TL;DR: A basic bank account in the UK is a regulated, fee-free current account available to individuals who cannot qualify for a standard current account, typically because of poor credit history, active county court judgements, an undischarged bankruptcy, or no UK credit history. All major high-street banks and building societies are required to offer basic bank accounts under FCA regulation. They provide a debit card, direct debits, standing orders, and online banking, but no overdraft facility. Top options in 2025 include Starling Bank (free, full-featured, FSCS-protected, no hard credit search), Virgin Money (1% interest on balances up to 1,000 pounds, accepts non-standard ID), TSB Classic Plus (no monthly fee, debit card, digital tools), and NatWest Foundation Account (no fees, no overdraft, contactless card). Challenger banks and e-money providers including Revolut and Monzo also operate without hard credit checks and serve as practical alternatives for those unable to open a standard account.
What Is a Basic Bank Account in the UK?
A basic bank account is a type of UK current account regulated by the Financial Conduct Authority (FCA) that provides essential banking services without charging a monthly maintenance fee and without offering an overdraft facility. The FCA's Payment Accounts Regulations 2015, implementing the EU Payment Accounts Directive, require all major UK banks and building societies to offer basic payment accounts to any adult legally residing in the EU (or UK post-Brexit under retained legislation) on a fee-free basis. The absence of a credit facility is both the defining limitation and the key enabling feature of basic accounts: because there is no overdraft to misuse, the bank is not extending credit and can therefore offer the account without conducting a full credit search that might otherwise disqualify the applicant. In this sense, basic accounts function as a financial inclusion mechanism, providing access to formal banking infrastructure to individuals who have been excluded from mainstream current accounts.
Who Can Open a Basic Bank Account?
Basic bank accounts are primarily designed for individuals who cannot qualify for a standard UK current account. This includes people with poor credit history resulting from missed payments, defaults, or county court judgements (CCJs); people who have been declared bankrupt, including those with an undischarged bankruptcy still in process; people with no credit history in the UK, which includes new arrivals to the country, young people opening their first account, and recent immigrants with clean but unestablished UK credit files; and people on low incomes including those receiving Universal Credit, Jobseeker's Allowance, or other government benefits for whom even a small monthly maintenance fee represents a meaningful financial burden. All providers that told Which? they will accept applicants with an undischarged bankruptcy include the major high-street banks operating basic accounts. A key provision of UK basic account regulation is that banks cannot close these accounts simply because a customer's credit profile deteriorates, providing a degree of banking access stability that standard accounts do not guarantee.
What Do UK Basic Bank Accounts Include and Exclude?
Basic bank accounts universally include a contactless Visa or Mastercard debit card for in-store and online payments, the ability to receive wages, Universal Credit, pensions, and other income payments directly into the account, the ability to set up direct debits and standing orders for regular bill payments, access to online and mobile banking, and the ability to withdraw cash from ATMs and over the counter at bank branches. They typically exclude an overdraft facility of any kind, including arranged and unarranged overdrafts. They may also exclude chequebooks, the ability to make CHAPS same-day high-value payments, and in some cases access to foreign currency and travel card features. No bank fees are charged for failed direct debits on basic accounts (a regulation implemented in 2016), though the payee organisation may still charge its own late payment fee. Some basic accounts do charge for specific services such as international ATM withdrawals or foreign currency transactions, so reviewing the specific account terms remains important even for these minimal-fee accounts.
Starling Bank: Best Overall Basic Account Alternative
Starling Bank is a fully licensed UK bank regulated by the FCA and PRA with FSCS deposit protection up to 85,000 pounds. While technically a standard current account rather than a designated basic bank account, Starling operates without a hard credit check for account opening, making it accessible to many applicants who would be declined by traditional banks for a standard current account. It charges no monthly maintenance fee, no minimum balance requirement, and no foreign transaction fees. It offers unlimited fee-free ATM withdrawals globally, real-time transaction notifications, Spaces sub-account budgeting, Post Office cash deposits (up to 1,000 pounds free per annual period, with fees above that), cheque scanning through the app, 24-hour in-app human customer support, and a 0.05% AER interest rate on balances in the standard current account. Starling's B Corp certification reflects its sustainability commitment. For individuals who have been refused a standard current account elsewhere and who need the full functionality of digital banking including ATM access, bill management, and mobile check deposits through the app, Starling provides a genuinely competitive alternative that avoids the limitations of designated basic accounts while maintaining accessible eligibility criteria.
Virgin Money: Best for Interest and Flexible ID Acceptance
Virgin Money offers a basic-tier current account available to anyone over 16 that pays 1% interest on balances up to 1,000 pounds, making it unique among basic-tier accounts in providing a financial return on the account balance. The linked savings account pays 2.5% AER on balances up to 25,000 pounds. The account accepts non-standard forms of ID including government-issued letters and state benefit documents, a practically important feature for applicants who do not hold a passport or driving licence, which are the ID documents that traditional banks typically require. Applying will not damage a credit score. The account provides a Mastercard debit card, access to the Virgin Money app and online banking, spending tracking, budgeting tools, and savings goals through Savings Pots. For individuals who cannot obtain standard bank-accepted photo ID but need a functional current account, Virgin Money's flexible ID acceptance and the interest on the account balance distinguish it from competitors in the basic account market.
