| Common features |
This will usually:
- receive money;
- give you a cash card;
- let you set up Direct Debits or standing orders to pay bills;
- act as a stepping stone to a current account;
- allow you to do business at the bank counter;
- let you check your balance and withdraw cash at Post Office® branches; and
- let you check your balance and withdraw cash from a cash machine.
However, this won't usually allow you to go overdrawn by more than £10, if at all.
It may offer:
- a debit card; and
- a linked savings account to help you budget.
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This will usually:
- receive money;
- give you a cash or debit card;
- let you set up Direct Debits and standing orders to pay bills;
- give you a cheque book and guarantee card*; and
- allow you to check your balance and withdraw cash from a cash machine.
It may offer:
- an overdraft;
- interest on your money;
- other services, for example sending money abroad or cashing foreign cheques. There will often be a charge for these services;
- telephone or internet banking facilities;
- extra features such as insurance (for example travel, life, mobile phone), special offers or extra services; and
- cash withdrawals and balance checkes at Post Office® branches.
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This will usually:
- pay you interest on your money.
It may offer:
- a passbook; or
- access to your money via a cash machine.
Savings accounts may also be:
- cash Individual Savings Accounts (ISAs); or
- term accounts (which are for a specific period of time).
Access to your account may be:
- ‘instant’ – you can have the money immediately;
- ‘fixed notice’ or ‘term’ (you must give your bank or building society 7, 30, 60 or 90 days’ notice before you can withdraw your money without charge) – for a higher rate of interest; or
- by internet only or post only.
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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 (for example a holiday, a car or a deposit on your home), and you may need to get at the money reasonably 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 booklet. 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.
- Interest – check what interest your money will be earning.
- 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.
- Interest rates – Some current accounts pay interest if you pay in regular amounts or if you keep your balance above a set limit. Some pay more than others.
- Overdrafts – most banks will allow you an overdraft up to a set limit without charge. But they will charge interest when you go overdrawn.
- Unauthorised overdraft charges – most banks charge fees, on top of interest, if you go overdrawn without authorisation or you go beyond your overdraft limit.
- Telephone/online banking – does the account allow you to bank over the telephone or internet?
- Sharia-compliant – if you want an account run in accordance with Islamic law** and which offers a return on your money that is not interest.
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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?
- Branch/telephone or internet access – some accounts are only postal or internet based.
- Sharia-compliant – if you want an account run in accordance with Islamic law** and which offers a return on your money that is not interest.
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For help understanding the terms mentioned above – and other money terms – see Jargon made clear.
* Banks are phasing out the cheque guarantee card scheme, so this may become less common.
** The FSA does not assess whether a bank, building society or an account keeps to Islamic law; this is the responsibility of each individual institution.
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