Best Community and UK Charity Bank Accounts

How to choose and open the best (free and paid for) UK Community Interest Company (CIC), non profit, community group, club, society or charity bank account, including  savings accounts, with charity bank account FAQs at the end.  We have a separate guide on how to deal with UK charity bank account problems.  To find out which were rated as the best charity banks, see our Charity and Community Bank Account Survey.  At the end is the regulatory guidance for charity banking.

SETTING UP A UK CHARITY BANK ACCOUNT

Here are things to think about when setting up a community group, club, society or charity bank account.

Setting Up A Charity Bank Account - Key Points

As with any bank account, ask yourself:

• Do I want branch and/or online banking?
  • For example, if you need to regularly bank collection tin, or event money, you'll want access to a local bank branch.
• What bank charges might there be?
  • Most charity accounts used to be free but many now charge a fee, albeit most are small.
  • That may be an monthly fee and/or a fee per transaction, plus possibly fees for other services.
• Do I need/want:
  • Payments with a debit card and/or access to an ATM?
  • A bank savings account and, if so, how do the interest rates compare?
  • A secure/mobile banking app?
  • Other financial services, such as loans, mortgages.
• What else might they offer that we'd value?
  • Supporting charities or adhering to ethical guidelines.
  • Access to funding, or other services, such as free accounting software.

CAF Bank were voted by charities as the best UK bank account in our banking survey.  They've published this guide on how to choose the right bank for your charity and also this list of 5  practical tips for setting up a charity bank account.

Why Setting Up Your Charity Bank Account Is Important

You don't need a bank account to register a charity with the Charity Commission.  However, opening one can take a long time and very few funders will pay a grant, unless you have a bank account in your charity's name.  It's a basic anti-fraud measure.

Given that securing income is almost always a priority for any charity or community group, starting the process to open a bank account early is usually a good idea. And securing funding can be even harder, so next think about how you plan to go about that.

Find Funding To Put In Your Community Or Charity Bank Account

Use the free Funding Finder, to find a huge range of grants and Help Finder to find lots of free fundraising support and also companies that make product/financial donations. Like (most) charity bank accounts it's free, but unlike opening a charity account it's quick, simple to use and works for any non profit, no matter how small.

Find Funding, Free Help & Resources - Everything Is Free.

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Charity Excellence Learning - free, certificated, online courses (including fundraising) that enable anyone to use AI effectively, keep themselves and their charity safe, and gain valuable career skills. They require no prior AI knowledge and are completed at your own pace, using engaging bite size lessons, demo videos, practical tasks, and fun quizzes.

Best UK Community and Charity Bank Accounts

If you're known at your local branch, particularly if you're an existing business customer, that might make it a bit easier to open a bank account.  The list below is from our charity banking survey but that doesn't mean I'm able to endorse them, or that the others I've listed below them won't provide you with a good service.

• CAF Bank – for registered charities, CICs, CASCs, and exempt/excepted charities. Interest is paid. Monthly fee charged.  They have a helpline, which is unusual and provides a good service (in my experience).
• Charity Bank – savings accounts for charities, trusts, and clubs. Interest is paid. No monthly fee.
• Metro Bank – for UK-based clubs, societies, and charities with turnover under £250k. Interest is paid. Monthly fee charged.
• Virgin Money – offers the Charities Choice Account for registered UK charities. Free day-to-day banking is available for charities with turnover under £1 million. Above that, a monthly fee is charged. Interest is paid on eligible accounts. Not available to unregistered charities or CICs
• Co-operative Bank – for registered charities, CICs, co-operatives, and credit unions. No monthly fee. Eligible for grants up to £1,000.
• Santander – for clubs, societies, charities, or other not-for-profit organisations with turnover under £250k. Monthly fee charged. No interest paid.

Free Charity & Community Bank Accounts

There has been a trend in the last year or 2, for more banks to charge fees but there are still some free bank accounts.  Be aware, there are different kinds of fees. For example, a monthly fee for the account and/or fees for transaction charges, etc. Most banks will charge for international payments.  Specialist money transfer providers can be a lot cheaper but see the regulatory guidance below as only certain types can be used by charities.

• NatWest Community Bank Account – free for non profits with up to £100k pa income. For charities, clubs, and societies. At least one applicant must be an existing NatWest customer.
• RBS Community Bank Account – for non-profits with income under £100k pa. No monthly fee for maintaining the account. Standard banking services like direct debits, standing orders, and UK payments are free. Charges apply for CHAPS and international payments.
• Bank Of Scotland Treasurers Account – for non-profits with turnover under £50k pa. No monthly fee.

