Basic bank accounts

Basic bank accounts at a glance

1  What is a basic bank account?

A basic bank account gives you everyday banking essentials, like a debit card, direct debits, online banking, and the ability to receive wages and benefits, without the extras like overdrafts or cashback.

The nine largest UK banks are legally required to offer them, so they're widely available even if they're not always prominently advertised.

2  Who are basic bank accounts best for?

Basic bank accounts are designed for you if you might struggle to open a standard account - typically because of a limited or poor credit history, or because you’re new to the UK.

They can also suit you if you want a simple, no-frills account to help you budget, as having no overdraft means you can only spend what you have.

3  Who can open a basic bank account?

Most people can apply - you'll typically need to be 18 or over, a UK resident, and able to provide proof of identity and address.

A provider will usually carry out a credit check to verify your identity rather than assess your creditworthiness, so a poor credit score is unlikely to be the reason you're refused an account.

What is a basic bank account?

A basic bank account is a straightforward current account designed for people who might struggle to open a standard account - typically because they have a limited or poor credit history.

Sometimes called a ‘foundation account’, it gives you access to the everyday banking essentials without the extras you'd find on many standard current accounts.

The nine largest UK banks are legally required to offer basic bank accounts, so they're widely available even if they're not always prominently advertised.

Examples of basic bank accounts include:

• Halifax Basic Account
• Santander Basic Current Account
• HSBC Basic Account
• NatWest/RBS Foundation Account

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Who are basic bank accounts best for?

A basic bank account might be the right choice if you:

• Have a low or more limited credit history and you’ve been turned down for a standard account
• Are new to the UK and you haven’t yet established a credit record
• Are recovering from financial difficulty like bankruptcy or debt management
• Want a simple account with no overdraft to help you budget more effectively
• Are opening your first bank account and want to start with a simple account

You can also open a basic account even if you have a good credit score. You might prefer this type of account to help you budget, as having no overdraft means you can only spend what you have.

Who are basic bank accounts not suitable for?

A basic bank account might not be the right choice for you if you:

• Want to earn interest on your balance - standard or high-interest current accounts are a better option
• Need an overdraft facility for occasional shortfalls
• Want to earn cashback or rewards on your everyday spending
• Are looking for switching incentives or promotional offers
• You need an account for business purposes - a basic personal account won't cover business banking needs. Compare business bank accounts instead
• Want access to premium perks like travel insurance or breakdown cover through a premium or packaged account

If any of these apply, it's worth comparing the full range of current accounts available to find one that better suits your needs.

Who can open a basic bank account?

Most people can open a basic bank account. To apply, you'll typically need to:

• Be at least 18 years old
• Be a UK resident
• Provide proof of identity - like a passport or driving licence
• Provide proof of address - like a utility bill, council tax letter, or benefit entitlement letter

Some banks only offer basic accounts to customers who have been turned down for a standard account. If this applies to the provider you're interested in, it's worth checking their eligibility criteria before you apply.

If you can't provide a standard proof of address - for example if you have no fixed address, some banks will still consider your application. It's worth contacting the bank directly to discuss your options.

How do I open a basic bank account?

Opening a basic bank account is straightforward. Here's how to do it.

1. Check your eligibility

Make sure you meet the provider's requirements. You’ll normally need to be 18 or over, a UK resident, and able to provide proof of identity and address. Some banks only offer basic accounts to customers who don't qualify for a standard account, so it's worth checking before you apply.

2. Choose a provider

Providers don’t always advertise basic bank accounts, so you might need to check directly with your bank or building society. Comparing current accounts is a good way to see what's available and find an account that suits your needs.

3. Apply online or in branch

Many banks let you apply online, though some require you to visit a branch. You'll need to provide your proof of ID and address at this stage.

4. Verify your identity

The bank will carry out a credit check - not to assess your creditworthiness, but to verify your identity. This is standard practice and shouldn't affect your credit score.

5. Fund your account

Once your account is open, you can start using it straight away. Set up any direct debits or standing orders you need and make sure your wages, pension, or benefits payments are paid into your new account.

Compare current accounts and find the right one for you.

How do I choose a basic bank account?

While many basic bank accounts share the same features, there are still differences worth comparing before you apply.

1. ATM withdrawal limits

Some accounts set a daily limit on how much you can withdraw from a cash machine. Check this suits your needs before you apply.

