Bank accounts for community groups

Information for community groups about choosing a bank and opening an account.

Most community groups need to have a bank account in the name of the group. It is important for keeping track of your group’s money and making sure it does not get mixed up with individuals’ money. You also need a bank account in order to apply for grants, and should have one if you are collecting donations or fees.

How to open an account
Choosing a bank
List of bank accounts for community groups

If your group cannot open a bank account for some reason, or you need a system to use while you wait for your account to be opened, you may want to consider using a fiscal hosting service like the one provided by The Social Change Nest CIC. The Social Change Nest acts like a bank and holds money on behalf of your group. It is designed specifically for community groups who do not have bank accounts, and you can use their online platform to manage your incoming and outgoing money. There is a set up cost of £42 and then a fee of 5-7% on incoming funds.

How to open an account

Opening a bank account for your community group 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. The bank may still write to ask for further details before opening the account.

Before applying for an account, check that:

The account is specifically for community groups, or charities if your group is a charity. Banks usually refer to community groups as “Clubs and Societies”. Note that some banks only offer accounts to registered charities.
The account is not for businesses. Banks usually charge more for business accounts. (Confusingly, community accounts are usually managed by the same team in the bank as business accounts, and will be listed on bank websites under “Business” rather than “Personal”. So you will need to go to the Business section of the website, but choose a Community or Club and Society account.)

To open a Club and Society account you will be asked for proof that your group is a voluntary, non-profit-making organisation and not a private business.

This could be one of the following:

Copy of your group’s Constitution
Charity Registration confirmation / Trust deed (if group is a charity)
Memorandum and Articles of Association (if the group is a limited company)

Some banks may require other information about your group, such as the minutes of a meeting which records agreement about the specific choice of bank.

Make sure you set your account up so that at least two people are required to sign each cheque, or approve withdrawals. If possible, it’s a good idea to have at least three people who are named as ‘signatories’ for the account, any two of whom can sign cheques. However, some banks have a maximum of two signatories.

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. The bank will ask for their personal details, including date of birth and home addresses for the past three years.

Unless they have an account with that bank already, the signatories will need to provide:

Proof of identity – e.g. driving licence, passport
Proof of address – e.g. utilities bill, benefit letter, tax demand

New applicants may also need to provide several months’ worth of personal bank statements, or other proof of their financial situation.

Most banks now offer internet banking and the use of debit cards. These are very convenient but do not generally give the security of a cheque payment that requires two signatories. Some banks offer online dual authorisation for bank transfers. Alternatively, your group could set up an internal system to ensure the account is checked on a regular basis and that all internet and card payments have to be approved by two people. For more information on how to look after your money and keep your accounts, see our information sheets Your Group’s Money, Role of the Treasurer and Financial Rules.

Tax residency form

Several banks have recently begun sending out forms to organisations who open bank accounts with them, which ask about your tax residency. We have put together some information for small groups in the UK on how to fill in this form (it’s less complicated than it looks!)

Choosing a bank

Most high street banks offer some kind of community group account.

It’s important to make sure the account meets your group’s particular needs. Does it provide the banking methods you want (e.g. cheque book, internet banking, phone banking, debit card)? Is there a branch located in a place that is convenient for your group? Can you afford the bank charges? Is the account only available for registered charities? Some groups also choose to consider whether they feel happy with the ethics of the bank they use. The Move your Money campaign provide advice about this.