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Basic bank account on benefits
A simple account you can usually open with bad credit or low income, and have benefits paid into.
Written by the benefitmoney.co.uk editorial team · Last reviewed 21 October 2026
A basic bank account is a simple account you can usually open even with a poor credit rating or low income. Your benefits can be paid straight into it.
It usually has no fees and no overdraft. You can ask any bank or building society whether it offers one.
Benefits are normally paid into a bank account. The Universal Credit advance asks for bank details, and a Budgeting Loan applied for online is paid into the account your benefit goes into. This page explains what a basic account is, what it does and does not include, and what to do if you are turned down. It names no banks and recommends no product.
What a basic bank account is
If you have a poor credit rating or a low income you may struggle to open a standard current or savings account. A basic bank account is the simpler alternative. It also applies if your current account is overdrawn.
You should still be able to get one even if a credit check shows previous bad debts or outstanding county court judgments. People who are bankrupt, or who have a record of fraud, usually cannot open an ordinary account but may still qualify for a basic one.
Source: Citizens Advice, checked 21 October 2026.
What you usually get
| Usually included | Usually not included |
|---|---|
| No money needed to open it | No overdraft: you cannot go overdrawn |
| No fees | No cheque book |
| Wages, salary and benefits paid in directly | Not every basic account can be used at the Post Office: check first |
| Cheques and cash paid in | Charges can apply if a direct debit fails for lack of money |
| Bills paid by direct debit | |
| Cash withdrawn from cash machines |
Check with the bank whether the account comes with a debit card, because the guidance does not say it always does.
Source: Citizens Advice, checked 21 October 2026.
How to apply
- Ask the bank which accounts it offersEach bank must say whether it has basic accounts and what conditions you must meet.
- Gather proof of who you are and where you liveYou usually need two documents, for example a passport and a recent bill.
- If you lack the documents, ask what else the bank acceptsIt should accept a letter from a responsible person who knows you: a GP, teacher, social worker or probation officer.
- Apply, then set up your benefit paymentTell the office that pays your benefit the new account details, so payments go into it.
Source: Citizens Advice, checked 21 October 2026.
Benefits and your account
- If you owe money on a current account at a bank in the same banking group, that bank may use money in your new account to repay the old debt. If you get benefits or the state pension, the advice is to open the account with a bank in a different group.
- If you cannot or do not want to be paid into an account, the Payment Exception Service is the only other way to be paid. See Citizens Advice.
Source: Citizens Advice, checked 21 October 2026.
If you are refused
Banks can refuse to open accounts and do not always have to give you a reason. They cannot discriminate on grounds such as race, sex, disability, religion or sexuality.
- Ask the bank for its reason, in writing.
- Complain to the bank first. Give it at least eight weeks to resolve the complaint, unless it sends a letter of deadlock sooner.
- Then you can go to the Financial Ombudsman Service. Your complaint must reach them within six months of the deadlock letter or the end of the eight weeks.
- Ombudsman consumer helpline: 0800 023 4567 (landline) or 0300 123 9123 (mobile).
- FCA Consumer Helpline: 0800 111 6768, which can also give basic account information in large print, Braille or audio.
Source: Citizens Advice, checked 21 October 2026.
Once you have an account
- Universal Credit advance payment: if you are waiting for a first payment.
- How to apply for a Budgeting Loan: paid into the account your benefit goes into.
- Household Support Fund: help from your council.
- Credit union loans, if you need to borrow.
Common questions
What is a basic bank account?
A basic bank account is a simple account for people who may struggle to open a standard one, for example because of a poor credit rating or low income. It usually has no fees and no overdraft.
Can I get one with bad credit?
You should still be able to get one even if a credit check shows previous bad debts or outstanding county court judgments. Each bank must say whether it offers basic accounts and what conditions apply.
Can my benefits be paid into a basic bank account?
Yes. Wages, salary and benefits can usually be paid in directly.
Can I get an overdraft on a basic bank account?
No. You will not be able to go overdrawn, and there is usually no cheque book. If a direct debit is set up and there is not enough money, you might be charged.
What if I cannot prove my address?
If you lack the documents the bank wants, it should accept a letter from a responsible person who knows you, such as a GP, teacher, social worker or probation officer.
Can a bank refuse to open one?
Banks can refuse to open accounts and do not always have to give a reason. They cannot discriminate on grounds such as race, sex, disability, religion or sexuality. Complaints go to the Financial Ombudsman Service.
What if I cannot or do not want to be paid into an account?
Citizens Advice says the Payment Exception Service is the only other option for being paid benefits.
Sources
- Citizens Advice — Getting a bank account (basic bank accounts)↗. Checked 21 October 2026.
- Citizens Advice — Payment of benefits and tax credits↗. Checked 21 October 2026.
- GOV.UK — Universal Credit advances (bank details are asked for)↗. Checked 21 October 2026.
Related guides
- Universal Credit advance payment — asks for your bank details.
- Budgeting Loan — paid into the account your benefit goes into.
- Borrowing while on benefits — what lenders look at and what it costs.
This page is independent. It is not run by the DWP, GOV.UK or any bank, and it does not recommend a particular account.