Bank account options
There are a number of different bank account options available that can receive benefit payments.
Not all types of account can make automated outgoing payments (direct debits and standing orders) which are a useful tool for managing your money, and some accounts charge if these payments fail because of insufficient funds.
Fee-free bank accounts have been launched by nine banks – this means no charges are made if automated payments fail. These accounts are available to anyone who doesn’t already have a bank account, who can’t get a standard current account or who can’t use their existing account due to financial difficulty. Banks offering fee-free bank accounts (and names of the products offered) are listed on www.gov.uk.
Most banks offer a basic bank account that allows you to set up automated payments but does not have an overdraft. Basic bank accounts are a good option if you have not previously had a bank account and might not be eligible for standard current accounts because of a poor credit rating but these accounts might charge fees unlike fee-free bank accounts.
Credit Unions are another option if you have a poor credit history but there is usually a monthly cost for these accounts. Solent Credit Union are based in Southampton and provide savings and loans across Hampshire. Contact them at solent credit union. or telephone 023 8000 2018
You will need some personal identification (ID) to open most types of bank account e.g. driving licence or benefit books/entitlement letter. Check what you will need to bring with you.