How Child Benefit, tax credits and Guardian's Allowance are paid

If you get Child Benefit, tax credits or Guardian's Allowance, you'll usually be paid straight into an account using a system called Direct Payment. This is a safe and secure way of paying you, and the types of account you can use are shown below.

Accounts you can use to receive payments

The account will need to be one of the following:

in your name
in your partner's name
both in your own and your partner's names
in the name of someone acting on your behalf
jointly in your own name and in the name of someone acting on your behalf

For tax credits payments only, you can also use an account in someone else’s name. But it is up to you to make sure you get the money from that person.

There are several kinds of account you can use to receive payments.

Bank and building society accounts

These are the most flexible. Depending on the type of account you have, you'll be able to withdraw money from cash machines, use cheque books, debit cards or pay bills by direct debit. Some accounts pay interest and some allow you to withdraw cash over the counter from the Post Office®.

More about types of bank accounts

National Savings & Investments (NS&I) Accounts

Alternatively, you could open an Investment Account or an Easy Access Savings Account. These work like normal savings accounts from a bank or building society and are suitable for all kinds of Direct Payment.

Post Office® card account

You can only have benefit, State Pension and tax credit payments paid into this type of account. This account may suit you if you want a simple account that won't let you go overdrawn.

Opening a new account

Bank and building society accounts

To open a bank or building society account you can either visit the branch or, in some cases, you can open an account online.

Banks and building societies usually need some proof of identification, such as a passport, a driving licence or a Council Tax bill. It's best to check with the bank or building society to see what they need.

NS&I Accounts

You can open an Investment Account or an Easy Access Savings Account:

over the counter at the Post Office®
by sending an application form (available at the Post Office®)

You can also open an Easy Access Savings Account:

online at the NS&I website
over the phone by calling 0500 500 000, lines are open 7.00 am to midnight, seven days a week
Find out more about Easy Access Savings Accounts on the NS&I website
Find out more about Investment Account on the NS&I website

Post Office® card account

If you are completing your Child Benefit claim form and you want to open a Post Office® card account, please call the Child Benefit Helpline.

If you are completing your tax credits claim form and you want to open a Post Office® card account, please call the Tax Credit Helpline.

Accounts you can't use

There are some accounts that you cannot use for Direct Payment. These are

children's accounts
some mortgage
business and building society accounts that use a passbook
NS&I accounts other than the Investment Account and the Easy Access Savings Account

ISAs (Individual Savings Accounts)

HM Revenue & Customs don't recommend having your Direct Payments made into an ISA account. This is because there is a limit on the amount that can be paid into these accounts. If you go over this limit, the bank or building society will reject the payment.