No more. For the first time every adult in Britain will have access to a truly free bank account – after a deal was struck between the Government and the banks.
Before now banks were still charging people fees of up to £35 for things like failed payments, pushing people into expensive unauthorised overdrafts, as well as limiting people's access to free cash machines.
These fees could keep being racked up over time, leaving people hundreds or thousands of pounds in debt thanks to charges on an account that was meant to be free.
“A good bank account is an essential ingredient to managing your money,” said Gillian Guy, chief executive of Citizens Advice.
“Up until now, some basic bank account customers didn’t get a debit card, were afraid of being hit with fees for unpaid direct debits and some were shut out of banking altogether.”
The new deal means an end to all that.
Basic banking facts
9.1m
Basic bank account holders
Basic bank account holders
67,500
Free to use cash machines
Free to use cash machines
0
Fees now charged
Fees now charged
New basic bank accounts will help people who do not have a bank account or who are frozen out of existing accounts because of previous money problems.
The changes will minimise the risk that basic bank account customers will be forced into overdraft by fees or charges.
The new basic bank account customers will also now get the same terms as other current accounts holders have - including access to services at bank branches and at the Post Office and the entire ATM network.
Having access to a bank account means you can pay bills by direct debit, something that saves you money on many bills as well as qualifying you for deals that you would otherwise be excluded from. It also allows you to build up a credit history allowing you to apply for better products in future.
You can also have wages and benefits paid directly into the bank account and withdraw money, free, from thousands of cash machines across the country.
You qualify for a new, fully free, basic bank account if you can't get a standard account and either:
You can get a basic bank accounts from Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group (including Halifax and Bank of Scotland brands), National Australia Group (including Clydesdale and Yorkshire brands), Nationwide, RBS Group (including NatWest and Ulster Bank brands), Santander and TSB.
The new, truly free accounts will be available by the end of 2015 at the latest.
This is how you can .