Charities, clubs, and community organisations need to store their cash somewhere, just like a small business and need to track their funds in an accountable way. Because of their not-for-profit status, there are some restrictions, but there are still plenty of free and affordable options out there for both banking and saving. Here are the best on offer.
Featured: Virgin Money*
- Flexible savings accounts for charities, clubs, and societies.
- Dedicated charity account for registered charities.
- Two clubs and societies accounts for low or higher volumes of transactions.
- No monthly account fee if turnover is below £1 million.
- No day-to-day transaction fees.
- Earn cash back on debit card transactions.
- 24/7 internet and mobile banking.
- Integrates with Xero and QuickBooks.
- Deposit cheques digitally.
- Provides the Current Account Switch Guarantee.
Website: Virgin Money Charity, Clubs and Societies Accounts
Read the full Virgin Money Account review.
Featured: HSBC*
- Bank account for charities and not-for-profit organisations with a charitable purpose.
- Reduce price bank account.
- £5 monthly account fee.
- Online payments and debit card payments are free.
- Cash deposits charged at 0.40%
- Cheque deposits charged at 40p
- Deposits can be made at branches or Post Offices.
- Manage your account in branch, by phone or text.
- Apply online if your turnover is below £2 million.
- Offers the switch guarantee.
Website: HSBC Community bank account
Read the full HSBC Account review.
| Bank | Restrictions |
|---|---|
| Virgin Money | Offers three accounts for charities, clubs and societies which is free if turnover is below £1 million. |
| HSBC | Reduce price bank account for charities and not-for-profit organisations with a charitable purpose. |
| Barclays | Free banking for not-for-profits with a charitable purpose and an annual turnover of less than £100,000. |
| NatWest | Open to charities, not-for-profit companies, clubs, societies, churches and places of worship. |
| Lloyds Bank | Most account features free for charities and not-for-profits. |
| Metro Bank | Must be a club, society or charity with a turnover or annual balance sheet total of £2 million or under. You’ll need to go into branch to open an account. |
| Bank of Scotland | Free for non-profit making organisations with a turnover under £50,000. Free as long as you stay in credit. |
| TSB | For non-profit making charities, clubs, and trusts with a turnover under £50,000. |
| Santander | Free for clubs, societies, and charities with an annual turnover of up to £250,000 and up to 3 signatories. |
| Royal Bank of Scotland | Free banking for not-for-profits with an annual credit turnover of less than £100,000. |
| Ulster Bank | Free for 24 months if your turnover doesn’t exceed £250k. 12 months free if under £1 million. Discounted rates apply for over £1 million. |
| Co-operative Bank | Free everyday banking if turnover doesn’t exceed £1 million per annum. |
| United Trust Bank | Fixed term bond accounts available. |
| Charity Bank | Fixed savings accounts available to charities, trusts and unincorporated associations. Saving supports other charities. |
| Hampshire Trust Bank | Notice and fixed savings available to charities, clubs, associations, and some trusts. |
| Redwood Bank | Save from £10,000 in either fixed 1 year bond or notice account for 35 or 95 days’ notice. |
| Triodos Bank | Need a turnover of £50,000 or more |
1. Barclays
- Free banking for small not-for-profit organisations.
- Must have a charitable purpose and annual turnover of less than £100,000.
- 24/7 online and mobile banking.
- Telephone and branch banking.
- Need to have three or fewer officials.
- Apply over the phone.
- Includes up to six debit cards and a cheque book.
- Up to three signatories on the account.
- Named contact to resolved queries.
- Access LifeSkills and Digital Eagles to support your organisation.
Website: Barclays Community Account
Read the full Barclays review.
2. NatWest
- -Community bank accounts for charities, not-for-profit companies, clubs, societies, churches and places of worship.
- Free banking if your turnover is up to 100k.
- 24/7 online and mobile banking.
- Visa debit card.
- Apple Pay and Google Pay.
- 24/7 telephone banking.
- Up to four authorised signatories.
