Have you been refused a bank account? Reading this might help.
If you've got a good credit rating, you'll have no trouble getting a current account. In fact, Britain's lenders will probably be queuing up to grab your business.
But if your finances aren't in such good nick, the choice becomes more limited - and if you've just gone bankrupt, most banks won't give you an account at all.
However, it's not all bad news - there are still a couple of places you can go.
So today's 'The Good, The Bad and The Ugly' instalment is a 'good' - those basic accounts still available to people who are bankrupt.
What's on offer
In recent months, the small number of these accounts on offer has shrunk still further.
For example, Nationwide's Cash Card account has often been recommended on The Fool's excellent Dealing with Debt discussion board.
But unfortunately, when I contacted Nationwide I was told that the account is no longer available to undischarged bankrupts.
So, I managed to find just two high street lenders - Barclays and the Co-operative Bank - still willing to consider your basic account application if you're an undischarged bankrupt.
Neither will guarantee to give you an account, but unlike the others, they won't turn you away automatically - so it's worth a try.
Here's a breakdown of what to expect from the two accounts in question.
Account | Minimum amount to open an account | Charge for unpaid direct debit | Charge of unpaid standing order | Debit card? |
|---|---|---|---|---|
Barclays Cash Card Account | None | £15 | £15 | No |
Co-operative Bank Cashminder account | None | £19.50 | £19.50 | Yes - Electron |
Good to know
Whether you're bankrupt or not, there are a few things to watch out for when choosing your basic account.
Some (like the Barclays Cash Card Account) don't give you a debit card, and offer you just a cash card instead.
Because basic bank accounts don't usually allow you to have an overdraft, they often charge hefty fees for unpaid standing orders or direct debits. The fees quoted above are relatively reasonable - fees on other basic accounts can be as high as £38.
You usually won't be provided with a chequebook. (However, because most basic accounts now let you set up direct debits and standing orders, you can choose to pay your bills this way instead).
An alternative
If you're dealing with debt and you're refused a bank account, you may want to consider the credit union option.
Last year, some of Britain's credit unions decided to offer current accounts to their customers. They are similar to basic accounts, and may be suitable for you if you're a low earner or have a poor credit rating.
They typically offer cash cards, direct debit and standing order facilities, but don't let you have an overdraft, a cheque book or a debit card.
You can read all about the pros and cons of this sort of account in this article, or click here to find out if there are any credit unions near you.
And don't forget to visit our dealing with debts discussion board if you want help and advice from other Fools.
To help find the best current account for you, visit The Fool's Current Account Comparison Centre.