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Clubs, societies and other community organisations and not-for-profits have access to dedicated current accounts, which tend to be cheaper than regular business accounts.
It takes a bit of admin to set one up, but once it’s done, it will be a big help in running your organisation smoothly. A community bank account will also be required if you want to apply for grants or collect donations. If you are looking for information about opening a bank account for a charity then we have written separate guides on current accounts and savings accounts for charities.
Most traditional banks offer dedicated “community” accounts, which are meant for non-profit organisations.
In most cases, your organisation doesn’t necessarily need to be a registered charity, but just to have a charitable purpose, a definition which covers a range of organisations including schools, community groups, sport clubs (including football clubs), societies and so on.
You should look for these accounts in the business banking section of banks’ websites, so you can get an idea of what they are like and compare different options. You’ll then usually need to apply for them in person at a branch.
You really shouldn’t, especially if your club or group is already formally set up as a non-profit. Your group is a separate legal entity and its funds should be managed accordingly, to safeguard both the organisation and yourself.
It’s also much more practical to have a separate account. While opening it may feel like a bit of a hassle, you don’t want to have to go through all your personal transactions to do your club’s accounting.
First of all, make sure you are looking at the right account. You don’t want a personal bank account, nor a standard business account; instead, what you are looking for is usually called a “community account” by the big banks.
Secondly, make sure you get fee-free banking (no monthly fees, free bank transfers, transactions and ATM withdrawals, at the very least); most offer it, but conditions will be slightly different at different banks, so make sure you compare accounts and get the most suitable to your needs.
Thirdly, make sure your organisation meets the eligibility criteria, which will also vary bank by bank. For example, in order to qualify for a community account your organisation will usually need to have a turnover below a certain limit, which can be as low as £50,000.
You’ll often need to go to a branch to open an account. Most traditional banks offer community accounts, while they are more rare among digital-only banks. Challenger bank Starling offers business bank accounts for clubs through its business account and is pretty much fee-free, so it can be a good alternative if you want to do everything online. It only offers accounts to charities that are registered with the Charities Commission if all the details are shown on Companies House.Get a free club account with Starling
It will depend on how your organisation has been formally set up (for example, is it a registered charity?) but in a nutshell, you will need to provide:
Different banks will have different rules around how you can fund your community account, and if there are charges involved. As an incentive to get you to move your personal or business banking with them too, some larger banks will offer free transfers into the community account from another account at the same bank, while charging a transaction fee for money deposited by other means.
This means that it’s incredibly important to read the terms and conditions of a high street bank’s community account before you apply.
While it’s a little trickier to find savings accounts for clubs and societies (as opposed to charities or profit-making businesses) there are still a variety of options available.
Building societies are usually more willing to open savings accounts for these types of organisations and community groups. Some even offer fixed rate bonds for those looking to lock away money in exchange for a better interest rate.
Depending on the way your club or society is structured, you may also be able to open a charity savings account. As with opening a current account for a club (as described above) your organisation will usually need to meet certain criteria. These could include:
Finally, you may also be able to save your organisation’s money with the Charities Aid Foundation, a charity and bank which offers financial services to charities, philanthropers and the voluntary sector.
Features are mostly the same as for standard business accounts. Here are some of the things you want to look at before picking your bank:
If you want to learn more about business accounts in general, how they work and what features they offer, you can have a look on our business banking hub page.
You should appoint a treasurer, who will be in charge of taking care of all things money and will be regularly reporting to the organisation’s management committee.
You should also agree on a set of financial standards and rules, for example on what types of financial records you will be keeping, how you will do your accounting, how you will deal with cash if you have to, how much you will put aside in reserves, and so on.
Many banks will also offer you some kind of accounting software together with your community account. If you can get it for free or at a cheap price, it’s a great way of streamlining your finances and will save your treasurer a lot of time and headaches.
Virgin Money - Clubs & Societies Current Account
£0.01
Min. opening balance
£6.50 per month
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0.01 |
Minimum operating balance | £0.01 |
Switch service guarantee | Yes |
Account fee | £6.50 per month |
NatWest - Community Account - Turnover up to £100K
£0
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Lloyds Bank - Treasurers' Account
£0.01
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0.01 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Metro Bank - Community Account
£0.01
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0.01 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Royal Bank of Scotland - Community Account - Turnover up to £100K
£1
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £1 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Bank of Scotland - Treasurers' Account
£0.01
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0.01 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Santander - Treasurer's Current Account
£0.01
Min. opening balance
£0
Account fees
0% AER
Interest (AER)
Interest rate | 0% AER |
---|---|
Minimum opening balance | £0.01 |
Minimum operating balance | £0 |
Switch service guarantee | Yes |
Account fee | £0 |
Opening a community bank account can help you to better manage your organisation’s finances and the great news is, these accounts are usually free of charge. However, it’s important to compare your options carefully to ensure you qualify for your chosen account and that it best meets the needs of your organisation.
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