Why Choose a Guaranteed Bank Account

Sometimes, opening a regular bank account can prove to be very difficult especially if you have had problems that could affect your credit file or any other problem that could affect your bank account application. Most bank don’t charge fee when opening a regular bank account and the ongoing charges are also very minimal. Because banks make very little and often no money out of this accounts, they tend to be very selective on whom to allow open an account and who not to allow. So generally speaking anyone with any sort of credit issue will not be allowed to open an account. Guaranteed bank account also known as second chance bank accounts are designed to help those people who have banking issues in the past.

What is a guaranteed bank account?

A guaranteed bank account offers many facilities just like normal regular accounts but it is different by the fact that customers who apply for this account are not credit checked. For this reason, customers who apply for this account are very unlikely to be declined. Just like a regular account you will have an account number and sort code. Sometimes, guaranteed banks accounts are referred to as managed bank accounts because of the way they are sometimes operated. You can receive your wages into your account and you can transfer a specified amount on to a prepaid card to use for purchase. This ensures that you always have enough money to pay your bills. It also ensures that you only spend what has been loaded onto the account.

Who qualifies to apply for this account?

Any UK resident who is over the age of 18 regardless of their credit status is qualified to apply for this account. That means that even if you are in IVA or bankrupt, you are guaranteed that you will be accepted.

How will you benefit from this account?

First, the account itself will enable to make and receive payments regardless of your credit status. A prepaid card such as MasterCard is included which you can use to shop or make cash withdrawals. You can also set up standing orders. You will also benefit new technology of telephone banking and online banking.

Are there any restriction?

With a guarantee bank account, you may encounter the following restrictions:

• You may not be able to conduct cash withdrawals over the counter.
• Some banks also have maximum withdrawal limit.
• You may be a charged a fee when you withdraw from ATM machines that are not operated by your own bank.
• You are required to have a minimum age of 18 to open an account.