Basic bank accounts: who can open one and what happens if you are refused
Published · 4 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
A basic bank account is a simple, fee-free account with no overdraft that nine large UK providers must offer to eligible people. This guide explains who can open one, what it includes, and the steps if an application is refused.
Who this guide is for
This guide is general information for people living in the UK who may find it hard to get an ordinary current account, for example because of a poor credit history. It is not about business accounts, and it is not advice for your own situation. The rules described here are UK-wide.
Details were checked on GOV.UK and legislation.gov.uk on 12 October 2026.
What a basic bank account is
A basic bank account is a payment account with a limited set of features. It is set out in the Payment Accounts Regulations 2015. It exists so that people who might otherwise be turned down for a standard current account can still receive money and pay bills.
Under the regulations, a basic account lets you pay money in, take cash out in the UK, and use direct debits, standing orders and card payments, including online. It is held in pounds sterling. GOV.UK says the account is fee-free for standard operations in sterling.
The main difference from a standard account is that it cannot have an overdraft. The bank must take reasonable steps to stop payments that would take the account past zero.
Who can open one
GOV.UK says the nine designated providers are Barclays UK, The Co-operative Bank, HSBC UK, Lloyds Banking Group (including Halifax and Bank of Scotland), Nationwide Building Society, NatWest Group (including RBS and Ulster Bank), Santander UK, TSB and Virgin Money UK.
To be eligible, a person generally needs to be legally resident in the UK and not already hold a standard current account, or not be eligible for one. Many other banks also offer their own simple accounts, but only the nine above are required by these rules.
When a bank can or must refuse
A designated bank must refuse to open a basic account if doing so would be unlawful. The regulations give examples such as conflicts with the Fraud Act 2006 or the money laundering rules. A bank may also refuse in some cases linked to a person's conduct towards its staff.
A person who already holds a current account may be refused, or be pointed towards a standard account if they are eligible for one.
What the bank must tell you
If an application is refused, regulation 25 says the bank must tell you without delay, in writing and free of charge, the reason, unless the law stops it from doing so. The reason must be detailed and specific enough for you to understand why. The bank must also explain how to complain to it and that you can complain to the Financial Ombudsman Service. There is no fixed number of days in the regulation, only the words "without delay".
Closing a basic account
GOV.UK says that from 28 April 2026 a firm must give a sufficiently detailed and specific reason for closing a basic bank account. The minimum notice period for these accounts was extended from two months to 90 days. Closure without the customer's consent is limited. Examples include using the account for illegal purposes or having no transactions for more than 24 consecutive months.
If you want to complain
- Start with the bank's own complaints process. Citizens Advice suggests writing down dates, keeping copies of letters and saying what outcome you want.
- The bank has up to 8 weeks to investigate and give an answer.
- If you are not happy with the final response, or 8 weeks have passed, you can go to the Financial Ombudsman Service. This is free. You normally have 6 months from the bank's final response, or from the end of the 8 weeks if there was no response.
- The Financial Conduct Authority oversees whether firms follow the rules, but individual disputes are handled by the Ombudsman.
- Free help is available from Citizens Advice and MoneyHelper if you are unsure where to start.
Check before you act
Rules, time limits and the list of providers can change. It can be worth confirming the details on the official pages linked below before relying on this guide.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
