Do you need a parachute account?

[barracad]

Below is a list of basic bank accounts available for people who need a parachute account, but who may struggle to open a 'regular' current account.

 

The details are in alphabetical order so one bank is not recommended over another.

For ease of reference, the only two which offer debit cards are Co-op (Electron Card) and NatWest (Solo Card). However, I have also included a list of their charges which may sway people who aren't too fussed about a debit card. [Please note charges can change so please check with the bank]

 

 

Abbey

Basic Account

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £35

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

Alliance & Leicester

Basic Cash Account

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Direct debits only

Charge for unpaid direct debit: £34

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, some bad debts depending on individual circumstances.

 

 

Bank of Ireland

Basic Cash Account

(Only available in Northern Ireland and Eire)

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £38

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud, record of bad debts.

 

 

Bank of Scotland

Easycash

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £39

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

Barclays

Cash Card Account

 

Minimum age to open an account: 18

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Direct debits only

Charge for unpaid direct debit: £39

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Record of fraud.

 

 

Clydesdale

Cashmaster

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £35

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud, some bad debts.

 

Co-operative Bank

Cashminder

Minimum age to open an account: 18

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £19.50

Debit card (Solo or Electron): Yes

If any of the following apply to you, your application may be declined: Record of fraud.

 

 

First Trust Bank

Basic Bank Account

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: £10

Direct debits and standing orders: Direct debits only

Charge for unpaid direct debit: Under £35: £22.50; Over £35: £37.50

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud, record of bad debts.

 

 

Halifax

Easycash

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £39

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

HSBC

Basic Bank Account

 

Minimum age to open an account: 18

Minimum amount to open an account: None

Free buffer zone: £10

Direct debits and standing orders: Yes

Charge for unpaid direct debit: No

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

 

Lloyds TSB

Basic Bank Account

Minimum age to open an account: 18 (16-year-olds can open a similar account)

Minimum amount to open an account: None

Free buffer zone: £10

Direct debits and standing orders: Yes

Charge for unpaid direct debit: No

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

 

Nationwide Building Society

Flex Cash Card

 

Minimum age to open an account: 16

Minimum amount to open an account: £1

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £30

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: History of fraud.

 

 

Natwest

Step Account

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £38

Debit card (Solo or Electron): Yes

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

Northern Bank

Cashmaster - Basic

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £37.50

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarge bankrupt, record of fraud, record of bad debts.

 

 

The Royal Bank of Scotland

Key Account

 

Minimum age to open an account: 18

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £38

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarge bankrupt, record of fraud.

 

 

Ulster Bank

Basic Bank Account

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: Under £20: £35.00; Over £20: £37.50

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

 

Yorkshire Bank

Readycash

 

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £35

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischargedbankrupt, record of fraud, record of bad debts.

[Giveitback]

LLoyds TSB 'When we are not able to pay cheques, direct debits or standing orders because there is not enough money in your account, we normally charge £35 for each item of £10 or more we have not paid."

[Darren]

Have just spoken to Natwest, they do business accounts for bad credit too.

[MARTIN3030]

I was told by Natwest that one of their criteria for giving a business account is at least 6 months bank statements showing good management ie no overdrawns/bounced cheques and of course a lot of activity.

 

[kia]

ta very much i thought wed have problems but theres loads

[MARTIN3030]

I am looking at it as I need one myself again.

The government is investigating offshore accounts which I was looking into.

so looking again.

We can deffo rule out the high street big boys.

 

If there is a deafult at your address then thats also a hiccup as they will look at that too

 

not easy at all..............especially as these days you will no doubt need a point of sale card reader.........and thats a really big hurdle as they really do some big checks :o

[Solowka]

whats a point of sale card reader?

[MARTIN3030]

whats a point of sale card reader?

 

oops sorry its retailers jargon speak.

 

its the machine/trminal that reads your credit/debit card.

 

In the old days they had a manual one where you rolled the top part over the lower part........these were great for fraudsters and dodgy traders.

There were a few Indian restaurants who used to do 2 sets for boozy customers and keep one for use if they didnt pay next time.........reason I know this is cause the owner of the 1 I use told me !!

 

Most business still have these for back up.........a word of warning....if ever you are asked for payment by anyone using one of these keep your eyes open at all times.Double swiping as it is known.......was a favourite trick for the less honest traders !!

[JonCris]

oops sorry its retailers jargon speak.

 

its the machine/trminal that reads your credit/debit card.

 

In the old days they had a manual one where you rolled the top part over the lower part........these were great for fraudsters and dodgy traders.

There were a few Indian restaurants who used to do 2 sets for boozy customers and keep one for use if they didnt pay next time.........reason I know this is cause the owner of the 1 I use told me !!

 

Most business still have these for back up.........a word of warning....if ever you are asked for payment by anyone using one of these keep your eyes open at all times.Double swiping as it is known.......was a favourite trick for the less honest traders !!

