What are some alternatives to a basic bank account?
If you’re looking for alternatives to a basic bank account, here are a few to consider.
Fintech online banks
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.
Post office card accounts
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.