Best basic bank accounts

Basic bank accounts are fee-free, giving anyone access to a no-frills current account without fear of running up debt.

 

How to open a basic bank account and other FAQs

Basic bank accounts are designed for people who don’t qualify for other types of current account, typically because they have a poor credit history.

They offer basic facilities for receiving money and settling bills, without overdraft facilities, though you qualify for a normal debit card which can be used at ATMs and online.

How do I open a basic bank account?

You need to be at least 16 years old to open most high-street basic bank accounts, although the minimum age is 18 at others.

Check our table to see if your chosen account can be opened by post, over the phone, online or in person.

How do I prove my identity and address?

You’ll be asked to provide photo ID i.e. a passport or driving licence.

If you don’t have either of these, the bank might accept an alternative such as an original copy of a letter from HMRC or the Department of Work and Pensions.

Proof of current address can be a bank or credit card statement (less than three months old), a recent UK utility bill, or a tenancy agreement from a local council or housing association (dated within the last 12 months).

Do I get an app with a basic bank account?

Yes, all of the basic bank accounts in our table above can be managed via a smartphone app.

Could I be refused a basic bank account?

Since September 2016, you are entitled to open a basic bank account if you are ineligible to open a standard bank account.

However, Money Advice Service says you might be refused if:

  • You can’t provide proof of ID or address
  • You are eligible for a different account with that bank or building society
  • You refuse a credit check (although you don’t have to pass one)
  • You are threatening, abusive or violent towards staff
  • They suspect you of fraud or money laundering.

If you think you’ve been unfairly rejected, you can appeal first to the provider, and then to the Financial Ombudsman Service.

Could my account be closed?

Yes, your bank or building society could close your account if:

  • there haven’t been any transactions for more than 24 months;
  • you regularly fail to meet the terms and conditions of the account;
  • you’re no longer legally resident in the UK;
  • you have access to another basic bank account.

Your provider should tell you why it’s closing your account – you can lodge a complaint if you don’t agree – and you must be given at least two months’ written notice.

Can I use the switching service if I have a basic bank account?

Yes, you can use the switching service for all of the basic bank accounts in our table except Virgin Money’s Essential account.

It should take just seven working days to switch from your old account and the move is backed by the Current Account Switch Guarantee guarantee which means that your new bank will take care of moving over incoming and outgoing payments and correct any problems.

Can I open a basic bank account if I’m bankrupt?

Yes – all of the providers in our comparison table told Which? they will accept applicants with an undischarged bankruptcy. This is someone who is still going through the process of a bankruptcy order.

You can apply for a basic bank account even if you had previous credit problems such as CCJs, or you have insolvency measure in place such as a Debt Management Plan (DMP), Individual Voluntary Arrangement (IVA), or Debt Relief Order (DRO).

Take action: how to deal with debt – where to turn for help and how to take back control

Are basic bank accounts always free?

No – while you should no longer be charged for failed payments, you will still pay fees if you want to use your debit card abroad.

You will also pay between £23 to £30 if you want to make a payment via CHAPS (the system used for same-day payments with no transaction limit e.g. when buying property). Nationwide FlexBasic is the only account in our table that doesn’t charge a fee for this.

Do basic bank account applications show up on my credit report?

When you apply for basic bank account, the bank should only conduct a ‘soft’ search on your credit history, which serves as a background check to confirm your identity.

Although this is visible to you, when you check your credit report, it will not be visible to other lenders which means it won’t impact any future credit applications you make.

When you apply for credit – such as a loan, credit card, phone contract, or, a bank account overdraft – the lender must conduct a ‘hard’ search which leaves a visible ‘footprint’ on your credit history and can influence your credit score.

Basic bank account alternatives: mobile-only banks

Basic bank accounts from the high-street providers aren’t the only option if you’re concerned about passing a credit check or don’t want a standard current account.

Digital challenger banks and e-money firms – which offer accounts operated entirely via a smartphone app – don’t carry out ‘hard’ credit searches so they can be a lifeline if you’ve faced financial difficulties in the past.

All providers perform a ‘soft’ search to confirm your identity. This is visible to you if you check your credit report but other lenders won’t be able to see this.

Monzo

Once you’ve installed the Monzo app, you’ll need to confirm your name and date of birth, by taking a picture of your ID (passport, driving or provisional licence, national ID card or other government issue photo ID) and a short video of yourself.

Monzo does ask for a UK address – to send your debit card – but you can use your work address or a friend’s address if you wish.

If it can’t find a record for you (e.g. if you recently arrived in the UK) you can still have an account, but it won’t lend to you.

Spending on your Monzo debit card is always free, whether in the UK or on holiday.