- Free online accounting software called FreeAgent.
- Organisation’s total annual turnover must be under £2 million.
- Awarded ‘Best Online Banking Provider’ at the 2021 British Banking Awards.
Website: NatWest Community bank account
Read the full NatWest Account review.
3. Lloyds Bank
- Treasurer’s account is available for anyone representing a charity, church, club, or society.
- Free day-to-day business banking.
- 24/7 online and mobile banking.
- Phone and branch banking.
- Optional second signatory.
- 3 months free Business Finance Assistant accountancy package.
- Accept card payments.
- Free presentation cheques when making a large donation or awarding a major prize.
- Charities, trusts and parish councils need to call them to set up an account.
- Other organisations can apply online.
Website: Lloyds Bank Treasurer’s Account
Read the full Lloyds Bank Account review.
4. Metro Bank
- Open to clubs, societies or charities.
- Need to have a turnover or annual balance sheet of £2m or under.
- You’ll need to go into a branch to open an account (they’re all in the midlands and the south).
- 200 free transactions each month.
- No monthly maintenance fees.
- Simple charges after free transactions.
- 24/7 online and mobile banking.
- 24/7 telephone banking.
- Branches that are open weekends.
- Free giant cheques included for prize-givings and publicity.
Website: Metro Bank Community Account
Read the full Metro Bank Account review.
5. Bank of Scotland
- Treasurer’s Account for non-profit making organisations with a turnover under £50,000.
- Free day-to-day banking as long as you stay in credit.
- Some charges may be applicable for specific payment services.
- Withdraw funds when needed.
- Additional signatory access is available.
- Receive guidance and support from a dedicated Business Management Team.
- Presentation cheques are available.
- Charities, trusts and parish councils should call to set up an account.
- Other organisations can apply for an account online.
- Ranked 8th in an independent regulatory survey of the 14 largest business banks.
Website: Bank of Scotland Treasurers’ Account
Read the full Bank of Scotland Account review.
6. TSB
- Treasurer’s account available.
- Must have an expected turnover of less than £50,000 per year.
- No minimum deposit to open an account.
Website: TSB Club, Charity and Trust Accounts
Read the full TSB Account review.
7. Santander
- Treasurer’s Current Account for clubs, societies and charities.
- Free day-to-day banking.
- Requires an annual turnover under £250,000.
- Can have up to 3 signatories.
- 24/7 online and mobile banking included.
- Telephone banking.
- Account alerts.
- Deposit cash and cheques at Post Offices.
- Cheque book and contactless debit card.
- Open an account in branch.
Website: Santander Charity Banking
Read the full Santander Account review.
8. Royal Bank of Scotland
- Community bank accounts for not-for-profits, clubs and societies, churches, places of worship and charities.
- Free banking if annual credit turnover of less than £100,000.
- 24/7 online and mobile banking.
- 24/7 telephone banking.
- Visa debit card.
- Text and email alerts.
- Free accounting software is available called FreeAgent.
- Includes chequebook and paying in book.
- Up to four authorised signatories.
- Provides the Current Account Switch Guarantee.
Website: Royal Bank of Scotland Community bank account
Read the full Royal Bank of Scotland Account review.
9. Ulster Bank
- -For charities, clubs, societies and social enterprises.
- -Free for 24 months if turnover doesn’t exceed £250k.
- -Free for 12 months then 50% discount for a year for turnover between £250k to £1 million.
- -50% discount for the first 2 years for those with a turnover of over £1 million.
- -Must be registered in Northern Ireland to apply.
- -Can apply online if your turnover is below £2 million.
- -If your turnover is over £2 million you need to contact their Relationship Manager.
- -Provides the Current Account Switch Guarantee.
Website: Ulster Bank Not For Profit Account
Read the full Ulster Bank Account review.
10. Co-operative Bank
- Free everyday banking if the not-for-profit’s turnover doesn’t exceed £1 million per annum.
