fact sheet 25

Self-Directed Support

Opening a bank account

If you have a Personal or Individual
Budget you will need a separate bank
account. Opening a bank account can be
complicated. To get more help
contact In Control.
This factsheet explains how to open an Tel: 01564 821 650
account. Email In Control
help@in-control.org.uk
It tells you about different kinds of
account, identity, and opening an
account on behalf of someone who ‘lacks Find more fact sheets at:
capacity’. www.in-control.org.uk/
factsheets

This fact sheet was

produced by In Control
and Mencap as part of
In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme

Page 1 of 10
 fact sheet 25
The basic facts
Two things often stop people from easily opening a bank
account:

1. proving your identity and showing you have ‘capacity’

(you understand and can manage your money). If you’re
opening account on behalf of someone else, you have to
have the right authority.
2. banks often don’t have good customer care or
understanding of people who need support.
To get more help
However, if you are prepared, you can avoid some of the contact In Control.
problems. Tel: 01564 821 650
Email In Control
Think about these things before opening a bank account: help@in-control.org.uk
 What kind of account do you need? There are lots of
different kinds.
 Do you have the right kind of ID – a document proving
your identity?
 Opening a bank account for someone who ‘lacks
capacity’ – can’t make decisions for themselves – is not
easy. You need the right authority under the law (the
Find more fact sheets at:
Mental Capacity Act).
www.in-control.org.uk/
factsheets
There is more information about these things in this
factsheet.

If you think there might be a problem about opening

an account:
 Make a face-to-face appointment with your local branch
and tell them what you need. Seeing someone face to
face is easier than explaining to someone on a phone in
a call centre
 Look for banks that are starting to offer personalised
banking services.
 Ask other people who have accounts. Try to get a This fact sheet was
recommendation from a local satisfied customer produced by In Control
and Mencap as part of
In control and me, a lottery funded project.
 If you can’t get to a bank or building society, ask if they www.in-control.org.uk/incontrolandme

will visit you at home.

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If you want to open or manage an account for someone who
fact sheet 25
lacks capacity, the bank has to act within the law. It will want
evidence that you can legally act on the person’s behalf.
There’s more information about this below.

More information about

opening a bank account

What kind of account? To get more help

contact In Control.
There many banks, building societies and types of account. Tel: 01564 821 650
Start by thinking about what’s important to you. Email In Control
help@in-control.org.uk
Here’s a list of things that might be important to you:

 face-to-face contact at a branch

 phone banking
 branch nearby
 internet banking
 postal account for savings
 access to cash
Find more fact sheets at:
 cash machines nearby – free to use? www.in-control.org.uk/
 cashback facilities at supermarket, other shops or pub factsheets
 access at the Post Office
 amount of interest
 Sharia compliant – a return, not interest
 borrowing – how much?
 overdraft facility – are there charges?
 cash card
 debit card
 cheque book
 direct debits
 standing orders
This fact sheet was
 any restrictions on withdrawals. produced by In Control
and Mencap as part of
In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme

Page 3 of 10
Before you open an account, the bank will give you
fact sheet 25
information about things like:
 the services the bank offers
 charges and interest rates
 terms and conditions of the account
 how you can access the account – for example in a
branch or using the internet
 spending limits on the account
 what to do if things go wrong.

To get more help

Opening an account contact In Control.
Tel: 01564 821 650
When you know what kind of account you want, you Email In Control
usually have to: help@in-control.org.uk
 fill in an application form
 give proof of identity – you need to prove who you are
and where you live
 pay some money into your account (though you may be
able to do this later).

The bank will tell you if it plans to run a credit check on you.
Find more fact sheets at:
www.in-control.org.uk/
Joint accounts factsheets

If you apply to open a joint account – an account with one

or more other people – there are extra extra rights and
responsibilities. The bank should tell you about these before
you open the account.

