What Is IVA Bank Account?
The term ‘IVA bank account’ may be one you haven’t heard before… but then again, you may be familiar with it.
You may have heard the phrases ‘bank account for bad credit‘, or ‘basic bank account’… these all mean much the same thing as an IVA bank account.
It’s basically a bank account for people who have a poor credit history and have been unable to open a current account – or who are thinking of entering/are already in an IVA (Individual Voluntary Arrangement).
So, whether you’re thinking of entering an IVA or you’re simply struggling with your finances and have experienced difficulties opening a bank account in the past, an IVA bank account may be suitable for you.
How does an IVA bank account work?
An IVA bank account / basic bank account will offer you all the basic banking facilities you would expect when opening a bank account. This means you should be able to
have your wages paid into your bank account; pay in cheques for free; make withdrawals from cash machines using your cash card and pay your bills by Direct Debit (or in some cases, standing order).
You should bear in mind, though, that with an IVA bank account, you won’t normally have access to features such as an overdraft or a cheque book. However, some accounts may offer you a small ‘buffer zone’ of £10 or so – meaning that you could, for instance, withdraw £10 from a cash machine, even if there’s only £6 in your account.
Opening an IVA bank account
As long as you meet the provider’s criteria for one, you should have no problems in opening your own bank account. You should enquire at your local bank about an IVA bank account/basic bank account to find out if you are eligible for one.
How easy is it to keep track of my money?
You should be sent regular statements through the post detailing any transactions that have taken place over a designated timeframe (usually one calendar month).
What’s more, depending on the features of your account, you may be able to check your balance online.