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Over 900,000 more customers open fee-free basic bank accounts

Over 900,000 new fee-free basic bank accounts were opened between July 2016 and June 2017, takingthe total number of fee-free accounts open to nearly 5 million, according to the government’s basicbank account report published yesterday.

Basic bank accounts have been available in the UK for over a decade, but since September 2016 theUK’s nine largest banks have been legally required to offer fee-free basic bank accounts, designed toimprove financial inclusion for those who don’t have a current account or who might struggle to opena standard account.

Other findings in this year’s report include:

  • there are just under 8 million basic bank accounts open in the UK
  • for the second year running, Nationwide and Lloyds Banking Group opened the most fee-freebasic bank accounts between July 2016 and June 2017
  • Nationwide, Clydesdale Yorkshire Banking Group, and Co-op have a larger market share ofbasic bank accounts than personal current accounts
  • Lloyds Banking Group accounts for almost half of the basic bank account market

Stephen Barclay, the Economic Secretary to the Treasury said:

Making sure that everyone has access to the financial services that they need is at the heart of ourplan to build a fairer society and an economy that is fit for the future. The government has legislatedto make sure fee-free basic bank accounts are available to those who need them and I am pleased tosee that so many people - who might have previously been at risk of running up debt through bankcharges - have access to a completely free account. It is important for a fair economy that bankscontinue to help all their customers to manage their finances confidently and responsibly.

Read the report here.

 

Channel website: https://www.gov.uk/government/organisations/hm-treasury

Original article link: https://www.gov.uk/government/news/over-900000-more-customers-open-fee-free-basic-bank-accounts

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