Basic Bank Accounts: Who Can Get One and What You Get
The 9 largest personal current account providers in the UK must offer basic bank accounts to consumers who are legally resident and either do not have a UK payment account with at least the basic features, or cannot get any of the bank’s non-basic accounts. According to GOV.UK, these accounts must be fee-free for standard operations, including a failed payment. The FCA estimates around 4.3 million UK adults hold a basic bank account.
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Who can get a basic bank account
Under regulation 23 of the Payment Accounts Regulations 2015, you must be legally resident in the UK and either not hold a UK payment account with at least the basic features, or be ineligible for all the bank’s accounts that are not basic accounts.
Legally resident includes people with no fixed address, asylum seekers, and people without a residence permit whose expulsion is impossible for legal or practical reasons. You are not treated as holding an account if you declare that your bank has given notice to close it.
The duty on the largest providers applies to applications from 18 September 2016 onwards (regulation 22). According to the FCA, basic accounts let people receive wages and benefits, such as Universal Credit, and pay bills.
What the account must offer
Regulation 19 requires a sterling account that lets you open, operate and close it; pay in at counters; withdraw cash in the UK at counters and cash machines; and make Direct Debits, card payments (including online) and credit transfers including standing orders, with an unlimited number of these operations. You can manage it in branch and online where the bank offers that.
GOV.UK says customers can use the same services, such as ATM and Post Office counter access, as the bank’s other personal current account customers.
Fees and overdrafts
Regulation 20 sets no fee for those sterling services; a reasonable fee is allowed for services in another currency. There is no fee if a payment fails for insufficient funds, and no fee or interest if the account goes overdrawn.
Regulation 19(5) requires no overdraft facility, and the bank must take reasonable steps to stop payments that would overdraw the account. Access cannot depend on buying extra services.
According to the FCA, basic accounts match core services of standard personal current accounts but use only soft credit checks, with no overdraft and no fees for standard sterling operations.
Applying and the 10 business day rule
Under regulation 24, the bank must open or refuse the account without undue delay and no later than 10 business days after it receives your completed application.
According to the FCA (July 2026), firms did not always mention basic bank accounts early enough, and staff often did not explain what identification could be used by people without standard ID such as a passport or driving licence, or without a fixed address. Through UK Finance, the designated firms have committed to identify and offer basic accounts promptly and run a clear process for non-standard identification.
If your application is refused
Under regulation 25, the bank must refuse where opening would be unlawful, for example contrary to the Fraud Act 2006 or the money laundering regulations. It may refuse if your conduct towards staff amounts to certain offences such as harassment.
If refused, the bank must tell you in writing, free of charge, with a reason that is sufficiently detailed and specific where it may lawfully give one. It must explain how to complain and your right to complain to the Financial Ombudsman Service.
When a basic bank account can be closed
Regulation 26 allows closure if, for example, you knowingly used the account for illegal purposes; there has been no transaction for more than 24 consecutive months; you gave incorrect information and would otherwise have been refused; you are no longer legally resident; you opened another UK payment account with the basic features after the basic account; or your conduct towards staff amounts to certain offences.
For inactivity, residence and other-account grounds, the bank must give written notice: at least 90 days for accounts opened on or after 28 April 2026, or at least two months for accounts opened before that date. Closures for illegal use, incorrect information or offences against staff take effect immediately. Notices must cover complaints and the Financial Ombudsman Service.
Frequently asked questions
Do I need a credit check to open a basic bank account?
According to the FCA, basic bank accounts use only soft credit checks. They have no overdraft and no fees for standard sterling operations.
Can I get a basic bank account with no fixed address?
Under regulation 23, legally resident includes people with no fixed address and asylum seekers. The FCA found firms did not always explain what identification could be used without standard ID.
Are there any fees on a basic bank account?
Regulation 20 says there is no fee for standard sterling services, no fee if a payment fails for insufficient funds, and no fee or interest if the account goes overdrawn. A reasonable fee may apply for non-sterling services.
How long does the bank have to decide?
Under regulation 24, the bank must open or refuse the account without undue delay and no later than 10 business days from receiving your completed application.
Can the bank close my basic bank account?
Regulation 26 lists grounds such as illegal use, no transaction for more than 24 consecutive months, incorrect information, no longer being legally resident, or having another UK payment account with the basic features opened after the basic account. Some closures need at least 90 days' notice for accounts opened on or after 28 April 2026.
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Disclaimer: This article is general information and not personal financial, tax or legal advice. Check your own situation with HMRC, GOV.UK or a regulated adviser.