Information to help your group run well
Bank Accounts
for Voluntary and Community Organisations
Contents
- Guidelines on opening an account
- Comparison table of bank accounts available to community groups
- Further information about individual bank accounts
Guidelines on opening an account
Most banks and building societies offer special accounts for small voluntary and community organisations and give free banking as long as your account is in credit. The conditions and benefits vary slightly from bank to bank - the details for each are listed in this fact sheet.
Opening a bank account can take several weeks, or even a few months. Be careful to fill the application form in thoroughly, and send all the information that is requested. This should be sufficient, but the bank may still write to ask for further details before opening the account.
You will be asked for proof that your group is a voluntary, non-profit-making organisation and not a private business. Ensure that you make this clear or you will be treated as a small business and have to pay charges.
This could be one of the following:
- Copy of your group's Constitution
- Letter from the chair and secretary of your group
- Copy of resolution passed at AGM authorising your group to open an account with the bank
- Charity Registration confirmation/Trust deeds (if group is a charity)
At least two people should sign each cheque that your group writes, or each time you withdraw money from the account. You can have a pool of people who are named as 'signatories' for the account, any two of whom can sign cheques. The signatories should be people with good credit ratings (i.e. no 'bad debts') as the banks will run credit checks on all the signatories. Unless they have an account with that bank already it will be necessary for them to go to the branch in person with:
- Proof of identity - e.g. driving licence, passport, child benefit book
- Proof of address - e.g. utilities bill, benefit book, tax demand.
Many banks now offer internet banking and the use of debit cards. These are very convenient but do not give the security of a cheque payment that requires two signatories. Your group will need to set up a system to ensure the account is checked on a regular basis and that all internet and card payments have to be signed by two people.
For more information on how to look after your money and keep your accounts see our information sheet on 'The Treasurer's Job'
All the accounts listed offer ‘free banking’, i.e. no day-to-day charges, unless specified. You will still be charged for things like going overdrawn, stopping cheques, extra statements etc.
When you are looking for information on the internet, remember that most banks refer to community and voluntary organisations as ‘Clubs and Societies’. Accounts for these groups are usually managed by the bank’s ‘Business Banking’ department.
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Comparison table of bank accounts available to community groups
| Banks and Account Names | Deposit/Current | Access by | How | Initial down-payment |
|---|---|---|---|---|
|
Barclays Bank Community Account |
Current | Chequebook Debit card |
Online Phone Branch |
None required |
|
CAF Bank CAF Cash Account |
Current | Chequebook Cash card |
Online Phone Post Branch (HSBC) |
£1,000 |
|
CAF Bank CAF Gold Account |
Deposit | Paying-in book | Online Phone Fax Branch (HSBC) |
£1,000 |
|
The Co-operative Bank Community Directplus |
Current | Chequebook Debit card |
Online Phone Post Branch Post Office |
None required |
|
HSBC Community Account |
Current | Chequebook Cash card |
Online Phone Branch SMS |
None required |
|
HSBC Community Savings Account |
Deposit | Paying-in book | Online Phone Branch SMS |
None required |
|
Lloyds TSB Treasurer's Account |
Current | Chequebook Paying-in book Cash card |
Online Phone Branch |
None required |
|
Natwest Bank Community Account |
Current | Chequebook Cash card |
Online Phone Branch |
None required |
|
Nationwide Building Society Treasurer's Trust Account |
Current | Passbook | Branch | £50 |
|
Triodos Bank Charity Current Account (N.B. banking charges apply) |
Current | Chequebook Paying-in book |
Online Phone Post |
None required |
|
Triodos Bank Business & Charity Deposit Account |
Deposit | Online Phone Post |
None required | |
|
Unity Trust Bank Ideal Current Account |
Current | Chequebook Paying-in book Top-up MasterCard |
Online Phone Post |
None required |
|
Unity Trust Bank Ideal Deposit Account |
Deposit | Paying-in book | Online Phone Post |
None required |
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Further information about individual bank accounts
Barclays Bank
Account for Clubs, Associations and Charities
| Account type |
current |
|---|---|
| Access by |
chequebook, paying in book, and up to 3 debit cards |
| How |
online, phone, branch |
| Fees |
none |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£100,000 |
| Credit interest |
none |
| Application methods |
phone, local branch |
| Other information |
only for not-for-profit groups which are of benefit to the wider community (call to check eligibility), 2 to 3 signatories necessary |
Contact details
Tel: 0800 515 462 (Community Account Manger)139/140 North Street, Brighton
Other local branches: Preston Road, Church Road, Lewes Road, Hangleton Road, Boundary Road
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CAF Bank (Charities Aid Foundation)
CAF is a registered charity which provides tailor-made financial products and services for the voluntary sector.
