Local Housing Allowance: Bank accounts

Transcription

1 Local Housing Allowance: Bank accounts 1

2 Contents What is a bank account? 3 Opening an account 3 Forms of identification 4 Frequently asked questions 5 Basic bank accounts 6 Jargon buster 8 Banks in the local area 10 2

3 What is a bank account? A bank account allows you to receive money and pay bills. You can have your wages, benefi ts such as housing benefit payments, tax credits and state pension paid into your account. You can pay in cheques for free and take money out at cash machines or at the post office. You can pay your bills by direct debit which mean you could pay less for some things such as gas or electricity. Opening an account The law says that banks and building societies have to identify their new customers. This is to help stop criminal activities like money laundering. They will explain which documents they will accept as proof of your identity, although this may vary from one firm to another. 3

4 Forms of identifi cation To open a bank account you must be able to prove your identity. The list below shows what documents can be accepted as forms of identity. Photocopies are not usually accepted. Passport Council tax bill National Insurance Number Card with P45/60 Driving licence HMRC (Inland Revenue) letter Birth Certifi cate (under 18 s only) DWP benefi t entitlement letter Disabled drivers pass Student Loans letter (students only) Utility bills EU Member ID Card Student identifi cation NHS Med Card (under 20 years old) Letter from person of responsibility (ie doctor) Armed forces identifi cation card Private tenancy agreement Letter from existing account holder Home Offi ce letter Council rent card Letter from employer Pensioners travel pass Council tenancy agreement Firearms certifi cate Motor or home insurance certifi cate Credit card statement Construction industry scheme card Vehicle registration document Housing benefit entitlement letter Residence permit Television licence renewal notice 4

5 Frequently asked questions Q What if there isn t enough money in my account to pay my direct debit or standing order? A You can t go overdrawn with a basic bank account because you won t get an overdraft limit. But if you pay your bills by direct debit or standing order and there isn t enough money in your account, then the bank will not make the payment. You may be charged a fee or the bank may close your account if it has to refuse a direct debit payment three times. You will still have to pay the bill as well as any charge. It is important to make sure you have enough money in your account to pay your bills. Q What happens if I have 6 left in my ccount and the cash machine only gives 10 notes? A If your account has a buffer zone, the machine will let you have 10 even if there is only 6 in your account. The bank will not charge you for going overdrawn up to the buffer-zone limit. If it doesn t have a buffer zone, you won t be able to take out 6. You can take out the exact amount of money in your account over the counter at your bank or building society or at the post office. Q Can anyone open a basic bank account? A Almost everybody should be able to open a basic account. The bank or building society may want to check your credit history to see if you have any county court judgments (CCJs) against you or have been made bankrupt. But even if you have, you may still be able to open an account - check the table on page 8. 5

6 Basic bank accounts The table below lists some the different banks you can find in bank accounts they offer. It also lists some of the services they open an account and whether you can arrange Direct Debits Name of bank and account Abbey: Basic Account Alliance & Leicester: Basic cash account Barclays: Cash Card Account Halifax: Easycash HSBC: Basic Bank Account Lloyds TSB: Cash Account Nationwide: Flex Cash Card Natwest: Step Account Yorkshire Bank: Readycash Minimum amount to open an account Free buffer zone¹ Direct debits and standing orders fo un dir de None No Yes None No Direct Debits only None Yes Yes None No Yes None 10 Yes N None 10 Yes 1 No Yes None No Yes None No Yes ¹ A buffer zone is a small amount of credit/overdraft that the bank may give yo ² The account my be closed if a Direct Debit is refused three times 6

7 an find in and around your local area plus details of the basic vices they offer, such as the minimum amount required to t Debits or Standing Orders. g for unpaid direct debit Charges for unpaid standing order Debit card No 34 No standing orders No If any of the following apply to you, your application may be declined Undischarged bankrupt, record of fraud Undischarged bankrupt No Record of fraud Yes No² No No No Undischarged bankrupt, record of fraud Undischarged bankrupt, record of fraud Undischarged bankrupt, record of fraud No Record of fraud Yes Yes Undischarged bankrupt, record of fraud Undischarged bankrupt, record of fraud may give you. s 7

8 Jargon buster Here is a quick guide to some of the terminology that you may encounter when dealing with a bank or building society: Automated Credit Transfer (ACT) Payment of wages, benefi ts, pensions and tax credits directly into a bank or building society account. Buffer zone A small amount of credit/overdraft that a bank may give you. Cash card A card you can use to check your balance or withdraw cash from your account at cash machines, Post Offi ce branches, supermarkets or other shops. You cannot use a cash card to pay for goods or services. Debit card A card issued by a bank that you use to pay for your shopping. The money is usually taken from your account immediately. Direct debit A way of paying bills from your bank account. You sign a form allowing the company you are paying to take the money directly from your account on specifi c dates. They then take the money from your account automatically on the agreed dates. They have to notify you in advance before changing the amount or the dates of the payments. 8

9 Overdraft A facility allowing you to spend more money from your account than you have in it. The bank will usually charge you interest if this happens, and sometimes other fees as well. Standing order A way of paying bills from your bank account. You sign a form sent to you by the company you are paying. This sets out the amount to be paid and the payment dates. You then give this to your bank. The bank pays the amounts from your account automatically on the agreed dates to the company you are paying. You must tell your bank if the amount or the dates of payment need to change. Undischarged bankrupt A person who cannot pay their debts and is still on the bankruptcy register. 9

10 Banks in the local area Abbey 276 Banbury Road Oxford OX2 7DS Tel: Abbey House Oxford OX1 1HB Tel: Alliance & Leicester 1-3 George Street Oxford Tel: co.uk Barclays Tel: Bridge Street Banbury OX16 5PN 36 Market Square Bicester OX26 6AQ Halifax Sheep St Bicester OX26 6JJ Tel: High Street Banbury OX16 5EE Tel: HSBC Tel: Market Place Banbury OX16 5ED Prama House 267 Banbury Road Oxford OX2 7HY 1 Sheep Street Bicester OX26 6JA Nationwide 13 Market Square Witney OX28 6AB Tel: Natwest 1-7 Manorsfield Road Bicester OX26 6DA Tel: Town Hall Buildings Bridge Street Banbury OX16 5JS Tel: Oxford Road Kidlington OX5 2QP Tel: High Street Witney OX28 6HW Tel:

11 Lloyds TSB Tel: tsb.com 9 Sheep Street Bicester OX26 6JE 12 High Street Banbury OX16 5EF 1 Oxford Road Kidlington OX5 2QP 2 Market Square Witney OX28 6RD Yorkshire Bank 66 High Street Banbury OX16 5JJ Tel:

12 Further information Other leafl ets on the Local Housing Allowance that you may fi nd useful are: Information guide Money advice for tenants/difficulty paying the rent Information for private landlords If you want to know more about the changes and how they affect you contact your local Housing Benefi t Service: West Oxfordshire District Council Town Centre Shop 3 Welch Way Witney OX28 6JH Call: [email protected] Visit: Cherwell District Council PO Box 27 Banbury OX15 4BH Call: [email protected] Visit: or This leafl et is intended as a guide only and does not set out your full legal rights to Local Housing Allowance. The information in it was correct at the time of publication but may well become obsolete as time passes due to changes in the law. This leafl et can be made available in a larger print size, electronically or in other formats. Contact us if this is required. Printed on recycled paper. March