What Is The Target Audience For A Basic Bank Account
A basic bank account is essentially an account that has all the necessary day to day facilities you would require without having any access to credit facilities. This essentially means, with most basic bank accounts, that you have access to a debit card, can put money in, take money out through ATMs and access telephone and online banking. You would not, however, have access to an overdraft facility or credit card.
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.
The accounts are becoming increasingly popular with consumers who could actually obtain a full current account but who do not wish to even have the possibility of accessing an overdraft. With a full current account, the holder can often contact the bank even if they do not already have an overdraft, to discuss taking one. Some people simply do not want this temptation. Aside from this, even full current accounts without an agreed overdraft can still go into an unauthorised overdraft, often resulting in extortionate charges for the holder. The basic bank account will not authorise payments that will take the account into a negative balance and so users do not incur overdraft charges. This is making basic bank accounts an attractive prospect for those with great credit who just want to be cautious with their finances.
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.
Visit the website to learn more about opening a basic bank account
Posted on March 27, 2010
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