More then three-quarters of active users of basic bank accounts feel that they are more confident in dealing with money as a result of opening the account, according to new research.

Basic bank accounts allow payments such as benefits or pensions to be credited directly to the account, withdrawals through cash machines and bills can be paid by direct debit, but they lack things like an overdraft facility.

The British Bankers' Association spoke to 1,000 adults who had opened a basic account in the last year.

Some 90 per cent of customers said they were confident that the account meets their needs, 92 per cent felt that opening an account was simple and straightforward, and 91 per cent of customers are satisfied with the way the account has been handled.

Of those surveyed, the majority cited the simplicity of the account as the reason for opening a basic bank account.

Figures show 121,000 basic accounts were opened in the last quarter of 2005, of those 6,100 accounts were upgraded to fuller accounts, and 164 million basic bank accounts opened since the account type launched in April 2003.

Ian Mullen, chief executive of the British Bankers' Association, said: "This research clearly shows that the features of the basic bank account closely match peoples' needs.

"As customers become more confident with their finances, a change to an account with fuller features may be appropriate."

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