CAF Bank

CAF Bank is a UK bank for charities, social enterprises and other not-for-profit organisations rather than for ordinary personal customers. It takes deposits and it lends, and its customers reach their money day to day through Post Office counters rather than a branch network of its own. Cash withdrawals are made with a barcoded slip the bank provides, not a debit card, and a cheque paid in at a Post Office takes an additional working day to clear¹.

Its FCA permissions cover two things: accepting deposits, and entering into regulated credit agreements as a lender, with high-cost short-term credit, bill of sale agreements and home collected credit carved out¹. In practice that means it banks organisations and lends to them on ordinary commercial terms, and it is not in the payday, logbook or doorstep lending markets.

Deposits held with the bank are covered by the Financial Services Compensation Scheme, which protects deposits, current accounts and savings accounts⁴. If you are looking for a personal current account or a personal savings account, this is not the provider for that; the current accounts and savings guides cover what personal customers can choose from.

What CAF Bank offers

CAF Bank's core business is deposit-taking and lending for organisations rather than individuals. Its FCA permissions list two things: accepting deposits, and entering into regulated credit agreements as a lender, with high-cost short-term credit, bill of sale agreements and home collected credit carved out¹. The carve-outs matter because they rule out the kinds of lending that attract the most consumer complaints, and they tell you what kind of lender this is: one that lends to organisations on ordinary commercial terms.

On the deposit side, the bank sits in the same regulatory category as the high street names. The Bank of England's list of banks incorporated in the UK and authorised to accept deposits includes CAF Bank Limited alongside the large retail banks². That listing is what makes it a bank rather than a payments firm: it can hold deposits in its own right.

The company behind the brand has been trading for a long time. CAF Bank Limited was incorporated on 2 August 1984, has company number 01837656, and its company status is active⁵. That is a matter of public record rather than something a customer needs to act on, but it is the kind of detail worth checking if you are verifying who you are dealing with.

If you are looking for a personal current account, this is not the place to find one. The section guide on current accounts explains what personal accounts include and how they differ, and the savings guide covers personal deposit accounts. CAF Bank's own site, at the address recorded on the FCA Register, is where its current product terms and charges sit¹.

Borrowing from CAF Bank

CAF Bank lends. Its FCA permissions include entering into a regulated credit agreement as Lender, excluding high-cost short-term credit, bill of sale agreement and home collected credit agreement¹. Read plainly, that means it can advance credit to the organisations it banks, but it is not in the business of payday loans, logbook loans or doorstep collection.

The exclusions are the useful part for anyone trying to work out what a lender does.

If you are checking any lender, the FCA's own method is straightforward: search the firm by name, select the borrowing permission, and check that the firm is Authorised and has permission to lend you money on an unsecured basis⁶. That check takes a couple of minutes and it is the same check whether the lender is a household name or one you have never heard of.

For personal borrowing, the loans guide sets out the main types and how interest is calculated, and the credit cards guide covers revolving credit. Borrowing for a business or a charity is a different market with different documentation, and the terms sit with the lender.

Banking with CAF Bank at the Post Office

Post Office counters act as a shared branch network for the banking industry. They offer simple banking facilities such as withdrawing and depositing cash and cheques for customers of nearly all banks⁷. The Post Office itself says its everyday banking service works with most UK personal and business bank accounts³.

The scale is the point. According to UK Finance, 99% of retail banking customers can carry out basic banking at the more than 11,500 Post Offices across the UK⁸. For an organisation whose local bank branch has closed, that network is often the nearest thing to a counter service.

What you can do at a counter depends on who you bank with. Typical services include:

• Withdrawing cash
• Paying in cheques
• Checking your balance
• Paying bills⁹

The Post Office lists taking out cash at counters and ATMs, depositing cash or cheques, and checking your account balance among its everyday banking services³.

There is a wider policy backdrop here. The FCA's cash access rules allow a range of solutions where access is thin, including ATMs, banking hubs or adapting Post Office branches¹⁰. Banking hubs provide face-to-face services and are operated by the Post Office¹⁰. For a small organisation in a town that has lost its last bank branch, that combination is often the practical answer.

Withdrawing cash with a barcoded slip

CAF Bank customers withdraw cash at the Post Office using a barcoded slip provided by CAF Bank³. That is a different mechanism from the debit card and PIN most personal customers use. The Post Office's own list of providers shows the split clearly: some banks accept a card or a barcoded slip, while others, including CAF Bank, work on the slip alone³.

The slip is generated by the bank and carries a barcode the counter terminal reads. Because the transaction is authorised against the slip rather than a card, there is no PIN entry at the counter. If a slip is lost, the bank is the point of contact, not the Post Office.

For comparison, where a card is used, the requirements are the usual ones. Santander, for example, tells customers they need their debit card and PIN or their cash card and PIN to withdraw cash at a Post Office, and that standard cash machine withdrawal limits still apply to ATM withdrawals made there¹¹. Those are Santander's terms, not CAF Bank's, but they show the pattern: card-based access brings card-based limits.

