Compare  Basic Current Accounts

What is a basic current account?

A basic current account is simply a stripped-down version of a standard current account, allowing you to deposit money, spend using a cash card, set up direct debits and transfer money as you see fit. They are usually taken out if you have a bad credit score, or no credit score at all if you’re a young person who hasn’t had a chance to build up any sort of credit history.

It usually does not include any additional features, such as a debit card, an overdraft facility, a cheque book or the ability to set up standing orders. This makes the account limited, but still useful as you’re able to keep your money secure.

What should I look out for with a basic current account?

• Debit or cash card – a basic current account should include a debit card or cash card to use for spending
• Features – despite a basic current account being fairly restricted with what you can do, you can sometimes get benefits such as cashback, text alerts, online banking and the ability to set up standing orders
• Penalties or fees – if you don’t have enough in your account to cover outgoing payments you might be hit with expensive penalty charges. There might also be fees for withdrawing too much cash, spending abroad or using a faster payments service such as CHAPS

Should I get a basic current account?

If you have a bad credit history and have struggled being accepted by card providers or lenders in the past, you might be better off with a basic current account.

Despite the lack of facilities or benefits that come with it, you can still keep your personal finances under control, with less chance of you overspending due to such tight restrictions. Just make sure that you have enough in your account to cover any outgoing payments, as you might face steep penalties if you go overdrawn with a basic current account.

Given that there isn’t the option to borrow any money with a basic current account, there is less chance of you getting into debt, as long as you still manage your money effectively.

Which lenders offer basic current accounts?

Most major banks and building societies will supply a basic current account, though they don’t often advertise them clearly as they are mostly for if you have a poor credit score.

Whilst standard current accounts will be readily available, you sometimes need to request a basic current account. The good news is that they don’t usually require a credit check so are very easy to set up with most major account providers.