Ever wondered what life was like before the age of chip and pin and debit cards?
Well, for 1.2 million, that's still reality today, with many of them forced to use cash to pay for everyday essentials such as rent, energy and utility bills.
And while cash may be king, it could be doing more harm than good - with many non-plastic users spending an average of £485 a year extra, just to pay for basic goods.
That's according to a new report by account provider Pockit, which claims more than a million Britons have been locked out of opening a bank account, and as a result are missing out on discounts reserved for those who pay bills by direct debit.
This ramps up the cost of energy bills, broadband and phone contracts, it said.
"For many of us, having a bank account is a basic fact of life," said Pockit boss Virraj Jatania.
"Yet the unbanked face a banking poverty premium which can put a real strain on their finances."
UK Finance, which represents the UK banking industry, said banks took their financial inclusion responsibilities "extremely seriously".
"The banking industry is committed to ensuring banking is accessible to all. There are over seven million basic bank accounts in the UK, helping customers across the country access vital banking services," it said.
Traditional banks can reject customers applying for accounts if they do not have enough forms of ID, or if their credit rating is poor.
But Pockit, which provides basic account services, said this meant many were being penalised.
Elsewhere, it could lock others out of the system entirely where providers - such a landlords - refuse to allow you to pay in cash.
Pockit said energy and broadband providers offer discounts to customers if they pay by direct debit - a saving which is not available to those without a bank account.
Meanwhile mobile phone companies offer better deals to those paying via direct debit rather than pay-as-you go customers.
Worse, Pockit found those without accounts have limited options when looking for credit, and often turn to expensive cash-in-hand "doorstep loans".
In one example, it found two of the UK's three largest broadband providers, BT and Virgin Media, offered a "super line rental discount" if you paid by direct debit.
But customers without a current account had to pay using methods such as cash transfers, costing them £38 more a year on average.
On electricity and gas, it analysed Ofgem data and found that those using pre-payment meters paid on average £141.57 more each year than those who paid by direct debit.
Best basic bank accounts
Basic bank accounts are exactly that - no frills. They're easy to open (ie no credit checks necessary) and can be used for direct debit payments, wages and standing orders. They also come with a debit card for everyday transactions.
They don't tend to charge a monthly fee (ie are free to use) and don't offer overdrafts, either. In other words, banks don't make money out of them.
Often they're useful for people opening their first accounts, but can be particularly handy for those with poor credit scores (lean how to boost your score here ). However, you will need some form of basic ID to open one as the bank will need to prove your identity.
Ten lenders currently offer these fee-free accounts: Barclays, the Co-operative Bank, HSBC, Lloyds Banking Group (Bank of Scotland, Halifax and Lloyds), Clydesdale Bank and Yorkshire Bank, Nationwide, RBS Group (NatWest, Royal Bank of Scotland and Ulster Bank), Santander, TSB and Virgin Money. Here are some of the best buys in the market right now:
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Virgin Money Essential Current Account : min 18, no fees, no checks, can be opened in branch, by phone or by post. Also pays 0.75% interest.
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Bank of Scotland Basic Account : min 18, no fees, no checks, can be opened in branch, by phone or online.
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Halifax Basic Account : min 18, no fees, no checks, can be opened in branch, by phone or online.
*Source: MoneyFacts
