I would appreciate your advice as to who I should open my "alternative" new bank account with in preparation for my IVA.
I am aware that the account shouldnt be with one of my creditors (of which there are many)but I have just tried to open a basic account online with the Nationwide and I have been refused.
You are free to bank with whoever you choose but the main thing is that they're not a creditor on your IVA.
I would suggest to simply search the internet for "basic bank account". There are a number available, all with different features, that may be best suited to you.
It may be that internet banking, debit card, or a local branch is best, so it’s your choice really.
The thing to remember is that whilst on an IVA you can’t really take any further credit so, whoever you choose, make sure there is no overdraft on the account.
There are also a number of people on here who may have found accounts who may be able to offer some pros and cons.
I hope this has been helpful.
Sarah Jolly IMA CMAP - A member of the IVA team at Freeman Jones
I have basic bank accounts with both Nationwide and Co-op. Both are ok, Nationwides on line banking system is probably better and cheques take less time to clear. Co-op also have a rule of miss payment on three direct debits or standing orders and they will close the account.
We opened a Basic Bank Account with Natwest (not one of our creditors luckily) and have been very happy with it. You can only withdraw cash at Natwest/RBS cashpoints but as we usually use debit card rather than ATM, that isn't a problem. There is also no cheque book so I opened another account with Lloyds so that I had a cheque book but I have recently opened a Select Account with Natwest (which has no monthly fee) and this comes with a cheque book so I will be closing the Lloyds account. I had hoped to simply upgrade our Basic Account to the Select Account but they have opened another account so I just transfer funds between the accounts if I need to write a cheque. Online banking works OK and direct debit/standing orders fine although they do a funny thing whereby all dd's/so's due to go out on a Monday are deducted from your balance on the Saturday - can be a bit scary sometimes but if you know it's going to happen you can plan for it. Obviously if Natwest are one of your creditors, it's a no-no but I have found this account to work very well for us.
By looking at basic bank accounts in google or a consumer site such as money.co.uk will give a few options. Coop cashminder is highly recommended as is Natwest.
With some basic accounts, even though they say there is no overdraft, you can still become overdrawn, and be charged if this does happen so my advice is to keep your eye on it.
Your alternatives are for facilities which cost, but some forum members do say that knowing the max fee that you will incur each month without the worry of ever being overdrawn does put ones mind at rest.
Products to additionally look at as an alternative include Secure Trust, ClearCash and also Thinkmoney however I would suggest looking at the options everyone has given on this topic.
I hope you get sorted soon but rest assured there will be a facility for you
Managing Director of ClearCash Limited, a general purpose and reloadable prepaid MasterCard facility. Campaigner for the unbanked sector believing that no one should be financially excluded. "Intelligent Money Management"
