Business Bank Accounts for Non-Profits

Getting your charity or community group bank-ready

Opening the right bank account is one of the first practical steps for any UK non-profit. It keeps money safe, separates personal and organisational funds, and gives trustees and volunteers the tools to manage income and pay suppliers properly. The good news is that most charities, clubs, associations, community groups and CICs can access dedicated non-profit or business accounts. Many mainstream banks offer specialist community or charity options alongside their standard business accounts, with features tailored to governance and audit needs.

While free day-to-day banking is common for smaller organisations, it usually depends on your annual income staying under a specific threshold. Digital access, cash handling via branches or the Post Office, and rules around multiple signatories all differ by provider. Understanding these details at the outset helps you choose an account that fits how your organisation actually works.

Strong financial controls start with the right account structure and clear signatory rules.

Who will find this useful

If you run or are setting up a UK charity, CIC, club, association or informal community group, this guide will help you navigate account types, eligibility, fees, signatory requirements and everyday practicalities. Treasurers, trustees and volunteer finance leads will find clear steps to prepare documents, avoid delays and keep costs predictable.

What non-profit business accounts really offer

Non-profit-friendly bank accounts are current accounts designed for organisations rather than individuals. Many high-street names provide dedicated community or charity accounts, with typical features like debit cards, online banking, Post Office deposit access, and the ability to add multiple signatories. Some accounts explicitly support dual authorisation for online payments, which can strengthen internal controls.

Eligibility is broader than many expect. You do not need to be a registered charity to get a suitable account. Clubs, associations and community groups can often use a community or treasurer’s account, and CICs usually open a business account suitable for limited companies. Free everyday banking is common for smaller organisations, typically while annual income remains below a set cap, often around £100,000 to £250,000. Once you exceed the threshold, standard business tariffs usually apply.

Key idea: match the account to your structure, expected income and operational needs, not just headline fees.

How to set up and manage the account well

Start by confirming your organisation’s legal form and governance. Most banks expect at least two authorised signatories and will ask for your constitution, trust deed or articles, plus proof of identity and addresses for relevant people. Some providers also require at least one signatory to be an existing customer. Preparing these documents before you apply reduces delays.

Decide how you will approve payments. If your organisation requires two people to authorise spending, look for online banking with dual authorisation. Check whether the account includes debit cards, how many users can access digital banking, and whether you can pay in cash and cheques at the Post Office or partner branches. If you regularly handle event income or subscriptions in cash, reliable branch or Post Office access can be as important as fees.

Finally, build a simple policy for reserves. Keep day-to-day funds in the current account and hold longer-term reserves in a separate non-profit savings account to earn interest while maintaining FSCS protection within applicable limits.

Why the right account matters

A dedicated non-profit account improves transparency, supports audits and protects trustees by avoiding the risks of using personal accounts. It enables better controls through multiple signatories and, where available, dual authorisation. Tailored accounts often include features that make life easier for volunteers, such as clear user roles and accessible mobile banking.

Budgeting is easier when you understand fee thresholds. Many community accounts remain free only while income is below a set cap. Planning for the point where you move onto standard tariffs prevents surprises. Ethical considerations matter too. Some providers focus on social impact and responsible lending, which can align with your mission. Separating reserves into appropriate savings accounts helps you earn interest while keeping funds protected under the UK’s deposit guarantee scheme, subject to eligibility and limits.

Pros and cons at a glance

Watchpoints before you apply

Check the free banking threshold and what happens when you pass it. Some banks move you onto standard business tariffs, which can materially increase costs. If your income is close to the cap, compare pricing beyond the threshold rather than only the free period. Confirm signatory expectations early, including how many people can be authorised and whether dual authorisation is supported online.

Look at day-to-day usability. Do you need debit cards for petty cash or online purchases, and how many users require app access? If you collect cash at events, ensure you can pay in at local branches or the Post Office. Review identification requirements for trustees and signatories, especially if you have many volunteers or people without standard photo ID. Finally, align the account type with your structure. Charities, CICs and clubs can face different documentation and eligibility rules.

Alternatives to consider

1. Standard business current account - often suitable for CICs and larger charities that exceed free thresholds.
2. Specialist charity banks - mission-aligned providers with sector expertise and tailored guidance.
3. Building society or community-focused accounts - may offer local branch access and competitive terms.
4. E-money and fintech business accounts - quick setup and modern tools, but check controls and deposit protection.
5. Non-profit savings and notice accounts - ring-fence reserves to earn interest and diversify across institutions.

Frequently asked questions

Do we need to be a registered charity to open a non-profit account?

No. Many banks accept unregistered community groups, clubs and associations, often via community or treasurer’s accounts. Requirements vary, so check the provider’s eligibility list.

How many signatories are required?

Most providers expect at least two, with options to add more. If your policy requires two people to approve payments, look for online dual authorisation to mirror your controls digitally.

Is free banking really free?

Free everyday banking usually applies below an annual income threshold. Once you exceed the cap, standard business tariffs often kick in. Review both the free limits and the post-threshold pricing.

Can we pay in cash and cheques easily?

Many accounts allow deposits via the Post Office or branches. Availability and limits vary, so confirm the nearest options if you handle regular event income or subscriptions in cash.

How should we manage reserves safely?

Keep operational funds in your current account and place reserves in suitable charity or non-profit savings accounts. Consider FSCS protection limits and diversify across institutions where appropriate.

Next steps you can take today

• List your expected annual income and typical transactions for the next 12 months.
• Decide your signatory model and whether you need dual authorisation online.
• Gather governance documents and ID for all signatories.
• Shortlist three providers that meet your income and cash handling needs.
• Open a separate savings account for reserves once your current account is live.

How Switcha can help

Switcha will connect you with the best options for what you’re looking for, from high-street community accounts to specialist charity providers. We compare features that matter to non-profits - signatories, digital controls, cash handling and savings for reserves - so you can make an informed, confident choice without spending hours on research.

Important information

This guide is general information for UK audiences and is not financial advice. Eligibility, features and fees change, and terms vary by provider. Always check current details and consider professional advice where your charity’s governance, tax or investment policies are involved.