Other UK Community and Charity Bank Accounts

Here are other well-known banks that offer charity bank accounts.

• Barclays Community Account – for not-for-profit organisations with a charitable purpose and income under £100,000. Free banking available.  Barclays came bottom in our banking survey.
• HSBC Charitable Bank Account – for clubs, societies or associations. Turnover must be £6.5m or less. Monthly fee charged.
• Lloyds Bank – offers charity and community accounts. Interest is paid. Monthly fee charged on some accounts.
• Reliance Bank – current account for registered charities. Monthly fee charged. Additional transaction fees apply for payments, and card use.
• Triodos Bank – deposit accounts only. Interest is paid. No current accounts for new customers.
• Unity Trust Bank – offers accounts to most non-profits. Monthly fee charged. No interest paid. Additional transaction fees may apply depending on account tier.

UK Bank Accounts – Limited or No Support for Charities & Non Profits

I've heard that Mettle is very good and comes with free accounting software, but they don't support charities, CICs or other non-profits.

• Starling Bank – available if registered with Companies House. Not available to charities unless registered as a charitable company.
• TSB – club, charity and society accounts are no longer available for new customers.
• Mettle – not available to charities, CICs, clubs, societies or trusts. Interest is paid. No monthly fee.
• Monzo – only sole traders and limited company directors are eligible. Not available to CICs or charities.
• Revolut – no accounts available for the public sector, charity, private foundation or trust, or a cooperative.
• Tide Bank – doesn't currently offer accounts to non-profits.

Free UK Charity and Community Savings Accounts

For charity savings accounts, in addition to savings rates, also think about how quickly you may need to access your savings. Instant access accounts are obviously very convenient but usually pay lower interest than a notice or fixed term deposit accounts.

• CAF Charity Deposit Platform – access to 90+ savings accounts from 20+ banks. Interest is paid. No platform fee charged by CAF.
• Charity Bank – ethical savings accounts for charities, trusts, and clubs. Interest is paid. No monthly fee.
• Virgin Money – instant access, notice, and fixed term charity accounts. Interest is paid. No monthly fee.
• United Trust Bank – fixed term charity bonds for registered charities. Interest is paid. No monthly fee.
• Nationwide – business savings accounts for UK registered charities. Interest is paid. No monthly fee.

CAF Bank were voted by charities as the best UK bank account in our banking survey.  They've published this guide on why you should use a charity deposit platform.

HOW TO OPEN A UK COMMUNITY OR CHARITY BANK ACCOUNT

What you need and what you need to do to open a UK charity bank account.

How Do I Set Up A Community Group, Club Or Charity Bank Account?

This is the kind of documentation your bank may ask you to provide.

For each of the signatories - 2 documents: one to prove identity and one to their address.

To prove your identity, you will need your passport, driving licence or identity card (if you’re an EU national).

You’ll also have to prove your address by providing another document.  Every bank has its own list of what documents are acceptable as proof of address. Broadly speaking, however, these include:

• a tenancy agreement or mortgage statement;
• a recent electricity or gas bill (less than 3 months old);
• a recent (less than 3 months old) bank or credit card statement that’s not printed off the internet; or
• a current council tax bill.

And a copy of you governing document/constitution.

How Do I Open A Free Community Or Charity Bank Account?

Each bank has similar, but slightly different procedures to open a free bank account.  Here are some examples of what you might expect.

There must be a minimum of 2 of signatories on the account.

Some banks have online account registration but, if not, contact your local branch and book an appointment.

Some require all of the signatories to attend the appointment together, with their proof of identify and address documents above.

Ahead of your appointment, Barclays will e mail you:

• A personal details form – sometimes for all trustees, not just the signatories.
• A charity or community account opening form.
• A letter of intent.
• An appointment of banker’s form.

You should complete these and bring these with you to your appointment, together with your constitution.

UK Charity Bank Accounts Regulatory Guidance

Charity Commission E&W - Charity banking.  Information on charity banking and the support available to charities trying to access adequate banking services.

Charity Commission guidance on trustees’ legal duties and responsibilities in respect of operating a bank account - holding, moving and receiving funds safely, including when moving those funds internationally.

Charity Commission CC8 guidance on systems of internal financial control, including internal controls for banking.

OSCR (Scotland) and CCNI (Northern Ireland) do not appear to have issued specific banking guidance, other than general fiscal responsibilities but I think we can take the need to use of regulated banking systems as a given.

