Banks are Bastards When You're Poor.

Yesterday I got a letter from my bank, informing me that my account is changing. I have a Basic Bank Account, because I don't have enough income or good enough credit for a normal current account. It seems that, as of next month, my Basic account is going to become even more basic.

The main change, according to the letter, is that from October I will only be able to use RBS and Natwest cashpoints. Or Ulster Bank ones, to be fair, but there aren't (m)any of those in Sheffield. To me, this is pretty much a disaster. My local cashpoint is a supermarket one - to find an RBS or Natwest ATM I will need to go into the city centre. Every time I need cash.

Also, walking is often difficult for me. I just don't have the capacity to be going to the city centre every time I need to withdraw cash, or - if I'm already in the city centre - walking further than is absolutely necessary, to find the correct cash machine.

Having to use a Basic Bank Account is already a fairly humiliating experience at times, and they tend to be held by people who are unable to access better accounts, because of their income or financial history or age. I am limited to banks that offer basic accounts, and within that selection, to banks that I have not had debt with in the past. Since recent mergers of numerous banks, I am even more limited because banks which were not financially connected before, now are.

The bank assure me in the letter that they value my custom, and in the very same sentence tell me I am welcome to close my account if I am not happy with the changes. Cheers for that, it makes me feel really valued. I haven't yet worked out a way that I can open a different account elsewhere.

So I have no options. I can't close this account in disgust and go to a different bank. I have thought a lot about this overnight, and all I can do is grin and bear it. Cope with the fact that I will only have occasional access to my own money. Work out ways to withdraw lots of cash in one go without being mugged. Learn where RBS and Natwest cash points are and if there are buses that go nearby. Use the small amounts of energy I have to go to the appointed cash machines rather than being able to get out my money and spend it in my local area.

If I had the energy, I'd be even more furious than I am.

[The image is a photo of a hand holding up a piggy bank against a blue sky. It was taken by D. Sharon Pruitt]

Edited to add: I'm not the only person outraged by this. Which.co.uk have said:

NatWest and Royal Bank of Scotland (RBS) have been lambasted for preventing holders of their basic bank accounts from using other banks' cash machines.

NatWest and RBS basic bank account holders can only withdraw cash from NatWest, RBS or Ulster Bank cash machines in the UK or at the Post Office. The move places RBS and NatWest alongside Lloyds TSB, which already restricts it 'Cash Account' holders to using Lloyds TSB cash machines and branches of the Post Office.

Previously, most basic bank account holders were able to use the Link network to withdraw cash.

Which? principal policy adviser Dominic Lindley commented: 'This change will increase financial exclusion as it leaves basic bank account holders at RBS unable to access around 80% of the free cash machines in the UK. These account holders will be inconvenienced and might incur extra costs when travelling to find a cash machine they can use.'

Thanks to @vinnivee for that link.

Women and Pensions (UK)

Because women often need to take breaks from our careers, to have children or because of caring responsibilities, it's quite common for us to lose out on a state pension due to lack of National Insurance contributions.

So, as a service to the women of Britain aged over 60, I'm sharing this article from the fab Money Saving Expert site.

Are you a woman over 60 who doesn't get a state pension?
Are you a woman over 60 who doesn’t get a state pension? Get £1000s back
What's this about?

A parliamentary question by a Lib Dem MP has shown that many women in their 60s are unnecessarily missing out on the state pension. To get a pension you need to have paid national insurance for 10 years of your working life; around 750,000 women are believed to be very near, but just under, this threshold.

By offering to pay a few £100, if you're near the threshold you can start to get the basic pension of £87 a week, and get a backdated payout from your 60th birthday, which is likely to be £1000s.

The reason I write 'offering' is actually you won't need to pay them money - it can just be taken from your payout. E.g you need to pay £340 of National Insurance to get your entitlement; and then you're owed £2000 back pay. The £340 then just comes out of the back pay.

Who's affected?

Women most likely to be affected are those that have paid some national insurance contributions but may have taken a break to have children, and not quite met the 10 year contribution quota to get a pension. But if you're a woman over 60 and aren't withdrawing a state pension, check now.

How to check

The quickest way to check is to call the National Insurance Deficiency Helpline on 0845 915 5996.

Explain your situation and ask how far off the required national insurance contributions you are to get a pension. You won't actually need to part with any money; the top-up contributions will simply be deducted from the backdated pension you are owed.

What you need to find out is

A. How much more national insurance must I pay to get a pension?
B. How much will the pension be each week?
C. How much will I get backdated?

Assuming the benefit of B and C outweigh A.... go for it!

Will I lose benefits elsewhere if I draw a pension?

Drawing a pension may affect other means-tested benefits, but this differs case by case. The best thing to do is follow the steps above to check whether you may be eligible and if it's worth it.

Also if you are married, have a husband more than 5 years older than you and are drawing a pension on his contributions you're unlikely to benefit.

More information

This was first reported on BBC Radio 4 by the Moneybox team... if you're looking at this it's well worth reading the article and listening to the audio.

Read the BBC article: Pension Boost For Older Women
Listen to Radio 4: MoneyBox Item on this pension boost