Managing your bank account will help you stay in control of your money.
It’s important to check your bank account to make sure that you’ve got enough money to pay your bills and you aren't overdrawn. Always check your bank statement and make sure that you understand what all the payments are. If you’re not sure, ask your bank.
There are 2 main types of bank account available.
These are the most common type of bank accounts. They may have a monthly charge and often come with overdrafts and special features. If you’re paying for a bank account, you may want to consider shopping around for a free one. If you apply for a current account, the bank will do a credit check so if you’ve missed or made reduced payments to any debts you’ve got, you might find it difficult to open one.
All banks will offer a basic account, they just don’t advertise them. There are different types of basic account, but most come with a cash card and the option of setting up direct debits and standing orders. You can’t borrow additional money and you don’t get an overdraft. Even if your credit file has been affected by missed or reduced payments, you’ll still be able to open a basic bank account.
Opening an account at another bank
If you’ve got unsecured debts (such as a credit card or loan) with your bank it may be safer to open an account somewhere else.
If you’ve got a bank account and a debt with the same bank, and miss payments to the debt, your bank can take money out of your current account to cover the payments you’ve missed. This is called the right of set-off.
Free help and advice
If you're finding it difficult opening a new bank account or want some advice on how to deal with your debts you can use our online Debt Remedy tool or call our free Helpline on 0800 138 1111.