- Available to registered charities, community interest companies, co-operatives and credit unions.
- Can apply for project funding from our Customer Donation Fund.
- Offers ethical banking.
- 24/7 online banking.
- Option to accept card payments with merchant services.
- Some charges may apply for additional services.
- Provides the Current Account Switch Guarantee.
- Savings accounts are available.
- Awarded Best Charity Banking Provider 2016-2021.
Website: Co-operative Bank Community Directplus Current Account
Read the full Co-operative Bank Account review.
11. United Trust Bank
- Offers charity savings accounts only.
- Fixed savings bond accounts are available for 1, 2 or 3 years.
- Earn 1.15-1.4% AER.
- Interest is paid on maturity.
- Withdrawals during the term are not allowed.
- Apply by post using the form available on their website.
- £5,000 minimum deposit.
- Nominate an account for electronic payment.
- Manage your account by phone, email or post.
- Choice of repayment or reinvesting all or part of the funds at the end of the term.
Website: United Trust Bank Charity Accounts
Read the full United Trust Bank Business Savings Account review.
12. Charity Bank
- Fixed savings account only.
- Available to UK registered charities, trusts or unincorporated associations such as clubs and societies.
- Earn interest whilst supporting UK-based charities and community enterprises.
- Earn 0.47% AER.
- Fixed account locks money away for up to 1 year.
- Apply online.
- Minimum deposit of £10,000.
- Maximum deposit of £500,000.
- Single deposit only and no mid-term withdrawals.
- On maturity, you can nominate an account for the fund to go to.
Website: Charity Bank
Read the full Charity Bank Business Savings Account review.
13. Hampshire Trust Bank
- Savings accounts for charities, trusts, clubs, associations and societies.
- Fixed and variable rate savings accounts.
- Fixed term bonds and notice accounts.
- 1.11-1.20% AER available on fixed-rate accounts.
- Fixed accounts for 1 or 2 years.
- 0.75-0.85% AER available on notice accounts.
- 95 and 120 day notice accounts.
- Minimum investment of £5,000.
- Maximum investment of £750,000.
- 4.6/5 average rating on Feefo.
Website: Hampshire Trust Bank Charity Savings
Read the full Hampshire Trust Bank Account review.
14. Redwood Bank
- Savings account only, no current account.
- Available to clubs, societies, associations and charities.
- Notice and bond accounts.
- Access your cash with 35 or 95 days’ notice.
- 1 year savings bond.
- 0.70-0.90% AER available.
- Save from £10,000 to £1,000,000.
- Add up to 4 authorised users.
- Pay in and out through a nominated current account.
- Apply online in 15 minutes.
Website: Redwood Bank Charity Savings
Read the full Redwood Bank Account review.
FAQ
Who can get a charity bank account?
Charity bank accounts are open to a range of organisations, as long as they’re not-for-profit. This can include charities, clubs, societies, trusts, religious organisations and more.
Here’s who can generally get a charity bank account:
Registered Charities: Organizations officially registered with the Charity Commission in England and Wales, the Office of the Scottish Charity Regulator in Scotland, or the Charity Commission for Northern Ireland. Registration usually requires the charity to have charitable purposes, provide public benefit, and operate within the respective legal framework.
Community Groups: Small local groups such as sports clubs, community gardens, and hobby clubs that operate on a not-for-profit basis. These groups might not be formally registered as charities but still qualify for charity banking services due to their not-for-profit nature.
Social Enterprises: Businesses that have a primary social or environmental mission and use their profits to further these goals. While they operate like businesses, they can often access charity banking if they have clear social objectives and reinvest their profits into their mission.
Clubs and Associations: This includes non-profit entities such as amateur sports clubs, social clubs, and member associations that are organized on a non-profit basis for the benefit of their members or the public.
Trusts: Charitable trusts established for charitable purposes, even if they are not required to or have not registered with the charity commission, may still qualify for a charity bank account based on their activities and constitution.