International Non Profit Banking and Transfers

Charities must use regulated banking providers for international transfers wherever possible. Using unregulated or informal methods (like cash couriers or money service businesses) is only allowed in exceptional circumstances, and trustees must carry out rigorous checks and risk management. Full details are here - Charity Commission E&W – Holding, Moving and Receiving Funds Safely

UK CHARITY BANK ACCOUNT FAQs AND GUIDANCE

Listed below are answers to common questions about charity bank accounts, as well as the Charity Commission's banking guidance.

Community Group and Charity Bank Accounts - FAQs

• Why have a charity bank account? Having a bank account in your charity's name helps to protect your charity and is, almost always, required by charitable funders who make grants.
• Who can have a bank account for a charity?  To open a bank account for a charity, community group, club or society, you will need at least a constitution (club rules) and trustees (volunteers who run a charity).
• Who can authorise opening a charity bank account?  The opening or closing of a charity bank account should be either authorised by the whole trustee body or delegated by them to a separate group who tell the trustees of any changes.
• Which is the best UK charity bank account?  Some banks offer accounts to all types of charity and some only specific types, so first find the banks that offer accounts to your kind of charity.  Then decide what you need, such as do you want branch and/or online banking, need to make payments with a debit card and/or access to an ATM, a bank savings account and, if so, how do the interest rates compare?
• How do I open a bank account for a charity?  To open an account, you may first need to fill in an online application and the signatories may well all be required to visit a branch with identification documents.  The bank will want a copy of your governing document and, increasingly, banks require additional information, particularly if you work overseas.  For example, policies on sanctions or money laundering.
• Do any banks offer free banking to charities?  Traditionally, all the main banks offered free banking to charities.  However, some are now charging fees, including CAF bank and HSBC.
• What fees do charity bank accounts charge? Fees vary. Some banks offer free banking up to a certain turnover, while others charge monthly fees and/or transaction charges. Always check the bank’s website for current terms.
• Can a charity have 2 bank accounts?  Charities can have more than one bank account, but it is important that accounts are only opened with the approval of the trustees and are controlled and monitored by them.
• What is a bank mandate?  A bank mandate sets out who in the charity is authorised to manage the charity’s bank accounts.
• What is a cash deposit platform?  A cash deposit platform offers a range of accounts that allows you to choose multiple accounts without having to apply directly to each bank.
• Do banks offer accounts for CICs? CICs can usually open standard business accounts and some banks offer non profit accounts for CICs but not all.
• Are community bank accounts suitable for sports clubs and societies?
  Yes, many banks offer community accounts for clubs and societies, subject to certain eligibility criteria, such as being (unpaid) volunteer run, having a constitution (rules) and/or being a nonprofit.
• Do charities have to use a recognised bank provider? Charity regulators, such as the Charity Commission E&W require charities to use regulated banking systems to protect funds and ensure transparency.
• Can community groups open a bank account? Yes, a number of banks offer accounts but with eligibility requirements, such as being (unpaid) volunteer run, having a constitution (rules) and/or being a nonprofit.

A Free One Stop Shop for Everything Your Charity Or Community Group Needs

A registered charity ourselves, the CEF works for any non profit, not just charities.

• Funding Finder - with categories for Core Cost Funding and Small Charities & Community Groups.
• Help Finder – find anything for free, including companies that make financial donations and raffle prizes.
• Data Finder – for fundraising bids & research, impact reporting, planning and campaigning.

Plus, 60+ policies, 8 online health checks and the huge resource base.

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This UK Charity Bank Account Guide Is Not Professional Advice

This UK charity bank account guide is for general interest only and does not constitute professional legal or financial advice.  I'm neither a lawyer, nor an accountant, so not able to provide this, and I cannot write guidance that covers every charity or eventuality.  I have included links to relevant regulatory guidance, which you must check to ensure that whatever you create reflects correctly your charity’s needs and your obligations.  In using this resource, you accept that I have no responsibility whatsoever from any harm, loss or other detriment that may arise from your use of my work.  If you need professional advice, you must seek this from someone else. To do so, register, then login and use the Help Finder directory to find pro bono support. Everything is free.

Ethics Note - AI was partially used in updating this web page.  To the best of my knowledge it was correct as at 5 Nov 25 but I cannot guarantee that and details will inevitably change, so you must check yourself.

Thank You - to Ella Taylor Smith for making me aware that my Lloyds entry was out-of-date.