How a basic bank account could assist you

The following article highlights what you need to know about this type of basic bank account.

09:11 21 January 2014

A lot of people have mistrusted banks since the financial crisis came to the fore.

If you have had challenges in opening bank accounts in the past, then you might be a little skittish about doing so now. A lot of people approve of the ‘keep everything under your mattress’ philosophy or ‘bury it under the garden shed’ whichever they so choose. However, you are risking a lot by having a lot of money floating around your house.

A bank account is your best bet if you are looking to put something away for a rainy day. However if you have a lousy credit score opening a regular bank account is going to be a very tall order. A good score is essential to most banks as it proves that you can hold your own. So how do you open an account which allows you to access your funds whenever you want, make direct debit payments and better your credit score?

A basic bank account is your best bet. However, not everyone meshes well with this account but it sure beats not having any account.

The Advantages and Disadvantages

Not every solution is ideal and even the basic bank account type has its own limitations. For starters, this type of account does not attract any interest and overdrafts are out of the question to boot. The fact that you can secure this account without undergoing a credit check is a plus. It basically allows you to make payments for direct debit and set up standing order payments directly. It also comes with debits cards that allow you to pay for stuff in retail stores and online shops.

It therefore does not come as a big shock that there is this option. If your bank does not highlight this option, you should make sure that to enquire about is that it is on the table.