There have been basic bank accounts for over a decade now. They are designed for people who have difficulty in opening a current account, particularly people who may fail a credit check. All basic bank accounts offer debit cards, access to ATMS and direct debit facilities.

Basic Bank accounts are fee-free, so there are no charges for missed payments etc.

Since 2014, there have been nine approved providers who are obliged to provide a basic bank account.

The providers are:
Barclays, Clydesdale and Yorkshire Bank, Co-operative Bank, HSBC, Lloyds Banking Group(inc Halifax and Bank of Scotland), Nationwide, Royal Bank of Scotland (inc NatWest and Ulster Bank), Santander, TSB.

In addition, although under no obligation to do so, Virgin money offer a free account and even pay interest on your balance.

You need to be at least 16 to open a fee-free basic bank account, although for some accounts the minimum age is 18. If you’re under 18 you should also compare fee-free basic bank accounts with other young persons’ current accounts.

You don’t need to have a good credit history. Because fee-free basic bank accounts don’t allow you to go overdrawn, you don’t need to pass a credit check when you open the account (although your bank or building may still run a credit check on you).

If you’ve had money problems, including bankruptcy, a fee-free basic bank account can be a good way to help improve your credit score until you qualify to open standard current account.

You’ll have to give proof of identity and address. All banks and building societies will ask for proof of your identity and address before you can open a fee-free basic bank account.

You can open a joint fee-free basic bank account if both of you qualify to open one.

You may not be able to open a basic bank account if you have been convicted of fraud.