Bank Account
Why do I need a Bank account?
There are a large number of people who do not have a bank account. This can often lead them to not being able to receive benefits or pensions which they are entitled to or for them to receive discounts which other customers who for example pay bills by direct debit.
Bank accounts can help you manage your everyday money. There are different types of bank accounts to suit your personal situation.
With a basic bank account you can:
- Manage your day to day money
- Have your wages, benefits, State Pension or tax credits paid directly into your account
- Pay in sterling cheques for free, you will normally have to wait four working days before the money is available to you.
- Check your balance and take money out at cash machines using a cash card
- Take money out at the post office
- Pay your bills by Direct Debt or standing order
- Save money
With a current account you can:
- Receive all the benefits that a basic bank account has
- Receive a cash or debit card
- Have the use of an overdraft facility
- Receive interest on the money you have in the account
- Use telephone and internet banking facilities
With a savings account you can:
- Receive interest on the money you have in the account
- Access your money via a cash machine or using a ‘passbook’
You would need to check the terms and conditions to find out if you are able to access the account ‘instantly’ or if you have to give notice
A Sharia account:
- Will be designed and run in accordance with Islamic law and it is the responsibility of each individual bank to assess whether it or an account keeps to Islamic law
- May offer similar features to other kinds of account
- May offer a return on your money that is not interest
When choosing a bank account, check that:
- You can use a cash machine near where you live or work for free
- There is a branch of the bank or building society near you, where you can pay in money and check on your account
- You can pay money in or get money out at a Post Office branch, if this is important to you
- You will get the services you need like a cash card, debit card, use of direct debits or standing orders
An organisation providing independent money advice (The Money Advice Service) has produced a very useful leaflet on basic bank accounts that details the different types of accounts and services the main high street banks will offer. See following link http://www.moneyadviceservice.org.uk/_assets/downloads/pdfs/your_money/bank_accounts_table.pdf
The next steps:
All major banks and building societies will accept your Tenancy Agreement as proof that you reside in the UK. If you experience any problems proving your identity the following link will provide some practical advice that may assist you. ID Guide - how to prove your identity
For advice based on your own circumstances you can contact the Money Advice Service on 0300 500 5000 (type talk 1800 1 0300 500 5000)
If you have money problems then the following organisations can help:
Citizens Advice Bureau – offers free, confidential and face-to-face money advice. Look in the Phone Book or on its website for your local bureau www.adviceguide.org.uk
Consumer Credit Counselling Service (CCCS) – offers a structured programme of advice on how to manage your money. Telephone 0800 975 9558 or go on line at www.cccs.co.uk
Credit Action – works in partnership with the CCCs and publishes factsheets about debt and budgeting. Telephone 0800 138 111 or go on line at www.creditaction.org.uk
National Debtline – provides a free, confidential and independent telephone advice service. Telephone 0808 808 4000 or go on line at www.nationaldebtline.co.uk