A
Basic Bank
The information provided in this leaflet is correct at time of print.
However, you should check the details with the chosen bank or building society when seeking to open an account.
This advice leaflet has been produced in conjunction with the introduction of Local Housing Allowance from 7th April 2008
What is Local Housing Allowance?
Local Housing Allowance is the new way of working out Housing Benefit for tenants renting accommodation from a private landlord. Local Housing Allowance is a flat rate amount based on household size and location. It means you will receive a similar amount to other people living in similar circumstances. Local Housing Allowance will make it easier to find out in advance how much rent might be covered by your benefit entitlement. The actual amount of Housing Benefit you get will still depend on your income and savings.
Why is Local Housing Allowance being introduced?
Local Housing Allowance will give you as a tenant more choice in where you live, and is fairer too. With Local Housing Allowance:
● You will be entitled to the same amount of benefit as people in the same
circumstance as you
● You can find out how much benefit you can get before you rent a property
● You can decide how much of your benefit you want to spend on renting
What is a basic bank account?
A basic account is available from most bank and building societies. It is an account aimed at people who do not have banking facilities already, or for people who have problems with opening a normal current account.
A basic account will allow you to receive money and then enable you to make withdrawls to pay bills. You will be able to have your housing benefit, wages, tax credits or other benefits paid into the account. The account will provide a cash card to withdraw money, and some offer direct debits and standing orders. Unlike normal current bank accounts, they do not give you a chequebook or an over draft facility. However, it is important that you keep an eye on your account balance if you have standing orders or direct debits set up because if there isn’t enough funds to clear the amount due, they will be rejected and you will be charged.
What is a basic bank account?
● You will not receive a chequebook
● You can pay cheques into a basic account
● You can have access to your account at the Post OfficeR
● You will be able to withdraw money from a cash machine
● You will be able to pay your landlord and other bills by standing order
or maybe by direct debit
● Opening a basic account will help build you a banking history and may
provide a route to many other banking services
Why do I need a basic bank account?
As from April 2008, the Government has decided as part of its Financial Inclusion Agenda, to make tenants responsible for paying their rent. Local Housing Allowance will be paid direct to tenants via Bankers Automated Clearing System (BACs). Payments by BACs are cleared funds. This means that you can withdraw funds and make arrangements to pay your landlord even on the same day your account is credited.
Frequently asked questions
How do I keep track of my money?
You will get a statement through the post from your bank or building society. The statement will show details of what money has been paid in and what has gone out.
With most basic accounts you can check how much money you have and get a mini statement from a cash machine. Some banks and building societies may offer telephone banking and internet access.
What will happen if there isn’t enough money in my account to pay a direct debit or standing order?
You will not have an overdraft facility with a basic bank account and if you pay your bills by direct debit or standing order and there isn’t enough money in your account, then the bank will not be able to make the payment. You may then be charged a fee and some accounts may be closed if the payment is refused three times. It is important to make sure you have enough money in your account to pay your bills.
6 5 Bank Britannia A b be y Na tional Bar cla y s Halifax HSBC Llo y ds T S B N a t W est Building S o ciety Bridgw ater Bridgw ater Bridgw ater Bridgw at er Bridgw ater Bridgw ater Bridgw ater Burnham-on-S e a Burnham-on-S e a Burnham-on-S e a Burnham-on-S e a Cheddar Cheddar Highbridge A cc ount name F lexible Sa v e r B asic Sa v e r C ash C a rd Easy C ash Basic C ash St ep M inimum D e posit r equir ed £100 £1 None £10 None None None Standing or ders No Y e s Y es Y e s Y es Y e s Y es Cheque Book No No No No No No No C ash C a rd Y e s Y es Y e s N o Y es Y e s Y es D ebit C a rd No No No Y e s N o Y es No O v e r D ra ft N o N o N oN o N oN oN o P ost O ffic e A cc ess No No Y e s Y es No Y e s Y es (M ax £300) If an y of the f ollo wing apply Undischar ged Undischar ged Undischar ged Undischar ged Undischar ged Undischar ged Undischar ged y our r equest ma y be Bank rupt Bank rupt Bank rupt Bank rupt Bank rupt Bank rupt Bank rupt declined Rec o rd of F raud
7
P
ro
ving y
our iden
tit
y
Toopen a bank acc
ount y ou will need t o pr o vide pr oof of both y our addr ess and identit
y. Some of the things y
ou can use t o do this ar e detailed belo w . Photoc opies ar e not usually ac cepted . A cc eptable pr oof of r esidenc e/ Identification
Britannia Building Societ
y A bbey National Full P asspor t
✓✓
Driving Lic enc e✓✓
P rovisional with Phot
ogr aph P ension Book
✓
Benefit Book✓
HB Entitlement L ett er✓
L ett er fr om D WP/L ocal A uthorit y✓✓
Emplo yers ID with Phot
ogr aph Utilit y Bill
✓
C u rr ent C ouncil Tax Bill✓
Signed Cr edit C a rd Cr edit C a rd Stat ement✓
Student L oan L ett er LEA L ett er (student) HMRC/T ax Cr edit L ett er✓
Bir th C e rtificat e✓
NHS M edical C a rd Tenanc y A g reement✓
EU M ember Stat e ID C a rd✓
Armed F o rc es ID C a rd D o c tors L ett er Solicit ors L ett er UK F irearms C e rtificat e with Phot ogr aph Mot or Insur anc e D o cuments V ehicle Registr ation D o cuments T V Lic enc e CIS C e rtificat e (C onstruc tion W o rk ers)✓
Bar cla ys Halifax✓✓✓
✓✓✓
✓✓
✓✓
✓✓✓
✓
✓✓✓
✓✓✓
✓
✓✓✓
✓✓
✓✓
✓✓
This is only a guide and e
confirm y
our iden
Where can I get further information?
Citizens Advice Bureau
The Lions, West Quay, Bridgwater TA6 3HW Tel: 01278 455236
www.citizensadvice.org.uk
Sedgemoor District Council Benefits Service
Bridgwater House, King Square, Bridgwater TA6 3AR Tel: 0845 408 2542
email: [email protected]
The Post Office
Tel: 08457 223344 www.postoffice.co.uk
