If you are a charity or community group, you are probably looking to keep your overheads low but have a flexible account that meets your needs.
This guide gives you the details about the best deals for community and charity business bank accounts from the leading banks through to the lesser known providers.
The table below gives a quick price comparison of the top UK charity and community group bank account providers.
| Company | Monthly Fee* | Requirements |
|---|---|---|
| Lloyds Bank | Free | Annual turnover under £50,000 (Treasurer's) or £3 million per year (Credit Union) |
| Metro Bank | Free | Annual turnover below £2 million |
| Bank of Scotland | Free | Annual turnover under £50,000 |
| Barclays | Free | Not stated |
| Yorkshire Bank | Free | Annual turnover under £1 million |
| HSBC | Free | Annual turnover under £100,000 or place of worship |
| TSB | Free | Annual turnover below £50,000 |
| Santander | Free | Annual turnover below £250,000 |
| NatWest | Free | Annual turnover below £100,000 |
| Royal Bank of Scotland | Free | Annual turnover below £100,000 |
| Ulster Bank | Free for 24 months | Annual turnover below £250,000 |
| Cooperative Bank | Free | Annual turnover under £1 million |
| Clydesdale Bank | Free | Annual turnover under £1 million |
| United Trust Bank | Free | Minimum £5,000 deposit |
| Charity Bank | Free | Minimum £1,000 deposit |
| Hampshire Trust Bank | Free | Minimum £5,000 deposit |
| Triodos Bank | Free | Turnover of £5,000 or more |
* The prices included here come from each company’s website and were accurate at the time of writing (August 2020) but may have since changed. Also, please keep in mind these may not be apples to apples comparisons as each provider charges different fees for different transactions. This guide should be used as a starting off point for more research on your part.
Below we profile each company’s plans and features in a bit more detail.
Topics
1. Lloyds Bank
Some of the features and benefits of Lloyds Bank’s community and charity business bank account.
- Two types of accounts – Treasurer’s Account and Credit Union Account
- Free day-to-day business banking subject to eligibility criteria
- Support and guidance
- Monthly statements
- Multiple signatories
- Quick and simple account setup*
- Online and phone account management*
- Free presentation cheques*
- Withdraw funds when needed without giving notice*
- Cash deposits credited the same day and immediate access to cleared funds**
Lloyd Banks‘ Treasurer’s Account offers free day-to-day business banking for organisations that have a turnover of under £50,000 per year and subject to the account staying in credit. The account is simple to set up, arrange additional signatories and set up direct debits. It offers free monthly statements to help monitor the account.
The Credit Union Account offers free day-to-day business banking to organisations with a turnover under £3 million per year. Cash deposits will be credited the same day and will benefit from immediate access to cleared funds. Cheques and paying in books are available with one or more signatories.
*Treasurer’s Account
**Credit Union Account
2. Metro Bank
Some of the features and benefits of Metro Bank’s community and charity business bank account.
- No monthly account fee
- First 200 monthly transactions are free
- Free cash withdraws/deposits below £10,000 per monthly
- No charges for using debit cards in many European countries
- Local Business Manager as a dedicated contact
- Bank in store 7 days a week, 8am – 8pm weekdays
- 24/7 telephone, internet and mobile app banking
- Easy switching service
- Free presentation cheques for funding raising
Metro Bank offers charities and community groups a special bank account that aims to reduce the costs of their service and it is virtually free depending on whether you exceed their limits.
Metro Bank has set up its services to help customers who need to access their services outside normal business hours such as charities and community groups. Metro Bank’s stores have extended opening hours to allow its customers great access to their stores and to see the Local Business Managers. You do not need an appointment in their stores, so you can drop in whenever you need.
Metro Bank also provides 24/7 telephone banking from a UK based call centre as well as mobile app and online banking services to give you the greatest flexibility to manage your account wherever you are.
3. Bank of Scotland
Some of the features and benefits of the Bank of Scotland’s community and charity business bank account.
- Free day-to-day business banking with a turnover under £50,000
- Access to manage your account online or over the phone
- A range of ongoing support and guidance
- Opening a Treasurer’s account is easy
- Able to withdraw funds when needed without notice required
- Easily add new signatories
- Easily set up direct debits and standing orders online
- Free monthly statements to enable funding to be monitored easily
- Free presentation cheques
Bank of Scotland offers a specialist bank account for clubs, charities and societies that give their customers free day-to-day business banking for those with a turnover under £50,000 per year and as long as the account is still in credit.
