Chancellor Alistair Darling unveiled plans in today’s Budget to give everyone access to a basic bank account
The move, aimed at tackling financial exclusion, means that up to a million more people will have access to bank accounts – something Mr Darling described as ‘essential in the modern world’.
Banking for all
Basic bank accounts are current accounts which are designed for people with low credit scores. They do not provide an overdraft facility, but do offer access to direct debits and cash withdrawals from ATMs.
Many banks already offer basic bank accounts, and since 2003 the number of people without a bank account has been halved. It is however estimated that at present there are still 1.75 million people without access to a transactional bank account. With this guarantee, the Chancellor aims to extend access to banking to everyone.
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