Haven banks are savings accounts designed for people who are new to banking or returning after a gap, and Exeter has several options through its local credit unions and community banks
A haven bank (sometimes called a "basic bank account" or "community account") is a simplified savings or checking account that does not require a credit history, does not charge overdraft fees, and often has no minimum balance. The goal is to give people a safe place to keep money and build a relationship with a financial institution without the risk of surprise charges or rejection based on past banking problems.
In Exeter, the main providers are local credit unions and community-focused banks rather than national chains. These institutions understand that many people in the area are either new to formal banking, rebuilding after financial difficulty, or straightforward prefer to bank locally. The accounts they offer are straightforward: you deposit money, you can withdraw it, and you get a debit card or passbook to track your balance.
The reason haven banks exist is practical. Traditional banks often reject applicants with poor credit or a history of overdrafts. Haven banks skip that check entirely. They also cap what you can spend — many will not let you go into overdraft at all, which means you cannot accidentally owe the bank money. This protection costs you nothing extra.
Key Takeaways
- Haven banks in Exeter are offered mainly by local credit unions and community banks, not by high street chains.
- These accounts have no credit check, no overdraft fees, and often no minimum balance requirement.
- You will need proof of identity and proof of address to open an account, just as with any bank.
- The account gives you a debit card and online access so you can manage your money the same way as any other customer.
- Interest rates on savings are usually very low or zero, so the benefit is safety and access rather than growth.
Which Exeter banks and credit unions offer haven accounts
Exeter has two main credit unions: Exeter Credit Union and Devon Credit Union. Both offer basic savings accounts designed for people new to banking. Exeter Credit Union is based in the city centre and serves residents across the Exeter area. Devon Credit Union covers a wider region and has branches or partners in several towns, including Exeter.
Community banks in the area include smaller building societies and local savings institutions. These are less visible than national banks but often have more flexible policies for people without a banking history. Your local library or community centre can point you toward the nearest one, or you can search the Financial Conduct Authority register online to see which institutions are licensed to operate in your postcode.
National banks like Barclays, HSBC, and Lloyds also offer basic accounts, but they typically require a credit check and may reject you if your history is poor. If you have been turned down by a national bank, a local credit union or community bank is usually your faster route.
What you need to open a haven bank account
You will need two things: proof of identity and proof of address. Proof of identity can be a passport, driving licence, or national ID card. Proof of address can be a recent utility bill, council tax letter, or tenancy agreement — something dated within the last three months that shows your name and current address.
If you do not have a passport or driving licence, you can use a birth certificate plus a second form of ID like a bus pass or library card. Credit unions are usually more flexible about what counts as ID than national banks are, so if you are unsure whether your documents will work, call ahead and ask.
You do not need to bring a large sum of money to open the account. Most haven banks let you open with £1 or even nothing at all. You can deposit money later, either in person at a branch, by standing order from another account, or sometimes by cash at a partner location.
How haven bank accounts differ from standard accounts
The main difference is overdraft protection. A standard current account lets you spend more than you have — the bank covers it and charges you interest and fees. A haven account will not let you do that. Your debit card will straightforward decline if you try to spend more than your balance. This sounds restrictive, but it is actually a safety feature: you cannot accidentally fall into debt.
Haven accounts also have lower or no interest on savings. A standard savings account might pay you a small percentage on your balance each year. A haven account usually pays nothing or a fraction of a percent. The trade-off is that you pay no fees and face no penalties, so your money stays exactly as safe as you put it in.
Online and mobile banking work the same way. You get a username and password, you can check your balance anytime, and you can set up standing orders to pay bills or transfer money. Some haven accounts do not include a cheque book, but most come with a debit card that works anywhere cards are accepted.
How to move money in and out of a haven account
Once your account is open, you can deposit money in several ways. In-branch deposits are the simplest: walk into the credit union or bank with cash or a cheque and hand it to staff. They will add it to your account on the spot or within one working day.
Standing orders let you move money from another account automatically. If you have a salary paid into an old account, you can set up a standing order to move it to your haven account each payday. This takes a few minutes to set up online or by phone and then happens without you having to do anything.
Cash deposits at partner locations are available through some credit unions. For example, you might be able to pay cash into a local shop or post office and have it credited to your account. Ask your bank or credit union which locations accept deposits for your account.
Withdrawals work the same way as any account: use your debit card at an ATM, withdraw cash over the counter, or transfer money to another account online. There are no limits on how much you can withdraw, as long as you have the money in your account.
What happens if you need to borrow money
Haven accounts are savings accounts, not credit products. They do not come with a loan or overdraft facility. If you need to borrow money, you would need to open a separate loan account or credit product.
Credit unions often offer small loans to members, sometimes at lower interest rates than banks or payday lenders. Once you have had a haven account with a credit union for a few months and built up a small savings balance, you can usually ask about a loan. The credit union will look at your account history rather than your credit score, so a clean record with them matters more than your past.
If you need money urgently and do not want to borrow, some credit unions offer a savings loan: they lend you money against your own savings as security. You repay the loan and get your savings back, and it costs less than a regular loan because the credit union has no risk.
Fees and charges you should know about
Haven accounts have few or no fees. There is no monthly account fee, no fee for using your debit card, and no overdraft charges because overdrafts are not allowed. Some accounts charge a small fee if you want a replacement card or a paper statement, but these are rare and usually optional.
The one cost to watch for is inactivity. A few credit unions will close an account if you do not use it for a long time — usually a year or more. If you open an account and then do not deposit or withdraw anything for months, check your terms to see whether there is an inactivity rule. If there is, make a small transaction every few months to keep the account active.
Interest paid on your balance is usually zero or very low — often less than 0.1 percent per year. This means if you have £1,000 in the account, you might earn less than £1 in a year. The benefit of a haven account is safety and access, not growth.
Frequently Asked Questions
Can I use a haven account if I have been turned down by other banks?
Yes. Haven accounts do not use credit checks, so a rejection from another bank does not affect your chances. Credit unions and community banks specifically serve people who have had trouble with traditional banking, so you are exactly the person they expect to see.
Will opening a haven account hurt my credit score?
No. Opening a savings account does not affect your credit score because it is not a credit product — you are not borrowing money. Your credit score only changes when you borrow or fail to repay.
Can I switch from a haven account to a regular account later?
Yes. Once you have had a haven account for a while and built up a clean history, you can ask your bank or credit union about upgrading to a standard account with overdraft and other features. Some institutions will upgrade you automatically after six months or a year of good standing.
What if I lose my debit card?
Contact your bank or credit union when ready. They will cancel the card so no one else can use it and send you a replacement, usually within five to ten working days. In the meantime, you can still withdraw money over the counter or transfer it online.
Do I need to visit a branch in person, or can I do everything online?
Most credit unions and community banks let you open an account online or by post, though some still require an in-person visit to verify your identity. Once the account is open, you can manage it entirely online. Call ahead to ask what your local branch requires.