What is an IVA bank account?
An IVA bank account is a current account for people who have entered into an IVA (Individual Voluntary Arrangement) and for people whose credit score could make it difficult to open a bank account elsewhere.
But IVA bank accounts aren't the only accounts that can help people with money worries. We offer the thinkmoney Personal Account - a real alternative to an IVA bank account, specially designed to help people manage their money and make sure all the bills get paid.
No credit check:
Our IVA account doesn't have a credit check, which makes it accessible if you have debt problems. All we ask is that you're 18 years or over and you're a UK resident.
You don't even need to be on an IVA - although our account's features make it a great partner for an IVA, you don't need to be dealing with financial problems to appreciate what it offers.
While you're on an IVA, you would need to speak to your Insolvency Practitioner before borrowing any money, so a current account with an overdraft probably isn't an option - even if you were allowed to open one.
If you're thinking about starting an IVA and one of your debts is with your bank, it's worth thinking about opening another bank account, especially if your income is paid into that account, because your bank may be able to take money from your account to repay any money that is owed to them.
Managing IVA payments
The thinkmoney Personal Account - with its built-in budgeting service - can really help people to keep up with their regular IVA payments.
When you start an IVA, you enter into a legally binding agreement to repay as much as you can afford every month. To complete an IVA successfully, you'll probably need to make regular monthly payments for a minimum of five years, so you can see why it's important to be on top of your personal finances while you're on an IVA.
The thinkmoney Personal Account - our alternative to an IVA bank account - divides your money into two accounts: one for your essential bills and the other for your spending money. After your mortgage/rent, utilities and council tax, your IVA payments are one of your most important expenses. Our Money Managers are there to set aside enough of your income to cover them and provide a day-to-day money management service.
In summary, the thinkmoney Personal Account is an account which can be opened before, during or after an IVA, because it doesn't have a credit check. If you open our account, you will get extra help with budgeting from our Money Managers - and all you'll pay is the fee of £17.50 per month (£24.50 per month for a joint account).