Basic Bank Accounts: Your Legal Right to an Account

If a bank has ever turned you down for a current account, here's something they almost certainly didn't mention: nine of the UK's biggest banks are legally required to offer you a free account anyway.

It's called a basic bank account, and your right to one is written into law — the Payment Accounts Regulations 2015. No credit score requirement. No monthly fee. No charges for failed direct debits. And if a designated bank refuses you without a lawful reason, you can take them to the Financial Ombudsman — or court.

What is a basic bank account?

A basic bank account is a stripped-back current account designed for people who can't get (or don't have) a standard one. You get the essentials:

• A contactless debit card (Visa or Mastercard debit, usable anywhere)

• Direct debits and standing orders

• Salary, benefits and pension payments in

• Cash withdrawals at ATMs, branches and the Post Office

• Online, app and phone banking

What you don't get:

• No overdraft — you can't spend money you don't have, and you can't be charged for trying

• No cheque book (in most cases)

• No interest on your balance

• No credit facilities of any kind

Crucially, the account is fee-free for all standard operations. That includes failed payments — if a direct debit bounces, you pay nothing. On a standard account, that same failure could once have cost you £25 or more.

Who can open one? The eligibility rules

Under the Payment Accounts Regulations 2015, you're entitled to a basic bank account if you meet two conditions:

1. You're legally resident in the UK. You don't need to be a British citizen. You don't need settled status. Asylum seekers, refugees and people with no fixed address can all qualify — legal residency is the bar, not immigration status or a permanent address.

2. You either:

   • don't hold a payment account with any UK bank, or

   • aren't eligible for the bank's standard current accounts (for example, because of poor credit history or bankruptcy).

That's it. Notably absent from that list: your credit score, your income, your employment status, and whether you've been bankrupt.

Can I open one after bankruptcy?

Yes. Being an undischarged bankrupt is precisely the situation basic bank accounts exist for. If a designated bank decides you're not eligible for its standard current account because of bankruptcy, it should offer you its basic account instead. There is no waiting period.

Do basic bank accounts require a credit check?

Banks will run identity and fraud checks — usually a soft search that doesn't affect your credit score — but a poor credit history is not lawful grounds for refusal. The check is to confirm who you are, not to score you. (Individual banks' processes vary; ask whether the search is soft or hard before applying if you're concerned.)

The nine banks that must offer you an account

The obligation only applies to credit institutions designated by the Treasury — the nine largest current account providers. Digital banks like Monzo, Starling and Revolut are not covered, whatever their marketing says about accessibility.

A few differences worth knowing before you pick:

• Foreign usage fees vary. Most charge around 2.75–2.99% for card use abroad; Virgin Money has historically been the exception worth checking if you travel.

• Age limits vary. Co-op's Cashminder opens from 16; most others require 18.

• Cash withdrawal limits vary — Co-op caps daily ATM withdrawals at £250, Nationwide allows £500. Check before choosing if you rely on cash.

• Post Office access applies across the board: you can pay in and withdraw cash at any Post Office branch, which matters if your bank has closed its local branch.

How to apply

1. Pick a designated bank from the table above. If you already have a relationship with one that's gone wrong, pick a different one.

2. Apply in branch, by phone or online. Some banks bury the basic account behind a standard account application — they'll assess you for the standard product first and offer the basic account if you're declined. If you know you want the basic account, say so explicitly.

3. Bring ID and proof of address. Passport, driving licence, biometric residence permit, or benefit award letters. If you don't have standard documents, ask the bank what alternatives it accepts — designated banks must have processes for people without conventional ID, and a letter from a hostel, care home, employer or probation officer is often acceptable.

4. Wait no more than 10 business days. The bank must open the account — or tell you it's refusing — without undue delay, and no later than 10 business days after receiving your completed application. That deadline is in the regulations, not the bank's discretion.

Refused? Here's what the law says

A designated bank can only refuse a basic bank account in limited circumstances — chiefly, where opening it would be unlawful. In practice that means:

• You fail identity verification or anti-money laundering checks

• There are fraud or financial crime concerns

• You already hold a UK payment account elsewhere (and are eligible to keep using it)

What a designated bank cannot lawfully refuse you for:

• Bad credit history

• Bankruptcy, IVAs or debt relief orders

• Low income or being on benefits

• No fixed address (if you can otherwise verify your identity)

If you're refused, the bank must generally tell you why in writing (unless doing so would breach anti-money laundering rules). From there:

1. Complain to the bank through its formal complaints process.

2. Escalate to the Financial Ombudsman Service if you're not satisfied — it's free, and the regulations explicitly give you this route.

3. As a last resort, the regulations give you the right to challenge the decision in court.

Most refusals never get challenged because people don't know these rights exist. Banks know that too.

Basic account vs standard current account: what actually changes

The honest summary: for day-to-day banking, a basic account does 95% of what a standard account does. What you lose is borrowing (which, if you're rebuilding your finances, may be no loss at all) and perks.

Moving on from a basic account

Basic accounts aren't a life sentence. Banks periodically review basic account customers and may offer an upgrade to a standard current account as your circumstances improve — they must give you at least two months' written notice before migrating you. You can also apply for a standard account yourself at any time, and most basic accounts are covered by the Current Account Switch Service, so moving takes seven working days with all your payments transferred automatically.

Once you've got a standard account, that's when the market opens up — switching bonuses, linked saver rates and interest-paying accounts. And if you're getting back on your feet financially, an easy access savings account is the natural next step — even a small emergency buffer changes everything.

FAQ

Can a bank refuse to open a basic bank account? Only in limited circumstances — mainly failed identity or anti-money laundering checks, or if you already hold a usable UK payment account. Bad credit, bankruptcy and low income are not lawful grounds for refusal at the nine designated banks.

Do I need a credit check to open a basic bank account? No credit score is required. Banks run identity and fraud checks, typically a soft search that doesn't affect your credit file, but your credit history cannot be used to decline you.

Can I open a basic bank account with no fixed address? Potentially, yes. Legal UK residency is the requirement, not a permanent address. Banks must consider alternative documents — letters from hostels, shelters, employers or support workers are often accepted. Ask the bank what it will take before applying.

How long does it take to open a basic bank account? By law, a designated bank must open the account or refuse your application within 10 business days of receiving your completed application.

Which banks offer basic bank accounts in the UK? Nine designated providers are legally required to: Barclays, Co-operative Bank, HSBC, Lloyds Banking Group (including Halifax and Bank of Scotland), Nationwide, NatWest Group (including RBS and Ulster Bank), Santander, TSB and Virgin Money.

Is a basic bank account free? Yes — free to open and run, with no charges for standard operations including failed direct debits. You may still pay fees for non-standard extras like using your card abroad (typically 2.75–2.99%) or CHAPS same-day transfers.

Can I have a basic bank account and another bank account? Generally no — eligibility requires that you either hold no UK payment account or are ineligible for the bank's standard accounts. If you already have a working current account elsewhere, you won't qualify.

Do Monzo, Starling or Revolut offer basic bank accounts? They're not legally required to — the obligation only covers the nine Treasury-designated banks. Some digital banks have accessible sign-up criteria anyway, but you have no legal right to an account with them.