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Banking Information

Some of our customers find it hard to open a bank account and to get good advice on banking. This is a problem as benefits are now usually paid directly into a bank account.

The London Borough of Redbridge is committed to helping all of our customers have access to basic banking facilities.

What is a basic bank account?

A basic account is a simple account that gives you access to basic banking facilities while limiting the chances of you getting into debt.

These basic accounts allow you to have your benefits and wages paid directly into your account, and to pay your bills by direct debit or standing order.

They do not allow you to have an overdraft facility or give you a chequebook.

You are usually given a cash card to withdraw money from machines, and some banks will give you a debit card.

For more detailed information on telling you all you need to know about these basic accounts please see:

Our guide to basic bank accounts (pdf 46 kb).

Money made clear leaflet on basic bank accounts (pdf 792 kb).

Why should you open a bank or building society account?

There are many reasons for opening a bank or building society account:

Having an account makes it easier to manage your money. You will receive regular statement which will inform you of how much you are spending and show where your money is going
Getting your income paid directly into your account, and paying bills from the account by direct debit will save you time. It may also save you money as many companies offer you a discount if you pay by direct debit
If you don’t have an account then it can cost you money to cash cheques
Direct payments into an account are safer than cash, cheque and giro payments which are more likely to go missing in the post or be stolen
Many employers insist on paying wages into these types of accounts. Opening an account will make it easier if you start work for an employer who insists on paying you by BACS payment
Most benefits including Housing Benefit are now usually paid direct into a bank or building society account. If you are paid Housing Benefit under the Local Housing Allowance Scheme we will usually pay you direct by BACS payment.

Which banks offer basic bank accounts?

Most banks should offer a basic bank account, but each account will be slightly different. To help you choose, we have produced a list of banks that offer basic bank accounts and the services they usually offer.

This list is for guidance only and for further information you should contact the bank concerned.

Money made clear list of banks (pdf 420 kb)

Problems with providing proof of identity

In law, banks and building societies must check the identity of their customers before allowing them to open an account.

Without these checks, criminals and fraudsters could open an account and take out loans in your name by pretending to be you.

There are no standard rules as to what documents will be accepted as proof of identify as the requirements, vary slightly from bank to bank. But most banks will want at least one document to prove your identity, and another one to confirm your address.

These strict requirements will cause problems for some individuals who do not have the necessary proof of identity to open an account. However, if you genuinely cannot provide the documents required, in certain circumstances the banks may accept other documents.

Payment of Housing Benefit by BACS Credit

It is our policy to pay Housing Benefit direct to a bank or building society by direct credit.

Please see : Housing Benefit – Direct Payment to your bank/building society account (pdf 30 kb)

Please note we cannot make payment to a Post Office Cash Card Only Account but other Post Office accounts may be suitable.

What happens if you are overdrawn?

One of the problems with having a bank account is that if you are overdrawn the banks may take your Housing Benefit to cover fees and charges.

However if you ask, your bank should not use income related benefits you receive such as Housing Benefit for this purpose. This is because the law says that you need a minimum amount to live on, and you have the right to ask your bank to use your benefit to make important payments such as your rent, regardless of whether you are overdrawn.

If you receive Housing Benefit payments straight into your bank account, you can protect these benefit payments and ask your bank not to taken them because you are overdrawn or to pay bank changes. You can tell the bank only to pay your Housing Benefit to your landlord. This is known as the first right of appropriation. For more information about this please read: