Senator Elizabeth Warren has suggested giving the post office a banking function in the US.  Already they supply money orders.  In England, basic bank accounts are offered.  In the UK a million people can’t get a regular bank account.  But there is a solution called a ‘basic bank account’. This product is designed for those with poor credit scores.

As the name suggests, a basic bank account offers a place to store your money and pay your money from, without overdraft facilities or any in-credit interest.  Most basic bank accounts will give you a debit card, so you can make payments in shops and online, and all allow you to set up direct debits – which is great, as this can make bills cheaper than paying by cash or cheque.

Overdraft charges occur when you attempt to make a payment and don’t have enough money in your account.  This is called a transaction fee even though no transaction has taken place.

UK banks don’t publicize these accounts because there is a use charge built in, and most other accounts don’t have this, so they can be called ‘free.’  Also, banks can’t’ make money on these accounts unless you try to use more money than you have.

What  Warren is calling for in the US, and Silicon Valley may consider as they look into the banking business, is a way for lower end customers to bank.