You can also withdraw up to £250 every 30 days for free but after this you’ll be charged a 3% fee in both the UK and European Economic Area (EEA).

Starling Bank

Setting up a Starling account is speedy – you simply open the app, add your number and enter the verification code sent by text.

Then, as with Monzo, you’ll need to take a short selfie video and a photo of your ID (passport, driving licence, ID card, British Biometric Residence Permit).

If it needs additional proof of address, you will be notified via the app. Starling told is it accepts: letters or statements from UK banks and HMRC, a UK driving licence, utility bills, and tenancy agreements or leases.

Starling offers both overdrafts and personal loans to existing current account customers but if you apply for either, it will need to carry out a full credit check.

 

Revolut

Revolut is aimed at adults who want to spend or transfer money abroad.

You can only apply for a Revolut account via the app, downloaded from the official Google Play or Apple store on your phone.

Revolut says it accepts the following documents as proof of address and identity: passport, driving licence, bank statements, household bills, payslips, tax statements, loan agreements, inheritance wills, grant of probate.

Monese

With Monese, you can open a multi-currency account using your mobile phone and ID (Passport, national ID card, or driving licence) in minutes, with no credit checks and no proof of address required.

There are three pricing tiers (Simple, Classic and Premium). Its Simple plan has no monthly fee while the Classic and Premium plans cost £5.95 and £14.95 per month, respectively. We go into more detail in our challenger bank guide.

Pockit

Pockit was founded in 2014, aimed at the ‘unbanked’ who struggle to open high street current accounts.

An account can be opened online or via the app in three minutes and Pockit will only carry out checks to confirm your name and address.

A Pockit Basic Account is issued if your identity and address cannot be automatically verified when you sign up – which restricts how much money you can hold and transfer – but you’ll be upgraded within 48 hours once these checks are complete.

The app offers spending analytics to help improve money management, and participating retailers or “Pockit Partners” such as Argos and New Look pay up to 10% cashback when you spend on your card.

U Account 

Like Pockit, U Account (formerly known as Ffrees) is geared towards adults who can’t – or don’t wish to – open a mainstream current account.

You must apply online first, where you’ll be asked to fill in a short form to verify your name and address.

In some cases, you’ll be asked to provide ID as proof of your name and/or address.

The basic account has no monthly usage fee but it charges £1 for payments out (including direct debits) and cash withdrawals. You also pay 3% plus £1 if you take cash out abroad.

Post Office card accounts – closing November 2022

Post Office card accounts are an alternative to a basic bank account, and can only accept benefit and pension payments.

There are no credit checks to open one, but you’ll need to contact the government department that pays your pension, benefits or tax credits and ask them to set you up.

You get a card to withdraw cash and check your balance at your local Post Office branch. But, as well as no overdraft facility, you can’t set up any direct debits or use your card in shops/online.

The Department for Work and Pensions (DWP) originally said the Post Office Card Account scheme would end on 30 November 2021, but this has been postponed until November 2022.

Post Office card accounts – closing November 2022

Post Office card accounts are an alternative to a basic bank account, and can only accept benefit and pension payments.

There are no credit checks to open one, but you’ll need to contact the government department that pays your pension, benefits or tax credits and ask them to set you up.

You get a card to withdraw cash and check your balance at your local Post Office branch. But, as well as no overdraft facility, you can’t set up any direct debits or use your card in shops/online.

The Department for Work and Pensions (DWP) originally said the Post Office Card Account scheme would end on 30 November 2021, but this has been postponed until November 2022.

Under the new Payment Exception Service, pensioners and benefit claimants can choose how they receive their payments: digital vouchers delivered via SMS, email, or a unique barcode displayed on a mobile phone.

In addition, all customers who are migrated to the new service will receive a reusable mag stripe plastic card, which can be used to receive their benefits in cash from more than 28,000 PayPoint retail outlets or 11,500 Post Office branches.

The DWP has said it will be writing to all users to explain their options.

What are credit union current accounts?

Credit unions mainly offer savings and loans to their members, but some also offer basic banking services without the need for a credit check.

The ‘Engage’ account is the most high profile example. It’s offered by various credit unions across the UK and is available to anyone, whatever your credit score or financial history.

You pay a monthly management fee of £2, and must load money onto the prepaid Visa debit card in advance (bank transfers are free up but Paypoint top-ups cost 50p plus 2.5%).

There’s no overdraft facility, so you can’t run up debt, though you do pay 75p for ATM withdrawals and if you use your card abroad, you’ll pay an extra £1 (£2 for foreign ATM withdrawals) plus 2% of the transaction value.

Best high interest bank accounts

Not sure which current account would suit you best? We’ve made it easier for you by selecting the best high-interest current accounts