Ask:

 Can one person withdraw all the money in the account

without the other account holder(s) knowing or giving
permission?
 Is each person individually responsible for repaying the
whole amount of any overdraft? This fact sheet was
produced by In Control

 What happens if your relationship with a joint account- and Mencap as part of
In control and me, a lottery funded project.
holder ends? www.in-control.org.uk/incontrolandme

Page 4 of 10
If the bank refuses to give you an account
fact sheet 25
Sometimes accounts are aimed at particular customers. If
you’re not in that group, the bank may refuse an account.
If they refuse you, you can ask for a reason. Generally, being
refused doesn’t affect your credit rating or stop you opening
an account somewhere else.

Proof of identity

The law says banks have to know the identity of new

customers. This is to help stop criminal activities like money To get more help
laundering. contact In Control.
Tel: 01564 821 650
Banks will ask you for a document or check the electoral roll or Email In Control
lists held by credit agencies. help@in-control.org.uk
Most banks ask for documents.

They may ask you for a document issued by a government

office:
 with a photograph – like a valid passport
 without a photograph – like a valid old-style driving
licence – plus some other document.
Find more fact sheets at:
www.in-control.org.uk/
If you don’t have these, they may accept other documents factsheets
that confirm your identity – things like:
 a letter from a government department or local
authority saying you have a right to state benefits
 a letter from a young person’s workplace or educational
institution
 a letter confirming a person’s identity from a care-home
manager or warden of sheltered accommodation or a
refuge.

There may be other ways of proving identity if you are an

international student, migrant worker, refugee, asylum seeker,
prisoner or on probation. This fact sheet was
produced by In Control
and Mencap as part of
To find out what each bank accepts, check on their website or In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme
ask branch staff.

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 fact sheet 25
Opening or managing a bank account on
behalf of someone who lacks capacity

There is a law that covers people who lack the capacity to

make decisions in some or all aspects of their life – including
managing their money. This is the Mental Capacity Act 2005. It
affects people in England and Wales over the age of 16 (and in
some cases, people under 16).

There is also an important Code of Practice – a legal document

that gives guidance to people who owe a duty of care to
someone who lacks capacity. To get more help
There are three ways that someone can be given authority to contact In Control.
make decisions about money matters on behalf of someone Tel: 01564 821 650
who lacks capacity. (Sometimes someone might have capacity, Email In Control
but still want someone else to make decisions for them). help@in-control.org.uk

This authority to make decisions can be given to:

 an attorney appointed under Enduring Power of

Attorney or Lasting Power of Attorney
 a Deputy appointed by the Court of Protection/
Someone Acting under a Court Order
 an appointee of the Department of Work and pensions
Find more fact sheets at:
(DWP). www.in-control.org.uk/
factsheets
These three roles are quite technical. There is a summary
in this factsheet, on the next page. There is also another
In Control factsheet about this – Making decisions on
behalf of other people.

This fact sheet was

produced by In Control
and Mencap as part of
In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme

Page 6 of 10
 fact sheet 25
More detail about opening an
account on behalf of someone
who lacks capacity

Lasting Powers of Attorney

The Mental Capacity Act introduced two new forms of Lasting

Powers of Attorney (LPA). One of these is the Property and
Affairs LPA.
To get more help
The person who lacks capacity (‘the donor’) would have contact In Control.
completed an LPA form while they still had capacity to appoint Tel: 01564 821 650
someone to make decisions on their behalf. Email In Control
help@in-control.org.uk
The attorney named on the LPA or the donor must register
with the Office of the Public Guardian before the attorney can
act.

Court Appointed Deputies/ someone acting

under a court order

The Act created a new Court of Protection which gives Find more fact sheets at:
‘deputies’ authority to make decisions on behalf of someone www.in-control.org.uk/
who lacks capacity. A deputy is often a family member or close factsheets
friend.

The Court of Protection can make an order where a one-off

decision is needed. The Court can also appoint a deputy or
deputies if a series of decisions is needed.

