Banking services offered by basic bank accounts are helping people improve their financial management skills, reveals a new report.
Research has shown that over three-quarters of consumers who opened a basic bank account in the last year are now feeling more confident about managing their money.
Basic bank accounts are open to people whom other banking institutions and loan lenders might have neglected. They aim to encourage people to become more responsible in terms of their money and to avoid increasing the high level of nationwide consumer debt.
Brian Capon from the British Bankers' Association explains that the accounts are important in "bringing people into the financial services arena".
He added they were useful in helping consumers "get used to using direct debit and budgeting", as well as improving their understanding of personal finance issues.
The survey of new account holders carried out by Millward Brown found that 90 per cent were happy with the banking services offered by the account. A similar number said they found the account to be simple and straightforward to use.
The number of basic bank accounts being opened is increasing, with a total of 1.64 million accounts currently in existence. The accounts were first introduced in April 2005, with 121,000 being opened in the fourth quarter of 2005.
Basic bank accounts improving personal banking skills
Basic bank accounts improving personal banking skills
Wed, 22 Mar 2006
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