Presenting the Basic Bank Account – Kiran Trivedi

In the field of personal banking, the idea of the bank account is a basic principle. Without a bank account we cannot take part in any sector of the financial industry. It’s a necessary requirement in the modern age to have a bank account to take part in society.

However, due to a number of issues such as inflated overdrafts and poor credit scores, there are over a million people across the country who live their lives without a bank account. This means that many of the most basic financial practices most of us enjoy, such as shopping online, are closed off to them.

The reason that the vast majority of people in this category are turned down for a current account, the type of account most of us have, is their credit rating. If a potential customer has a poor credit rating, if they have defaulted on debt payments or have had to go into bankruptcy, for example, they are denied a current account. This is because banks see them as a risk.

However this does not mean that a customer in this position cannot have a bank account. It just means that cannot have a current account. A common misconception. There is another option called a basic bank account.

Those who aren’t a regular fixture in the finance industry may not know of the basic bank account or what it entails. This is because the banks under-publicise them. They typically lose money on such accounts because it does indeed live up to its moniker. It is basic.

A basic bank account is just a place to store your money. There are no extra features, no overdrafts or lines of credit etc. However you can set up direct debit payments and standing order on these accounts. They can also be engaged in the use of online shopping and shopping by debit cards in most retail stores.

They are geared towards those who cannot attain a current account for one key reason. You do not typically have to pass a credit check. All you need for a basic account is identification. This will provide you with both a bank account and a debit card.

These accounts are available from most high street banks. However you have to specifically ask for them, as most banks won’t provide the relevant information voluntarily due to their propensity for monetary loss. However you must also be careful when setting up standing orders and direct debit payments. If you don’t have the funds to cover such a payment, there is an automatic charge with most basic accounts.

Remember Kiran Trivedi readers that a basic bank account is there to provide banking for those who have suffered financial hardship in the past. They allow said person to function as a member of modern society. As long as they are managed effectively they are the perfect tool to employ in recovering your financial capability.