Free Basic Bank Account

Free Basic Bank Account.

In line with other countries e.g. South Africa, that have very basic bank accounts with no fees for lower earners or those with more simple needs for banking, the Treasury has confirmed that the UK is to now have a similar proposition.

The Government has a agreed with a number of high street bank groups, a simpler bank account with no charges, no overdraft, not cheque book and can even be used by those with a poor credit history.

Literally, they will be known as a “Basic Bank Account” with account holders having access to credits, debits and a simple cash machine card.

Our view

A lot of work has gone into something that is fundamentally already there with simple savings accounts

That said, a structure that is simpler to use and cannot be abused is a good thing.

Fundamentally, we still disagree with fee banking. There is no such thing as a “free lunch”, so why should a bank offer a free service unless that are going to make something out of it. Holding your money on deposit, paying low interest, but then lending it our to mortgage borrowers at much higher interests rates. We suggest, the days of the true Building Society and Friendly Society are back.