Basic bank accounts for bankrupts

Although not as new as guaranteed bank accounts, basic bank accounts were introduced a few years ago to provide financially excluded people with access to banking.

Unfortunately, as an undischarged bankrupt your application for a basic bank account will still be refused by the majority of banks. Having said that, once you have been discharged the doors begin to open again. If you have a record of fraud then unfortunately I do not know of any of the banks that will provide you with an account. A bankruptcy restrictions order may also prevent you opening a basic bank account with the majority of banks. If that is the case you may want to try a guaranteed bank account.

Basic bank accounts are essentially no frills accounts. They are intended to provide basic banking facilities which include:

• Receiving your wages or benefits
• Setting up direct debits and standing orders
• Withdrawing money
• Debit card (not all banks offer a debt card)

You will have no credit facilities and you will not be able to use a cheque book. You may have access to telephone and internet banking.

Before applying for a basic bank account it is a good idea to check your credit report for accuracy. There are things that can look worse than bankruptcy. You wouldn't want a silly mistake ruining your chances of obtaining one of the few accounts available to you.

When choosing a basic bank account as a bankrupt you should give consideration to the location. If you need to go into the branch to pay money in then you do not want to be travelling 20 to 30 miles if there is one on your doorstep.

As an undischarged bankrupt you may be able to successfully apply for:

• Co-operative Cashminder account
• Barclays Cash Card account

Before opening a new basic bank account you should check your credit report to make sure that it is accurate. Believe it or not your credit report can contain worst things than a bankruptcy order and you don't need them on your report after bankruptcy! It is best to take advantage of the free online trials if you can:

• Experian free credit report
• Equifax free credit report

As part of your recovery form bankruptcy it is advisable to check both so that you can maximise the chances of obtaining bank account upgrades and future credit. Remember, credit does not mean just a loan. It also includes mobile phone contracts etc.

Once you have been discharged then you may be able to apply for a basic bank account with other banks. If you cannot get a basic bank account then you should try a guaranteed account.