This specialist account offers easy access and changes to the account such as adding a second signatory and setting up payments online. The account can be managed online, over the phone or in a branch.
Bank of Scotland also support their customers with this clubs, charities and societies account to help them manage the group’s finances with ongoing support and guidance.
4. Barclays
Some of the features and benefits of Barclays’ community and charity business bank account.
- Available for clubs, associations and charities
- Easy, accessible banking and support
- Service Guarantee to resolve issues
- Payments via online banking, mobile, and Pingit
- Debit and credit cards
- Cash withdrawals of up to £750 per day
- Contactless payments up to £30
- Can contact the Everyday Banking Team 24/7
- Access to Barclays Mobile Banking app
Barclays offers a specialist bank account designed to cater for not-for-profit organisations including clubs, associations and charities. Barclays has tried to make their Community Account more accessible and easy to use for community groups and charities and give them access to innovative ways to use their account.
As part of the Community Account offering, you can opt to use Pingit which will allow community groups, clubs and associations to receive payments from their members through a mobile number. It also allows the organisation to request payments through this facility.
5. Yorkshire Bank
Some of the features and benefits of Yorkshire Bank’s community and charity business bank account.
- Free day-to-day business banking for charities with a turnover below £1 million
- Unlimited deposits and withdrawals
- Credit interest is linked to the base rate
- Dedicated Relationship Manager
- Cheque book and paying book available in your charities name
- Choice of statement frequency
- Also offers Charity Term Deposit Account and Charity Instant Access Account
- Access to your account via phone, mobile, internet and in branch
- Access to an agreed overdraft
Yorkshire Bank offers three bank accounts that are designed for charities and not-for-profit organisations. The Business Choice Charities Account is only available to registered charities with a turnover under £1 million and it offers free banking.
There are also two not-for-profit accounts. Clubs and Societies Account or Clubs and Societies Choices Account which are available to clubs, societies and not-for-profit organisations.
Clubs, societies, not-for-profits and charities have the option to reduce the costs of their bank account by selecting a free monthly fee and no transaction charges but with lower or nil credit interest rate, however, this is limited to only 10 transactions per month.
6. HSBC
Some of the features and benefits of HSBC’s community and charity business bank account.
- Free banking for a range of community groups, charities and not-for-profit organisations
- Choice of monthly or quarterly statements
- Free Audit Letter of Certificate of Balance
- Choice of banking methods
- Manage your account in branch, by phone or text
- Access to the Knowledge Centre for support and guidance
- Access to the Trustee Guide
- Free change supplied at branches
- Apply online
HSBC offers a bank account for clubs, societies, charities and places of worship that gives them free banking. Clubs, societies and charities need to have an annual turnover below £100,000 to be eligible for the account. There are no income limits placed on places of worship.
HSBC aims to support clubs, societies, charities and places of worship by providing them with support in their branch, online and over the phone. They also have an online Knowledge Centre that gives organisations access to a wealth of information, tools and support to help them manage their finances.
7. TSB
Some of the features and benefits of TSB’s community and charity business bank account.
- Free day-to-day banking for organisations with a turnover under £50,000
- Bigger not-for-profit organisation can benefit from the new customer 18 months free banking offer
- Support from an experienced relationship manager
- No notice required for withdrawals
- No minimum deposit required to open the account
- Secondary signatory on the account
- Internet banking 24/7
- Access to branch services in 550 branches
- Telephone banking
- Free text message alerts for account balances
TSB has a specialist bank account designed for Treasurer’s who manage small, not-for-profit organisations that have a turnover under £50,000. The Treasurer’s account is suitable for a range of organisations including charities, church finances, community clubs, societies or groups.
Larger not-for-profits with a turnover over £50,000 will be placed on the Business Extra Tariff but you can select a different tariff if you wish.
The Treasurer’s account offers free day-to-day banking as long as the account stays in credit. TSB will give you an experienced relationship manager to help support your organisation and manage your needs.
8. Santander
Some of the features and benefits of Santander’s community and charity business bank account.
- Designed for clubs, societies and charities
- Free day-to-day banking
- Eligible to organisations with up to £250,000 annual turnover
- Online account management
- Mobile banking
- Online support and guidance
- Allowance of up to 3 signatories
- Also offer a specialist savings account
Santander has created an account that is designed specifically for the needs of not-for-profits and charities such as clubs and societies which have an annual turnover of under £250,000. The account is a called a Treasurer’s Current Account and it offers eligible not-for-profits organisations free day-to-day banking which includes full banking facilities.
