Why have Halifax stopped basic accounts?

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JVM2020
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#1
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#1
I tried to open a basic account with Halifax. However it only allows to switch or have those to pay £3 a month to maintain.

Ultimate one is £17 to maintain.

Why have they changed this?

I'm not looking to switch but just open an account.
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Admit-One
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#2
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#2
(Original post by JVM2020)
I tried to open a basic account with Halifax. However it only allows to switch or have those to pay £3 a month to maintain.

Ultimate one is £17 to maintain.

Why have they changed this?

I'm not looking to switch but just open an account.
Because basic accounts with no monthly fees lose them money.
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StriderHort
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#3
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They might have just stopped offering them under the Halifax brand, but under Lloyds or Band of Scot instead, it's the same bank group (When I want to log into my Bank of Scot accounts, i need to use the Halifax website)

Yeah i had a look, Halifax only offers those accounts to people in financial difficulty, you have
to apply for one of their normal accounts and be rejected for it to be an option. Their Current Account doesn't have any monthly fees? Only the Reward (£3) and Ultimate Reward ones (£17) which is fair given the perks they come with.

As Admit-One said, it's not really in a banks interest to offer accounts like that and v hard to make any £ from you.
Last edited by StriderHort; 4 weeks ago
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Reality Check
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(Original post by JVM2020)
I tried to open a basic account with Halifax. However it only allows to switch or have those to pay £3 a month to maintain.

Ultimate one is £17 to maintain.

Why have they changed this?

I'm not looking to switch but just open an account.
Basic accounts are usually only used by those who don't pass normal credit scoring to open a standard current account. Does this apply to you? If not, there are plenty of non-basic, standard current accounts which don't charge any monthly fees.

As Admit-One says, Basic accounts don't earn the bank any money, and in fact cost them money to open and maintain. It's not in the bank's commercial interest to offer these accounts.
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martin7
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(Original post by JVM2020)
I tried to open a basic account with Halifax. However it only allows to switch or have those to pay £3 a month to maintain.

Ultimate one is £17 to maintain.

Why have they changed this?

I'm not looking to switch but just open an account.
I'm confused. Halifax list their "Current Account" at the top of https://www.halifax.co.uk/bankaccoun...-accounts.html

There's no monthly charge for that account, and nothing to suggest that they're not currently offering that account. If I click on the "Apply for a new account button", it starts taking me through the application process -- so I assume it's a product that's still available.

As others have noted, you can only get a basic account by applying for, and being rejected from, a standard account. Banks are required to offer "basic accounts", but they come with limitations, and you can't have one if you already have a current account elsewhere.

From: https://www.halifax.co.uk/bankaccoun...c-account.html
How to apply for a Basic Account

You cannot apply for a Basic Account directly and will need to start by applying for one of our current accounts. We will try to get information about your credit history to decide which account is right for you.
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