Basic Bank Accounts in the UK: What They Are and Who They’re For

Opening a bank account should be simple, but for many people in the UK—especially those with poor credit histories or on low incomes—it can feel like a closed door. That’s where basic bank accounts come in.

These no-frills accounts are designed to help everyone access essential banking services, regardless of financial background. In this guide, we’ll explain what basic accounts are, who can get one, and which UK banks offer the best options in 2025.

What Is a Basic Bank Account?

A basic bank account is a free current account aimed at people who:

• Have a poor or limited credit history

• Are on a low income or benefits

• Have been refused standard current accounts

They offer core banking features, such as:

• A debit card for payments and withdrawals

• The ability to set up direct debits and standing orders

• Online and mobile banking access

• Receiving salary, benefits or pension payments

However, they usually don’t include overdrafts, cheques, or reward features.

Who Can Open a Basic Bank Account?

You can apply for a basic bank account in the UK if:

• You are aged 16 or over (18+ at some banks)

• You are legally resident in the UK

• You don’t already have a standard current account (or you’ve been rejected for one)

• You can provide proof of ID and address

Basic accounts are not linked to your credit score, so applicants with CCJs, defaults, or no credit history are still eligible.

What Are the Benefits of a Basic Bank Account?

Limitations of a Basic Bank Account

While useful, these accounts do have some restrictions:

• No overdraft facility

• No rewards, cashback or interest

• No cheque book

• May have limited access to certain banking services (e.g. in-branch support or budgeting tools)

Still, for many users, the simplicity and safety outweigh the lack of features.

Best Basic Bank Accounts in the UK (2025)

The table below compares some of the most reliable and accessible basic accounts available from major UK banks.

Note: All accounts listed above are fee-free and do not include overdrafts.

How to Apply for a Basic Bank Account

1. Visit the bank’s website or local branch

2. Provide proof of identity (passport, driving licence)

3. Provide proof of address (utility bill, tenancy agreement, council tax letter)

4. Wait for approval and receive your debit card and account details

Most banks now support online or app-based applications, but in-branch support is still available if you prefer face-to-face help.

What Happens If You’re Rejected?

You have the legal right to request a basic account if you meet the criteria. If a bank refuses to offer you one:

• Ask for a written explanation

• Try another bank with a more flexible policy

• Contact Citizens Advice for help

• Consider ethical or community banks like The Co-operative Bank or Monzo (though not technically a basic account, Monzo is very accessible)

Can You Get a Basic Account with a UK Bank if You’re New to the Country?

Yes, many basic accounts are available to:

• Refugees or asylum seekers

• Migrants with limited proof of UK address

• Those with no UK credit history

Look for banks that accept alternative documentation such as:

• Home Office letters

• Immigration status documents

• Benefit letters from DWP or HMRC

Monese, while not FSCS-protected, is a useful option for recent arrivals thanks to multilingual support and no credit checks.

Can You Upgrade a Basic Account Later?

Yes. Once your financial situation improves—e.g., your credit score increases or you gain stable income—you can request:

• A switch to a full current account

• Access to credit features like overdrafts or loans

• Accounts that offer interest or cashback rewards

Many banks allow upgrades directly via their mobile app or by visiting a branch. Just make sure your basic account is in good standing (no suspicious activity, returned direct debits, etc.).

How to Manage a Basic Account Effectively

• Set up direct debits to pay your bills and build reliability

• Use mobile banking apps to track your spending

• Avoid any attempts to go into unauthorised overdraft

• Use budgeting tools (if available) to plan monthly expenses

• Consider opening a separate savings account alongside it

Even without overdrafts or interest, a basic account helps you build good money habits and manage income safely.

Are Basic Accounts Protected by the FSCS?

Yes. All basic accounts offered by UK-authorised banks are covered by the Financial Services Compensation Scheme (FSCS), protecting your money up to £85,000 if the bank fails.

Look for banks authorised by the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA). You can verify a bank’s credentials here:
👉 FCA Register

Can You Use Your Basic Account with Benefits?

Absolutely. You can:

• Receive Universal Credit, pensions, Jobseeker’s Allowance, and other DWP payments

• Set up housing benefit payments to your account

• Link your account to HMRC or council portals

Just provide your account number and sort code to the relevant benefit agency.

Final Thoughts: Is a Basic Bank Account Right for You?

Basic bank accounts are a lifeline for people locked out of standard banking. They’re free, secure, and allow you to manage money confidently—without the risk of overdraft charges or monthly fees.

Whether you’ve had credit issues, are new to the UK, or simply want a clean, simple account for essential use, a basic bank account may be exactly what you need.

Useful Resources

• MoneyHelper – Basic Bank Accounts

• Citizens Advice – Opening a Bank Account

• FCA Register – Check Authorised Banks