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Fee-free bank accounts now available
At the beginning of the year nine major banks announced the launch of fee-free basic bank accounts. The basic accounts are available to you if:
- you don't already have a bank account
- you're ineligible for a standard current account
- you can't use your existing account due to financial difficulty.
If you have an existing basic account, ask your bank whether you could still be charged if a direct debit or standing order fails, and, if so, whether you're eligible for a new basic bank account.
In some cases, charges for unpaid direct debits were as high as £35 and uncapped, meaning charges could accumulate to hundreds of pounds over time, plunging people into serious debt. The changes mean that customers won’t be forced into having an overdraft because of fees and charges.
What’s more, basic bank account customers will have access to the same services as those with personal current accounts, including all the standard over-the-counter services at bank branches and the Post Office as well as access to the entire ATM network.
Fee-free bank account customers will not have a cheque book or overdraft facility and any unpaid direct debits or standing orders will be cancelled if there insufficient funds in the account. This means that bank debt is avoided.
For free and confidential advice on opening a bank account, phone us on 01204 328000.