Fee-free Basic Bank Accounts

Fee-free basic bank accounts are designed for people who do not have a bank account, are ineligible for a standard current account or for those who cannot use their existing bank account due to financial difficulty. A basic bank account might be a good solution for somebody with a poor credit rating who may be unable to pass the credit checks necessary to open a standard bank account.

A basic bank account does not offer overdrafts or chequebooks but otherwise is similar to existing bank accounts and is suitable for most day-to-day transactions. The basic bank accounts also provide for counter access on the same terms as other bank customers and also allow for access to bank ATMs and online services.

The basic bank accounts are available from the 9 largest personal current account providers in the UK. These 9 institutions are:

• Barclays UK

• The Co-operative Bank

• HSBC UK

• Lloyds Banking Group (including Halifax and Bank of Scotland brands)

• Nationwide Building Society

• NatWest Group (including RBS and Ulster Bank brands)

• Santander UK

• TSB

• Virgin Money (formerly Clydesdale & Yorkshire Bank)

These 9 providers are legally required to offer basic bank accounts that are fee-free for standard operations, including a failed payment, removing the risk that customers run up unintended overdrafts.