What is a basic bank account in the UK?
A basic bank account in the UK is a simple current account with no overdraft facility, available to anyone who cannot access a standard account — including those with poor credit histories, no credit history, or a history of financial difficulty. Major UK banks are required by FCA guidance to offer basic accounts to eligible applicants. They include features such as a debit card, Direct Debits, and online banking.
Who is eligible for a basic bank account in the UK?
Basic bank accounts are designed for people who have been declined a standard current account. There is no minimum income or credit score requirement. You must be a UK resident aged 16 or over and provide valid proof of identity and address. Banks offering basic accounts include Barclays (Basic Current Account), Lloyds (Basic Account), NatWest (Foundation Account), HSBC (Basic Bank Account), and Santander (Basic Current Account).
How does open banking help people with basic bank accounts?
Open banking is being used to improve financial inclusion for basic account holders. Lenders and debt advice services can use open banking affordability checks to assess whether a basic account holder qualifies for credit products, even without a credit history. Some challenger bank apps — including Monzo and Starling — also provide accessible digital accounts that function similarly to basic accounts but with a better user experience.
Open Banking in Practice: The FCA’s financial inclusion agenda has pushed banks to make basic accounts easier to access, with simpler identity verification processes. Digital banks have made account opening accessible without branch visits, using open banking-compatible identity verification. The JROC’s 2023 roadmap includes financial inclusion as a priority outcome for the next phase of open banking. Read our guide to banking for underserved consumers on openfuture.world.
FAQ
Can I get a basic bank account if I have been declared bankrupt?
Yes — basic bank accounts are available even during bankruptcy or after an IVA; check individual bank policies as some have restrictions during active insolvency proceedings.
Do basic bank accounts show up on a credit check?
Opening a basic account does not typically affect your credit score; however, some banks run a soft search when you apply, which does not affect creditworthiness.
Is a Monzo or Starling account the same as a basic bank account?
Not exactly — digital bank accounts have more features than basic accounts and require a smartphone, but they are accessible with no minimum income and limited credit checking.