first to see if it can help, but if not, you can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it also helps you escalate your complaint to the free Financial Ombudsman Service.
Basic bank accounts FAQ
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