Choosing the right bank account for your church

Choosing the Right Bank Account for Your Church

Choosing the right bank account is an important decision for any church. With so many options available, the choice can feel overwhelming, especially for smaller congregations without dedicated finance staff.

The 2024 Charity Banking Challenges report shows that nearly a third of charities (32%) have found it difficult to open new accounts. Many churches and faith-based organisations have faced similar frustrations with mainstream banks.

Yet having the right account is vital for your church’s long-term sustainability. It protects your funds, enables you to claim Gift Aid, and is usually a requirement when applying for grants. A bank account also makes it easier for supporters to give in ways that suit them—whether online, by cheque, or by BACS.

So where should your church begin? Here are five important factors to consider when choosing a bank account.

1. Reputation and financial stability

Your church’s resources are there to support its mission, so it is important to ensure they are safe. Look at a bank’s reputation and track record for financial stability.

Independent surveys, such as the Charity Excellence Framework and BVA BDRC service quality reports, provide useful comparisons of banks. These cover customer service, account management, and online banking.

Always check that your chosen bank is regulated by the Financial Conduct Authority (FCA) and that deposits are protected by the Financial Services Compensation Scheme (FSCS). This scheme safeguards eligible deposits up to £120,000.

2. Services designed for charities and churches

Many banks do not always understand how charities and churches operate. The 2024 survey found that 92% of respondents experienced issues, often linked to governance or trustee requirements. For example, some banks ask for personal information from all trustees, not just authorised signatories, creating unnecessary challenges.

Time spent resolving banking issues is time taken away from ministry and community work. When researching banks, consider whether they have experience with charities and churches, and whether their processes are straightforward.

3. The quality of customer service

Church treasurers, trustees, and volunteers often manage accounts alongside many other responsibilities. Accessible, reliable support is essential.

Look for banks that make it easy to resolve issues through multiple channels, such as phone, email, or webchat. Independent ratings and feedback from other charities and churches can be particularly helpful. Pay attention to processes such as changing signatories, which 77% of charities in the survey reported as difficult.

4. Security and fraud protection

Churches are not immune to fraud and scams. Choose a bank with strong security, including two-factor authentication, dual authorisation for payments, and clear fraud-detection measures. Safeguarding your church’s funds is part of responsible financial management.

5. Ethical and values-based banking

Many churches want their financial decisions to reflect their wider values. That includes considering how banks invest the funds placed with them.

Ask whether a bank invests in areas that align with your mission and whether it has commitments to sustainability. Tools such as Bank.Green can help you check a bank’s environmental record. Thinking carefully about where your church’s money is held ensures that resources are being managed in a way that sits comfortably with your congregation.

Banking with purpose

A bank account is more than a financial necessity. For churches, it is also part of good stewardship, ensuring that funds are managed responsibly, donations are received securely, and resources are available to support ministry and community life.

CAF Bank already works with more than 3,000 faith organisations, including churches, across the UK. We understand the unique challenges faith communities face, and we are committed to providing accounts and services that make managing church finances simpler and more secure.

By choosing a bank that is financially stable, understands the charity sector, provides good customer service, protects against fraud, and aligns with your values, your church can ensure its resources are stewarded wisely and well.

Questions for Church Treasurers to Ask a Bank

When considering a new bank account, here are some helpful questions to guide your discussions:

Reputation and stability

• Is the bank regulated by the FCA?
• Are deposits protected by the FSCS up to £120,000?
• What is the bank’s track record with charities and community organisations?

Services for churches and charities

• Does the bank understand charity governance (e.g. multiple trustees, signatories)?
• Will personal information be required for all trustees, or only for authorised signatories?
• Are there specific account options tailored for charities or churches?

Customer service

• How easy is it to contact the bank (phone, email, webchat)?
• What support is available for volunteers or part-time treasurers?
• How straightforward is the process for changing signatories?

Fraud protection

• What security features are in place (e.g. two-factor authentication, dual authorisation)?
• How does the bank detect and prevent fraudulent transactions?
• What support is offered if fraud does occur?

Ethical and values-based banking

• Does the bank invest in areas that align with our church’s values?
• What commitments does it have to sustainability and responsible investment?
• Can the bank provide transparency on how it uses deposited funds?

Learn more about the full range of products offered by CAF Bank.