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Information from Manchester City Council: Manchester Advice: Factsheets: Money Advice: Basic Bank Accounts
As you are now required to have your benefits paid directly into an account people are often caught up with bank charges and penalties. This site holds a good comparison of the advantages and disadvantages of holding a Post Office account, basic bank account or standard bank account for receiving your benefit payments.
Bank Charges
Large charges are possible where direct debit payments are missed, and these will have a big effect on people on a low income. Clients have a ‘right of appropriation’ over funds paid into an account - ie they can tell the bank in advance what money is to be used for, and prevent the bank taking large amounts to cover charges. This must be done in writing 7 days before the money goes into the account, and banks are sometimes ignorant of this right, so there may be help needed with complaints where this is refused. Clients may also need to get new accounts in some cases to get control of their income. A new letter asserting your right must be sent for each payment due in. The letter only covers one appropriation of funds.
We would always advise people with more than one kind of income to hold a seperate account for their benefits payments.
As you are now required to have your benefits paid directly into an account people are often caught up with bank charges and penalties. This site holds a good comparison of the advantages and disadvantages of holding a Post Office account, basic bank account or standard bank account for receiving your benefit payments.
Bank Charges
Large charges are possible where direct debit payments are missed, and these will have a big effect on people on a low income. Clients have a ‘right of appropriation’ over funds paid into an account - ie they can tell the bank in advance what money is to be used for, and prevent the bank taking large amounts to cover charges. This must be done in writing 7 days before the money goes into the account, and banks are sometimes ignorant of this right, so there may be help needed with complaints where this is refused. Clients may also need to get new accounts in some cases to get control of their income. A new letter asserting your right must be sent for each payment due in. The letter only covers one appropriation of funds.
We would always advise people with more than one kind of income to hold a seperate account for their benefits payments.
