Banking
TL;DR
Basic bank accounts are fee-free, no-overdraft accounts available to anyone legally resident in the UK, including people with poor credit or no credit history. Nine major banks must offer them under FCA rules. You can apply in branch or online and cannot be refused solely because of your credit record.
If you have been turned down for a standard current account, a basic bank account is your legal right. Since 2016, nine designated banks in the UK have been required under Payment Accounts Regulations 2015 to offer a basic account to any person who is legally resident in the UK, regardless of credit history.
Basic bank accounts do not charge monthly fees and do not offer an overdraft facility, which means you cannot go into debt through the account. They accept wages, benefits, and Direct Debits. This guide covers which banks offer them, how to apply, and what to do if you are refused.
Key facts (2026)
- Nine banks are legally designated to offer basic accounts under the Payment Accounts Regulations 2015, including Barclays, HSBC, Lloyds, NatWest, and Santander (HM Treasury).
- Basic accounts must be free of monthly charges and cannot include an overdraft facility (FCA Handbook, BCOBS).
- A bank can refuse a basic account application only on specific grounds, including fraud risk or money laundering concerns, not simply because of a poor credit score.
- Around 1.1 million basic bank accounts were open in the UK as of the most recent FCA Financial Lives data, serving people with limited or damaged credit histories.
- If refused, you can complain to the Financial Ombudsman Service (FOS) free of charge within six months of the bank's final response letter.
Which banks must offer a basic account in 2026
Under the Payment Accounts Regulations 2015, the following nine banks are legally required to provide a basic bank account to eligible applicants: Barclays, Co-operative Bank, HSBC, Lloyds Banking Group (including Halifax and Bank of Scotland), Nationwide Building Society, NatWest Group (including Royal Bank of Scotland and Ulster Bank), Santander, TSB, and Virgin Money. The account must be offered at no monthly charge and without an overdraft.
Some providers, including Starling Bank and Monzo, offer accounts that function similarly to basic accounts without a formal designation. These are not subject to the same legal duty but may be easier to open for people with thin credit files. Always verify the current terms with the provider before applying.
Who qualifies for a basic bank account
Any person who is legally resident in the UK is eligible to apply for a basic bank account at one of the nine designated banks. You do not need a minimum income, a positive credit history, or a fixed address, although you will need to provide proof of identity and proof of address. Banks accept a range of documents including a passport, driving licence, benefit letter, or a letter from a recognised organisation such as a homeless shelter or Citizens Advice office confirming your situation.
Banks are permitted to refuse an application on limited grounds: if there is evidence of fraud, money laundering, or if you already hold an account with that bank. They cannot refuse solely because you have poor credit, have been in debt, or have had a County Court Judgement (CCJ) in the past.
What features does a basic bank account include
A basic bank account must include: a debit card (Visa or Mastercard) for purchases and ATM withdrawals, the ability to receive wages and benefits by BACS transfer, the ability to set up Direct Debits and standing orders, and online and mobile banking where the bank offers these services to standard current account holders. It must not include an overdraft facility, either arranged or unarranged. This removes the risk of unauthorised overdraft charges, which were a significant source of financial harm for vulnerable customers before the FCA's 2020 overdraft pricing reforms.
One practical limitation is that some basic account debit cards are not accepted for certain transactions such as hotel pre-authorisations or car hire deposits, which typically require a credit card or a debit card linked to a standard account. This is worth factoring in if you travel frequently.
How to apply for a basic bank account
Most designated banks allow you to apply online, by phone, or in branch. You will need to pass a basic identity check under the bank's Know Your Customer (KYC) obligations. If you do not have a standard form of ID, the bank is expected to accept alternative documents. Citizens Advice and MoneyHelper both publish lists of documents that banks in the UK typically accept as alternative proof of identity and address, including letters from GP surgeries, probation services, or supported accommodation providers.
Once open, the account works immediately for BACS payments. A debit card is usually posted within five to seven working days. If you are transitioning from cash-only living, you can ask your employer or benefits office to pay directly into the new account using your sort code and account number.
What to do if a bank refuses your application
If a designated bank refuses your basic account application, ask for the refusal in writing and the specific reason. Under FCA guidance, the bank must explain the grounds for refusal. If the reason given is not one of the permitted grounds under the Payment Accounts Regulations, or if no clear reason is given, you can raise a formal complaint with the bank's complaints team. If the bank does not resolve your complaint within eight weeks, or issues a final response you disagree with, you can escalate to the Financial Ombudsman Service at no cost. The FOS can direct the bank to open the account and may award compensation if you have suffered financial harm as a result of an unlawful refusal.
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Frequently asked questions
Can I be refused a basic bank account because of bad credit?
No. Under Payment Accounts Regulations 2015, designated banks cannot refuse a basic account application solely on the grounds of a poor credit score, CCJ, or past insolvency. Refusal is only permitted on grounds such as evidence of fraud or money laundering risk, or if you already hold an account with that bank.
Is there a monthly fee for a basic bank account?
No. The FCA requires that basic accounts offered by designated banks are free of monthly charges. Individual transaction fees, such as for using an ATM abroad, may still apply and vary by bank, so check the account's tariff document before opening.
Can I get an overdraft on a basic bank account?
No. Basic bank accounts are specifically designed without an overdraft facility, whether arranged or unarranged. This is a deliberate feature to protect customers who may be at risk of accumulating overdraft debt. If you need access to credit, you would need to apply for a separate product.
What ID do I need to open a basic bank account?
Standard ID includes a passport, driving licence, or biometric residence permit. If you do not have these, banks are required to accept a range of alternative documents. MoneyHelper and Citizens Advice publish current lists. Some banks also accept an introductory letter from a recognised support organisation confirming your identity and address.
Can I upgrade a basic account to a full current account later?
Yes, in most cases. Once your credit file improves or you have demonstrated stable income over several months, you can apply to your bank to upgrade to a standard current account. The bank will carry out a new credit check at that point. Alternatively, you can switch to a new provider using the Current Account Switch Service (CASS), which is free and takes seven working days.
How we verified this guide
All figures and rules in this guide were verified against primary regulator and government sources during May 2026. We cross-referenced the Payment Accounts Regulations 2015, FCA BCOBS sourcebook, the FCA Financial Lives survey, and MoneyHelper's basic accounts page. We do not accept payment from product providers and do not earn commission on consumer financial products.
Primary sources
- Payment Accounts Regulations 2015 - legislation.gov.uk
- FCA - Basic bank accounts
- MoneyHelper - Basic bank accounts guide
- Financial Ombudsman Service - Banking complaints
Last reviewed: May 2026.