What Is The Target Audience For A Basic Bank Account
So what is a basic bank account? Well it is a bank account where you can do pretty much everything you can with a normal bank account, but without any sort of credit. You have a debit card that you can use day to day, you can deposit or withdraw money and you can use online banking and bank over the phone. The only thing missing is a credit card or overdraft - tempting credit facilities!
So who would use an account with limited facilities like this? And what’s the point? Well, the primary target group for such accounts is those with poor credit ratings. Particularly poor credit scores often mean that individuals are unable obtain full current accounts because of the credit check involved. A bank account is obviously critical. Employers all pay salaries into bank accounts and payments for essentials such as mortgages, utilities and so on are generally now all automated. This means that consumers really cannot realistically get by without a bank account and debit card.
From these issues came the basic bank account. This is there mainly for those with bad credit. It means that they can still have a bank account with all of the facilities necessary to get by like getting their monthly wages paid in. It is however not just people with bad credit that go for basic bank accounts.
It is becoming more common for a consumer with a good credit score and clean history to take out a basic bank account. They will do this because they don’t want to be tempted by having an overdraft, or even the opportunity to call up and activate one. With a basic bank account if you have decided not to have an overdraft a misjudged direct debit could push you over your account limit and lead to massive penalty charges. A basic bank account would not accept the payment, which would mean no charges. It is good for those who want to have a risk free financial situation.
So basic bank accounts appeal to wider audience than just those who have no alternative. With a growing range of them available and each with many of the convenience facilities you would expect from a full bank account (online banking, in branch banking etc) they look set to increase in popularity with those seeking a penalty-charge free alternative to a full current account.
If you want to open a basic bank account this article should have helped!
