BASIC ACCOUNTS UK: Most high street banks and building societies operate a basic cash card bank account system.

It gives people an opportunity to join the mainstream banking system in the United Kingdom.

Essentially, they are for those who are unable (or do not want) to get a standard current account. This guide offers a solution to some of the UK’s current banking exclusions.

The United Kingdom has one of the most efficient and comprehensive banking systems in the world.

Yet, there are more than one million people who do not have a bank account in this country.

The main reason for the barriers, and why they get excluded, is because of a past poor credit history. Defaults, bankruptcy, or general financial problems also make it hard to open cash card accounts.

Even so, despite banks being poor at advertising the facts, there are ways to get these citizens back into the banking system. More than 9 million people have been able to get a basic cash card bank account and store their money in the UK.

Most of these also received a debit card. That means they have the ability to pay direct debits and make cheaper bill payments online and in the shops.

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Opening Basic Accounts UK

Often, you can open a cash card account online. Several institutions offer easy-to-open bank accounts, even for those with a poor credit rating. The main criteria is being able to produce some proof of identification documents. This is a UK banking law which complies with money-laundering regulations.

You may see a search on your credit file from the bank because most institutions will do ID checks. They are not credit checks – as such. They search with credit reference agencies to verify that you are who you say you are.

The Basic Cash Account – as its name suggests – offers simple banking facilities. You would be able to deposit cheques or cash, and then withdraw the cash via a bank cash card from ATMs. But, you cannot use the cash card as a debit card for purchases.

With basic cash card bank accounts, you will be able to pay most of your household bills by setting up direct debits. But you do not usually have a facility to pay by standing orders.

You will need the standard identification and address confirmation to set up cash card accounts. However, it is important to note that they can refuse to process your application.

This is generally the case after they carry out a credit check. The search tells them whether you have outstanding debts. It also informs the bank if you have outstanding county court judgments against your name.

Note: People with criminal convictions for fraud, or those who fail the bank’s ID checks, are ineligible to open a basic bank account. In most cases they will reject your application. But, the bank may accept applications from individuals with other convictions.

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Basic Bank Accounts Free of Charges

Basic Bank Accounts have been completely free of charges since the 1st of January 2016 in the United Kingdom. The big high street banking groups offering fee-free accounts include:

• Barclays Bank Public Limited Company
• HSBC (Hong Kong and Shanghai Banking Corporation)
• The Co-operative Bank, Halifax and Lloyds)
• Lloyds Banking Group, RBS Group (NatWest, Royal Bank of Scotland and Ulster Bank)
• Clydesdale and Yorkshire Bank, Virgin Money, Santander, and TSB.

Nonetheless, we advise caution. Even though the bank will not charge you for unpaid direct debits, you might incur related charges.

This could be from a company that has not received your payment. Therefore, it is wise to know exactly what money you have in your account and manage it prudently.

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Using Basic Cash Card Bank Accounts

What if there is no other option available to you? Basic Cash Card Accounts are a way forward into the UK banking system. It is a way establish yourself finances and sort out your credit problems.

You can make all the customary payments into your account. That includes cheques and most benefits payments. You can get your regular wages or salary cheques paid into the account and deposit your surplus cash amounts.

You will receive a Bank Cash Card. You can used it in ATM cash dispensers to withdraw any cash you have in your account. You may also be able to use your cash card to withdraw cash at main post offices. This is not possible with all banks – so it’s worth checking!

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Barclays Cash Card Account Credit Check

What is Barclays Cash Card Account? Barclays Bank offer a cash card account where you will get a cash card or a Visa Debit Card. The account also offers many of the typical services needed by account owners.

You usually get Internet banking and online management of your money. Your withdrawal allowance has a limit of £300 per day from ATMs at a basic cash account.

One of the biggest benefits of a Basic Cash Card Account Barclays is the fact that you can pay bills by setting up a direct debit payment. But, if you do not have sufficient balance to pay this when it is due, you may get charged for the refusal of the direct debit.

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Who can get a Basic Cash Card Account?

You will need to satisfy the financial institution with your address and identification documents to set up an account. As a rule, you have to be free of outstanding debt at the Credit Check Agency. You must not have any outstanding county court judgments CCJs against your name.

You should declare if you have any bankrupt court claims in the past. Most will still accept you for the Basic Cash Account. But if you are an undischarged bankrupt, then there may be a problem.

You will have to prove that you are normally and legally resident in the United Kingdom. It is also possible for legal immigrants to get a basic cash card account in the same way as ordinary UK citizens.

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