 

Also NEVER EVER let lose sight of your card. When presented with your bill take it yourself to the cash point for card payment. Never do what many people do & let the waiter take your card to the cash point whilst you remain in deep conversation with your friends.

 

I even had one retailer attempt to take my card into the rear of their shop "cos that's where the reader is sir". I stopped them & demanded the return of my card. Left the shop empty handed but secure in the knowledge that I wasn't going to be ripped off by them

 

Forgot to mention if they drop down behind the counter, even for a moment, (they usually pretend to have dropped something) they are probaly putting your card through their own reader which will allow them to clone your card.

[kia]

remind me again what i was asking for i only needed an account for hubbys wages with debit card. youve totally baffled me with your comments

[barracad]

I have no idea why this has turned into a random discussion about POS equipment either, but if you are looking for a parachute account for your hubby please see the first post in this thread.

[freebird]

Thanks for the list of banks, I need now to get down to the nitty gritty !

I'm bad ( no I'm not singing )

My credit's bad

My address is bad

I'm fighting off bailifs

 

has anyone managed to open an account, when all the odds are against you ?

If so where please.

I need to go on Monday to get my income support and carers allowance sorted, before the b......s take even more off me !

cheers Freebird x

[freebird]

if anyone's perusing the forums today, you advice would be appreciated, as I have to go open an account tomorrow so I can then instruct the DHSS to pay in my income support and carer's allowance/ plus my daughter's DLA in to new account.

Cheers, Freebird x

[MARTIN3030]

if anyone's perusing the forums today, you advice would be appreciated, as I have to go open an account tomorrow so I can then instruct the DHSS to pay in my income support and carer's allowance/ plus my daughter's DLA in to new account.

Cheers, Freebird x

 

Have you not thought about a basic card account with the Post office?

Theirs was probably the first one that is specifically for benefit payments and people who unable to get a high street one.

You get a card you can use for withdrawing money.

maybe worth looking as its very quick to sort out.

[TJH]

Nationwide - when I was having problems they were quite helpful and the account was ok and could be used online if I remember. It was their FlexAccount. I had more than a few defaults on my "normal" account at the time.

 

Hope that helps.

[ARCADIA]

Regarding parachute accounts, are there any implications about upsetting a Credit Card company? Would it be difficult tio open a new credit card account?

[krakan]

Another question: How many years back do you need to provide addresses for most of these basic accounts?

[MARTIN3030]

In answer to your first question this would obviously depend on your current credit score and whether you chose a card issuer that was in any way connected to the bank etc that your claim is with.

 

As far as the second question goes.......If you have been at your present address for 5 years or more thats usually ok.

Basic accounts are less demanding for criteria but the ID and proof of address criteria is the same for all banks.

This was toughened up by the government in their fight against anti-terror and money laundering groups/individuals.

[Guest NATTIE]

Martin3030- you're right. For NW a step account, you need proof of you(passport, Driving Licence) plus proof of address(utility bill) to open account

[fizdup]

 

Bank of Scotland

Easycash

Minimum age to open an account: 16

Minimum amount to open an account: None

Free buffer zone: No

Direct debits and standing orders: Yes

Charge for unpaid direct debit: £39

Debit card (Solo or Electron): No

If any of the following apply to you, your application may be declined: Undischarged bankrupt, record of fraud.

I have a Bank of Scotland Easycash account, and the card that came with it started off as a Solo card and then when they were phased out I was issued with an Electron Card...I did open the account some years ago, so maybe things have changed

[GeordieBaz]

Opened a Nat West step account..applied for the form. Arrived last wednesday, off thursday....letter through the door today with new account details...Debit card to follow....I have a poor track record, but this was easy

[kia]

ive opened a nat west account only one with an electron card so just awaiting cards coming now so ta for that.Should we close abbey account now or wait to see what theyll do.Mind you we have probably got more charges going out this month so not sure

[JonCris]

ive opened a nat west account only one with an electron card so just awaiting cards coming now so ta for that.Should we close abbey account now or wait to see what theyll do.Mind you we have probably got more charges going out this month so not sure

 

NO do not close the account if anyone is going to close it let it be the Bank shown to be doing it out of spite.

 

You may then have further grounds for complaint against the bank. Also it will be further evidence should you decide to sue for defamation.

[kia]

thanks will keep it open till they act

[sproggi]

Have you not thought about a basic card account with the Post office?

Theirs was probably the first one that is specifically for benefit payments and people who unable to get a high street one.

You get a card you can use for withdrawing money.

maybe worth looking as its very quick to sort out.

 

 

A word of caution. If anyone is considering opening a Post Office basic card account for benefit payments, I would treat it as a short term measure only. It would appear that the DWP are going to be withdrawing from this soon.

 

EDMDetails

 

Sproggi