How to Open a Bank Account in the UK
When you want to open a bank account in the UK, you need to consider a few key issues. Think about what type of bank account you need, what you need to consider before you open such an account, and whether you want to switch accounts rather than open an account from scratch. Here’s a quick guide to opening a bank account, including the problems you need to watch out for.
Types of bank accounts in the UK
Current accounts: Current accounts are the day-to-day bank accounts that most people use to manage their home finances. Pay your bills from a current account, receive money into your account from your job or your benefits, and take money out via cash machines or the bank – you may receive either a cheque book or a debit card in order to withdraw your money, depending on the account. You may earn interest on the money in a current account, but the amount is not likely to be very much. You can open a joint account with another person – for example, your partner or spouse.
Post Office accounts: A Post Office card account is used by people collecting their tax credits, benefits, or pension. This account is not used for any other form of income, and you can’t deposit money into it. You get your money out of the account using a card and PIN number at the Post Office.
Savings accounts: A savings account is used to keep money for a later date. You may want to save for a new car or a holiday. You get interest on this type of account.
Click here to find out how to get a bank card and account
How to open a bank account
In order to open a bank account, you will normally need to fill out an application form, either online or in the bank itself. When opening an account, remember that you need to give proof of your identity, including your address – you need a recent utility bill to prove your address, and your passport is usually the best thing to prove your identity. Before you open an account and sign the papers, check the terms and conditions to see how you can access your money, the interest you will receive, and any other important information – including any charges you have to pay for using the bank. You may be charged, for example, if you go into overdraft or if a cheque bounces.
Problems with opening a bank account
Bear in mind that if you have been declared bankrupt or have been convicted of fraud in the past, you won’t normally be allowed to open a new account. Sometimes a poor credit rating means you can’t open an account as well. A bank can refuse to open an account for you, and they don’t have to give you a reason, although they cannot discriminate against you based on your sex, race, sexuality, or disability. But avoiding discrimination doesn’t mean they will allow you to open any account regardless – some accounts have age limits, for example. For further help, click here to find more information on banks and financial services in the UK.
Category: Banking