Some current accounts allow free cash withdrawals at the Post Office, and the rules vary by bank. Citizens Advice notes that some banks will let you cash a current account personal cheque or use your cash card at the Post Office free of charge, and suggests asking your local post office¹². The Post Office describes its cash withdrawals and deposits as fee-free for selected banks, with restrictions applying³.

Cheques paid in at the Post Office take an extra working day

CAF Bank states that a cheque deposited at a Post Office using a paying-in slip takes an additional working day to clear³. That is a specific, stated consequence of using the Post Office route rather than another paying-in method.

To see what that means in practice, compare it with how cheque clearing normally runs. Santander tells its customers that funds will typically become available by 5pm the next working day once the cheque reaches its clearing centre, which is usually two working days after it was paid in¹¹. Those are Santander's timings, not CAF Bank's, but they show the shape of the process: the cheque travels to a clearing centre, and the clock starts when it arrives.

The extra day is not a penalty and it is not a sign of anything wrong. It reflects the fact that a cheque handed over at a Post Office counter has an extra leg in its journey before it reaches the bank's own processing. If timing matters, paying in through a route that goes straight to the bank avoids the additional day.

Cheques are slow in general, and it is worth planning around that. Paying a self-assessment tax bill by Bacs or by cheque in the post can take around three days, and cheques can take much longer to arrive if the post is delayed¹⁴. Where a payment has a deadline attached, the clearing time is part of the calculation, not an afterthought.

Opening an account with CAF Bank

Opening an account with any bank follows a similar pattern. You usually fill in an application form, in a branch, online or sometimes over the phone, and provide proof of identity including your full name, date of birth and address¹³. Most banks let you choose to apply in person or online¹⁵.

The identity checks are not optional and they are not a judgement on the applicant. Banks are required to verify who they are taking on as a customer, which is why documents are requested and why applications sometimes stall while evidence is gathered. Having the paperwork ready before starting is the single thing that most shortens the process.

Eligibility rules vary by provider and by account type. Some accounts are open to people who would not pass a credit check for a standard current account, and the current accounts guide explains how those work. For organisations, the equivalent questions are about legal structure, governing documents and who is authorised to operate the account, and CAF Bank's own site is where its requirements are set out¹.

If you are new to the UK, the position is usually workable. You can usually open a bank account if you have refugee status¹⁵. The getting started guide covers the basics of setting up your money in the UK, and the how-to section walks through everyday tasks step by step.

Complaints and where to get help

If something goes wrong with a CAF Bank account, the first step is the bank's own complaints procedure. If that does not resolve it, the Financial Ombudsman Service is the free, independent route for banking and payment disputes. Its remit covers current accounts, savings accounts, direct debits, money transfers, electronic payment platforms, cheques and banker's drafts¹⁶.

The ombudsman service is free to use and it is designed for consumers and small businesses. Complaints are made by filling in the service's complaint form¹⁷. You normally need to have given the firm a chance to put things right first, and there are time limits on bringing a complaint, so it is worth starting the process rather than sitting on it.

The ombudsman route is not limited to banks. Credit unions, for example, tell their members that complaints can be taken to the free Financial Ombudsman Service if they are unhappy with the final response or the timeframe has passed¹⁸. The same principle applies across regulated financial firms: the firm first, then the ombudsman.

For debt problems, separate free help exists. StepChange Debt Charity points people towards the ombudsman as part of its support¹⁹. The debt guide sets out the options and the rights that come with them, and the consumer-protection guide explains the wider framework of rules that firms have to follow.

How money held with CAF Bank is protected

Deposits with CAF Bank are covered by the Financial Services Compensation Scheme. The scheme's coverage includes deposits, current accounts and savings accounts⁴. It only covers financial services firms that have been authorised by the Financial Conduct Authority or the Prudential Regulation Authority to do business in the UK²⁰, and CAF Bank meets that test on both counts¹.

The scheme's rules are set by UK regulators, the Financial Conduct Authority and the Prudential Regulation Authority²¹. Protection applies per eligible depositor per authorised firm, so if you hold money with more than one brand that shares a single licence, the limit is shared rather than doubled. The current limit is set out on the FSCS website, and it is worth checking there rather than relying on a figure you remember.

Two practical points follow. First, the FSCS covers deposits, not every product a bank might sell; the scheme publishes separate guidance on what it does and does not protect, including on whether it protects financial advice²². Second, where a savings product is offered through a partner arrangement rather than directly by a bank, protection depends on the contractual arrangements behind it, and the FSCS has said as much to Which?²³. That is a reason to check the terms of anything that looks like a savings account but is not held directly with a bank.

If a bank does fail, the process is well established. Which? sets out what to do if your bank goes out of business, including how claims work²⁴. The savings guide covers how deposit protection fits with the accounts people actually hold, and the regulation-policy guide explains who makes the rules and how changes reach consumers.