Opening a bank account

BANKING ESSENTIALS

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Introduction 1. The different types of account 2. How to open an account

This lesson is all about bank accounts – why you might use them and how you can start to access one. 

We'll explore the types of bank accounts to help you work out which one will work for you.

You'll also meet customers like you who want to open a new bank account, and you'll see how they start to do this.

KEY LEARNINGS

 
  • The different types of accounts
  • What you'll need to open an account
  • How to open a bank account

Read time:

7 mins

Chapter 1 - The different types of account

Chapter 1

The different types of account

Read time:

2 mins

Which account should I pick?

There are lots of different types of bank account, and you might need a little help picking one. Let's look at the options available in the UK, to see which might be best for you.

  • Basic bank accounts are for people who don't already have a bank account, or don't qualify for a standard current account as they have no credit history or a poor credit score. Our Borrowing Essentials learning can tell you more about credit scores.

    Basic bank accounts give you the essentials you need for everyday banking.

  • The current account is the most common type of bank account to help you manage your money on a day-to-day basis. If you have a current account you can also apply for an overdraft, which is a type of short-term borrowing. You can find out more about overdrafts in our Borrowing Essentials learning.

  • Packaged accounts are a type of current account that usually come with extra benefits in exchange for a monthly fee. These benefits can include travel insurance, mobile phone insurance and cashback on purchases.

  • International or foreign currency accounts let you make and receive payments in foreign currencies.

  • Student accounts are a bit like standard current accounts. They often come with features that are useful for people who are in higher education – like interest-free overdrafts, railcards or other perks.

  • Graduate accounts help students who have just left higher education make the move from a student account towards a standard current account.

Introduction - Opening a bank account
Chapter 2 - How to open an account

Chapter 2

How to open an account

Read time:

5 mins

Meet Samira, Mary and Danny

Samira, Mary and Danny are all new to banking. You'll hear their stories in some of the lessons you take. You may find their lives are like yours, or they may face similar worries to you. In this chapter, we're going to find out how they prepare to open their bank accounts.

Let's meet them now ...

 

Samira is 32 and has recently immigrated to the UK. She speaks Urdu, and English is her second language. She has 3 young children, and her husband works part time. She's looking for work and looking after the family's money.

Samira needs to make sure they have enough to pay all of their bills, look after the children and perhaps have a few treats along the way.

 

Mary is 72 and recently widowed. Her husband, John, always took care of their money but now Mary has to manage it for the first time. Her pension gives her enough money to pay the bills.

Mary wants to get a grasp on what money she has coming in and going out – and she's keen to get online to do her banking and shopping.

 

Danny is 48 and has suffered from depression and anxiety since his business had to close 15 years ago. Since then, he has been living on the street and has had no bank account.

Recently, Danny's been offered a temporary place to live and wants to open a bank account so that he can move into permanent accommodation and get a job.

Samira's account

Use the arrows to move through Samira's story.

Samira's looking online for advice on opening a bank account.

She's not sure which bank to use or what kind of account to open. She checks her local bank's website, which explains what type of accounts there are in the UK.

Samira decides to open a standard current account.

She has a driver's licence as photo ID, plus her first electricity bill which came in the post, as a proof of address. She'll need both of these to open an account.

Samira decides to visit her local bank. There, she sees leaflets about bank accounts, which she finds useful and encouraging.

She approaches the help desk and completes a form to open her account.

Samira is accepted for an account.

Now all she needs to do is wait to get her account number, sort code and her debit card. The bank will send these to her safely through the post.

Check what you'll need

Test your knowledge

Answer this question by selecting one answer from the three options provided.

That's not quite right

You need to have three things to open an account: 

  • your personal information
  • proof of your address 
  • proof of your identity

This can include your passport and council tax bills but might also be a tenancy agreement or a birth certificate.

Don't have these documents? You may still be able to open an account – check with your bank to find out more.

If you don't have a fixed address, you can still open a bank account with several UK high street banks. You'll need to work with a charity to do this – we'll find out more with Danny.

That's right!

You need to have three things to open an account: 

  • your personal information
  • proof of your address 
  • proof of your identity 

This can include your passport and council tax bills but might also be a tenancy agreement or a birth certificate.

Don't have these documents? You may still be able to open an account – check with your bank to find out more.

If you don't have a fixed address, you can still open a bank account with several UK high street banks. You'll need to work with a charity to do this – we'll find out more with Danny.

 

Danny's account

Some UK high street banks let people without a fixed home address have a bank account if they work with a partner charity service.

Danny should visit one of the charities offering this service. The charity will contact the bank and support him in setting up his own account. 

 

Be kind to your mind

Finding the paperwork and ID you need to open a bank account can be stressful. You may not have everything you need, and you might need some help to get it all.

Make a list of everything you need and take it one step at a time.

Speak to your chosen bank if there's anything you can't get hold of. They might be able to support you or give you other options.

Opening a bank account: completed!

In this lesson, you've explored the different types of bank accounts, their uses and how you can open one.

Chapter 1 - The different types of account

Exit lesson and mark as complete

 

Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 11th November 2024.

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