How to open a bank account

Opening a bank account for someone else

You can’t normally open an account for another adult, but you are able to add them to your own account – this is known as a joint account.

Joint accounts

If you’re opening an account for you and one or more other person(s), you’ll need to open a joint bank account. To set up a joint account you’ll need each account holder to provide their information, proof of identity, and proof of address, just like opening a standard current account. All account holders will be able to make and see transactions, have a bank card, and pay money in.

Children’s current accounts

Children’s current accounts are by and large very similar to standard current accounts. You’re able to pay money in, withdraw from ATMs, and use debit cards to make transactions in shops. However they don’t generally have overdrafts.

Children’s current accounts are normally only available to children aged 11-18 – with some banks setting the minimum age limit at 16. Some banks also only let children open the current account themselves at 16, with parents having to open them for younger children.

You’ll still need to show ID, though depending on the bank if the child is under 16 the documents can be in your name – but you might still need to provide a birth certificate or NHS medical card to confirm your child’s identity. You’ll also need the regular documents, such as a utility bill as proof of address.

Children’s savings accounts

Children’s savings accounts are generally open to children of all ages, as opposed to children’s current accounts. However if the account is in the child’s name themselves, they normally have to be at least seven years old. The options you’ll have for children’s savings accounts include easy access accounts, notice accounts, fixed rate accounts, and regular savings accounts as well as Junior ISAs (JISAs).

Opening a digital bank account

With the changing landscape of banking, many people are swapping traditional banks for digital-only banking. These companies offer a different service that is almost entirely app-based, and they focus heavily on user experience.

The signing-up process for these accounts is relatively simple – you need to provide the same information as for any other bank account, including proof of ID and address and some information such as name, age, and contact details. As they don’t have physical branches, it’s likely you’ll have to photograph or photocopy your documents to send them via the app, while some also ask for a short self-shot video of you outlining your application.

It’s worth noting that not all digital-only banking apps offer current accounts. Some only offer a prepaid card, which you top up and spend like you would a normal debit card.

It’s important to understand that not all of the companies offering digital banking are banks. This sounds confusing, but what it really means is that the company isn’t allowed to invest or lend your money to anyone else The disadvantage is that these companies won’t be part of the Financial Services Compensation Scheme, which protects people from losing their money if a bank goes bust, up to £85,000.

However, these companies are required – by law – to hold all of your money until you want it. This means that if you topped up a prepaid card with £100, the money is safeguarded and sits on your card until you spend it.

It’s easy to tell whether the company is a bank or not: they have to be a bank in order to offer current accounts. If they offer a prepaid card only, they may not be a bank. Make sure you read about the company before you apply for an account.

If you want to pursue digital-only banking, it’s important that you choose a company that is registered with the Financial Conduct Authority.

Managing your bank account

Once you’ve opened a bank account, you’ll have different options for how you want to manage your money.

• Face to face. The traditional method of banking involves dropping in to your local branch and speaking face to face with a bank employee, so they can help you with any questions or problems you may have.
• Over the phone. You’ll also be able to contact your bank through the phone to ask for help or advice with your finances.
• Online/app. Most banks also have an online platform/app that lets you access your bank account and conduct transactions 24/7.

Closing a bank account

Closing a bank account shouldn’t be an issue – it normally just requires you to contact your bank and tell them you want to close the account. It’s unlikely you’ll be charged or penalised, but if there’s an outstanding overdraft you’ll have to pay it off first.

In the event that your bank closes your account down without your request, they should give you two months’ notice for current or instant access savings accounts. They must also give ‘reasonable’ notice if they are closing another kind of account of yours, though this may be delayed if there are still payments pending from your account.

Comparing bank accounts

Whether you’re closing an old account or opening a new one, it’s always good to make sure you’re getting exactly what you need from your bank. With MoneySuperMarket, you’ll be able to compare accounts by interest rates and overdraft limit, as well as added bonuses and customer feedback, making sure you find the best possible account for you.

Many banks even offer incentives to switch account – for example, a bank might offer a cash sum such as £100 if you close an old account and switch over.

Once you’ve found the one you want to open, switching bank accounts is easy. Thanks to the government’s Current Account Switch Service the process takes a guaranteed maximum of seven working days (excluding weekends and bank holidays) to swap current accounts.