CAF Cash Account
| Account type |
current |
|---|---|
| Access by |
chequebook, paying in book, ATM cash card |
| How |
online, phone, post, HSBC cash points and branches |
| Fees |
none for standard day-to-day transactions |
| Initial down-payment |
£1,000 |
| Minimum balance |
£1 |
| Maximum turnover |
none |
| Credit
interest |
pays 0.10% AER on credit balances (at 05/08/11) |
| Application methods |
online, phone |
| Other information |
available only to registered charities and organisations with an Inland Revenue exemption number, and CICs |
CAF Gold Account
| Account type |
deposit |
|---|---|
| Access by |
paying-in book |
| How |
online, phone, fax, HSBC branches |
| Fees |
this is a savings account, so there is no charge for deposits or transfers between and your CAF Cash Account, but there would be fees on many other transactions. |
| Initial down-payment |
£1,000 |
| Minimum balance |
none |
| Maximum turnover |
none |
| Credit
interest |
pays 0.20% AER on credit balances up to £249,999 (at 05/08/11), and higher interest on higher balances |
| Application methods |
online, phone |
| Other information |
available only to registered charities and organisations with an Inland Revenue exemption number, and CICs; this is savings account that can be used alongside you CAF cash account to enable you to receive higher rates of interest on your savings; can transfer payments to and from CAF Cash account at any time |
Contact details
Tel. 03000 123 222www.cafonline.org
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The Co-operative Bank
Community Directplus
| Account type |
current |
|---|---|
| Access by |
chequebook, debit card |
| How |
online, phone, post, local branch, Post Office |
| Fees |
free banking on accounts with a credit turnover of less than £1 million per annum, less than £100,000 cash deposits and less than 5,000 cheques deposited per year |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£1 million |
| Credit
interest |
interest paid on balances of £2,000 and above (variable dependent on credit amount) (at 08/02/10) |
| Application methods |
online, phone |
| Other information |
groups can apply for project funding of up to £1,000 from the Customer Donation Fund |
Contact details
164/165 Western Road, BrightonTel: 0800 783 4741
www.co-operativebank.co.uk (go to Business Banking)
Other local branches: Nevill Road
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HSBC
Community Account
| Account type |
current |
|---|---|
| Access by |
chequebook, cash card |
| How |
online, phone, local branch, SMS |
| Fees |
free banking for clubs, societies and charities with an annual turnover of under £100,000 |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£100,000 (for free banking) |
| Credit
interest |
none |
| Application methods |
phone, branch |
| Other information |
free monthly statements and Audit Letter of Certificate of Balance at the end of the financial year for tax purposes |
Community Savings Account
| Account type |
deposit, instant access |
|---|---|
| Access by |
paying-in book |
| How |
online, phone, local branch, SMS |
| Fees |
none |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£100,000 |
| Credit
interest |
pays up to 0.05% AER (variable) on credit balances up to £100,000 (at 05/08/11), then it increases depending on how much you have in the account. |
| Application methods |
phone, branch |
| Other information |
transfer funds instantly between your savings and community account; an account can be opened on the same day if you go into the branch with at least two of the signatories, ID, and all other paperwork (check what you need beforehand); they will help you fill out the form. |
Contact details
North Street, BrightonTel: 0800 731 8904
www.hsbc.co.uk/1/2/business/accounts/community-account
Other local branches: Ditchling Road, London Road, Western Road, Church Road, Dyke Road (Seven Dials), Boundary Road
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Lloyds TSB
Treasurer's Account
| Account type |
current |
|---|---|
| Access by |
chequebook, paying in book, cash card |
| How |
online, phone, local branch |
| Fees |
none |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£50,000 |
| Credit
interest |
none |
|
Application methods |
online, phone, branch |
| Other information |
for non-profit making organisations |
Contact details
171 North Street, Brighton, BN1 1GLTel: 0800 056 0056
www.lloydstsbbusiness.com/community/accounts/treasurersaccount.asp
Other local branches: Preston Circus, St George's Road, West Street, Station Road (Portslade)
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NatWest Bank
Community Account
| Account type |
current |
|---|---|
| Access by |
chequebook, cash card possible but you need to fill out a separate application, need two signatories and explicit approval noted within the constitution |
