1m taking advantage of better financial management

According to the British Bankers’ Association (BBA), this figure is a “milestone”, an indication that many people are taking the first steps to better financial management.

A bank account allows consumers to keep better track of their finances, vital for keeping control of money and formulating a debt management plan.

There are two types of basic banking accounts; those operated through branches and ATMs those that can also be operated through post office counters. Half of all those opened were by people who never had an account before.

Ian Mullen, chief executive of the BBA, commented: “We have now passed the one million accounts milestone in our commitment to the shared goal of making significant progress towards halving the number of adults in households without a bank account by November 2006.

“We shall now build on this achievement in our continuing work to promote financial inclusion.”