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A basic bank account is also known as a basic current account, a cash account, or a foundation account. It’s a type of current account created specifically for people who have found it hard to get approval for a standard current account. A basic bank account is fee-free and allows you to pay money in and take it out, set up regular outgoing payments, and withdraw cash from a cash point using a debit card.
There are usually several ways you can open a basic bank account – online, over the phone, in person, or by post. You should also be prepared to show proof of identity and address. Check with your bank which documents they need to confirm your identity and address, as different providers may ask for different documents.
To open a basic bank account, you usually need to be at least 16 years old, and this may rise to 18, depending on the bank. You typically also need to not qualify for a standard current account. This could be because you have poor or bad credit, or a difficult financial history – for example, maybe you’ve experienced bankruptcy or insolvency.
When you’re on the hunt for the best basic bank account, a comparison table like NerdWallet’s can really help. You’ll be able to see at a glance how the banks stack up against each other.
Think about whether you’d prefer to bank online, or visit a local branch – this may affect your decision. Keep in mind that most basic bank accounts are fee-free, but don’t offer overdrafts.
If you’re considering applying for a basic bank account with a bank you already have another account with, think – do you owe money on this other account, maybe via an overdraft or other charge? If so, check whether they’d be allowed to take money from your basic account to cover your debt on the other account. If yes, it might be wise to choose a different provider for your fee-free bank account.
If you’re looking for alternatives to a basic bank account, here are a few to consider.
These often offer completely smartphone-app-based accounts, and tend to only carry out ‘soft’ searches on your credit history, which won’t affect your record. Providers include Monzo, Monese, and U Account, and there are others, too.
Alongside member lending services, some credit unions also provide basic banking services, with no credit check necessary. The best known of these is an account called Engage. Keep in mind, you have to be a member of a credit union before you can apply for it.
These only accept pension and benefit payments, and you can get one set up by getting in touch with the government department that pays your pension or benefits. Bear in mind these accounts will no longer be available from November 2021, so they don’t offer a long-term solution.
How to upgrade a basic bank account
If you already have a basic bank account, and your financial circumstances have improved since you opened it, you may be able to upgrade to a standard current account. You’ll need to check with your bank how to go about doing this – some may ask you to get in touch with them to discuss it, while others may direct you to an online eligibility checker first to do a ‘soft search’ on your current financial situation.
Can you be refused a basic bank account?
Yes, in some situations you may be refused a basic bank account – for example, if you can’t offer your bank proof of identity or address, or if you don’t consent to a credit check. Other reasons include being eligible for a standard current account, or if your bank suspects you want the account for fraudulent activity.
Do you need a credit check to open a basic bank account?
It depends on the bank, but it’s good to show that you’re willing if your bank does want to run a credit check on you. It’s a way for them to better understand your situation, and it doesn’t matter if you fail the check. A basic bank account isn’t offering you any credit, so failing a credit check shouldn’t affect your likelihood of being approved for the account.
Does applying for a basic bank account affect my credit score?
No, it shouldn’t do, because you aren’t applying for credit – basic bank accounts don’t provide credit to their customers.
However, if your bank does plan to run a credit check on you, ask whether it’s a soft search. A hard search may affect your score, and a soft search shouldn’t leave a trace. You may decide to apply to other banks if you aren’t happy with how yours does things.
» MORE: How to improve your credit score
Can I have two basic bank accounts?
Yes, you should be able to – but double-check with your existing basic bank account provider, to make sure it won’t cause problems if you want to open another one.
Can I switch my basic bank account to another?
Yes, you can. We reached out to the Current Account Switching Service and they confirmed: ‘As per our service definition, a fee-free basic account is classified as a UK current account and is within the scope of the Current Account Switching Service.’
Can I open a joint basic bank account?
Yes, if you and the person you want to open one with both qualify for a basic bank account.
Could my basic bank account be closed?
Yes. Like any bank account, your basic account could be closed if you don’t stick to its terms and conditions, give inaccurate or false information when opening it, or use it for fraudulent activity. It may also be closed if your circumstances improve and you become eligible for a standard current account. Then you may have to upgrade your account.
