Basic bank accounts

Struggling to get a current account?

Don’t worry, even if you’ve got a poor credit score you can still get a debit card and pay bills by direct debit

A basic current account could be the answer. Apply now…

Current accounts for those with bad credit - Ordered by monthly fee - lowest to highest

    • Provider/Product name Cashplus Freedom

      Cashplus Freedom

    • Monthly Fee No monthly fee
    • Operate by Online Phone Post Office SMS Mobile App ATM
    • Product Type Managed Account
    • Customer Service Rating Currently unrated
    • Go to site

      Phone

      More details

    Exclusive

    Free to withdraw cash and make purchases in the UK

    Great for
    No monthly, annual or UK purchase fees
    Free to set up Direct Debits and standing orders
    • Provider/Product name Family Account

      Family Account

    • Monthly Fee No monthly fee
    • Operate by Online Phone SMS ATM
    • Product Type Managed Account
    • Customer Service Rating Currently unrated
    • Go to site

      Phone

      More details

    Great for
    Easy application, instant acceptance with no credit checks
    Free Money Manager tool for easy budgeting and bill payments
    But be aware that
    A £2 dormancy charge applies if the account isn't used in two months
    There is a fee of £0.75 per UK ATM withdrawal
    • Provider/Product name Plus Account

      Plus Account

    • Monthly Fee £2.50
    • Operate by Online Phone SMS ATM
    • Product Type Managed Account
    • Customer Service Rating Currently unrated
    • Go to site

      Phone

      More details

    Great for
    Easy application, instant acceptance with no credit checks
    Free Money Manager tool for easy budgeting and bill payments
    But be aware that
    There is a fee of £0.50 per UK ATM withdrawal
    There is a £2.50 monthly fee
  1. Great for
    Easy application, instant acceptance with no credit checks
    Free Money Manager tool for easy budgeting and bill payments
    But be aware that
    There is a fee of £0.25 per UK ATM withdrawal
    There is a £5 monthly fee
  2. Great for
    First monthly fee FREE
    FREE Hi-Life Diners Card worth £69.99
    But be aware that
    Eight UK ATM withdrawals are FREE monthly, £0.25 per UK ATM withdrawal thereafter
    There is a £10 monthly fee
  3. Exclusive

    Receive £10 cashback, no set up fee & no monthly fee for 12 months

    Great for
    Guaranteed acceptance
    Receive a Chip & PIN debit MasterCard®
    But be aware that
    £1.50 charge for ATM withdrawals in the UK
  4. Great for
    Cashback every time you spend
    No credit check required
    But be aware that
    50p charge for ATM withdrawals in the UK
    • Provider/Product name current account

      current account

    • Monthly Fee £12.50
    • Operate by Online Phone Post Post Office SMS Mobile App
    • Product Type Managed Account
    • Customer Service Rating Currently unrated
    • Go to site

      Phone

      More details

    Great for
    Cashback rewards - earn at least 3% at participating retailers
    FREE mobile app
    But be aware that
    There is a £12.50 monthly fee
    50p charge for ATM withdrawals in the UK
    • Provider/Product name Managed Account

      Managed Account

    • Monthly Fee £14.50
    • Operate by Online Phone Branch Post SMS
    • Product Type Managed Account
    • Customer Service Rating
      Great
      70%
      OK
      30%
      Poor
      0%
    • Go to site

      Phone

      More details

    Great for
    No ATM withdrawal charges in the UK or hidden fees
    Personal customer service to help you manage your money

Basic bank accounts

What is a basic bank account?

In 2003, the government introduced basic bank accounts as a way of guaranteeing everyone could fulfil their banking needs, like paying bills or receiving their salaries.

As the name suggests, they are a fairly limited products designed to offer the basic functionality and benefits you would expect from a standard current account.

Who do basic bank accounts suit?

Basic bank accounts are available to anyone – you do not have to be on the electoral role to qualify. They suit people who cannot qualify for a standard account, perhaps because they have been bankrupt and have a bad credit score. 

They are also a good starter account for anyone who has never used a current account to pay their bills before and doesn’t want the temptation of an overdraft, or who perhaps has only recently moved to the country.

Basic bank account benefits

People who can’t open a standard current account will find they can gain most of the same benefits if they apply for a basic bank account.

A basic bank account enables you to pay bills by direct debit. Paying by direct debit not only ensures your bills are paid on time, but it can also sometimes mean you qualify for a better financial deal. For example, many gas and electricity tariffs offer discounts to those who pay by monthly direct debit.

You can also pay in your wages, benefits, tax credits and state pension to a basic bank account and you’ll receive a debit card so you can withdraw money from an ATM.

Importantly, opening a basic bank account allows you to start building a banking history so that you can eventually open a more attractive standard current account.

Basic bank account negatives

A basic bank account is more limited than an everyday current account. The key difference is that you do not get an overdraft facility, because they are usually opened by people with a low credit scores or those with no previous credit history.

On top of that, none of the most competitive current accounts are basic bank accounts. You won’t earn a high rate of interest on your money; in fact you probably won’t earn anything at all, even with the best basic bank accounts. 

These basic current accounts are designed to be solely functional – to give you somewhere you can put your wages and pay your bills.

Alternatives to basic bank accounts

Could you qualify for a standard current account? These offer betters rates and include some perks. Compare basic bank accounts and standard current accounts to see the difference. 

If you’re really struggling with debt then a managed account might help you rebuild your credit score, plus you’ll get help looking after your cash from a dedicated money manager. However, you will pay a fee for that kind of service.

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