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Banking - Opening a bank account - Internet accounts

Opening a Bank Account

To open a bank account you will need to produce 'proof of identity'. The most commonly accepted forms are Passports, Driving Licences and Utility bills which include your name and address. Banks usually ask for a number of these items and may also require a letter from an employer.

Banks have a strict vetting procedure and will ask a multitude of questions to find out your current credit situation. Questions include family details, current and previous addresses, outstanding loans, and credit card balances. The bank may also approach other companies to check your credit history. If the bank is satisfied that you do not appear to be a credit risk they will probably allow you to open an account.

Top 10 Online Banks

Other UK Banks

  1. Nationwide Building Society
  2. First Direct
  3. Smile
  4. Barclays
  5. Lloyds TSB
  6. Cahoot
  7. Alliance & Leicester
  8. HSBC
  9. CitiBank
  10. Halifax
Abbey National
Bank of Scotland
Co-op
Egg
Household Bank
Intelligent Finance
Kleinwort Benson
Nat West
Newcastle Building Society
Royal Bank of Scotland
Standard Life Bank
Virgin Direct
Woolwich
Yorkshire Building Society

British Banking Terms

Direct Debits - is an automatic payment which transfers funds from your account to settle your bills as instructed. The company you are paying has full control over the amount but must give you notice of any changes.

Standing Orders - enable you to make regular fixed payments from your account. You have more control over these as you set them up and can adjust them to suit.

Overdrafts - this is a facility offered by the bank not a loan. It allows you to go overdrawn on your account within an agreed limit. As this is a facility that the bank offers it can be withdrawn if the bank is not satisfied with the way you are handling your account. In some instances banks may charge for the facility.

Bankers Draft's - is a cheque which guarantees to pay the recipient the sum stated. They are used as a way to pay for large items such as cars. Once a banker's draft has been issued and handed over for goods it cannot be cancelled.

Secured Loans - This allows the lender to protect the loan by obtaining a legal charge or hold on an asset. The asset could be something like your house. If you fail to pay the loan the asset may be sold off to repay the debt.

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