Bank accounts

A fee-free basic bank account could be worth considering if you can’t use or open a standard current bank account.

You can use a fee-free basic account to receive income like wages, tax credits and any other benefits, and also to pay bills, like your rent but you won’t get an overdraft facility or cheque book with it.

You can also pay cash and cheques into a fee-free basic account and set up Direct Debits or Standing Orders. It can sometimes be cheaper to pay your household bills by Direct Debit so you could save yourself money by having a bank account.

Most basic bank accounts will give you a debit card, so that you can make payments in-store and online and use cash machines to withdraw your money.

Most banks or building societies have always offered a fee-free basic bank account, but since September 2016 the nine largest banks are required to offer them. The Money Advice Service provides details of which banks and building societies provide them.

You need to be at least age-16 to open a fee-free basic bank account (some accounts vary). You don’t need to pass a credit check (although your bank or building may run a credit check on you).

However, you will need to pass an identification check by providing a proof of identity and an address for yourself.

If you’ve had money problems, including bankruptcy, a fee-free basic bank account can be a good way to help improve your credit score until you qualify to open standard current account.

If you have a partner, you will get a single payment of Universal Credit for both of you, so consider whether you want a joint account. You can open a joint fee-free basic bank account if both of you qualify to open one.