Struggling to Open a Bank Account as a CIC, Charity or Community Organisation?

For many community organisations, opening a bank account should be a basic admin task. In reality, it can become one of the first major barriers to getting started. Some CICs, charities, clubs, societies and grassroots groups are rejected, delayed for months, or asked for documents they do not yet understand.

This matters. Without a bank account, organisations can struggle to receive grant funding, separate personal and organisational money, pay suppliers, manage donations, or show funders that they have the right financial controls in place.

The good news is that there are UK banks and banking providers that do explicitly work with charities, CICs and not-for-profit organisations. The right option will depend on your legal structure, turnover, signatories, whether you handle cash, and how quickly you need the account.

Why CICs and charities can find banking difficult

Banks have to carry out “know your customer” and anti-money-laundering checks. That means they may ask for details about trustees, directors, people with significant control, governing documents, source of funds, expected income, international links and the organisation’s purpose.

This can be especially hard for newer organisations, informal community groups, small charities, CICs, or organisations led by people who have not opened an organisational account before. The Charity Commission has previously highlighted widespread banking issues for charities, and reporting by The Guardian noted that 42% of trustees surveyed had experienced banking problems in the previous year.

Before applying, gather your core documents: constitution or articles of association, Companies House or Charity Commission registration, CIC certificate if relevant, proof of identity and address for directors or trustees, minutes approving the account opening, and a clear explanation of what your organisation does.

UK banks and accounts to consider

1. The Co-operative Bank – Charity and Community Account

The Co-operative Bank’s Charity and Community Account is one of the clearest options for social purpose organisations. It is designed for registered charities, community interest companies, co-operatives and credit unions, with no monthly service fee.

This is a strong option for CICs because the bank explicitly lists community interest companies as eligible. Its eligibility checks include requirements around UK residency, UK business address, age of key individuals, and recent credit history.

Best for: CICs, registered charities, co-operatives and credit unions that want a recognised ethical banking option.

2. Unity Trust Bank – Charities and Social Purpose Organisations

Unity Trust Bank is a socially motivated bank that works with charities and organisations trying to create social impact. Its charity banking offer is aimed at organisations that share its values and it has provided banking services to thousands of charities.

UK Finance’s voluntary organisation banking guide lists Unity Trust as offering accounts to registered and unregistered charities, trusts, foundations, community interest companies, charitable incorporated organisations, mutuals, clubs and societies.

Best for: charities, CICs and social enterprises that want a bank familiar with the voluntary and social impact sector.

3. CAF Bank – CAF Cash Account

CAF Bank is a specialist charity banking provider. Its CAF Cash Account is available to organisations registered with a UK charity regulator, the FCA, as a Community Interest Company, as a Community Amateur Sports Club, or those that are exempt or excepted from registration.

CAF Bank is particularly relevant for established charities and social purpose organisations that want a provider focused on the charity sector. It does charge a monthly fee for the CAF Cash Account, which CAF states was reduced from £8 to £5 in 2022.

Best for: charities, CICs and CASCs that want a specialist charity banking provider and are comfortable with a monthly account fee.

4. NatWest – Community Bank Account

NatWest offers a Community Bank Account for not-for-profit organisations. It states that free banking is available while annual credit turnover does not exceed £100,000; if turnover exceeds £100,000 in a 12-month period, the organisation moves onto NatWest’s standard tariff.

This may be helpful for smaller charities and community organisations with modest income and straightforward banking needs.

Best for: smaller not-for-profit organisations with annual credit turnover below £100,000.

5. Metro Bank – Community Current Account

Metro Bank’s Community Current Account is available to UK-based clubs, societies and charities with annual turnover not exceeding £250,000 and a maximum of three account operators.

Metro Bank may be particularly useful for organisations that still need branch access, cash handling, or in-person support. Its charity and not-for-profit sector pages position the bank as providing cost-effective banking services for charities and not-for-profits.

Best for: smaller charities, clubs and societies that value branch access and have turnover under £250,000.

6. Lloyds Bank – Community and Charity Accounts

Lloyds offers bank accounts for community and non-profit organisations, including charities, clubs, associations, societies and places of worship. Lloyds says the right account depends on how the organisation is set up.

This may be worth exploring for charities and community organisations that want a high-street bank with a dedicated community account pathway.

Best for: charities, societies, associations and places of worship that want a mainstream high-street option.

