14 March 2006
More than three quarters of people using basic bank accounts feel that the product has made them more confident in dealing with their money, according to a survey.
In all 77% said that they had become more confident with money as a result of opening the account. It also found that only 1% would consider closing the account and not open another.
Basic bank accounts are designed for people who want to ensure that they cannot become overdrawn on their account and also for those who may not meet a bank's criteria for a standard bank account.
Ian Mullen, chief executive of the British Bankers' Association (BBA), said: "Access to banking services is the lynch pin to financial inclusion and this research clearly shows that the features of the basic bank account closely match peoples' needs.
"As customers become more confident with their finances, a change to an account with fuller features may be appropriate."
The study that was conducted on behalf of the British Bankers' Association questioned 1,000 people who had opened a basic bank account in the last 12 months.
A net total of 121,000 basic bank accounts were opened during the last quarter of 2005, meaning a total of 1.64 million basic bank accounts have been opened since their launch in April 2003.
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