An appointee of the Department of Work and

pensions (DWP)

An appointee is someone appointed by the Secretary of State

of the DWP to act on behalf of a benefit customer who can’t
manage their benefit affairs because of mental incapacity (or
This fact sheet was
severe physical disability). produced by In Control
and Mencap as part of
In control and me, a lottery funded project.
An appointee can only manage the benefits money. If the www.in-control.org.uk/incontrolandme

appointee wants to manage other money and banking, they

need to apply to the Court of Protection to become a ‘deputy’.
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 fact sheet 25
An Example

How Sophie’s mum and dad became ‘Deputies’

Sophie is 21 years old and has had a personal budget for three
years. Before that, she had had a Direct Payment since she was
16.
Sophie has severe learning difficulties and would be described
as ‘lacking capacity’ to make serious decisions. As her Mum
and Dad, we have always administered her personal budget
through a bank account in our name and have a separate To get more help
account for her benefits. As her Mum, I’m her appointee. This contact In Control.
was all working well and neither our council nor the DWP had Tel: 01564 821 650
any issues – so why change something that isn’t broken? Email In Control
help@in-control.org.uk
Party causes problem
Well, Sophie turned 21 years old and had a really big party.
Many people wrote her a cheque instead of giving a present.
The cheque was payable to Sophie so couldn’t be paid into the
account we had set up in our names. As the bank understood
and were familiar with our situation, we went in to explain to
the bank manager.
The bank manager said that we would have to open an Find more fact sheets at:
account in Sophie’s name to pay in the cheques. To do this www.in-control.org.uk/
we would have to apply to the Office of the Public Guardian factsheets
for Deputyship. This all seemed a bit extreme for a bit of
birthday money, until the bank manager explained that,
should something happen to us parents, ALL our bank
accounts would be frozen until our estate had been sorted out,
regardless of the fact that we were managing Sophie’s income
from her benefits and money for her support.

Problem solved
We decided to apply for Deputyship and even appointed a
successor (her brother) in case of our death. This took about
six months from start to finish. We even made a will and set up
a discretionary trust. With having the legal right of being her
This fact sheet was
Deputy, opening a bank account was pretty straightforward produced by In Control
and Mencap as part of
and now we really do have peace of mind should anything In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme
happen to us.

Page 8 of 10
 fact sheet 25
There is a lot of information
about Self-Directed Support
on In Control’s website:
www.in-control.org.uk

For information about opening a bank

account, try:
To get more help
Financial Services Authority
contact In Control.
Telephone: 0300 500 5000 Tel: 01564 821 650
www.fsa.gov.uk Email In Control
help@in-control.org.uk
British Bankers’ Association,

Pinners Hall, 105-108 Old Broad Street, London EC2N 1EX

Telephone: 0207 216 8800
www.bba.org.uk

For information about the Court of Protection

and becoming a Deputy, or to register a
Find more fact sheets at:
Lasting Power of Attorney, go to: www.in-control.org.uk/
factsheets
The Office of the Public Guardian (England and Wales)

Customer Services, Archway Tower

2 Junction Road, London N19 5SZ
Telephone: 0845 330 2900
Email: customerservices@publicguardian.gsi.gov.uk
www.publicguardian.gov.uk.

For advice about benefits for people with

disabilities and their helpers:

Benefit Enquiry Line This fact sheet was

produced by In Control

They can tell you how to apply to be an appointee to manage and Mencap as part of
In control and me, a lottery funded project.

banking for someone who lacks mental capacity. www.in-control.org.uk/incontrolandme

Telephone: 0800 88 22 00
Page 9 of 10
Scotland
fact sheet 25
This factsheet does not cover Scotland. If you live in Scotland,
contact:

The Office of the Public Guardian (Scotland)

Hadrian House, Callendar Business Park

Callendar Road, Falkirk FK1 1XR
Telephone: 01324 678 300
www.publicguardian-scotland.gov.uk
To get more help
contact In Control.
Tel: 01564 821 650
Email In Control
help@in-control.org.uk

Find more fact sheets at:

www.in-control.org.uk/
factsheets

About the in Control and me project

A three-year project to produce accessible information for everyone who wants This fact sheet was
produced by In Control
to direct their own support. and Mencap as part of
The project has worked with individuals and families to decide what In control and me, a lottery funded project.
www.in-control.org.uk/incontrolandme
information should be produced. This information will reach over 11,000 people
a year through the national learning disability helpline. The In Control website
will also have an online advice area.
More information: Lisa Dunne: 07984 111315.
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