Open a Basic Bank Account Online: A UK Guide to Getting Started

To open a basic bank account online, you only need a few documents and a short application. A basic bank account gives you everyday banking: a debit card, Direct Debits, and online banking. It offers no overdraft and no cheque book. It suits anyone who cannot get a standard current account.

This guide explains what a basic bank account is, who can get one, and how to apply step by step. It also covers what to do if the bank refuses you. This guide is general information only, not financial advice. Check MoneyHelper’s guidance and get free advice before you act.

What is a basic bank account?

A basic bank account works like any current account. For example, wages, benefits and pension payments land in it. A debit card lets you pay for things or take out cash, and you can transfer money to pay bills. MoneyHelper’s guide to basic bank accounts sets out the same features.

In addition, you can set up Direct Debits and standing orders. You can manage the account online, by phone, in a branch, or at the Post Office. In fact, the account offers no cheque book and no overdraft. As a result, you cannot spend more than you have.

Basic bank accounts are free to set up and use, with no fees for everyday banking. However, some services can cost extra, such as overseas card use or same-day CHAPS payments. In short, check the provider’s terms first.

Who can open a basic bank account online?

Basic bank accounts normally suit people who do not qualify for a standard current account. For example, you might have a bad credit history. You might hold an Individual Voluntary Arrangement, a Debt Management Plan, or a Debt Relief Order. A court might have declared you bankrupt. A basic bank account can still give you everyday banking.

In general, you need to be at least 16 to open one, or over 18 for some banks. You can also open a joint account with someone you trust, if you both qualify. If you are under 18, a children’s bank account might suit you better.

The UK’s largest banking groups must offer fee-free basic bank accounts, so most high street banks provide one. However, you will often apply for the standard current account first. If you do not qualify for it, the bank should tell you if a basic bank account is open to you.

What you get — and what you don’t

When you open a basic bank account online, you get the same everyday tools as a standard account. The card works in shops and at cash machines. Direct Debits and standing orders cover bills and rent. Wages, benefits and pension payments land in the account. Manage it online, by phone, in a branch, or at the Post Office.

What you do not get is borrowing. There is no overdraft and no cheque book. The bank will not lend you money when your balance runs low. For many people, that trade-off works well. The account stops you from sliding into debt. By contrast, a standard current account often tempts you with an overdraft, which you must repay with interest.

Overall, your money still sits safe in the account. The Financial Services Compensation Scheme protects it up to £85,000 per person per authorised institution if your bank fails. The scheme aims to return your money within seven days.

What you need before you apply

Before you open a basic bank account online, gather your documents. In general, most banks ask for a driving licence or passport to prove your identity. If you apply online, they usually ask for a photo of the document and a selfie. Keep your phone charged and find good light.

Second, prepare proof of address. Banks often accept a recent Council Tax bill, a utility bill, a bank statement, or an HMRC letter. In addition, a mortgage statement or a tenancy agreement can work too. These documents usually need to be recent, often under three months old, and they must show your current address.

Register to vote at your current address too. Some banks use the electoral roll in their checks. In addition, have an email address in your name and a valid phone number ready.

What ID do you need to open a basic bank account online?

Do not give up if you have no passport or driving licence. Banks may accept other documents instead, and they normally list them on their websites. A letter that confirms who you are can come from the Department for Work and Pensions. HMRC can write one too. It can also come from JobCentre+ or your local council. Your GP, your social landlord, or your employer can write one too.

Letters about your benefits or State Pension can also help. A minister of religion, an armed services officer, or a warden of sheltered accommodation can confirm your identity as well. However, if you have no fixed address, some banks run special schemes with a local homeless charity. Your local Shelter service might also help. In short, a missing passport does not close every door.

How to open a basic bank account online step by step

First, compare the basic accounts on offer. MoneyHelper’s compare bank accounts tool has a “fee-free basic” filter. Check how you manage each account: online, phone, branch or Post Office. Pick the option that fits your life.

Second, start the application on the bank’s website or app. You will often apply for the standard current account first. Fill in your name, date of birth, address and contact details. Use the exact details from your documents. A small mismatch can slow the checks down.

Third, prove your identity. Upload a photo of your passport or driving licence, then take a selfie when the app asks. The bank checks the document and compares your selfie with the photo. Do this in good light, so the check passes first time.

Fourth, wait for the decision. In general, the bank may approve you at once, or it may take a few days. If it cannot offer you the standard account, it should tell you if a basic bank account is open to you. If the bank needs more proof, send clear photos fast. Finally, when the bank approves you, it sends your debit card and account details.

If the bank refuses your application

A refusal to open a basic bank account online does not end your options. First, ask the bank why it refused you. The bank should tell you the reason, unless it suspects fraud or money laundering.

For example, the bank might refuse you if you do not agree to a credit check. It might also refuse you if you do not pass the ID check. It might refuse you if it thinks you will use the account unlawfully. Threatening behaviour towards staff can also lead to a refusal.

If you think the bank made a mistake, you can complain. Start with customer services. If you cannot agree on a fix, make a formal complaint. The bank has 15 days to investigate payment complaints and eight weeks for other complaints. If you are still unhappy, you have six months to take your complaint to the free Financial Ombudsman Service. Or apply to another bank.

Other options if you still struggle

If you still struggle to open a basic bank account, two other options exist. A credit union current account comes from a not-for-profit organisation, although you might pay a monthly fee. A prepaid card account lets you spend and withdraw cash. You usually cannot set up Direct Debits with it, and ID is not usually required. Treat a prepaid card as a stopgap, not a long-term home for your money.

How to use your new account well

Once you open a basic bank account online and start using it, keep it active. First, set up Direct Debits for bills and standing orders for rent. That way, you never miss a payment. A well-run account often makes life easier.

Second, check your balance often, so you have enough money for spending and payments. The bank may stop a payment if your balance runs too low. In addition, check your transactions, and report any you do not recognise quickly. You will usually get a refund if the payment turns out to be fraud.

Third, plan your money each month. List your income and your bills, and set aside money for each bill first. If you need help with the numbers, our guide to managing rising household costs can help. If you think you will miss a payment, ask the provider for help.

Finally, keep the account active. Your bank can close it if you break the terms. For example, opening another UK bank account can close it. So can not using it for over two years or moving abroad. The bank must give you at least two months’ notice, and you can appeal.

General-education note: This article is general information only. It is not financial advice. Rules, fees and limits can change. Check MoneyHelper’s guidance and get free advice before you act.

FAQs about opening a basic bank account

Can I open a basic bank account online with no fixed address?

Yes. Some banks run special schemes for people with no fixed address. They work with a local homeless charity to confirm your identity. Your local Shelter service might also help. To open a basic bank account online, you still need some way to prove who you are. Ask the bank what it accepts.

Do I need a credit check to open a basic bank account online?

You do not have to pass a credit check. The bank uses the check to confirm your identity, not to judge your credit history. That is why a basic bank account suits people with poor credit, an IVA, or a Debt Management Plan.

Is a basic bank account really free?

Yes. Basic bank accounts are free to set up and use, with no fees for everyday banking. You might pay a charge for some services, such as overseas card use or copies of statements. In short, check the provider’s terms before you apply.

What is the difference between a basic bank account and a current account?

A basic bank account works like a current account, but it offers no overdraft and no cheque book. A standard current account may offer both, plus extra features. For many people, the basic account covers everything they need.

Can I upgrade from a basic bank account later?

Yes, often. If you run the account well, your bank might upgrade you. Pay bills on time, keep it active, and stay within the terms. Ask your bank what it looks for.