Alternatives to high street bank accounts while bankrupt
There are two alternatives to high street bank accounts which you could consider. However these may not have all the facilities of a basic bank account, or they may charge a monthly fee:
Post Office card account
If your income only comes from benefits or a state pension you could open a Post Office card account to use while you’re bankrupt. This is free and you can get any benefit income paid onto the card, but you can’t use it to receive wages or other income.
You can withdraw money using the card but you can’t use it as a debit card and you can’t pay bills by Direct Debit or standing order. This means you’ll lose the Direct Debit savings offered by many utility companies, so although there’s no fee involved in having an account, it could still end up costing you more.
Pre-paid card accounts
Pre-paid card accounts are almost always available to undischarged bankrupts, but they can be very expensive. Most have a monthly fee which can be up to £20 and you may be charged even more for adding money to the card or withdrawing money from cash machines. You ‘top up’ the card by adding money to it and you can use it like a debit card to spend money.
Most pre-paid cards allow you pay wages (and sometimes benefits) straight onto the card. Some cards also allow you to set up Direct Debit payments for your regular bills.