An increasing number of banks have started to offer basic bank accounts over recent years, and these basic accounts are often known by different names depending on which bank you go through. A basic bank account, as the name suggests, is a more basic version of a current account, and let you run your day to day finances but with certain restrictions in place.

A basic bank account is geared towards those with bad credit, those on limited income, and anyone that faces difficulties when it comes to opening a standard bank account. Although you will find that many of the facilities that come with a current account are also offered with a basic bank account, there are some features that you will not get with a basic bank account.

As with a current account you can use your basic bank account to receive and withdraw money, set up direct debits and standing orders, and make one off payments. However, most basic bank accounts will not come with a debit card or cheque books facility, although you will get a cash card that can be used to make cash withdrawals. You will not get an overdraft facility with the basic bank account.

If you are considering applying for a basic bank account it is a good idea to spend some time looking at the different basic accounts offered by different banks, as the facilities and features of these accounts can vary from one bank to another. This will enable you to ensure that you get the best account for your needs, and that you get to enjoy as many facilities as possible from your bank.

If, on the other hand, you have a decent credit rating then you may fare better applying for a current account, although whether you will be eligible for a current account will again depend on the banks’ own policies and eligibility criteria. You can ask the bank for a copy of terms and conditions relating to opening a current account, or simply speak to a member of staff, who should be able to determine whether you will be eligible for a current account before you actually apply.

As with the basic bank account you should check different current accounts with different banks to see which is most likely to suit your needs. Check what sort of facilities the accounts offer, and also check on things such as any monthly fees or charges, penalty charge levels, and what sort of interest rate is paid on credit balances. Some current accounts will also offer automatic overdraft facilities, so this is something else you may want to check.

For those eligible to open a current account this may be the best option, as you get additional facilities such as a debit card, cheque books facility, and overdraft facility, which are not available with basic bank accounts. In some cases banks also offer a generous cash incentive to get you to open a current account with them, and this is also something that you may want to look out for.

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