| Common features |
This will:
- receive money;
- pay bills;
- give you a cash card;
- let you set up direct debits; and
- act as a stepping stone to a current account.
However, this won't usually allow you to go overdrawn by more than £10, if at all.
It might offer:
- a debit card and payment by standing order; and
- a linked savings account to help you budget. This means you can keep some of your money in your savings account until you need to transfer it over to pay a bill.
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This will:
- receive money;
- pay bills;
- give you a cash card;
- give you a debit card;
- allow you to set up direct debits and standing orders;
- give you a cheque book and guarantee card; and
- allow you to have an overdraft.
It might offer:
- interest on your money;
- special services - e.g. sending money abroad or cashing foreign cheques. But there will often be a charge for these services.
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This will:
- give you interest on your money; and
- be deposit-based: for every £1 you save you will usually get at least £1 back (short of a bank or building society collapse).
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| It's right for you if… |
- You want to make sure you don't go overdrawn.
- You might not get through the bank's credit check to open a current account.
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- You want more than a basic bank account can offer you.
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- You want to set money aside for a purchase or expense that you know will come up fairly soon (like a holiday or a deposit on a house), and you may need to get at the money quickly.
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| Where can I get one? |
Different types of basic bank account is a table of the banks and building societies which offer this type of account and what they call them.
You can also find this table inside our free Basic bank accounts printed guide. You can download or order it online from Publications |
- Any high-street bank.
- Some building societies.
- Certain banks don't have branches - you deal with them by post, telephone or internet.
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- All banks and building societies offer different types of savings accounts.
- Compare savings accounts on our savings tables.
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| What to look for |
- Cash machines - how many can you use free of charge?
- Branches - do you need one near where you live or work? (Some basic bank accounts allow you to withdraw cash only from a cash machine or Post Office® branch, so do check this.)
- Post Office® - do you need an account that allows you to pay in or check your balance at a Post Office® branch? Check whether your bank offers this service.
- Paying bills - does the account enable you to pay your bills easily? All accounts offer direct debits.
- Some also offer standing orders and a debit card.
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- Cash machines - how many can you use free of charge?
- Branches - do you need one near where you live or work?
- Post Office® - do you need an account that offers access at a Post Office® branch? Check whether your bank offers this service.
- Overdrafts - some banks charge fees, on top of interest. Consider the charges that will apply to your account.
- Telephone/online banking - does the account allow you to bank over the telephone or internet?
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- Type of account - the Types of savings products section will help you understand what type of account is going to suit your needs
- Minimum investment - how much money do you have to put in to open the account?
- Access to your money - can you take your money out straight away, or do you have to give notice?
- Interest - how much interest will you earn on your money, and how often will you receive it?
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These accounts are deposit-based. This means you'll usually get back what you have put in, unless your bank or building society collapses. But if this happens, there is a scheme which may pay compensation to customers, up to a set limit. Visit the Financial Services Compensation Scheme (FSCS) website for more information.
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For help understanding the terms mentioned above, visit our Jargon buster.
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