HSBC Basic Bank Account
If you have got into financial difficulty perhaps due to being unable to service some of your debt and, as a result, ended up with a poor credit history then this may present problems for you if you need to open a bank account. Some banks and building societies may not be prepared to open you one of their standard current accounts but many offer other types of bank accounts for people with bad credit. HSBC’s Basic Bank Account is one such account.
Who can apply for the account?
You need to be at least 16 years of age and be able to provide suitable identification as well as suitable proof of your address. This could be a current full UK passport and a recent utility bill.
Is a credit check made on you?
Yes, although even if your credit rating is poor you are still likely to be accepted for this current account but they do not allow undischarged bankrupts to open one.
What is the application process?
As long as you meet the eligibility requirements, you can apply either by post requesting that they send you the account application pack through the post via their website, by phone or by calling into a branch of HSBC.
What does the HSBC Basic Bank Account provide?
You receive an HSBC Bank Visa Debit Card. This allows you to withdraw up to £300 in cash a day from ATMs in the UK, Isle of Man and Channel Islands. It can be used overseas to withdraw cash in the local currency. The card can be used online, over the phone or in retail outlets both in the UK and abroad to purchase goods and services.
You can pay regular household bills such as your rent, mortgage and utility bills by direct debit and/or standing order.
You can have your salary, wages, pension and benefits automatically paid into your basic bank account and also deposit cash and/or cheques.
You can access your account 24/7 using Internet Banking or automated Telephone Banking.
You can use an HSBC Mobile Banking App to access certain services.
What do you not get?
You cannot have an overdraft facility, a cheque book, credit interest and you cannot make cash withdrawals at branch counters.
Is there a monthly administration fee?
No.
However, if HSBC need to return unpaid three direct debits/and or standing orders in a 12 month rolling period they will provide you with suitable notice of their intention to close the account.
Summary
The HSBC Basic Bank Account is one of several bank accounts for people with bad credit that are currently available in the UK. It allows you to satisfactorily manage your day-to-day banking requirements and should prove satisfactory for most people as long as no cheque book or overdraft facility is required. There are some other companies that may provide a bank account for undischarged bankrupts.