2. Online and mobile banking

Most basic accounts offer online banking, although the quality of apps varies significantly between providers. If you manage your money on your phone, it's worth checking reviews of the provider's app.

3. How you apply

You can open some accounts online, while others require a branch visit. If you don't live near a branch, an online application process might be more convenient.

4. Accepted forms of ID

What providers accept as proof of identity and address varies. If you have limited documentation, check what each provider will accept before you apply.

5. Upgrade options

Some providers make it easy to upgrade to a standard account once your credit score improves. If this is important to you, check the provider's policy before you open an account.

Compare current accounts with us to see what's available from leading UK providers and find the right fit for your needs.

Can you be refused a basic bank account?

Yes - although it's less common than a bank refusing you for a standard account. Reasons a bank might turn down your application include:

• Being unable to provide acceptable proof of identity or address
• A previous conviction for fraud or financial crime
• Being suspected of money laundering
• Having previously misused a bank account with the same provider

If a bank refuses a basic bank account, it's worth asking them for the reason. You might be able to resolve the issue - for example, by providing alternative forms of ID.

What are the alternatives to a basic bank account?

If a basic bank account doesn't feel like the right fit for you, here are some alternatives you might want to consider.

Standard current accounts

If your credit score is better than you think, you might qualify for a standard current account. This usually comes with more features like an overdraft, cashback, and better app functionality. Compare current accounts with us to see what you might be eligible for.

Prepaid debit cards

Prepaid cards work like a debit card but aren't linked to a bank account. You load money onto the card and spend up to that amount. They don't require a credit check and you can use them for online shopping and direct debits. Watch out for fees though - some charge for ATM withdrawals, top-ups, or monthly usage.

Business bank accounts

If you need an account for business purposes rather than personal banking, a basic personal account won't meet your needs. Compare business bank accounts with us to find the right option for your company or self-employed business.

Credit union accounts

Credit unions are member-owned financial organisations that offer current accounts, savings, and loans. They're often more flexible than traditional banks and can be a good option if you're struggling to access mainstream banking.

Challenger and digital banks

App-based banks like Monzo and Starling offer current accounts that are quick to open online, often with minimal credit checks. They come with features like real-time spending notifications and budgeting tools, and are fully FCA-regulated and FSCS-protected.

Frequently asked questions

How much do basic current accounts cost?

Basic bank accounts are usually free - there are no monthly or annual fees. You also won’t be charged for going into an overdraft because they don’t offer one, and setting up direct debits and standing orders is free. Read the terms and conditions carefully, as some providers might charge for specific services like international transfers or replacement cards.

Is everyone entitled to a basic bank account?

Not quite. While basic bank accounts are more accessible than standard accounts, there are still circumstances where a provider might refuse you.

The nine largest UK banks are legally required to offer basic accounts, although you still need to pass identity and address checks. You might also be refused if you have a previous conviction for fraud or financial crime.

Will I be able to use online and mobile banking?

Yes - most basic bank accounts offer online and mobile banking. The quality of apps varies between providers though, so if managing your money on your phone is important to you, it's worth checking reviews of the provider's app before you apply.

Do you need a credit check for a basic bank account?

A provider will usually carry out a credit check, but not to assess your creditworthiness - it's mainly to verify your identity. This means a poor credit score is unlikely to be the reason a provider will refuse a basic bank account, unlike with standard accounts where your credit history plays a bigger role.

Can I upgrade my basic bank account?

Yes. If your credit score improves over time, you might be able to upgrade to a standard current account. Some banks might even proactively offer you an upgrade after you’ve banked with them for a certain period.

Can you open a joint basic bank account?

Yes, many providers offer joint basic bank accounts. Both account holders will usually need to meet the eligibility criteria and provide their own proof of identity and address. As with any joint account, it creates a financial link between you and the other person, which might affect both of your credit scores.

Can I move from a standard current account to a basic account?

Yes, you can move from a standard current account to a basic bank account using the Current Account Switch Service (CASS). The service moves your direct debits, standing orders, and balance over to the new account within seven working days. If you’re currently overdrawn, you’ll need to clear the balance before switching as a basic bank account won’t offer an overdraft facility.

Does having a basic account affect your credit rating?

Having a basic bank account rather than a standard account doesn't directly affect your credit score. That said, managing your account well over time, like paying bills on time and staying within your balance, can help you build a better credit history, which could open up more banking options in the future.