Importance Of Basic Bank Accounts

Basic bank accounts were typically introduced as part of a government scheme which aimed at making the banking facilities available to middle class families across the country. Unlike standard bank accounts, basic bank accounts have lesser facilities and customers can avail some features that are available to standard bank accounts.

Nowadays, bank accounts are mandatory for everybody in the UK with a decent job. The question of where the pay slips are going to be credited seems to elude people, reinforcing the importance of bank accounts at the same time.

Features of Basic bank accounts

Usually basic bank accounts are the entry points of customers into the banking field. They are given the most basic features after which they can move in to get a standard bank account. Since they are available to people with bad credit history and bankruptcy, the bank considers their account to be a bit of calculated risk – this is the reason why basic bank accounts do not come with overdrafts or credit limits, though some banks offer an emergency buffer of £10.

If you take time to compare bank accounts, chances are that you will get the best deals available. Use of a debit card is not generally available to customers holding a basic bank account. Withdrawals are done with the help of a cash card which limits the amount withdrawn per day.

Why basic bank accounts?

There are people who have experienced a bad credit history or bankruptcy due to contingencies. Banks take a slightly defensive stance against them in helping them open an account. However, without bank accounts, these people’s plights are unimaginable. Therefore, the safest way of opening a bank accounts for bankrupts would be to give them the most basic features ensuring that the bank does not have to face any risks.

Customers can still use ATMs and cash cards, pay their bills and use their cards at stores, but they are however restrained from using cheque-books and credit cards.

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