Funding · Banking

Community group bank accounts

A current UK comparison for registered charities, unincorporated groups and CICs, with provider eligibility, fees and account controls checked against official pages.

Published by ·Last updated 14 July 2026·9 min read

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What you actually need from a community bank account

  • Acceptance of your legal structure.Most mainstream banks now turn away unincorporated groups without a constitution; some won't accept CICs; specialist banks accept all the small-organisation forms.
  • Dual-signatory authorisation (“two-to-sign”). The Charity Commission's internal-financial-controls guidance effectively expects this. Specialist banks support it natively; some app-based business accounts don't.
  • Low or zero monthly fee for the small-scale operation. Compare the complete tariff because a fee-free account can still charge for cash, cheques or manual payments.
  • Free everyday transactions in volume — most specialist accounts cap free transactions; check the limits.
  • FSCS protection. Since 1 December 2025, eligible charity deposits are protected up to £120,000 per charity, per authorised bank or banking group. Use the FSCS charity guidance and licence checker before placing larger reserves.
  • Trustee KYC familiarity. Mainstream banks increasingly want to identity-check every named trustee as a Key Account Person. Specialist banks are practised at this; high-street SME banks often are not.
  • Online banking with shared visibility. Trustees and treasurer should both be able to see balances. Confirm who can view, create and approve a payment, and whether the account can enforce the mandate online.

Six community and charity accounts compared

Fees and eligibility below were checked against the banks' official product pages on 14 July 2026. Product terms change, and every application remains subject to the provider's checks.

BankAcceptsMonthly feeBest for
Co-operative Bank Charity & CommunityRegistered or exempt charities, registered CICs, eligible co-ops/community benefit societies and credit unionsNo monthly service feeEligible organisations below the published account limits; multiple users and payment authority
CAF BankRegistered, exempt or excepted charities; registered CICs and CASCs; eligible trusts£5/monthCharity-focused account with dual authorisation and cash/cheque deposits
Unity Trust BankPurpose-led organisations that pass Unity's eligibility and ethical criteria£7/month; transaction fees apply from Tier 2Single, dual or triple online payment authorisation; cash and cheque access
Lloyds Community / CharityRegistered charities plus qualifying unregistered community organisations, clubs and associationsReduced fees; check current tariffSeparate eligibility routes by legal structure; up to four signatories
Metro Bank Community CurrentUK clubs, societies and charities within its £250,000 size limit and operator cap£3/month; 200 fee-free transactionsGroups that need in-store cash and cheque services
Virgin Money Charity / Clubs & SocietiesRegistered charities; clubs, societies, unregistered charities and qualifying non-profitsNo monthly fee subject to criteria; transaction tariff variesA published route for both registered charities and unregistered groups

All six are sensible starting points for many UK community-group banking. The choice between them usually comes down to: who accepts your legal structure, who handles your cash volume cheaply, and which has the digital UX your treasurer can live with.

The standalone profiles

Co-operative Bank Charity & Community Account. No monthly service fee on the current published tariff. The eligibility list covers registered or exempt charities, registered CICs, eligible co-ops/community benefit societies and credit unions. Published account limits are £2m credit turnover, £100,000 cash deposits and 5,000 deposited cheques a year. It is not a general route for every unregistered association.

CAF Bank.Owned by the Charities Aid Foundation. The CAF Cash Account costs £5 a month, pays a variable rate of credit interest and supports online dual authorisation. CAF's current criteria include registered, exempt or excepted charities, registered CICs and CASCs, and eligible trusts. It expressly excludes an unincorporated club or society unless it is registered with a charity regulator or recognised as excepted.

Unity Trust Bank. Its current account costs £7 a month. Tier 1 (under £100,000 account turnover) includes transactions; Tier 2 adds per-transaction charges. Online banking supports single, dual or triple payment authorisation. Cash and cheques can be paid in through specified high-street partners, with cash-only access at the Post Office.

Lloyds Community / Charity Accounts. Lloyds publishes separate routes for registered charities and qualifying unregistered community organisations, clubs and associations. The published limit is less than £250,000 paid in every 12 months. Up to four signatories can be added; confirm whether the online approval controls meet your constitution.

Metro Bank Community Current. The cash-handling option in this list. It costs £3 a month and includes 200 fee-free transactions. Its current criteria cover UK clubs, societies and charities with annual turnover or balance-sheet total of £250,000 or less and no more than three account operators.

Virgin Money Charity Choice / Clubs & Societies. Virgin publishes one route for registered charities and another for clubs, societies, unregistered charities and qualifying non-profits. Both list no monthly account fee subject to qualifying criteria, but transaction charges differ; registered charities below the published £1m turnover threshold can qualify for free day-to-day banking.

