Features And Benefits Of Basic Bank Accounts

Features And Benefits Of Basic Bank Accounts

By Darla Castro Chase

Basic Bank accounts brought about a revolutionary change in the field of banking. Most of the financial institutions were happy to deal only with people who had a favorable credit history. People with adverse credit history and no credit history were unable to open a bank account and enter into the banking domain. However, a new solution has been brought to these people and that is the basic bank account. It is also known as starter bank account and it is a little complicated version of a savings account.

It does not provide any value added facilities like the checkbook, debit card or even overdraft facility. It allows only the basic transaction such as the deposit of money and withdrawal of money both over the counter as well as online. There is not much cash outlay from the banker's point of view as the processing charges and other charges are not involved. As a result, there is low risk in operating such basic bank accounts. As a result, most of the financial institutions are now giving approvals for opening a account. The application will be rejected only in some extreme case of bankruptcy.

One of the main benefits of basic bank accounts is that it allows the deposit of funds directly into banks. Many of the institutions prefer depositing retirement and other salary pay into the banks. Similarly, payment for the utility bills, if done through direct debit, is more beneficial as some organizations provide discounts for this mode of payment. Another advantage is that, it is the starting point for more advanced financial transactions and earn better credit scores. It creates the quality of savings in the minds of the user of it.

Opening a basic bank account does not involve a cumbersome procedure. After deciding upon the bank with which you would like to open the account, just submit the application form along with your ID and proof of address. A passport or drivers license will be accepted as the ID as well as proof of address. Some of the banks also require you to submit a separate proof of address in the form of utility bills. After the submission of the forms as a routine procedure, the bank will check your credibility. Unlike the other accounts, this is not done on a stringent basis as a Basic bank account is meant even for people with an adverse credit score.

They will also accept standing orders given by the account holder. However, the account does not allow you to overdraw the specified limit. You will be asked to maintain a minimum balance. This is the best account for people who would like to control their overspending nature. It promotes thrift and savings mentality among the account holder.

After the introduction of the basic bank accounts, its success rate has been tremendous. People with a very bad credit score are now able to get into the banking domain and maintain an account. This is like a stepping-stone towards better transactions in banks. If they are properly maintained as per their terms and conditions, you could get a good credit score, which will enable you to open other accounts with the financial institution.

http://www.basicbankaccount.org provides the latest and up to date information on basic bank account offers. By using simple and easy to understand language, they provide the audience with high quality information about basic bank account.

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