Opening a bank account
Information from Southampton City Council on how to open a bank account
The basic
Low income, no bank account?
There are several reasons why people on a low income choose not to have a bank account: They may have had difficulty opening one or have a poor credit history; a fear of going into debt or increasing an already heavy debt burden; problems with bankruptcy or the desire to keep a tight reign on their finances or perhaps they have no photographic identification. If these problems apply to you then a basic bank account may be just the thing you need.
What is a basic bank account?
A basic bank account can help you manage your money.
With a basic account you can:
• pay money in, get cash out by card at cash point machines and the post office • use the account to pay bills by direct debit and standing order
• manage your money with internet or telephone banking.
Basic bank accounts do not normally allow you to go overdrawn, so if you are paying bills by direct debit or standing order you need to make sure that you have enough money in your account to avoid any charges.
What do I need to open a basic bank account?
Many banks in Southampton will accept:• As proof of ID – can be a benefit award letter or paper driving licence, if no photographic ID available.
• As proof of address – can be benefit award letter or paper driving licence if not used as proof of ID, a recent utility bill, a recent bank statement from another bank or a letter from the management of a hostel or residential care home.
Some of the ways a basic bank account could help you:
• If you pay your bills by direct debit you could pay less for some things, especially gas, electric or telephone.
• You will be in a better position to shop around and find the best deal on other financial products if you have a bank account. For example, many insurance companies will only sell to you if you can pay your premiums from a bank account, so you could get cheaper insurance. • You can cash cheques for free instead of using a cheque cashing service that is not connected to a bank. The charges for a cheque-cashing service might mean you only get around £20 out of a cheque for £25. • A basic bank account can be a first step towards opening a current account later on.
I don’t have photographic identification
Many banks in Southampton will accept a recent benefit award letter together with a utility bill dated within the last 3 months as proof of ID. This means that you don’t have to worry if you do not have a passport or driving licence. Contact your local branch for an application form and to check their requirements.
I don’t have a fixed address
An address is essential to opening a bank account. It is a legal requirement for the banks to be able to send out statements of account to the account holder at their home address.
What if I am renting a room, living in a hostel or in
residential care?
Some banks will take a benefit award letter, previous bank statement or driving licences as proof of address as long as they have not been used to fulfil the ID requirement. If you are currently living in a hostel or residential care home most banks will accept an official letter confirming your tenancy from the manager of the property.
I have a poor credit history
Unless you are an undischarged bankrupt or have a history of financial fraud you should have no problems opening a basic bank account. Even bankruptcy does not guarantee an instant refusal as several banks in Southampton will allow undischarged bankrupts to open a basic account. Check the table in this leaflet or with your local branch for further information.
The Basic Bank account – is it for you?
A basic bank account is a simple money management account. It gives you access to your money without the danger of falling into debt. Basic accounts do not come with a cheque book or an overdraft facility. However they offer many features that allow you to manage your money simply and more efficiently.
Common features
• Allows you to receive money and pay bills – but won’t usually let you overdraw by more than £10 if at all.
• Can be a stepping stone to a full current account. • Cash card, Direct Debits
• Some banks also offer a debit card and payment by standing order. Others offer a linked savings account to help you budget.
Who is it suitable for?
• People who want to make sure they stay in credit.
• People who might not get through the banks’ credit checks to open a current account.
Where can I get one?
• See the list overleaf to find out which bank and building societies in Southampton offer this type of account.
What do I look for?
• Cash machines – how many you can use free of charge.
• Branches – all the banks listed overleaf have at least one branch in
Southampton, check locations if you need one close to where you live or work. • Post Office® – you can access most basic bank accounts listed in this leaflet
from a Post Office® branch.
• Paying bills – does the account give you everything you need to pay your bills easily? All accounts offer Direct Debits; some also offer standing orders and a debit card.
Bank and Account Name Minimum age to open account Minimum amount to open account Free buffer zone Direct debits and standing orders Charge for unpaid direct debits Charge for unpaid standing orders Debit card (Solo, Electron or Maestro) Internet and Telephone banking
If the following apply to you, your application may be declined
Abbey – Basic Account 16 None No Yes £35 £35 No
%
Undischarged bankrupt, record of fraudAlliance & Leicester – Basic Cash Account
16 None No DDs only £34 No SO No No Undischarged bankrupt
Barclays – Cash Card Account
18 None No Yes £15 £15 No
%
Record of Fraud Co-operative Bank –Cashminder
16 None No Yes £19.50 £19.50
%
Record of Fraud Halifax – Easycash 16 None No Yes £39 £39%
Record of Fraud HSBC – Basic BankAccount
18 None £10 Yes No No No
%
Undischarged bankrupt, record of fraud Lloyds TSB – Cash Account 18 £1 No Yes £35 £35 No%
Undischarged bankrupt, record of fraud Nationwide Building Society – Flexaccount16 £1 No Yes £30 £30 No
Record of Fraud Nat West – Step Account 16 None No Yes £38 No
%
Undischarged bankrupt,record of fraud Royal Bank of Scotland
– Key Account
16 None No Yes £38 £38
%
Undischarged bankrupt, record of fraudAbbey
57 Above Bar, Southampton 0845 765 4321
Also has branches in: Woolston, Shirley and Bitterne
Alliance & Leicester
11 Above Bar, Southampton 023 8022 8504 Barclays 67 Above bar, Southampton 08457 555 555 Also has branches in: High St, London Rd, Bitterne, Shirley, Portswood and Highfield Co-Operative Bank 149 High St, Southampton 08457 212 212 Halifax 63-65 Above Bar, Southampton 0845 505 525
Also has branches in: Portswood, Shirley and Bitterne HSBC 165 High St, Southampton 08457 404 404 Also has branches in: London Rd, Portswood, Bitterne, Shirley, Woolston and University
Lloyds TSB
92-94 Above Bar, Southampton 08453 000 000 Also has branches in: London Rd, High St, Bitterne, Portswood, Shirley, Woolston and University Nationwide 72-78 Above Bar, Southampton 08457 302 010
Also has branches in: Portswood, Shirley and Bitterne
Nat West
12 High St, Southampton 0800 200 400
Also has branches in: Ocean Village, London Road, Woolston and Portswood
Royal Bank of Scotland
156 High St, Southampton 0800 121 129
Also has branches in: College Place
This written information is available on
request in other formats or languages.
Please contact Welfare Rights & Money
Advice Unit advice line on 023 8083 2339
for help. The advice line is open
Monday - Friday 9.30am - 12.30pm.
www.southampton.gov.uk/welfarerights
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