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A basic bank account is essentially an account that has all the necessary day to day facilities you would require without having any access to credit facilities. This essentially means, with most basic bank accounts, that you have access to a debit card, can put money in, take money out through ATMs and access telephone and online banking. You would not, however, have access to an overdraft facility or credit card.

You may ask why would anyone want to go for a stripped down bank account. The answer is simply because they will not qualify for a regular current account. This is usually down to having a poor credit rating. This may would lead to consumers being unable to open a current account because a credit check would be undertaken. The problem is that nowadays a bank account is pretty essential. Wages, mortgages, bills, online purchases all rely on having a bank account and debit card.

This brought about the basic bank account, which was designed to cater primarily to this market, ensuring that these individuals, in spite of their poor credit history, would still be able to access necessary banking facilities, would still be able to receive salaries into a bank account and so on. However, those with poor credit scores are not the only ones who use basic bank accounts.

The accounts are becoming increasingly popular with consumers who could actually obtain a full current account but who do not wish to even have the possibility of accessing an overdraft. With a full current account, the holder can often contact the bank even if they do not already have an overdraft, to discuss taking one. Some people simply do not want this temptation. Aside from this, even full current accounts without an agreed overdraft can still go into an unauthorised overdraft, often resulting in extortionate charges for the holder. The basic bank account will not authorise payments that will take the account into a negative balance and so users do not incur overdraft charges. This is making basic bank accounts an attractive prospect for those with great credit who just want to be cautious with their finances.

A basic bank account appeals to more than just those with bad credit who cannot get a regular bank account. There are loads about, and they all have the features of regular current accounts such online banking just don’t have the charges that come with them.

Visit the website to learn more about opening a basic bank account