7. Barclays – Charity and Impact Account

Barclays offers a Charity and Impact Account. Its eligibility page says organisations need to be a registered charity, excepted charity, federated associated charity or community interest company.

UK Finance’s guide says the Barclays Charity & Impact Account is for organisations with expected annual turnover below £100,000 and a maximum of three officials or trustees.

Best for: registered charities, excepted charities, federated charities and CICs with relatively low turnover and a small number of officials.

8. HSBC – Charitable Bank Account

HSBC offers a Charitable Bank Account. Its online application route is available where the organisation is a club, society or association, has turnover of £6.5 million or less, has fewer than four people to add to the application, and all key controllers are based in the UK. HSBC says organisations outside those criteria should call to discuss the application.

This may be useful for some larger or more established charitable organisations, although charities have also reported difficulties with HSBC and other large banks in recent years, particularly around compliance checks.

Best for: established clubs, societies, associations and charitable organisations that meet HSBC’s online criteria or can discuss their case directly.

9. Santander – Treasurer’s Current Account

Santander’s Treasurer’s Current Account is for not-for-profit organisations such as clubs, societies or charities registered in the UK with annual turnover of up to £250,000.

Santander’s key facts document says registered charities, exempt charities and organisations with excepted charity status are not charged the monthly fee for the account, although fees apply for some payments and services.

Best for: UK not-for-profit organisations and charities with turnover up to £250,000.

10. Virgin Money – Charity and Club/Society Accounts

Virgin Money offers a Charities Choice Account for charities. It says charities with annual turnover under £1 million are eligible for free day-to-day banking, while charities above £1 million pay a monthly fee and transaction charges.

Virgin Money also offers a Clubs & Societies Current Account for clubs, societies, unregistered charities and non-profit organisations based in the UK, but its terms exclude registered charities from that particular account.

Best for: registered charities looking at the Charities Choice Account, and clubs, societies or unregistered charities looking at the Clubs & Societies Account.

11. Starling Bank – CICs as Limited Companies

Starling’s business account eligibility information says Community Interest Companies are eligible for a Business Current Account, provided the company is registered in the UK at Companies House and all Persons of Significant Control are UK residents.

This may be a useful option for CICs that want a digital-first account and do not need a specialist charity banking product.

Best for: CICs registered at Companies House that want a digital bank account.

Banks that may not currently work for CICs or charities

Some popular digital business accounts are not suitable for charities or CICs. Information correct as of July 2026.

Monzo’s business banking eligibility page says it does not currently support charities, community interest companies, companies limited by guarantee, clubs, trusts or funds.

Mettle says it is for sole traders and limited companies with up to two owners, with only one owner able to access the account. That may make it unsuitable for many charities, CICs with multiple directors, and organisations requiring multiple signatories.

How to improve your chances of being accepted

Before applying, make the bank’s job as easy as possible.

Prepare a short description of your organisation, including who you support, where you operate, how you receive money, and what payments you expect to make. Make sure your Companies House, Charity Commission, website and governing documents all tell the same story. Agree who the signatories or account operators will be, and make sure they can provide ID and proof of address quickly.

If you are a CIC, be clear that you are a company limited by shares or guarantee with a community interest statement and asset lock. If you are a charity, be clear whether you are a registered charity, CIO, exempt charity, excepted charity, trust, association or charitable company.

If you are rejected, ask the bank whether the issue is your structure, missing documents, credit checks, expected activity, international transactions, cash handling, or uncertainty about who controls the organisation. That information can help you apply elsewhere more strategically.

A practical shortlist

For CICs, start by looking at The Co-operative Bank, Unity Trust Bank, CAF Bank, Barclays and Starling, because each explicitly references CIC eligibility in their published information or sector guidance.

For registered charities, look at CAF Bank, The Co-operative Bank, Unity Trust Bank, NatWest, Metro Bank, Lloyds, Barclays, Santander, HSBC and Virgin Money. The best choice will depend on turnover, fees, branch access, cash handling, signatory needs and whether you want a specialist charity provider or a mainstream high-street bank.

Opening a bank account can be frustrating, but rejection from one bank does not mean your organisation is not legitimate. It often means that the bank’s product, risk appetite or onboarding process is not the right fit. With the right documents and a targeted shortlist, CICs, charities and community organisations have several routes to getting properly banked.