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Three quarters of Brits clueless over basic bank accounts
Three quarters of Brits are confused about what basic bank accounts are, according to a new report.
Research by thinkmoney found that despite over half of those surveyed having heard of basic bank accounts, 76% have no idea what they actually are.
Basic bank accounts are available to people with poor credit histories, some are even available to undischarged bankrupts, and are free if you are in credit.
These accounts are provided by all high street banks but are not commonly advertised.
Thinkmoney said that although authorised overdrafts are not usually available, most accounts do not protect you from entering an unauthorised overdraft – which you may be charged for – along with charges for any returned payments.
For example, one basic account from a high street provider charges customers £25 for each returned payment.
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Ian Williams of thinkmoney said: “People with poor credit ratings may think their options are very limited – especially if they have a basic account that regularly charges them.
“However, there are alternatives to basic bank accounts available. For example, the thinkmoney Personal Account is not a basic bank account – but it is available to people with poor credit histories, including undischarged bankrupts.
“It charges a monthly fee but does not allow you to go overdrawn – so there are no overdraft charges and no charges for returned payments either. On top if this, the account provides a built-in, personalised budgeting service help you get manage your money better and ensure that all your bills are paid.”
What’s more, a fifth of those surveyed said they had a basic account, but official figures suggest that some of them may be mistaken.
Figures from the Office of Fair Trading suggest that 12% of the current account market was made up of basic bank accounts. This suggests that around 8% of these respondents may have said they had a basic bank account without fully knowing what one is.