Faith Groups: Religious organizations that conduct charitable work or operate on a not-for-profit basis, including places of worship and associated charitable groups.
Requirements
To open a charity bank account, you’ll typically need to provide:
Proof of Charity Status: A charity registration number or documentation proving your status as a not-for-profit organization, such as a constitution or governing document.
Identification and Addresses: Personal identification and proof of address for trustees, directors, or committee members.
Governing Documents: Your charity’s governing document (e.g., trust deed, constitution, memorandum and articles of association) that outlines the charity’s purposes and how it is run.
Financial Information: Depending on the bank, you may need to provide recent financial statements or details of your fundraising activities.
Are charity bank accounts free?
Many charity accounts offer free banking features or fixed free periods, as long as turnover doesn’t exceed a specific amount. There can be extra charges for specific services.
What sort of charges do charity bank accounts have?
Charity bank accounts sometimes charge for Direct Debits, transfers, paying in cheques, or any kind of borrowing facility.
A maintenance fee may also be introduced if the charity is processing large amounts on a regular basis.
Do charity bank accounts earn interest?
Some charity bank accounts will earn a small amount of interest. To earn more, charities and community organisations can access higher interest rates if they save with a fixed or notice account.
How to open a charity bank account?
Here’s a step-by-step guide to help you through the process:
1. Confirm Your Charity Status
Ensure your organization is officially recognized as a charity or not-for-profit entity in the UK. This could mean being registered with the Charity Commission for England and Wales, the Scottish Charity Regulator (OSCR), or the Charity Commission for Northern Ireland, depending on where your charity operates.
2. Choose the Right Bank
Research banks that offer specialized accounts for charities. Compare their fees, services, benefits, and any restrictions. Consider also any ethical banking principles that may align with your charity’s values.
3. Prepare Necessary Documentation
To open a charity bank account, you will typically need to provide:
Proof of Charity Status: Your charity registration number and documentation proving your status.
Identification Documents: Valid identification (such as passports or driving licenses) and proof of address for all trustees or officers authorized to operate the account.
Governing Documents: Your charity’s constitution, trust deed, or other governing documents that outline the purpose and management of your charity.
Minutes of Meetings: Documented proof of the decision to open a bank account and the appointment of the individuals authorized to do so, typically from a meeting of the trustees or governing body.
Financial Information: Recent financial statements or a business plan, especially if your charity is newly established.
4. Apply for the Account
Contact the bank to begin the application process. This can often be started online, but you may need to complete it in person or over the phone, depending on the bank’s requirements.
5. Complete the Bank’s Verification Process
The bank will conduct checks to verify the identities of the trustees or officers and the legitimacy of your charity. This is part of their due diligence and anti-money laundering regulations.
6. Set Up Banking Arrangements
Once your account is open, set up any necessary banking arrangements. This includes internet banking, debit cards, and cheque books, as well as arranging for any standing orders or direct debits.
7. Notify Stakeholders
Inform relevant parties (donors, grant providers, partners) of your new bank account details to ensure future transactions are directed to the correct account.
Tips to speed things up
Be Prepared: Having all your documents prepared and understanding the bank’s requirements can speed up the process.
Ask Questions: If you’re unsure about any part of the process, ask the bank for clarification to avoid any misunderstandings or delays.
Banking Needs: Consider your charity’s specific banking needs, such as foreign transactions if you operate internationally, and ensure the bank account you choose can accommodate these needs.
Review Regularly: Banking needs can change, so review your banking arrangements periodically to ensure they still meet your charity’s needs.
Opening a charity bank account can take some time, so it’s advisable to start the process well before you anticipate needing the account to ensure your charity’s financial operations run smoothly.
How long does it take to open a charity bank account?
Many banks pride themselves on being able to open accounts within a few hours, but it may take longer if the charity’s circumstances are unique, complex, or there’s extra paperwork to manage.
You’ll need to wait a few days to receive debit cards and cheque books through the post.
* Note we have an affiliate relationship with both Virgin Money and HSBC.