All That You Must Know About The Accounts

Published on 15 July 2012 by Raffick Marday

All That You Must Know About The Accounts

If you go by the latest data findings, more than 3 million adults in United Kingdom access the basic bank accounts. This is particularly because most of the people suffers from bad credit scores and are not eligible for the bank accounts. Lack of positive monetary history as well as financial difficulties of the past are considered to be the primary reasons behind the bad credit scores. The high street banks are basically keen on banking with people who have a good credit score. These banks are extremely cautious about offering credit facilities like overdrafts that are available to individuals with sub-prime ratings.

According to the government of the state it was very essential to help the people come out of their poor financial status and improve the credit scores and it was because of this that the basic bank accounts emerged. These are also known as introductory accounts and starter accounts. The accounts are in fact very simple and help the account holder to accumulate some credit and come out of the debt trap.

These kinds are accounts are in fact open for all. It is only those who have been rejected previously as undercharged bankrupts and have a negative history of serious bad debt or fraud are generally not allowed to open basic bank accounts. There are a number of benefits associated with the use of the associated bank accounts and these are as follows:

  • The accounts help you to arrange for direct debits to make payments of your bills. This is one of the best ways you can save your money. There are a number of companies offering discounts when you make this kind of regular payments.
  • The governments of the states also have taken up steps for offering pensions and benefits to the direct bank accounts rather than following the traditional methods of paying benefits over Post Office counter. You can this way receive money in the basic bank accounts.
  • When it comes to improving the credit rating this is considered to be the stepping stone. The account holder in the near future can also benefit from the other kinds of services such as credit cards, debit cards and the overdrafts.

The basic bank accounts have been extremely popular and till date according to the data finding a total of 5 million accounts have been opened. Both the banking institutions as well as the government are keen on increasing the total numbers.


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