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Basic Bank Accounts Guide

Basic Bank Accounts Guide

Basic bank accounts were set up through a Government scheme to help poorer families and those who have problems opening a normal bank account. The scheme is aimed at veryone access to banking facilities

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Basic bank accounts allow you to pay in your wages, benefits, tax credits and state pension. They give you a cash card to withdraw your money and some offer standing orders and direct debits. Unlike normal bank accounts, they do not give you a cheque book or overdraft facility.

Basic bank accounts also appeal to people who are worried about over spending, as they do not give you an overdraft. Therefore, you can only spend what is available in your account. However, you still need to keep an eye on your account balance if you have standing orders or direct debits set up. If there is not enough money in your account to pay these, they will be rejected and you will be charged.