Universal banking proves popular
A government and banking initiative that was set up several years ago is proving increasingly popular amongst those looking for banking facilities that would otherwise have been left out in the cold. The Universal Banking initiative was set up by the government and certain members of the banking industry in 2003, and the aim of the initiative was to provide more people in the UK with bank account facilities. Although these accounts have no bells and whistles, they provide account holder with facilities to have salaries or benefits paid in, to withdraw cash from ATM machines, and to set up direct debit facilities.
According to recent figures the popularity of these banks accounts has been increasing, with many people that may otherwise be unable to get access for free banking opening a basic account and enjoying the benefits of free banking. The scheme was set up through the government with the agreement of twelve UK banks and building societies. The basic bank account makes it possible for the government to make benefit payments to claimants direct into a bank account.
According to the British Bankers' Association around one hundred and fifty thousand people every quarter are taking advantage of this free basic banking initiative. The increase in popularity could be down to a number of factor, including the number of legal immigrants coming to the UK, as well as the rise in the number of people with bad credit that may have found themselves ineligible for a standard current account with debit card and cheque book facility.
The Chief Executive of the British Banking Association stated: "Progress on the shared goal with HM Treasury is steady and sustained." The BBA confirmed that in the last quarter of last year more than one hundred and fifty thousand of these basic free bank accounts were set up.
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