The ID you need to open a new savings account

Make sure you bring the right identification when trying to open up a new bank account.

Opening a new savings account, credit card, ISA or current account should be a straightforward way to get your hands on a host of benefits, such as interest on your money, cashback, an overdraft or reward vouchers.

But in practice it can be stressful and time consuming. As a result many people end up sticking with a dud account instead of switching.

The 7-Day Switch, which comes into force in September, should speed things up when it comes to current accounts. This is because banks will be forced to switch current accounts within seven days - must faster than has generally been the case.

But what do you do if you’re not able to open up a new account, even though you’ve supplied the documents required? This happened to my Grandma recently. When applying to her local Halifax branch, she was told she couldn’t open an ISA because she didn’t have any photo ID. A passport or driving licence was required and without it she wouldn’t have been able to join.

It wasn’t just Halifax either. When trying to buy Premium Bonds, she faced the same barriers and was left with the option of leaving her money where it was, or forking out £80 for a new passport, having sent back her driving licence when she gave up driving.

In this instance she was given the wrong information, which several phone calls later both providers confirmed.

Identification documents

It is possible to open up a new account without photo ID. UK banks and building societies should provide a list of alternative documents which can be used.

In the first instance, they require an unexpired passport or driving licence, a Northern Ireland voters card or a UK ID card for foreign nationals.

If you don’t have these you should be asked to bring in two other forms of ID. The list is pretty extensive; banks usually require one document to prove your name and one with your address.

Any bills supplied, such for utilities or Council Tax, need to have been issued in the past 12 months. These should be returned to you within seven days (if sent by post) and the bank or building society should get in contact if there’s a problem.

Alternative forms of ID

There are some people who may not have access to the documents listed above. The Financial Conduct Authority (FCA) suggests bringing the following:

• a letter from a care home manager or warden of sheltered accommodation or refuge
• a letter from the warden of a homeless shelter
• a letter from a probation officer or a hostel manager
• a letter from the prison governor
• if you are a traveller, a letter from the local authority that verifies your address
• if you are an international student, a passport or European Economic Area National Identity Card and letter of acceptance or of introduction from a body on the Department for Education and Standards list, or
• if you are claiming benefit, an entitlement letter or Identity Confirmation issued by the government or a local authority
• if you are an asylum seeker, a UK Border Agency application registration card.

What to ask before opening a new account

When you open up a new account the bank must let you know how it operates. If it doesn’t you should ask before you sign up to make sure it’s right for you.

Interest

Always ask what the interest rate on the account is, how this is calculated and when it will be paid. Many current accounts now pay in-credit interest so this could be a good way to create some extra income, especially when savings rates are so low.  

The Santander 123 Account, for example, pays tiered rates up to 3%, depending on your balance. Nationwide has a similar account paying 5% on balances up to £2,500.

Charges and fees

Find out how much interest you’ll be charged if you use your overdraft. This is an area which can catch many people out – especially as some accounts charge a set fee rather than an overall interest rate.

You may also be charged a monthly amount to use a current account, such as with the Santander 123 account. Packaged accounts are also becoming more popular, in which you pay a set amount in return for a bundle of extras such as travel or mobile phone insurance. Again with these make sure you know exactly how much it’ll cost and compare this with buying the extras individually.

Transactions

Your bank needs to keep you informed of any transactions made through the account. This could be with a passbook, monthly statement, online, telephone or mobile banking. You should also be told how to make payments through the account, and how to avoid becoming a victim of fraud. This will include details such as setting up a PIN for the account.

Our guide Protect yourself from fraud has more information.

Complaints

Another factor which you need to be told about is how to complain. This is usually done through speaking directly to the bank or building society. If it doesn’t respond within eight weeks you can then escalate the complaint by taking it to the Financial Ombudsman Service (FOS).

You can find out more in our article How to complain to the Financial Ombudsman Service.

Compensation

There is a certain amount of protection available when opening up a new account. The Financial Services Compensation Scheme (FSCS) protects up to £85,000 but this is only for companies included in its scheme.

It also only applies to individual banking licences. This means the total amount of money held within banks with the same umbrella organisation – such as Halifax and Lloyds – will only be protected once.

More on bank accounts:

The best instant-access savings accounts

The best joint bank accounts

Get cashback with your current account

Current account costs could rise under new EU plans

First Direct boosts switching bonus to £125

Why everyone is switching their current account to Nationwide