As a registered charity in the UK, it is a legal requirement to have a current account in place. The next step is to consider opening a savings account to put your surplus funds in.

A charity savings account operates in a similar way to personal savings accounts and is a specific account offered by banks, or building societies like ourselves, that gives you interest on your reserves.

The available account options and interest rates vary based on the provider so it is essential that you understand the benefits of each account and choose the right option for your organisation.

Charity savings accounts are available to a wide range of not-for-profit organisations, including registered charities, voluntary and community groups, clubs, religious organisations, and societies.

To be eligible, the organisation must operate on a not-for-profit basis and meet the account provider’s criteria, which may include providing a governing document, proof of charitable purpose, and a list of authorised signatories. The account must be used solely for the organisation’s financial activities, not for personal or commercial use.

When a charity or community group applies for a savings account, we will require certain documentation to confirm that the people operating the account have the right permissions from the organisation to do so.

The documentation depends on the type of charity or community group and could include either a resolution from the Board of Directors or a signed mandate. We’ll also need to see identification and proof of residency of the individuals operating the account and any other beneficial owners, for example, those with significant voting rights.

We have a dedicated Savings Business Development Manager who can help you through the entire process. If you would like to talk to someone about our charity savings accounts please email business@mansfieldbs.co.uk.

Subject to product terms and availability, we can accommodate a maximum deposit of up to £1 million per account holder.

Charity savings accounts are designed to help charitable and community-based organisations manage their funds effectively. They are commonly used to hold donations, membership fees, grant funding, or surplus income, while allowing the organisation to earn interest on these balances.

These accounts provide a secure way to set aside reserves for future projects, day-to-day operational costs, or unexpected expenses, while maintaining access to funds when needed.

Choosing the right account for your organisation is essential and there are many factors to consider, such as your available finances, branch locality, interest rates and account type.

To help you make the right decision there are a number of questions recommended by The National Council for Voluntary Organisations (NCVO) that you can ask yourself before opening an account, these include:

• How will you interact with the provider? For example, on the telephone, in-person, or online.
• How do you want to make payments?
• Do you need access to cash?
• Does the provider align with your charity’s mission and values?

Here at Mansfield Building Society, we pride ourselves on our local offerings and specialise in helping local Nottinghamshire and Derbyshire based organisations make the most of their finances.

Charities will need to have ‘mandated individuals’ who can manage and operate the account on the charity’s behalf. These are the people who will be the signatories that can open the account and make withdrawals.

When you open the account you will need to provide documentation that these people have permission from the charity, club or association to manage the account. A full list of the documentation is available on the individual product pages and our Savings Support team can talk you through the process too. Please email the team business@mansfieldbs.co.uk or call us on 01623 676336.

You can pay into the account by a cheque drawn from the charity bank account or by electronic transfer from the charity bank account. Charities, clubs and associations will need to have a bank account to make deposits and withdrawals with us.

Our charity savings accounts have different terms and conditions depending on the product type. Please check the individual account terms in the Summary Box under ‘How do I open and manage my account?’.

You can manage your charity savings account with us either by post or in our branches.

Withdrawals are available subject to individual product terms and conditions. For example, if you choose a fixed rate bond, you will not be able to make withdrawals at all and can only access your money at the end of the fixed rate term (on maturity). However, we also have charity savings accounts that will allow you to make withdrawals, either instantly or  subject to a number of days written notice.

Withdrawals can be by cheque or electronic transfer to the charity, club or association bank account. We do not allow cash or third party cheque withdrawals for charities.

Withdrawals can be made by post or in branch.

For charity savings accounts, up to £85,000 is protected by the Financial Services Compensation Scheme (FSCS) provided you meet the FSCS eligibility. This means that if the bank or building society fails, up to £85,000 of your savings are covered.

Should you want to save more than this amount, the excess could be at risk if the financial provider fails, and in these circumstances, you may want to consider splitting your investment between registered providers to benefit from FSCS protection.

You can find out more here https://www.fscs.org.uk/making-a-claim/claims-process/charities/