No bank account? You’ll pay more

According to news seen this week, citizens who do not have a bank account are more likely to pay around £500 more per year for essential items in comparison to people who regularly utilise a bank account. People who do not have a bank account are typically unable to get the same discounts on certain goods because they are powerless to pay for things using direct debit, whereas people who pay direct debit are often rewarded in the form of cheaper deals, and with money off vouchers for certain purchases.

As well as having to fork out more for the same items, people who do not have a bank account may also find that they are stopped from purchasing goods entirely, or will be prevented from entering into agreements because they haven’t got the use of a banking facility. Many loan providers will refuse to entertain an applicant if they do not have a bank account, for example, meaning many people are cut off from accessing finance at the first hurdle.

Many people would assume that only a handful of people would be without a bank account in this day and age, but they’d be wrong. Latest statistics show that over 1.3 million people living in the UK do so without a bank account – thus meaning well over a million people are paying well over the odds for the same items as people who do have the ability to access a bank.  Unsurprisingly, the largest portion of people without access to an account are immigrants – namely people who have come here to work but may not have the ability to open an account because of paperwork that they have left back home.

Interestingly, however, there are still thousands of Britons, not immigrants, who haven’t got a bank account, and this is mainly down to the fact that their credit ratings are not up to scratch. As it stands, the current banking system is flawed. Traditional banks can still refuse someone a bank account if they have a poor credit rating. They can also refuse a bank account to someone who hasn’t got relevant forms of ID.

Maybe it’s time for the banking system to be re-jigged to ensure the majority of people that want a bank account can have one.