TSB Classic Plus: Best Basic Account from a High-Street Bank
TSB's Classic Plus account is a free account without a monthly fee that includes a contactless Mastercard debit card, mobile and online banking, and access to TSB's branch network across the UK. TSB's Save the Pennies feature rounds up every debit card payment to the nearest pound and transfers those spare pennies into a Savings Pot or eligible TSB savings account, making it a useful passive savings tool for account holders on tight budgets. The account does not include a chequebook and does not offer an overdraft facility on the basic tier. For customers requiring a credit facility, TSB's Spend and Save account is the upgrade path. TSB also offers My TSB Rewards including cashback on selected spending and discounts, with 40% off will writing representing genuine value for customers at life stages where estate planning becomes relevant. TSB's presence in the UK's high-street banking infrastructure gives customers branch-based customer service access alongside digital banking.
NatWest Foundation Account: Best for 24-Hour UK-Based Customer Service
NatWest's Foundation Account is a designated basic bank account that charges no interest and no monthly fees, provides a contactless Visa debit card, online and mobile banking access, and 24-hour customer service via UK-based call centres. It accepts applicants who have faced financial difficulties including CCJs, bankruptcy, and other insolvency measures. The account does not offer an overdraft facility. NatWest's extensive UK branch network provides in-person service access for customers who need face-to-face assistance. The Foundation Account integrates with NatWest's mobile app, which provides spending categorisation and notifications. For customers who value the reassurance of a large established bank's infrastructure and 24-hour human telephone support, NatWest's Foundation Account delivers the essentials of basic banking with institutional backing. Note that NatWest received an FCA fine of 44 million pounds in December 2025 for inadequate anti-financial crime systems related to historical issues between 2016 and 2021; the bank has co-operated fully with the regulator and implemented relevant improvements.
Frequently Asked Questions
Who is a basic bank account in the UK suitable for?
A basic bank account is suitable for anyone who cannot pass a credit check for a standard current account, including people with poor credit history, county court judgements, active bankruptcies, or no UK credit history. It is also appropriate for new arrivals to the UK who have not yet established a credit footprint, young adults opening their first account, and anyone who has been refused a standard account by a high-street bank. Basic accounts provide access to all essential banking functions including salary receipt, bill payment via direct debit, and debit card spending, without requiring a creditworthiness assessment beyond basic identity verification.
Do basic bank accounts affect credit scores?
Most basic bank accounts do not require a hard credit search, meaning the application itself does not appear on a credit report and will not lower a credit score. Some providers conduct a soft search only. Because basic accounts do not offer credit, they cannot directly improve a credit score through credit utilisation, but consistent use of a basic account for bill payments and salary receipt demonstrates financial stability that can support a future application for a standard account or credit products. After a period of successful basic account management, many banks will invite customers to upgrade to a standard current account, which can eventually lead to credit product access.
Can I switch from a basic bank account to a standard account?
Yes. Once your financial circumstances improve sufficiently to pass a credit assessment, most banks allow basic account holders to upgrade to a standard current account. Some banks will proactively offer the upgrade after a period of account management that demonstrates stability. You can also apply separately for a standard current account at another bank or challenger bank. The Current Account Switch Service (CASS) provides a seven-day guaranteed switch process that transfers all direct debits, standing orders, and incoming payments, making the transition from a basic to a standard account operationally straightforward once eligibility is confirmed.
What is the difference between a basic bank account and a standard current account?
A basic bank account provides all essential payment services (debit card, direct debits, standing orders, online banking) at no monthly fee with no overdraft facility. A standard current account adds an overdraft facility, may charge a monthly fee, requires a credit assessment for approval, and often provides additional features such as cashback, switching bonuses, and premium interest rates. The key functional difference is the absence of overdraft in basic accounts and the accessibility of basic accounts to individuals with poor or no credit history who would be declined for a standard account.
Are basic bank accounts FSCS-protected in the UK?
Yes, if the basic bank account is provided by a bank or building society that is authorised by the PRA and regulated by the FCA, FSCS protection covers deposits up to 85,000 pounds per depositor per institution. All major high-street banks offering basic accounts, including NatWest, TSB, Virgin Money, and HSBC, are FSCS-eligible institutions. Some e-money providers including Monzo's basic tier may not be FSCS-protected depending on the product structure, and Revolut's standard accounts currently operate under its e-money licence without FSCS protection. Always check the specific regulatory status and FSCS coverage of the provider before depositing significant balances.
Sources
Which? Best Basic Bank Accounts 2026: https://www.which.co.uk/money/banking/bank-accounts/best-bank-accounts/best-basic-bank-accounts-anmbn1G3u081
Compare the Market Basic Bank Accounts: https://www.comparethemarket.com/current-accounts/basic-bank-account/
MoneySavingExpert: Best Bank Accounts UK: https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/
Starling Bank: https://www.starlingbank.com
NatWest Foundation Account: https://www.natwest.com
