A total of nine British banks and building societies are set to introduce new fee-free basic bank accounts.
The organisations offering the new account include Barclays, Santander, NatWest, Ulster Bank (Northern Ireland), The Royal Bank of Scotland (Scotland), RBS England & Wales, HSBC, Nationwide, Co-operative Bank, Lloyds Banking Group, TSB, as well as National Australia Bank Group (including Yorkshire Bank and Clydesdale brands).
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The accounts will be available from 1 January 2016 for consumers who do not have a bank account or are not qualified for a standard current account.
The change, which follows a deal signed between the government and the banking industry last December, will exempt accountholders from being charged fees for missing a direct debit payment or standing order.
Previously, customers could be charged as high as £35 for every failed payment, which often pushed them into overdraft.
Commenting on the move, Economic Secretary Harriett Baldwin said: "Making sure that everyone in Britain has access to basic banking and financial services is at the heart of our long term plan.
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By GlobalData"That’s why I’m delighted that for the first time, truly fee-free basic bank accounts will be available to anyone who doesn’t already have an account, or isn’t able to use their existing account due to financial difficulty."