For new CICs without charity status

Two practical patterns:

  • Charity-specialist: Co-op (accepts CICs); CAF Bank (accepts registered CICs); Unity Trust (serves purpose-led organisations subject to eligibility). Compare payment controls as well as fees.
  • App-based business account:check the legal form line by line. Starling's published business-account criteria generally support companies limited by shares and LLPs, while many CICs are limited by guarantee. A fast application is not useful if the structure is outside the provider's criteria or the account lacks the payment approvals your board requires.

Apply against the company type shown on the CIC's Companies House record. Do not describe a CIC as a charity unless it is separately registered as one, and do not assume that every business account supports companies limited by guarantee.

How to actually open a community group bank account

  1. Adopt a written constitution. Even informal groups need one to open an account. Charity Commission model CC22a for charitable unincorporated associations is a sensible starting point.
  2. Match the account name exactly to your governing document (and Charity Commission register, where applicable). Mismatches are the most common cause of rejection.
  3. Pass a formal resolution. A constituted meeting (committee, board, AGM) must resolve to open the account and authorise specified signatories. Minute the resolution; banks ask to see it.
  4. Gather KYC documentation for every named signatory: photo ID, proof of address (last 3 months), trustee details for the Charity Commission register where applicable.
  5. Apply. Most specialist banks have online application forms; Co-op and Unity also accept phone/post. CAF Bank application is online.
  6. Allow time for verification.Check the provider's current service information and do not make a grant deadline depend on an unconfirmed opening date.
  7. Set up dual authority (“two-to-sign”) from day one. The Charity Commission's internal-financial-controls guidance effectively expects this. Unity Trust, Co-op and CAF support dual / triple authority natively.
  8. Review protection above £120,000. Eligible charity deposits are protected up to £120,000 per charity, per authorised bank or banking group. Use the FSCS checker before splitting reserves because different brands can share one authorisation.
  9. Keep the account active. Move a small sum at least quarterly to avoid dormancy flags. Dormant accounts are the most common closure trigger.
  10. Write a banking and signatory policy that survives a change of treasurer. The next treasurer will thank you.

If you’re refused or closed

  1. Make a formal written complaintto the bank, referencing the FCA Consumer Duty (in force since July 2023) and the Charity Commission's November 2023 open letter to UK bank CEOs about substandard charity service.
  2. Escalate to the Financial Ombudsman Service if unresolved. Eligible micro-enterprises and small charities under £6.5m turnover qualify. The FOS treats charity-specialist complaints with reasonable seriousness.
  3. Notify the FCAvia the pattern-of-complaints route (0800 111 6768) if there's evidence of systemic de-risking against the charity sector.
  4. Apply elsewhere in parallel.Don't wait for resolution — the FOS process takes months and the charity needs a working account.
  5. Document the experience. The sector infrastructure bodies (NCVO, ACEVO, NAVCA, Charity Finance Group) collect this evidence; it eventually shifts regulator action.
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Frequently asked

Can we open a community group account in someone’s personal name?

Don't. Personal accounts holding community funds create a tax problem for the individual (the funds may be treated as theirs), an audit-trail problem for the group (no visibility, no dual authority), and a continuity problem (what happens when they move house or die). Open a proper account in the group's name even if you have to wait a few weeks.

Why can opening a charity account take weeks?

Banks need to verify the organisation, its governing document and the people who control or operate the account. Missing or inconsistent register, trustee, address or identity information can delay the application. Apply early and use the provider's current document checklist.

Are charity accounts free?

Some are and some are not. As checked on 14 July 2026, the Co-operative Bank lists no monthly service fee, CAF Bank charges £5 a month, Unity Trust charges £7 a month, and Metro Bank charges £3 a month. Transaction charges, turnover limits and eligibility differ, so check the bank's current tariff before applying.

Does our community group need its own bank account, or can we use the parish council’s?

Almost always its own. Mixing community-group funds with parish-council funds blurs governance, complicates audit, and exposes the council's clerk and councillors to fiduciary risk over funds they haven't formally accepted responsibility for. Many parish councils now refuse this arrangement explicitly. Run a separate account.

We’re a small CIC. Should we use a specialist or app-based bank?

Start with your exact Companies House structure and the access controls you need. Co-operative Bank, CAF Bank and Unity Trust all publish routes for CICs or social-purpose organisations. App-based business accounts can have narrower company-form rules and may not provide two-to-sign controls, so verify eligibility and payment authority before applying.

How do we handle FSCS protection above £120,000?

Eligible charity deposits are protected up to £120,000 per charity, per authorised bank or banking group. Add together every account held under the same banking licence and split larger cash reserves between separately authorised banks where appropriate. Check your organisation's eligibility and each banking group with the FSCS protection checker.

Related guides

Sources

General information, not regulated financial advice. Bank terms, eligibility caps and fees move regularly — confirm current detail with each bank before applying. Provider eligibility, fees and links last checked 14 July 2026.