BBA announces growth in basic bank accounts

The British Banking Association (BBA) has today announced that growth in basic bank accounts is continuing and is heading towards the government’s target of financial inclusion.

There are currently 6,443,995 basic bank accounts in the UK, which are intended for people who cannot meet traditional bank criteria for a standard current account.

Particular facilities are provided on these accounts, such as the assurance that they cannot be overdrawn.

The first quarter of 2006 saw a net total of 130,500 post office accessible accounts opened, as well as 44,400 regular accounts that were upgraded to fuller feature options.

Since April 2003 over 1.8 million post office accounts have been opened and 126,000 have been upgraded.

Ian Mullen, chief executive of the BBA, said: “It is good to see customers upgrading from basic accounts. As the experience of a basic banking relationship leads to customers wanting, or being offered, more fully-featured accounts.

“Together with another 130,500 post office accessible accounts being opened, the industry continues to contribute to the government’s financial inclusion measure.”