Navigating finances can be complex, especially When You Spend Or Use Money within the prison system. It’s crucial to understand the different types of accounts available to manage your funds effectively while incarcerated. This guide breaks down the three main prison account types to help you manage your money during your time in custody.
Types of Prison Accounts and How You Can Use Them
Within the prison system, financial transactions are managed through specific account types. These are designed to handle money earned within prison, funds sent from outside, and savings for release. Let’s explore each account in detail:
1. Spending Account: Daily Spending in Prison
The spending account is where money you earn through prison work or approved activities is deposited. Funds can also be transferred into this account from your private cash account. When you want to spend or use money on everyday items within the prison, this is the account you’ll access. You can use these funds to purchase goods from the prison commissary, such as toiletries, snacks, and stationery, enhancing your daily life within the institution.
2. Private Cash Account: Funds from Family and Friends
The private cash account serves as a receptacle for money sent in by family members and friends. This is a vital lifeline for many inmates, providing financial support from the outside world. However, access to these funds for direct spending is limited. You can transfer a capped amount from your private cash account to your spending account each week. The amount you’re allowed to transfer depends on your conviction status (convicted or unconvicted) and your Incentive and Earned Privileges (IEP) level.
The table below outlines the weekly transfer limits from your private cash account to your spending account based on IEP levels, as per the Incentives Policy Framework:
| Weekly IEP Level | UNCONVICTED | CONVICTED |
|---|---|---|
| BASIC | £27.50 | £5.50 |
| STANDARD | £60.50 | £19.80 |
| ENHANCED | £66.00 | £33.00 |
For foreign national prisoners or those with close family ties outside the UK, there’s some flexibility. You may be permitted to use a larger portion of your private cash to cover the costs of overseas phone calls, facilitating crucial communication with loved ones abroad. Additionally, in situations where you face legal costs and lack sufficient funds in your spending account, you might be granted access to more money from your private account. Further details on this can be found in Annex A of PSI 01/2012 Manage Prisoner Finance.
It’s important to be aware that access to your private cash account can be restricted as a disciplinary measure following prison rule violations.
3. Savings Account: Planning for Release
Some prisons offer a savings account, designed to help you accumulate funds for your release. Money can be transferred into this savings account from your spending account, but direct transfers from your private cash are not permitted. This account encourages inmates to save a portion of their earnings or spending money to prepare financially for life after release.
It’s crucial to note that prison accounts do not accrue interest. If you have substantial funds, it might be more beneficial to consider placing them in an external bank account, although this may present practical challenges while incarcerated.
Conclusion: Managing Your Finances in Prison
Understanding the nuances of prison accounts is essential for effective financial management during incarceration. When you spend or use money in prison, you are primarily drawing from your spending account, which is funded through prison work and transfers from your private cash account. The private cash account provides access to funds from external sources, albeit with transfer restrictions. Finally, the savings account offers a mechanism to save for your future. By grasping these distinctions, inmates can better navigate the prison financial system and make informed decisions about their money.
