Bank Accounts and Incarceration: What Happens?

by

Bank Accounts and Incarceration: What Happens?

When people leave prison, they often face many challenges. It can be hard to start over. But having a bank account can make a big difference. Let’s learn about how bank accounts help people leave prison and what options they have.

Why do Bank Accounts Matter?

A bank account is critical when you leave prison. Here’s why:

  1. It helps you get a job
  2. You can get money from the government
  3. It’s easier to find a place to live
  4. You can pay bills
  5. You can buy things online

Without a bank account, life can be much more complicated. Many people struggle to get back on their feet without one.

The Prisoner Banking Programme

There’s a unique program to help prisoners open bank accounts. It’s called the Prisoner Banking Programme. Here’s how it works:

  • Prisoners can open an account before they leave
  • They must have between 6 weeks and 12 months left on their sentence
  • Seven banks work with the program
  • Lloyds Banking Group is one of these banks

This program has helped many people. In 2022, over 5,600 bank accounts were opened. Lloyds Banking Group opened about 2,521 of these accounts.

How to Open a Bank Account?

Opening a bank account can be tricky for people leaving prison. Here are some tips:

  1. Ask prison staff for help
  2. Write to banks near your prison
  3. Tell them you need an account for wages or benefits
  4. Explain what ID you have
  5. Visit the bank right after you’re released

Don’t give up if one bank says no. Try many banks to increase your chances.

Types of Bank Accounts

For most people leaving prison, a basic bank account is best. Here’s what you need to know:

  • It’s more accessible than other accounts
  • You can’t have an overdraft or checkbook
  • You can receive money and pay bills
  • It helps build your credit score

Some banks might let you open an account even if you don’t have a fixed address. You might need a charity to help with this.

Why It’s Hard to Get a Bank Account?

Banks sometimes say no to people who have been in prison. This can happen because:

  • Banks think it’s risky
  • You might not have a job or good credit
  • You might not have the proper ID
  • Bank staff might not know how to help

The COVID-19 pandemic has made things even harder. Fewer people are leaving prison with bank accounts now.

Opening an Account While in Prison

Opening a bank account while you’re still in prison is possible. This can be helpful. Here’s what you should know:

  • The prison should help you do this
  • You can use prison records as ID
  • You can open an account up to 6 months before release
  • Nine big banks work with prisons to do this

Other Options

If you can’t open a regular bank account, you have other choices:

  1. Credit Union Account
    • Like a regular bank account
    • You might need to live in a particular area
    • There might be a small fee
  2. Prepaid Card Account
    • You can receive money and pay bills
    • There’s usually a fee
    • Your money isn’t protected like in a bank
  3. Payment Exception Service
    • For getting benefits if you can’t open an account
    • You get vouchers to use at the Post Office
    • You can only use cash, not cards

Getting Help

Don’t be afraid to ask for help. Some people and groups want to support you:

  • Charities like Nacro and Unlock
  • Citizens Advice
  • Your probation officer
  • Resettlement schemes

These groups can give you advice and point you in the right direction.

Success Stories

Many businesses are happy to hire people who have been in prison. For example:

  • Timpson, a shoe repair company, hires many ex-prisoners
  • COOK, a food company, has a unique program to help
  • These companies know you have skills to offer

Tips for Success

Here are some final tips to help you succeed:

  1. Start planning early. Try to open a bank account before you leave prison if you can.
  2. Be persistent. If one bank says no, try another. Don’t give up!
  3. Ask for help. Use the support services available to you.
  4. Know your rights. You have the right to open a bank account like anyone else.
  5. Think positively. Remember that you have valuable skills and experiences to offer.

Conclusion

Leaving prison is a significant change. Having a bank account can make things much more manageable. It helps you get a job, find a home, and manage your money. Some programs allow you to open an account, even if it initially seems complicated. Don’t be afraid to ask for help. With the proper support and a positive attitude, you can return to your feet and start a new chapter in your life.

Remember, everyone deserves a fresh start. A bank account is just one step on your journey. Keep working hard and stay positive. You can build a better future for yourself!