Do You Have a Right to a Bank Account? Here’s How It Works for Individuals and Businesses

Do You Have a Right to a Bank Account? Here’s How It Works for Individuals and Businesses

Opening a bank account is essential — whether you’re an individual managing day-to-day life or a business trying to operate and grow. But is it actually a legal right to get a bank account? And what happens if a bank says “no”?

Let’s break it down — covering individuals and businesses and what the rules look like in the EU, UK, and US.

For Individuals: A Basic Right in the EU (But with Limits)

In the European Union, individuals have a legal right to open a basic payment account, thanks to the EU Payment Accounts Directive (2014/92/EU).

What Is a Basic Payment Account?

A no-frills bank account that lets you:

  • Deposit and withdraw money
  • Make payments and transfers
  • Use a debit card
  • Set up direct debits

There’s no credit or overdraft, and some limits may apply.

Who Can Get One?

You qualify if you:

  • Legally reside in the EU
  • Are not already holding a similar account in the country
  • Pass basic identity checks (AML/KYC)

You can apply even if you:

  • Are unemployed
  • Have no fixed address
  • Have a poor credit history

Why Can Banks Refuse You?

Only for specific reasons:

  • You already have a similar account in the same country
  • You don’t pass identity or anti-money laundering (AML) checks
  • You are seen as a fraud risk

The bank must give a written explanation for the refusal, and you have the right to complain.

What to Do If You’re Refused in the EU

  1. Ask for a written reason
  2. Apply at another bank that offers basic accounts
  3. Complain to your country’s financial ombudsman or regulator
  4. Seek help from a legal aid organization if needed

EU Country Examples

🇫🇷 France

  • Ask for a “compte bancaire de base”
  • If refused, use your “droit au compte” at Banque de France, who will assign you a bank

🇩🇪 Germany

  • Request a “Basiskonto”
  • If refused, contact BaFin

🇳🇱 Netherlands

  • Ask for a “Basisbetaalrekening”
  • If refused, contact the Dutch Banking Association (NVB)

🇮🇹 Italy

  • Ask for a “Conto di base”
  • Offered by major banks and Poste Italiane

🇬🇧 UK Perspective (Individuals)

In the UK, you don’t have a “right” to a bank account, but banks must offer a “basic bank account” if:

  • You’re legally resident
  • You don’t already have a current account
  • You don’t qualify for a standard account due to poor credit

Banks can still refuse you if you don’t meet ID requirements.

🇺🇸 US Perspective (Individuals)

There is no federal law requiring banks to open accounts for individuals. Banks can refuse based on:

  • Negative banking history (e.g. ChexSystems)
  • Incomplete ID
  • Suspicion of fraud or money laundering

Some states encourage access, but there is no guaranteed right to a bank account.

For Businesses: No Guaranteed Right Anywhere

Unlike individuals, businesses do not have a legal right to a bank account in the EU, UK, or US.

Banks Can Refuse Without Explaining Why

Banks are free to decline a business account based on:

  • Risk profile (e.g. crypto, gambling, adult industry)
  • Complex ownership structure
  • Foreign ownership or directors
  • AML concerns or lack of transparency
  • Low commercial value

They are not required to justify the refusal in most cases — especially for corporate clients.

What Can Businesses Do?

Prepare a complete application:

  • Business registration documents
  • Tax numbers and UBO details
  • Clear business model and expected volumes

Choose the right bank:

  • Some banks specialize in startups, freelancers, or expats
  • Others are more conservative — especially legacy retail banks

Try alternatives:

  • Fintechs and neobanks (e.g. Qonto, Wise, Revolut Business, bunq)
  • Payment service providers (PSPs) with IBANs and card functionality

EU Country Hints for Businesses

  • Netherlands and Germany have stricter onboarding processes and high AML standards
  • Estonia and Lithuania are known for being startup-friendly
  • Ireland offers relatively easy access to business banking for international firms

In both the UK and US:

  • Banks can refuse business accounts at their discretion
  • High-risk sectors are often redlisted
  • Fintech platforms are growing in popularity for rejected companies

Final Word

  • Individuals in the EU: You do have a legal right to a basic bank account, even if unemployed or homeless.
  • Businesses: No legal right — but with preparation and the right provider, you can still access banking.
  • In the UK and US, access to banking remains a mix of regulation, risk appetite, and commercial discretion — not a guaranteed right.

If you’re struggling to get an account — either as a person or a business — there are routes, remedies, and alternatives. Just knowing your rights can be half the battle.

Also Read

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