Santander has made the account easy to use and access through secure online banking and mobile banking to allow organisations to bank when it suits them. Santander also gives Treasury Current Account customers the option to have up to 3 signatories.
9. NatWest
Some of the features and benefits of NatWest’s community and charity business bank account.
- Free day-to-day banking for eligible organisations
- Created for not-for-profit limited companies, charities and community groups
- Access to the award-winning mobile banking app
- 24/7 online banking and phone banking
- Text and email alerts
- Cheque book and paying in book
- Uses the Current Account Switch Service
- Backed by the Current Account Switch Guarantee
NatWest’s Community Account is designed for not-for-profit organisations and small businesses. Not-for-profit organisations with an annual turnover under £100,000 are eligible for free day-to-day banking. If the turnover exceeds £100,000 after the first 18 months of operating, you will be automatically moved on to their standard banking tariff.
Small businesses are also eligible for this account if they are newly established and have an annual turnover below £2 million. Eligible small businesses will receive 18 months free day-to-day banking.
The Community Account is designed for not-for-profit limited companies, clubs, societies, churches and places of worship, registered and unregistered charities, charitable incorporated organisations and non-personal trusts.
10. Royal Bank of Scotland
Some of the features and benefits of Royal Bank of Scotland’s community and charity business bank account.
- Free day-to-day banking for eligible organisations
- Created for not-for-profit limited companies, charities and community groups
- Everyday banking support
- 24/7 online banking and phone banking
- Mobile banking app
- Text and email alerts
- Cheque book and paying in book
- Uses the Current Account Switch Service
- Backed by the Current Account Switch Guarantee
Royal Bank of Scotland has designed their Community Account with not-for-profit organisations in mind and it is open to not-for-profit limited companies, clubs, societies, churches and places of worship, registered and unregistered charities, charitable incorporated organisations and non-personal trusts. The account is free for those organisations with a turnover below £100,000 per year.
Royal Bank of Scotland has created the account to enable community groups and not-for-profit organisations to access everyday banking services that cater for their needs. The Community Account is a fully digital account with access to the account online, through their mobile banking app, and alerts can be sent up and received by text or email.
11. Ulster Bank
Some of the features and benefits of Ulster Bank’s community and charity business bank account.
- Must be a not-for-profit organisation
- Free transactional banking for 24 months
- Created to meet not-for-profit organisations needs
- Gives practical support
- They have a good understanding of the sector
- Online banking options
- Branch support
- Telephone banking
Ulster Bank has created their Not for Profit Account to cater for charities, community or voluntary organisations, social enterprises, religious organisations, and Community Development Financial Institutions. Deemed charities can also use this account. Credit Unions and educational establishments are not eligible for this account.
Ulster Bank offers not-for-profit organisations a reduced fee package when they start banking with them. Organisations with an annual turnover below £250,000 will receive 24 months free day-to-day banking. Organisations with an annual turnover between £250,000 and £1 million will receive 12 months free banking and a 50% discount on their second year. Organisations with an annual turnover that exceeds £1 million will receive 24 months discounted fees at 50%.
12. Cooperative Bank
Some of the features and benefits of Cooperative Bank’s community and charity business bank account.
- Free day-to-day business transactions
- Available to charities, cooperatives, credit unions and community interest companies
- Online account management 24/7
- Telephone banking
- Access to counter services at Post Office branches
- Can apply to the Customer Donation Fund for up to £1,000 to benefit your organisation
- Higher maximum eligibility criteria based on turnover
- Backed by the Current Account Switch Guarantee
Cooperative Bank is an ethical banking provider who aims to support and assist registered charities, community interest companies, cooperatives and credit unions. They offer these customers their banking services for free on day-to-day banking.
To be eligible for the free banking offer the organisation must have a turnover below £1 million, however, you may still be given free banking if the turnover exceeds this. Customers who deposit more than £100,000 cash or deposit more than 5,000 cheques each year may also not be eligible for the free offer.
Cooperative Bank also offers its Community DirectPlus customers the opportunity to apply for project funding from their Customer Donation Fund for funding up to £1,000.
13. Clydesdale Bank
Some of the features and benefits of Clydesdale Bank’s community and charity business bank account.
