Basic Bank Accounts

What is a Basic Bank Account?

Basic bank accounts are easy to use accounts that have the basic features of a Current Account. You can withdraw cash at the counter and at cash machines, you may be able to set up direct debits but you cannot have an overdraft or cheque book. If you have been unable to open a current account perhaps due to a poor credit history you maybe able to open a basic bank account. All the major banks and building societies operate them.

How do I open a Basic Bank Account?

Basic bank accounts are available from most high street banks and building societies.  To open a basic bank account you will need to provide proof of you identity and address.

When opening your account, remember to stress that you want to open a basic bank account. Do not be pressured into opening another account, which is unsuitable and may lead to future problems such as overdrafts.

What evidence do I need to provide?

You will need to provide them with one from of identification and one form of address verification. The same document cannot be used to identify you and your address. The following are some examples of the documents you could take. If you are unsure as to what documents to provide you can ask the staff at the HSBC Bank plc about all the alternatives available to you.

List of Acceptable Identification documents

• Current Passport
• Current National Identity Card
• IND Application Registration Card 9issued by the Home Office)
• Recent Benefit Agency letter confirming your rights to benefits    (dated within the last 4 months) –  from Department for Works and Pensions, Job Centre Plus, Benefits Agency

List of Acceptable Address Verification documents

• Council Tax Bill (valid for current year)·Utility Bill / Telephone Bill (dated within the last 4 months)·Tenancy Agreement (must be from the council or a reputable letting agency)
• Letter from reputable employer confirming recently arrived Foreign Nationals address
• Letter from reputable university, college, language school confirming recently arrived Foreign Nationals address

If you receive (or have just made a new claim for) Housing Benefit or Local Housing Allowance and need help to open an account, phone us on 0115 9013790. One of our advisors will make an appointment to see you.

Why do I need to open a Basic Bank Account?

You will need to open a bank account to receive payments of state benefits. If you rent your property from a private landlord and claim Local Housing Allowance (LHA), you will also need to open a bank account to receive payments. LHA is paid to tenants and not landlords.

Six good reasons to open an account:

• BACS payments are quick and secure.
• It costs less than producing a cheque; helping to keep the Council Tax low.
• You have the money available to you on the day it arrives in your account.
• You still get paid on time if there is a postal delay.
• You can access your money 24 hours a day, 7 days a week.
• You will not have to wait for your cheque to clear (This can take up to 5 working days.)

You can enjoy these benefits too. Even if you cannot open a Current Account you may be able to open a basic bank account.

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What services do Basic Bank Accounts offer?

They Offer

• Free Automated transactions (e.g. Direct Debits and Standing Orders)
• A cash card for use at cash machines
• Phone Banking

How do I get my Benefits paid into my Bank Account?

• Complete a BACS Payment Form
• Phone us on 0115 9013970

If you are making a new claim, then simply fill in your bank details on your claim form.