| How |
online, phone, local branch |
| Fees |
free banking if your annual turnover is less than £100,000 |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£100,000 |
| Credit
interest |
none |
| Application methods |
online, branch |
| Other information |
free audit certificate |
Contact details
Tel: 0800 096 8334 Contact one of the larger local branches such as Churchill Square, or Castle Square, North Roadhttp://www.natwest.com/business/products/business-current-accounts/community-account.ashx#tabs=section1
Local branches: Lewes Road, London Road, Church Road, Western Road
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Nationwide Building Society
Treasurer's Trust Account
| Account type |
current, instant access |
|---|---|
| Access by |
passbook |
| How |
local branch only |
| Fees |
no charge for cash or cheque withdrawals; maximum withdrawal allowed without prior arrangement is £500 |
| Initial down-payment |
£50 |
| Minimum balance |
£1 |
| Maximum turnover |
£2 million |
| Credit
interest |
pays 0.01% AER (variable) on all credit balances up to £2 million (at 10/8/11) |
| Application methods |
branch |
| Other information |
cheques can be issued for you by the bank free of charge |
Contact details
New Oxford House, West Street, BrightonTel: 0845 2660321 local branches / 0845 2660346 London Road branch number
www.nationwide.co.uk/savings/business_accounts/treasurerstrust/introduction.htm
Other local branches: Church Road, London Road, George Street
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Triodos Bank
Triodos Bank works specifically with 'organisations and groups which create real social, environmental and cultural value'.
Charity Current Account
| Account type |
current |
|---|---|
| Access by |
chequebook, paying-in/deposit book |
| How |
online, phone, post |
| Fees |
charges made for day-to-day banking, e.g. 40p charged per cheque deposited |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
none |
| Credit
interest |
interest on credit balances (0.05% AER over £5,000 and under £25,000) (at 10/8/11) |
| Application methods |
download an application form from the website and post it off |
| Other information |
for registered charities only, but Social Venture Current Account is available to groups that are not registered as charities, but do meet the criteria listed above (higher banking charges apply); overdraft facilities by arrangement; foreign payment facilities |
Business and Charity Deposit Account
| Account type |
deposit |
|---|---|
| Access by |
|
| How |
online, phone, post |
| Fees |
free payments into account including direct debits, standing orders, BACS |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
none |
| Credit
interest |
interest varies dependent on quantity of credit balance and whether or not account is instant access (at 10/8/11) |
| Application methods |
phone, email |
| Other information |
not available |
Contact details
Brunel House, 11 The PromenadeBristol, BS8 3ZZ
Tel: 0800 328 2181
www.triodos.co.uk
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Unity Trust Bank
This is a bank specifically for non-profit making organisations, and has a variety of current and deposit accounts available. While the rates and facilities don't vary hugely from the high street banks and building societies, the service may be more tailored to your needs and the investment of the bank goes into more ethical areas (community development).
Small Organisation Custom Account
| Account type |
current |
|---|---|
| Access by |
chequebook, paying-in book, prepaid ('top-up') MasterCard |
| How |
online, phone, post |
| Fees |
free banking for standard day-to-day transactions |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
£50,000 |
| Credit
interest |
none |
| Application methods |
online, phone |
| Other information |
the prepaid MasterCard can be used wherever this is accepted, including shops, cash machines, online, mail order, phone; needs to be pre-loaded with a certain amount to be used; designed for individual use so will include the name of the individual cardholder; the MasterCard costs £6 each plus 50p for initial top-up, a £1 charge for ATM withdrawals and £3 for over-the-counter withdrawals; the card is valid for 3 years |
Ideal Deposit Account
| Account type |
deposit, instant access |
|---|---|
| Access by |
paying-in book |
| How |
online, phone, post |
| Fees |
none |
| Initial down-payment |
none |
| Minimum balance |
none |
| Maximum turnover |
none |
| Credit
interest |
0.08% AER up to £9,999; increases if you have a higher balance (at 10/08/11) |
| Application methods |
online, phone |
| Other information |
not available |
Contact details
9 Brindley Place, Birmingham, B1 2HBTel: 0845 140 1000
www.unity.uk.com
us@unity.co.uk
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