- Free day-to-day banking
- Available to registered charities
- Credit interest linked to the base rate
- Unlimited withdrawals and deposits
- Dedicated Relationship Manager
- Personalised chequebook and paying in book
- Choice of statement frequency
- Interest calculated daily and paid monthly
- A flexible account designed for charities
Clydesdale Bank has designed a business current account specifically for charities that will help them manage their account easily and effectively with minimal charges and fuss. This account is flexible, functional and user-friendly and only available to registered charities.
The Business Choice Charities Account is free to registered charities that have an annual turnover below £1 million, above this amount account transaction charges may be applied. The account is linked to the base rate for credit interest and offers unlimited withdrawals and deposits. Clydesdale Bank also offers personal contact with a Relationship Manager.
14. United Trust Bank
Some of the features and benefits of United Trust Bank’s community and charity business bank account.
- Offers deposit accounts for charities
- Fixed-term bond accounts
- Terms of one or two years
- Interested is paid annually
- No fee
- Must be registered with the UK Charity Commission
- Minimum deposit of £5,000
- Maximum deposit of £1 million
- Apply online for an account
- No withdrawals, transfers or closures are allowed
United Trust Bank is specialist lending provider that offers a range of lending products to individuals and businesses, and deposit accounts for individuals, businesses and charities. They offer charities a choice of a one year or two year fixed term bond accounts.
United Trust Bank’s fixed term bond accounts do not allow you to withdraw, transfer or close your account before the end of the term. Interest is paid either annual or at the end of the term depending on the length of the term. To be eligible you need to be registered with the UK Charity Commission and have a deposit between £5,000 and £1 million.
15. Charity Bank
Some of the features and benefits of Charity Bank’s community and charity business bank account.
- Offers charity and trust savings accounts
- A bank that supports charities and social enterprises
- 100-day notice account
- Minimum deposit of £1,000
- Maximum deposit of £500,000
- Can access savings after 100 days
- Interest is calculated daily and applied quarterly
- Initial deposit can be paid by cheque or electronic transfer
- Further deposit can be made by Direct Debit as well
- Unlimited account holders
Charity Bank is a bank that is owned by charitable foundations, trusts and social purpose organisations which is what makes them an ethical bank. They support charities and social enterprises with loans and savings products. Their savings account includes a 100-day notice account.
Charity Bank’s 100-day notice account has a minimum deposit amount of £1,000 and a maximum of £500,000 which can be made either by cheque or electronic transfer, after the first deposit you can also make deposits by Direct Debit. They calculate interest daily and apply it to your account quarterly. The 100-day notice account also allows you to have unlimited account holders.
16. Hampshire Trust Bank
Some of the features and benefits of Hampshire Trust Bank’s community and charity business bank account.
- Offers a charity savings account
- Fixed or variable rate savings account
- Competitive rates
- 95-day notice account
- Fixed 1-year term
- Minimum investment of £5,000
- Maximum investment of £750,000
- Interest is applied annually
- No instant access
- Notice account allows you to add to it during the term
Hampshire Trust Bank is a banking provider that specialises in business finance, specialist mortgages, development finance solutions and saving accounts. Their product range offers two charity savings accounts which are a fixed or variable rate saving accounts.
Hampshire Trust Bank’s fixed rate charity savings account has a 1-year term with a minimum investment of £5,000 and a maximum of £750,000 and the interest is paid annually with no withdrawals. Their variable rate charity savings account is a 95-day notice account which has a minimum investment of £5,000 and a maximum of £750,000 and the interest is paid annually with no withdrawals without notice, but you can add further funds.
17. Triodos Bank
Some of the features and benefits of Triodos Bank’s community and charity business bank account.
- Offers a Charity Current Account
- Everyday banking
- Provided by an ethical bank
- Lower banking charges
- Allows you to set up Direct Debits and Standing Orders
- Enables you to make and accept foreign payments
- Provides cheques facilities
- Pay in cheques by post
- Earn interest on balances over £5,000
- Other facilities may be available on request
Triodos Bank is a banking provider that is an ethical provider which caters for charities and social ventures. They offer services which include bank accounts, savings account and loans which includes a Charity Current Account.
Triodos Bank’s Charity Current Account offers everyday banking that provides charities with lower banking charges. The account allows you to set up Direct Debits and Standing Orders, make and accept cheques that you can deposit through the post. They only apply interest to your account when the balance exceeds £5,000. They can provide non-standard facilities like encashment facilities, over the counter deposits, overdrafts and loans on request if eligible.
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