U Account – Review

We provide a review of the ‘UAccount’ which is a personal account offering a number of the benefits of a high street bank current account here in the UK. We discuss things like who may apply i.e. it is even suitable for people with a bad credit record and how to open an online account and mention some of the services available.

Features at a glance

  • Choice of three price bands.
  • Prepaid contactless debit MasterCard to make cash withdrawals at many ATMs and purchase goods and services worldwide.
  • Manage account online.
  • Direct debits/standing orders to pay regular household bills.
  • Wages, benefits, salary, pension paid directly into account automatically.
  • Pay in cash via Paypoint outlets.
  • ‘U Points’ provided on certain retail purchases that convert into cash.

Who is able to apply for a UAccount?

To apply to open a UAccount you have to be at least 18 years of age and reside at a UK address that can be verified. As no credit check is undertaken on you, it is suitable for people that have a poor credit history including those that are bankrupt as well as those that also have a fair or good credit record.

People from a variety of walks of life may submit an application such as those that are employed, self employed, retired or unemployed. There is no minimum income requirement.

What is the procedure to apply?

It should only take a few minutes to complete the application process online for a U Account in your sole name.

Verification of your identity and where you live will be carried out with this normally being completed by electronic means. If this is not possible then you will be asked instead to provide certain documents to complete this part of the application process.

What does the U Account provide?

The account provides a range of services and benefits including: –

  • You can arrange for your wages, salary, pension or benefits to be paid automatically into your account as well as arranging for funds to be transferred directly into your UAccount by BACs or Faster Payment.
  • You can use your U Card to pay in cash into your U Account at up to 29.000 retail outlets via Paypoint.
  • A contactless prepaid debit MasterCard is provided enabling you to withdraw cash at ATMS worldwide and purchase goods and services around the world wherever the MasterCard symbol is on display.
  • Direct debits and standing orders can be arranged to pay regular bills like your rent, gas, electric, mobile phone and car insurance.
  • Money Manager enables the online management of your U Account such as viewing statements and to arrange single payments. Interactive graphs assist you in monitoring your spending habits.
  • Additional Extra Accounts can be opened to assist you in managing your finances such as setting monies aside perhaps for a holiday.
  • U Points are awarded when buying goods from specific retail outlets using your U prepaid debit MasterCard and these points are converted into cash on a regular basis.

There is no facility to pay cheques into the account.

You are not provided with a cheque book and you cannot apply to go overdrawn.

Are there any fees?

There are three price bands and you can choose the one that is most suited to you based upon, for instance, the number of direct debits you have and how often you take cash out at ATMs.

There is no fee payable to apply for a U Account.

Please refer to the U Account website for full details of the fees but below are some of them: –

£0.00 per month Price Band

Monthly administration fee – £0.00 (Dormancy fee of £1pm applies if UAccount inactive for more than 60 days)

Payments Out – i.e. 24-hour payments, standing orders and direct debits each cost £1.

ATM cash withdrawals – £1 per UK transaction plus there is an additional charge of 3% of the amount withdrawn when using ATMs overseas.

Cash payments paid in at Paypoint – 3% of the amount deposited.

Extra Accounts opened cost £1pm each.

£5.00 per month Price Band

Monthly administration fee – £5.00

Payments Out – i.e. 24-hour payments, standing orders and direct debits each cost 50p.

ATM cash withdrawals – 50p per UK transaction plus there is an additional charge of 3% of the amount withdrawn when using ATMs overseas.

Cash payments paid in at Paypoint – 3% of the amount deposited.

Two Extra Accounts can be opened with no charge with any further accounts being opened at a cost of 50p pm each.

£10.00 per month Price Band

Monthly administration fee – £10.

Payments Out – i.e. 24-hour payments, standing orders and direct debits are free.

ATM cash withdrawals – free in the UK but when withdrawing cash from an ATM overseas there is a charge of 3% of the amount withdrawn.

Cash payments paid in at Paypoint – 3% of the amount deposited.

Five Extra Accounts can be opened with no charge with any further accounts being opened at a cost of 50p pm each.

Conclusion

The U Account is one of a number of personal accounts offered by a variety of companies in the UK that is suitable for numerous customers including those that have bad credit. It provides some of the services that a high street bank offers its current account customers i.e. a debit card to buy things and withdraw cash at ATMs, have funds paid into the account and pay regular bills by direct debit. You can quickly apply online and select one of three price bands with the option to switch to a different price band should your requirements change.

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