Bank accounts

Managing your bank account will help you stay in control of your money.

It is important to check your account often to make sure that you are not going overdrawn. Always look at your bank statement and make sure that you understand what all the payments are. If you are not sure, ask your bank.

Current account

There are different types of bank accounts available. The most common type of bank account are current accounts. These may have a monthly charge and often come with overdrafts and special features. If you are paying for a bank account, you may want to consider shopping around for a free one to help you save money.

Basic account

All banks also offer basic bank accounts, although they may not advertise them. Banks offer different types of basic account, but most come with a cash card and the use of direct debits. You are not able to borrow additional money other than what you have put in and do not get an overdraft. The bank will not check your credit rating for this type of account.

Opening an account at another bank

If you have unsecured debts with your bank it may be safer to open an account somewhere else. This is because of the right of offset. If you have a bank account and a debt with the same bank and miss payments to the debt your bank may take money out of your bank account to cover the payments you have missed.

FAQs

I cannot open a bank account. What should I do?

England and Wales > Budgeting > Bank accounts

You may have difficulties opening a bank account if you do not have a passport or a driving licence. Different banks will accept different forms of identification. You will need to check with the bank to find out which other forms of identification they will accept. You may have to try several different banks until you find one who will accept the identification you have. If you have problems opening a bank account please visit the FSA website or contact the Financial Ombudsman.

Are there any alternatives to high street bank accounts?

England and Wales > Budgeting > Bank accounts

All high street banks offer a basic bank account which you should be able to open even if you have a poor credit history.

If you would prefer not to do this, there are some alternatives:

The Post Office card account allows you to receive state benefit and pension payments. You cannot pay in wages or pay any direct debits or standing orders
A few building societies offer instant access savings accounts which are suitable to use as basic bank accounts. For more information, contact the Building Societies Association
Some credit unions offer current accounts. Availability is limited to where you live or certain jobs. Contact the Association of British Credit Unions Limited for more information

My bank keeps taking money out of my account. What can I do?

England and Wales > Budgeting > Bank accounts

If you have an unsecured debt with a bank, like a credit card or personal loan, and have missed payments the bank can take the payments you have missed out of your bank account. This is called the right of offset. If your bank is taking money out of your account please call us and speak to one of our advisors. blah blah

My bank keeps putting charges on my account. What should I do?

England and Wales > Budgeting > Bank accounts

First find out why your bank is charging you. Are you going over your overdraft limit or is there not enough money to cover your direct debits? The amount the bank can charge you for this will be in the terms and conditions of your bank account. Speak to your bank about the situation. If you cannot come to an arrangement with your bank please call our helpline. One of our specialist advisors will be able to help you deal with the problems you are having with your bank account.