Charity bank accounts vary in terms of the interest paid, the services offered and the fees charged, so if you're looking for a charity current account then it's important to shop around to get the best deal.
Finding the right deposit accounts for charities
There are several factors that you should consider when shopping around for the best charity accounts.
Firstly, you should look at the interest rate that will be paid on your deposits.
Interest rates on charity bank accounts tend to be very low and so squeezing every bit of extra interest you can is crucial. Hundreds of pounds could be lost on interest payments each year if you don't shop around for the most competitive bank.
Secondly, look for any fees that the bank may charge you. Some charity bank accounts carry a monthly or quarterly fee and you may also find that there are other fees for benefits such as overdraft facilities.
Thirdly, you should also consider how easy it is to operate your charity deposit account. Is there a branch local to you that you can use? Do you want to operate your account using internet or telephone banking? And, do you need a dedicated member of staff that can help you manage your charity money?
How to open a charity bank account
Once you have chosen which charity current account you wish to open - this is normally done through a resolution at a committee meeting - then you can open your account.
Many bank and deposit accounts for charities offer a 'dual signing' option whereby cheques and internet banking transactions have to be authorised by at least two different members of the charity.
It is also recommended that trustees should review the authorised signatories on the charity bank accounts so that they remain appropriate to the level of financial activity and risk.
Our charity bank accounts comparison table helps you compare the benefits of a range of accounts in order to help you find the best charity accounts.